Court directs successful bidder in cruise ship auction to deposit fees, allows additional deposits if ship doesn't sail. The court ordered the successful bidder in an auction sale of a cruise ship, concerned about excessive 'Light Dues Charges and Port Charges,' to deposit a ...
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Court directs successful bidder in cruise ship auction to deposit fees, allows additional deposits if ship doesn't sail.
The court ordered the successful bidder in an auction sale of a cruise ship, concerned about excessive "Light Dues Charges and Port Charges," to deposit a specified amount with the Sheriff by a set date. Additional deposits were allowed if the ship did not sail as planned. Upon deposit, the respondents were to issue necessary certificates for sailing. The court kept all contentions open for further consideration and directed the respondents to file a reply within two weeks, with the matter scheduled for listing on 2nd December 2020.
Issues: Interim application for direction on levy of "Light Dues Charges and Port Charges" in conformity with governing provisions.
Analysis: The applicant, successful bidder in an auction sale of a cruise ship, sought direction for the respondents to levy charges in accordance with governing provisions. The ship was sold for scrapping, and delivery was made on 11.11.2020. The applicant raised concerns about alleged excessive demands by respondent No.1 (Customs) for "light dues charges" and by respondent No.2 (Bombay Port Trust) for "Port dues" at a higher rate than permissible, hindering the sailing of the ship. Respondent No.2 claimed anchorage charges of &8377; 1,23,35,351/- for seven days from 11.11.2020 to 17.11.2020, leading to a total of &8377; 1,58,59,737/- to be deposited by the applicant with the Sheriff of Mumbai by 19.11.2020. The applicant also agreed to deposit additional charges if the ship did not sail by the specified date.
The learned counsels debated the legitimacy of the Port charges claimed by respondent No.2, with the applicant contending that charges were higher than warranted, while respondent No.2 argued for uniform charges on all anchored ships. The Court kept all contentions open for further consideration while determining the amount to be deposited. An order was passed for the applicant to deposit the specified amount with the Sheriff by the given date, with provisions for additional deposits if the ship did not sail as planned. Upon deposit, respondent No.2 was to issue a "permission to sail out" certificate, and respondent No.1 to issue a Port Clearance Certificate and NOC for sailing. Communication of the deposit to relevant authorities was mandated, and all rights and contentions regarding charges were kept open for future review.
The respondents were directed to file an affidavit in reply within two weeks, and the matter was scheduled for listing on 2nd December 2020. The order was to be digitally signed for immediate action upon receipt of a digitally signed copy.
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