Private treaty sale of tug vessels approved through Official Liquidator, with distribution of sale proceeds deferred.

Permission was granted for sale of two tug vessels by private treaty through the Official Liquidator after the court found the valuation reports reliable and the purchaser's offer reasonable. The company was in liquidation, so the assets had to be dealt with under the Official Liquidator's supervision. The crew's objection was confined to distribution of the sale proceeds, and that issue was deferred for later consideration. The court therefore allowed the sale while keeping the distribution of proceeds and any declaration of dividend pending.

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Issues: Whether permission should be granted for sale of two tug vessels by private treaty through the Official Liquidator on the basis of the valuations and the offer received, while deferring distribution of sale proceeds.

Analysis: The Applicant claimed to be a registered mortgagee and sought permission to sell the vessels under Section 51(1) of the Merchant Shipping Act, 1958. The Court noted that the company was in liquidation and that the properties had to be dealt with under the aegis of the Official Liquidator. It found the valuation reports for the two tugs reliable and saw no objection from the Official Liquidator to those valuations. The offer placed by the proposed purchaser was treated as reasonable. The objection raised by the crew was confined to distribution of the sale proceeds, and the Court held that such distribution or declaration of dividend would be considered later.

Conclusion: Permission was granted for sale of the two tugs by the Official Liquidator to the proposed purchaser, and the question of distribution of sale proceeds was kept pending for later hearing.

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