TMI Blog2022 (9) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 50-B of the Port Trusts Act. Under Section 50-B, when a Vessel enters a port but does not discharge or take in any cargo or passengers, she is charged with port dues at a rate to be determined by the Authority, which, in any event, should not exceed half the rate with which she otherwise would be chargeable. The Division Bench rightly allowed the appeal and set aside the order of the Single Bench - Appeal dismissed. - CIVIL APPEAL NO….. OF 2022 (Arising out of SLP (C) NO. 4550 OF 2021) - - - Dated:- 22-9-2022 - INDIRA BANERJEE And J. K. MAHESHWARI , JJ. JUDGMENT Indira Banerjee , J. Leave granted. 2. This appeal is against a judgment and order dated 12th February 2021 passed by the Commercial Appeal Division of the Bombay High Court (Division Bench) allowing Commercial Appeal (L) No. 1557 of 2021 filed by the Respondent No.1, hereinafter referred to as the Port Trust and setting aside an interim order dated 6th January 2021 passed by the Commercial Division (Single Bench) of the same High Court disposing of Interim Application No. 6531 of 2020 filed by the Appellant M/s NKD Maritime Limited, hereinafter referred to as NKD . 3. The Vessel M.V. Karni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. NKD Maritime Limited, free from all encumbrances. This, of course is subject to the entire sale consideration being received by the office of the Sheriff of Mumbai within the stipulated time as mentioned earlier. 11. It is not in dispute that the Bill of Sale also mentions that the bill was being sold free of all encumbrances. However, the successful bidder would be liable to pay the costs, charges, fees and expenses of any kind involved in removing the Vessel. According to NKD, the Respondent No.4, i.e., the Customs Authorities raised a bill on NKD levying Light Dues Charges for the period from 23rd March 2020, i.e., the time when the Vessel arrived at Mumbai Port till the date of its removal. 12. NKD contends that physical delivery of the Vessel was made over to the Appellant on 11th November 2020. General Light Dues charges were payable on and from 11th November 2020. NKD also disputed its liability to pay Anchorage Charges as claimed by the Respondent No.1, hereinafter referred to as the Port Trust . 13. In exercise of powers under Sections 48, 49 and 50 of the Major Port Trusts Act, 1963, hereinafter referred to as Port Trusts Act, the Tariff Authority for M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nika (IMO No.8521220) from her present position will be solely to the account of the successful purchaser. The successful bidder should take over the safety of the Vessel M/V. Karnika (IMO No.8521220) within 24 hours of being declared the highest/successful bidder and payment of the entire sale consideration to be made in this Hon ble Court. xxx xxx xxx 10. The sale is subject to the sanction of the Hon ble High Court of Judicature at Bombay. 11. The offerer(s) or bidder(s) whose offer or bid will be accepted by the Hon ble High Court. Bombay (hereinafter referred to as The purchaser ) shall give an undertaking in the form annexed hereto and complete the purchase according to these conditions and shall also pay the purchase price in accordance with Term No.8 hereinabove, otherwise, the said vessel shall be again put up for sale and re-sold and Earnest Money Deposit of Rs.2,00,00,000/- (Rupees Two Crores only) or equivalent US Dollars and any amount paid towards purchase price shall be forfeited and the defaulting purchases, shall be liable for any deficiency upon such resale together with costs, charges and expenses attending the resale, but shall not be entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he High Court (Single Bench) allowed the application filed by the NKD. 19. While the Port Trust filed Commercial Appeal (L) No. 1577 of 2021 against the order of the Commercial Division, NKD filed a Cross Objection (L) Nos. 2057 of 2021 in the Commercial Appeal. 20. Mr. Siddharth Bhatnagar, learned senior counsel appearing on behalf of the Appellant referred to the terms and conditions of sale of the Vessel and argued that the Vessel had been sold free from all encumbrances. Mr. Bhatnagar also referred to Section 8 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 which reads as under :- 8. Vesting of rights on sale of vessels- On the sale of a vessel under this Act by the High Court in exercise of its admiralty jurisdiction, the vessel shall vest in the purchaser free from all encumbrances, liens, attachments, registered mortgages and charges of the same nature on the vessel. 21. Mr. Bhatnagar argued that the Vessel having been sold on as is, where is basis, free from all encumbrances, any liability in respect of Anchorage Charges or Light Dues Charges which accrued prior to the date of sale would have to be met by the erstwhile owners ..... X X X X Extracts X X X X X X X X Extracts X X X X
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