Indian High Court Orders Arrest of Liberian Ship

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The Madras High Court has directed the arrest of the Vessel ‘TINA,’ a Liberian ship, which is presently anchored at Kamaraj Port, Ennore or wherever found within the territorial waters of India, according The Hindu Newspaper of March 11.

Justice K.K. Sasidharan passed the order on an application moved by STX Corporation, a Korea-based company, for allegedly failing to honour a business transaction.

According to the applicant, the owner of the vessel entered into a sales contract for supply of 492.672 tonnes of residual marine fuel. Pursuant to the contract the applicant supplied the required quantity of residual marine fuel to the vessel. All sales were on credit of the vessel.

It was alleged that even after repeated demand for payment of over US$ 115,038, the vessel owners failed to pay the amount.

Pointing out a clause in the invoice issued by the applicant, which says that buyer is presumed to have authority to bind the vessel with a maritime lien, the applicant wanted the court to order an arrest since the ship is in Indian waters.

Concurring with the applicant’s submissions, the judge appointed advocate Sumithra and Bharathy as commissioner to arrest the ship and file a report by March 16.

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