Cargo Ship Arrested At India’s Paradip Port Over ₹2.11 Crore Unpaid Dues

A Panamanian-flagged cargo vessel, MV Magnet Team, was arrested by the Odisha Police at Paradip Port on October 28, following an order issued by the Orissa High Court in connection with unpaid maintenance dues amounting to ₹2.11 crore.

The High Court’s directive came after Silk Road Shipping & Chartering Limited, a Cuttack-based shipping agency, filed an admiralty suit against the vessel for non-payment of outstanding dues by its operating company.

The case was registered under Section 4(1)(h) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, which deals with disputes related to charter agreements.

Justice V. Narasingh, presiding over the High Court’s Admiralty Jurisdiction, ordered the vessel’s arrest on 27 October, stating that if the vessel was not detained, the plaintiff’s claim could be frustrated and the case rendered ineffective.

Acting on the order, the court at Kujang issued an arrest warrant against the ship. The police subsequently detained the vessel in the presence of an executive magistrate at Paradip Port.

The Additional Superintendent of Police, Paradip, Smurti Ranjan Kar, informed that the vessel was “placed under safe arrest” and that port authorities have been tasked with providing security to ensure the ship’s safety during detention.

According to port officials, MV Magnet Team (IMO 9233507) is a 24-year-old bulk carrier sailing under the flag of Panama.

The vessel arrived from Russia and docked at the Paradip International Cargo Terminal (PICT) berth on Saturday to unload a consignment of coking coal. Following the court order, it will remain anchored at Paradip until further judicial directions are issued or the outstanding dues are cleared.

The plaintiff requested the High Court to issue a decree directing the defendant vessel to pay ₹2,11,82,656 along with interest at 12 per cent per annum until the dues are settled.

Security measures at Paradip Port have reportedly been tightened following the ship’s detention. The MV Magnet Team will stay under judicial custody until further orders from the court.

References: timesofindia, thestatesman

Source: Maritime Shipping News