Madras HC's order arresting vessel, Tug Varahi withdrawn after warring parties enter compromise [Read orders]
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Madras HC's order arresting vessel, Tug Varahi withdrawn after warring parties enter compromise [Read orders]

Earlier, the Court had allowed urgent ad-interim relief sought for by one of the parties and passed an on order on June 13, Saturday to direct the arrest of the vessel at Adani Port, Kattupalli.

Meera Emmanuel

A tussle over whether the Tug vessel Varahi could be allowed to sail away from the Adani Port, Kattupalli recently reached an amicable end, culminating in the Madras High Court withdrawing its earlier ex parte order directing its arrest (Angre Port Private Ltd. v. Owners and Parties interested in the Vessel TUG VARAHI).

On June 13, Justice M Sundar took up be plea moved by Angre Port Pvt. Ltd mentioned a day earlier on Friday, June 12. Given the urgency cited, the Judge proceeded to hear the applicant the following day i.e. Saturday.

The Court was appraised of a pending dispute before the Bombay High Court over the ownership of the vessel that had earlier been docked at Angre Port between May 2019 and February 2020.

The Bombay High Court had ordered the arrest of the vessel at the time, although this arrest was subsequently lifted after the parties to the dispute filed consent terms.

One of these parties had also undertaken to pay Angre Port all relevant charges due. Based on the letter of undertaking, Angre port had issued a letter of clearance allowing Tug Varahi to sail out of the port.

However, when the party failed to pay the charges promised, Angre Port approached the Madras High Court with a suit for the re-arrest of Tug Varahi at the Adani Port in Kattupalli where it was docked at the time.

On June 13 evening, the Madras High Court found that a prima facie case was made out Angre Port's favour and issued an ex parte interim order directing the arrest of the vessel at the Adani Port, a day before the Tug Varahi was scheduled to sail away. A warrant of arrest was served on the vessel in the early hours of June 14.

By the time the Madras High Court took up the matter again on June 26, this time by a Bench of Justice N Sathish Kumar, the parties had come to a compromise.

In his order, Justice Kumar noted that both counsel had submitted that they arrived at a consensus for settlement and that post-dated cheques had also been issued. The memo of compromise between the parties was filed before the Court.

In this backdrop, the defendant (owners of the vessel) urged the Court to direct the release of the vessel, lest it continued to invite several expenses. Accordingly, the Court disposed of the matter, recording:

"In such view of the matter, as the matter has been settled between the parties, the ship stationed in Adani Port, Kattupalli may be released and the Order of arrest of the ship is withdrawn. The memo of compromise entered between the parties is recorded. "

Advocate Prathamesh Kamat, along with Advocates Pooja Tidke, Krushi N Barfiwala, Ryan Mendes and Yash Bajaj from Parinam Law Associates appeared for Angre Port. Advocate Subharanjani Ananth appeared for the defendant.

Read the orders:

Angre Port Private Ltd. v. Owners and Parties interested in the Vessel TUG VARAHI - June 26 order.pdf
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Angre Port Private Ltd. v. Owners and Parties interested in the Vessel TUG VARAHI - June 13 order.pdf
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