Petromarine Products Ltd vs Ocean Marine Services Co. Ltd. &Amp; Anr

4. It is worth to note here that the tender of M/s. Jansee Steel Industries had been challenged by another company M/s. Bancorex by way of another suit being O.S.A.No.15 of 1998, which ultimately was allowed on 23.4.1998 by Madras High Court by setting aside the confirmation of sale made in favour of M/s. Jansee and the matter was remanded to the Single Judge to ensure that the best possible price is secured. Consequently, learned Single Judge accepted the only bid of M/s. Jansee Steel Industry Pvt. Ltd. for a sum of US$ 4,70,000 and they were directed to pay the balance consideration within three weeks, failing which the earnest money deposited by them would stand forfeited. Advocate commissioner was also directed to deposit the entire amount to the credit of the suit. Madras High Court confirmed the sale made in favour of M/s. Jansee Steel Industry Pvt. Ltd. on 05.10.1998 and ordered reimbursement of cost of sale, payment to the crew members and charges to the statutory authorities.

5. On 25.09.1998, Bombay High Court informed the passing of ex-parte decree in favour of appellant and asked Registrar of the Madras High Court to remit the funds lying attached pursuant to Order 21 Rule 52 Notice. On 7th October 1998, Bombay High Court made a further order in favour of the appellant who filed execution petition in the Bombay High Court. The Registry of Bombay High Court sent letters dated 28.01.1999, 09.03.1999 and 11.03.1999, requesting the Registrar of the Madras High Court to give reply for non-remittance of the attached funds. Finally, on 03.09.1999, Bombay High Court gave liberty to the appellant, to obtain suitable orders from the Madras High Court and closed the Execution Application.

17. We have elaborately heard the learned counsel appearing for the parties. It has been pleaded on behalf of the appellant that the appellant had obtained a decree for a sum of US$ 50,081.74 with interest from the Bombay High Court in a suit against the judgment debtor and had also obtained an order of sale of a ship of the judgment debtor which was lying in the territorial waters of India at Madras. The said ship had also been attached by the orders of the Madras High Court in a suit filed by respondent No.1 for US$ 15,975.04. The Division Bench of the Madras High Court on 17.4.1997 appointed an Advocate Commissioner in order to bring the said ship to sale, with a view to preserve/prevent her from deterioration and thereby protect her creditors. It is further pleaded that in April, 1997 the ship was brought to sale and on 26.5.1997 an earnest money of Rs.35,60,000/- was received by the Advocate Commissioner from one M/s. Jansee Steel Industries Pvt. Ltd. On 24.8.1997, the bid of Jansee Steel Industries Pvt. Ltd was accepted and the Madras High Court confirmed the sale in its favour and the balance amount was directed to be remitted. The Advocate Commissioner was informed about the decree of the appellant on 25.9.1997. On 24.1.1998, the Madras High Court again confirmed the sale in favour of M/s. Jansee Steel Industries Pvt. Ltd. In April 1998, however, the said sale was set aside in appeal and a fresh sale was directed.

30. In the facts and circumstances of the case and having regard to the law settled, so far the admiralty jurisdiction of the Court is concerned, we do not find any reason to differ with the findings recorded by the Division Bench of the High Court in the impugned order. For the reason aforesaid, we do not find any merit in this appeal, which is accordingly dismissed, however with no order as to costs.

..................................J. (M.Y. Eqbal) ..................................J. (Shiva Kirti Singh) New Delhi February 17, 2015 ITEM NO.1A COURT NO.11 SECTION XII S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeal No(s). 6156/2005 PETROMARINE PRODUCTS LTD. Appellant(s) VERSUS OCEAN MARINE SERVICES CO. LTD. & ANR Respondent(s) [HEARD BY HON'BLE M.Y.EQBAL AND HON'BLE SHIVA KIRTI SINGH, JJ.] Date : 17/02/2015 This appeal was called on for judgment today.

For Appellant(s) Ms. Fereshte D. Sethna, Adv.

Mr. Kuber Dewan, Adv.

Ms. Akriti, Adv.

Hon'ble Mr. Justice M.Y.Eqbal pronounced the judgment of the Bench comprising His Lordship and Hon'ble Mr. Justice Shiva Kirti Singh.

The appeal is dismissed in terms of the Reportable judgment, which is placed on the file.