Chapter 89

Seventh Edition (2012)

Pan India Ship Arrest

The arrest of the Chinese registered vessel, M.V. Tongli Yantai, at Chennai, India by the Bombay High Court in appeal filed by Great Pacific Navigation (Holdings) Corporation Ltd [(Great Pacific)] against M.V. Tongli Yantai, decided on 14th October 2011, highlights the importance of
a. Pan-India ship arrest jurisdiction
b. Admiralty jurisdiction can be acquired if the writ or if the warrant of arrest is executed on the ship when it arrives within the territorial jurisdiction of the court

Great Pacific, a Hong Kong based company, filed a suit in the Bombay High Court against the vessel M.V. Tongli Yantai for security in respect of their claim pending arbitration. At the time of filing of the suit and application for arrest as well as at the time of passing of the order, the vessel was not within the territorial waters of India. The vessel was arrested later when she arrived Indian territorial waters at Chennai.

In this case, the Appeal Court of Bombay High Court allowed that an order from Bombay High Court can be executed in any Indian territorial waters and is in agreement with the decision of the learned single judge answering the preliminary issue with regard to the jurisdiction of the court in Geetanjali Woollen Pvt. Ltd. Vs. M.V. X-Press Annapurna And Ors. dated 9th August, 2005 (2005 (6) BCR 31). It was also held by the single judge that the Court can acquire jurisdiction if the writ or if the warrant of arrest is executed on the ship when it arrives within the territorial jurisdiction of this Court. Although the question on jurisdiction was left unanswered by the appeal court in M.V. X-Press Annapurna And Ors. Vs. Geetanjali Woollen Pvt. Ltd, dated 11th March 2011, as it was in their opinion not necessary to decide that question in appeal. In an unreported appeal court judgment, dated 20th July 2001 in M.V. Umang, the Bombay High Court ruled that its admiralty jurisdiction extends throughout the territorial waters of India.

Based on the above cited decision when the moment comes for decision as to which court of India one should approach for obtaining an order of arrest, Bombay High Court is preferred as order for arrest of a vessel obtained from the Bombay High Court can be executed anywhere in Indian territorial waters, wherever the vessel is found.

However, this pan-India admiralty arrest jurisdiction is only with the Bombay High Court while other High Courts with admiralty jurisdiction i.e. Calcutta, Madras and Gujarat High and other admiralty courts jurisdiction is within their State territorial waters.

 
BCAS: 2102-1013
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