LexWORLD TANKER CARRIER CORPORATION versus SNP SHIPPING SERVICES PVT. LTD. AND ORS.
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A WORLD TANKER CARRIER CORPORATION v. SNP SHIPPING SERVICES PVT. LTD. AND ORS. APRIL 20. 1998 B (SUJATA V. MANOl-IAR, S.P. KURDUKAR AND D.P. WADHWA, JJ.] Merchant Shipping Act, 1958 : Sections 352-A 352-C and 352-F(J). limitation of liability-Action for-By owners of sea-going vessel- C Jurisdiction of court-Collision took place between two vessels, both of which were foreign vessels, on the high seas off the coast of a foreign country-The owners or charterers, managers or sub-managers were foreign companies except onzv one of the managers which was an Indian company- Al/ the claimants/defendants were foreigners who neither resided in India D nor did any business in India, nor submitted to the jurisdiction of any court in India, nor filed any liability action in India-Indian company recruited crew of one of the vessels in India whir.h was brought to a port in India after '-< filing of suit for limitation action-Foreign defendant appeared before Indian court under protest to contest jurisdiction-Held: Any court in which liability action is filed or is likely to be filed, such as a court of domicile 0/ the owner E or of the ship has jurisdiction-In the circumstances of the case, Indian court will have no jurisdiction-Presence of foreign defendant in Indian court would also not confer jurisdiction on that court-Colonial Courts of Admiralty Act, 1891-Admira!ty Courts Act, 1811. F Sections 2 & 3(15) and Part X-A-limitation of liability-Action for- By owners of sea-going vessel-Nature of-Held : The action is not against any vessel-Hence Ss 2 & 3(15) not attracted-Part X-A confers a right in person am on the owner of the vessel-Cl. I 2 of letters Patent has no application because Cl. 32 governs limitation action-Similarly, S. 20 CPC also not attracted-Letters Palen/ of Bombay High Court, C/s 12 & 32- G Code of Civil Procedure, 1908, S.20. The appellant, a foreign company, owned a vessel New World registered in a foreign country which was involved in a collision in international waters off the coast of a foreign country with a vessel, YA Mawlaya, registered in a foreign country and owned by a foreign company. As a result of the H collision eight crewmembers of the vessel New World died. There were 1032 WORLD TANKER CARRIER CORPN. 1-. SNP SHIPPING SERVICES PVT. LTD. 1033 injuries to some of the crewmembers and there was damage to the both the A vessels. There was also damage to the cargo, which been loaded on the vessel YA Malwlaya in New Orleans, USA. The owner of YA Mawlaya had entered into a management agreement with the respondent, a company registered in India, for had management of YA Mawlaya. Thereafter, the owner of YA Mawlaya sold the vessel to another foreign company and became bare boat charterers of the vessel. According to the appellant, on the sale of the said B vessel, the owner's agreement with the respondent came to an end whereas according to the respondent they were put in charge of recruiting crew and officers of the said vessel. The respondent entered into a sub-contract with a foreign company for commercial management of the vessel YA Mawlaya. Thereafter, several proceedings were adopted by various claimants ag:iinst the owners of YA Mawlaya in the District Court of New Orleans, which included an action, by the appellant for recovery of damages for damage to its ship New World. The legal heirs of some of the crewmembers who died in the collision also filed civil actions for various amounts. During the pendency of all these proceedings, the respondent filed an Admiralty Suit in the High Court for limitation of the respondent's liability in respect of the said collision. The respondent prayed i11ter a/ia for setting up of a limitation fund, for an indemnity from the owner of YA Mawlaya and c D the appellant in respect of all claims against the respondent relating to the collision. Interim relief was also prayed for restraining those defendants E who had instituted suits in the U.S. Courts or elsewhere from, in any manner, proceeding with the pre-trial proceedings or hearing of the complaints/civil actions instituted by them in the U.S. Courts or elsewhere (anti-suit injunctions). Much after the filing of the Admiralty suit the vessel YA Mawlaya was F brought to the port of Bombay under ballast. The vessel was arrested. Later the owner of YA Mawlaya filed an Admiralty Suit in the High Court seeking limitation of its liability and setting up of
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