Aditya Krishnamurthy
Published On July 03, 2023
1. The Appeal Court/ Division Bench of the Bombay High Court in the case of Angsley Investments Ltd. v Jupiter Denizcilik. has held that an action in personam against a foreign shipowner cannot be maintained before an Admiralty Court in isolation to an action in rem against the ship.
2. The Plaintiff/ Bunker Supplier invoked the admiralty jurisdiction of the Bombay High Court, by filing Admiralty Suit No. 15 of 2001 (“AS 15/2021”) and obtained an order of arrest dated 17 May 2001 against M/V Lima II/ Defendant No. 1 for a claim in relation to unpaid bunkers stemmed by the Plaintiff/ Bunker Supplier to M/V Lima II. The Plaintiff/ Bunker Supplier contended that the owner of M/V Lima II/ Defendant No. 2 was in personam liable for its claim.
3. M/V Lima II jumped arrest and escaped from the Kandla Port in breach of the order of arrest dated 17 May 2021 in AS 15/2021 passed by the Bombay High Court.
4. Four months later, in the month of August 2001, the Plaintiff/ Bunker Supplier thereafter filed an interim application in AS 15/2021 seeking an order of injunction against M/V Yim Kim (formerly M/V Lima I) by alleging that M/V Lima II and M/V Yim Kim (formerly M/V Lima I) are sister ships. By an ad-interim order dated 14th August 2001 passed in AS 15/2021, the Bombay High Court restrained M/V Yim Kim (formerly M/V Lima I) from leaving the port of Calcutta.
5. Thereafter, a party claiming to be a purchaser of M/V Yim Kim (formerly M/V Lima I) intervened in AS 15/2021 as was arrayed as Defendant No. 3. The Third-Party Purchaser/ Defendant No. 3 contended that, the Defendant No. 2 (the owner of both M/V Lima II and M/V Lima I) had sold M/V Lima I to one - Mercury Shipholding Inc. an intermediate party who had thereafter sold M/V Lima I to the Third-Party Purchaser/ Defendant No. 3 which is now trading as M/V Yim Kim. Thereafter the order of injunction restraining M/V Yim Kim (formerly M/V Lima I) from leaving the Calcutta port stood vacated in consideration of the Third-Party Purchaser/ Defendant No. 3 securing the Plaintiff/ Bunker Supplier alleged in personam claim against the owner of M/V Lima II/ Defendant No. 2 without prejudice to the rights and contentions of the Third-Party Purchaser/ Defendant No. 3.
6. The Plaintiff/ Bunker Supplier lead evidence before the Court of First Instance and a final judgment/ decree was passed in relation to the claim of the Plaintiff/ Bunker supplier. The Court of First Instance/ Trial Court of the Bombay High Court proceeded to decree the suit in favor of the Plaintiff/ Bunker Supplier by coming to the below findings of fact and conclusions of law:
