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Arrest Regime in India The 3 rd Asian Maritime Law Conference 6-7 May 2010. Landmark Admiralty Judgments . In today’s topic I will first deal with landmark judgments of the Indian Courts Arrest of a vessel for enforcement of claim, judgments or arbitration awards
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Arrest Regime in India The 3rd Asian Maritime Law Conference 6-7 May 2010
Landmark Admiralty Judgments • In today’s topic I will first deal with landmark judgments of the Indian Courts • Arrest of a vessel for enforcement of claim, judgments or arbitration awards • Steps available for release of the vessel by the owners
M.V. Elisabeth – The Bible of Indian Maritime Law • This is the benchmark judgment which is widely followed in most of the arrest cases • A vessel can be arrested in following circumstances • To acquire jurisdiction; • To obtain security for satisfaction of the claim when decreed; and • In execution of a decree
M.V. Golden Progress • An action in rem (admiralty) for recovery of claim and as interim measures, vessel can be arrested where the parties have agreed to submit the dispute to arbitration
M.V. Kapitan Kud • If the Claim is not vexatious but triable vessel cannot be released • Arrestor may have an arguable, even though difficult case, the action would be allowed to proceed to Trial
M.V. A.L. Quamar • A vessel can be arrested in execution, for satisfaction of the foreign judgment obtained in countries having reciprocal jurisdiction viz. United Kingdom, Singapore and Hong Kong. • - Any property of judgment debtor found within the jurisdiction can be attached in execution application
How do I defend arrest proceedings, in India, as vessel owner • Not a party to the contract • Call upon the Arrestor to furnish counter security and not a mere undertaking for damages • Challenge the arrest on merits
If owner unable to put security and if there is a judicial sale Following claims ranks in priority:- • Port dues • Crew claim • Salvage • Bank’s mortgage
If you are an arrestor and security is not being provided by owner in reasonable time • Apply to the Court for repatriation of the crew • Discharge the cargo on board of the Vessel • Apply for appraisement and sale of the vessel • Proceed to trial
Conclusion India is recommended jurisdiction for arrest in an action in rem or for enforcement of judgment
Mr. Prashant Asher Partner M/s. Crawford Bayley & Co. Tel: +91 22 22613850 (D) +91 22 22668000 Ext. 112 Mob: +91 9820068003 Email: prashant.asher@crawfordbayley.com Thank you for your attention