ANU/SC/0951/2003V.N. Khare#S.B. Sinha#2445SC3440Judgment/OrderINSC#JT#MANU#SCALE#SCC#SCR(Supp)S.B. Sinha,Shipping#ShippingSUPREME COURT OF INDIA2012-9-24General,Later Social, Political and Economic Developments and Scientific Inventions,External Aids to Construction,Rejection of plaint.,Plaint,The First Schedule,Appeal From Orders,The First Schedule,Civil Procedure,Interpretation of Statutes56466,52343,16910,16909,16893,20264,77090,16901,89290,20474,20489,2208,56768,56786,56761,17060,22308 -->

MANU/SC/0951/2003

True Court CopyTM English

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 5665 and 5666 of 2002

Decided On: 20.11.2003

Appellants: Liverpool and London S.P. and I Asson. Ltd. Vs. Respondent: M.V. Sea Success I and Ors.

Hon'ble Judges/Coram:
V.N. Khare, C.J. and S.B. Sinha

JUDGMENT

S.B. Sinha, J.

THE BACKGROUND FACT:

1. The appellant (Club) herein is an association incorporated under the laws of the United Kingdom. It is a mutual association of ship owners. It offers insurance cover in respect of the vessels entered with it for diverse third party risks associated with the operation and trading of vessels. According to the appellant, no vessel operates without a Protection & Indemnity (P&I) cover and the same has been made compulsory to allow a ship to enter major ports in India.

2. 'Sea Ranger' and 'Sea Glory' are the sister vessels of the 1st respondent vessel and they are allegedly owned by the 2nd respondent. The first two vessels entered into a contract with the appellant's association for the years 1998-1999 and 1999-2000 but they have not paid the unpaid insurance premium due and payable by the 2nd respondent for various P&I risks for which they had been insured. These unpaid insurance calls being "necessaries" was enforceable within the "admiralty jurisdiction" of the Bombay High Court.

3. For the arrest of the 1st respondent vessel which came to Mumbai Port within the territorial waters of India, a suit was filed by the club inter alia for the prayers : "(a) for a decree against the respondents in the sum of US$1,18,194.89 together with interest at the rate of 12% per annum, which was the unpaid insurance premium amount due to the club and payable by the 2nd respondent; and (b) for arrest of the 1st respondent vessel to secure the claim."

4. On an application for arrest of the 1st respondent vessel having been made, the 2nd respondent appeared and undertook to furnish security in respect of the appellant's claim and further gave an undertaking that until the security is furnished the said vessel will not leave the Port of Mumbai. However, thereafter S.S. Shipping Corporation Inc., Liberia claiming to be the registered owner of the 1st respondent furnished a bank-guarantee in relation to the appellant's claim in discharge of the undertaking of security given by the second respondent. The 1st respondent thereafter took out a Notice of Motion for rejection of the plaint p........