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of <h1>Division Bench rules NKD liable for Anchorage & Light Dues Charges post-sale, clarifies port dues law</h1> <h3>M/s NKD MARITIME LIMITED Versus THE BOARD OF TRUSTEES OF THE PORT OF MUMBAI & ORS.</h3> M/s NKD MARITIME LIMITED Versus THE BOARD OF TRUSTEES OF THE PORT OF MUMBAI & ORS. - TMI Issues:1. Dispute over Anchorage Charges and Light Dues Charges post Vessel sale.Detailed Analysis:The judgment involved a dispute regarding Anchorage Charges and Light Dues Charges after the sale of a vessel in an auction conducted by the Bombay High Court. The Vessel, M.V. Karnika, was sold to NKD Maritime Limited (NKD) in an Admiralty Suit against the backdrop of unpaid bunker charges supplied by Glander International Bunkering DMCC to the Vessel. The sale was conducted free from all encumbrances, as per the terms and conditions of the sale outlined by the High Court.The main contention revolved around whether NKD, as the new owner of the Vessel, was liable to pay the Anchorage Charges and Light Dues Charges accrued prior to the sale. NKD argued that the charges levied by the Port Trust post-sale were not its responsibility, as the Vessel was sold free from all encumbrances. The Port Trust, on the other hand, claimed that the charges were valid as they were based on the period the Vessel spent at the anchorage before the sale.The Division Bench analyzed the terms of the sale, which stated that the Vessel was sold on an 'as is, where is' basis, free from encumbrances. The Bench concluded that the charges post-sale, such as Anchorage Charges, were not considered encumbrances under the sale terms. Additionally, the Bench highlighted that the rates for anchorage charges were based on the duration the Vessel remained docked, and NKD was liable to pay these charges from the date of sale onwards.Moreover, the judgment delved into the interpretation of the Major Port Trusts Act and the definition of port dues. It was argued that the charges, including Anchorage Charges, fell under the broad umbrella of port dues, and the applicable rate was a point of contention. The Division Bench clarified that the issue was not whether the charges constituted port dues but rather the specific rate to be applied.Ultimately, the Division Bench upheld that NKD was responsible for the Anchorage Charges and Light Dues Charges from the date of sale, dismissing the appeal filed by NKD against the order of the Single Bench. The judgment provided a comprehensive analysis of the legal principles governing the sale of vessels, encumbrances, and port charges, resolving the dispute between NKD and the Port Trust effectively.
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