Rajkiran Sadanand Raikar v. Owners & Parties interested in the vessel M. V. Maharshi Mahatreya
2016-07-05
VINEET KOTHARI
body2016
DigiLaw.ai
ORDER : 1. Learned counsels at the Bar submitted that the parties have arrived at a mutual settlement in the present case. 2. The present Civil petition was filed in original admiralty jurisdiction before this Court and initially, this Court passed the following order on 20th June 2016:- “1. Learned counsel for the petitioner, relying upon the decision of the Hon’ble Supreme Court in the case of M.V. Elisabeth & Ors. Vs. Harwan Investment and Trading Co. Ltd. ( AIR 1993 SC 1014 ) submitted that this Court has inherent jurisdiction to exercise its powers under the provisions of Colonial Courts of Admiralty (India) Act, 1891, to secure the interest of the present petitioner who served in the ship known as M.V. Maharshi Bhavatreya between the period October 2013 to November 2014 and for which his wages for the period April 2014 till 6.11.2014 have not yet been paid by respondent 2 M/s Varun Shipping Company Ltd, having its registered office in Mumbai. He submitted that the another sister ship M.V. Maharshi Mahatreya carrying cargo (LPG) is now anchored in New Mangalore Port on 17.6.2016 and is soon likely to sail back beyond the jurisdiction of this Court and therefore, to secure the payment of the outstanding wages and salary of the petitioner which, along with interest at the rate of 18% p.a., as claimed by the petitioner comes to around US $ 96,000 and it being an admitted liability of the respondent company, which it has failed to pay so far on account of its poor financial condition, as admitted by it in the letters placed on record of the present writ petition. 2. He also drew the attention of this Court to the two interim orders passed by coordinate Benches of this Court, one on 9.10.2013 in CP 221/2013 Sapan Garg & Ors. Vs.
2. He also drew the attention of this Court to the two interim orders passed by coordinate Benches of this Court, one on 9.10.2013 in CP 221/2013 Sapan Garg & Ors. Vs. Owners and Parties interested in the Vessel MV Maharshi Vamadeva and respondent 2 Varun Shipping Company Ltd (2nd respondent in the present case also) and another order passed by a coordinate Bench of this Court on 3.9.2015 in CP 221/2015 Sri Nalin Neraj Vs Owners and Parties Interested in the Vessel M V Maharshi Mahatreya and respondent 2 Varun Shipping Co Ltd in which both the coordinate Benches have directed the arrest of the vessel in question belonging to respondent 2 for securing the payment of the wages due to the petitioners, who are ex-employees of the Vessels of same Respondent No.2company. Learned counsel for the petitioner has prayed for a similar order in the present case also. 3. The matter requires consideration. Hence, issue notice to the respondents returnable within a period of three weeks from today. 4. Heard for interim relief also. 5. To maintain parity with the similar cases cited above on interim orders, although they are not precedents, this Court directs that the vessel known as MV Maharshi Mahatreya of the respondent 2 company, which is a sister vessel of MV Maharshi Bhavatreya, on which the petitioner worked during the relevant period as Master, be not allowed to leave the Port of Mangalore without leave of this Court, and the 3rd respondent Deputy Conservator of New Mangalore Port Trust will ensure compliance of this direction. 6. However, it will be open to the 2nd respondent company Varun Shipping Co., Ltd., to furnish adequate solvent security for the alleged outstanding dues of salary and wages of the petitioner in respect of his service rendered on sister ship MV Maharshi Bhavatreya during the period April 2014 to 6.11.2014 to the extent of US $ 96,000 and in case such a solvent security is furnished to the satisfaction of 3rd respondent, the 3rd respondent can release the said Vessel/Ship and the security along with the reply of the 2nd respondent be furnished to this Court along with the reply of the 3rd respondent before the next date of hearing. Put up on 5.7.2016.” 3.
Put up on 5.7.2016.” 3. After two days, on 22.6.2016, upon appearance of the respondents and memo filed by them, the matter was again heard and the following order was passed by this Court on 22.6.2016: “1. The learned counsel for respondent No.2company along with an affidavit of one Mr. Anant Tiwari s/o Sri. Prakash Tewari, working as DGM Fleet Personnel (Admin & HR Account) of respondent No.2’s company M/s. Varun Shipping Company Ltd., has produced 7 Demand Drafts numbered as 192242192248 as per the details given in the memo which are quoted below, totaling to a sum of Rs.64,82,880/- equivalent to the claimed amount of the petitioner US $ 96,000 converted at the rate of Rs.67/per US $. The said Demand Drafts in favour of the Registrar General, High Court of Karnataka, Bangalore, is furnished by way of security as directed in the order dated 20.06.2016 passed by this Court subject to final decision of this petition. The said Demand Drafts will be furnished and made over to the Registrar General’s office of this Court today itself, who will open a separate bank account with reference to this case and deposit the said Demand Drafts in that account. a. D.D. No. 192242 Rs. 9,50,000/- b. D.D. No. 192243 Rs. 9,50,000/- c. D.D. No. 192244 Rs. 9,50,000- d. D.D. No. 192245 Rs. 9,50,000/- e. D.D. No. 192246 Rs. 9,50,000/- f. D.D. No. 192247 Rs. 9,50,000/- g. D.D. No. 192248 Rs. 7,82,880/- Total Rs. 64,82,880/- 2. The claim of the present petitioner is on the account of salary and wages of the petitioner in respect of his service rendered on a sister ship belonging to the respondent No.2company known as M.V. Maharshi Bhavatreya for the period April 2014 to 06.11.2014 as noted in the previous order dated 20.06.2016. Instead of furnishing the security before the 3rd respondent-Deputy Conservator of New Mangalore Port Trust, the 2nd respondent-company has furnished the security by way of aforesaid 7 Demand Drafts before this Court in favour of Registrar General, which is accepted and the said memo along with the Demand Drafts are taken on record with the further direction that the Demand Drafts will be encashed and deposited in the separate account by the Registrar General of this Court as aforesaid. 3.
3. Learned counsels at the bar submitted that out of the said amount of Rs.64,82,880/-approximately Rs.46 lakhs & odd are on account of the salary and wages of the petitioner and the remaining part is in account of claimed interest on such dues and the said amount of Rs.46 lakhs may be released in favour of the petitioner out of the said dues of salary and wages of the petitioner. 4. Subject to the final decision of this civil petition, including the question of maintainability of the civil petition before this Court, for which the following questions of law are framed for further consideration by this Court, it is directed that the Registrar General of this Court will take out a Demand Drafts from the same Bank to the extent of Rs.40 lakhs from the Catholic Syrian Bank Limited payable in favour of the petitioner Rajkiran Sadanand Raikar and the said crossed Demand Drafts will be handed over to the said petitioner or his Authorised Signatory or Representative after obtaining due acknowledgment thereof. Such payment of Rs.40 lakhs to the petitioner is in part satisfaction of his claim and will remain subject to the final decision of this civil petition and it shall be given upon the petitioner furnishing a personal undertaking and a bond before the Registrar General that in case, this civil petition is dismissed for any reason, he would refund back this amount of Rs.40 lakhs with interest at the rate of 8% p.a. from the date of the receipt of payment by him till the date of refund. 5. Upon the said deposition of the 7 Demand Drafts with the Registrar General, and issuance of acknowledgment thereof, the Respondent No.3Deputy Conservator, Mangalore Port, shall be at liberty to release the ship known as M.V. Maharshi Mahatreya which is presently anchored at the Mangalore Port and the interim order dated 20.06.2016 passed by this Court shall stand accordingly modified. 6. The following questions of law are framed for consideration by this Court at the admission/final hearing stage:- (i) Whether the Civil Petition under Sections 9 and 26 r/w Order 7 Rule 1 of CPC in the nature of a civil suit is maintainable in the original Admiralty jurisdiction of this Court in the absence of any specific law enacted by Parliament of India conferring such jurisdiction on this Court?
(ii) Whether the decision of the Hon’ble Supreme Court in the case of M.V. Elizabeth & Others vs. Harwan Investment & Trading Co. Ltd. ( AIR 1993 SC 1014 ), applies to the facts of the present case and whether it is sufficient to confer such original jurisdiction upon this Court to entertain the aforesaid civil petition? (iii) Whether without determination of the dues of the petitioner on account of salary and wages and interest thereon, as claimed by the petitioner in terms of the contract of employment between the parties, by a competent Civil Court or Authority created under some specific law, whether the arrest of the ship or a sister ship belonging to the respondent No.2 company can be directed by the Court or not? 7. The learned counsels are directed to address the arguments on these questions of law on the next occasion and also furnish the brief synopsis along with the relevant Case laws relied upon by them, before this Court before the next date. Put up the matter on 05.07.2016 as prayed.” 5. Today, learned counsels have produced before this Court a Consent Terms after settlement agreement under Order 23 Rule 3 of Civil Procedure Code, which is also quoted below for ready reference: Consent terms/settlement agreement under order XXIII Rule 3 of CPC 1. That the Petitioner aforementioned has filed the present petition against the First and Second Respondents Vessel for: (i) Recovery of a sum of US$ 96460 towards his wages for the period from April 2014 to November 2014 and interests and costs due from the Second Respondent for having worked under a contract on a sister ship of the 1st Respondent Vessel. (ii) For arrest and sale of the said Vessel. 2. That this Hon’ble Court had vide its order dated 20th June 2016, inter-alia, directed that the vessel, M.V. Maharshi Mahatreya be not allowed to leave the Port of Mangalore without the leave of this Hon’ble Court. 3. That the 2nd Respondent, has on 22nd June 2016, deposited a sum of Rs.64,82,880/(Rupees Sixty Four Lakhs Eighty Two Thousand Eight Hundred and Eighty only) vide seven Demand Drafts drawn on Catholic Syrian Bank, bearing numbers 192242 to 192248 in favour of the Registrar General of this Hon’ble Court, as security for the claim of the Petitioner. 4.
3. That the 2nd Respondent, has on 22nd June 2016, deposited a sum of Rs.64,82,880/(Rupees Sixty Four Lakhs Eighty Two Thousand Eight Hundred and Eighty only) vide seven Demand Drafts drawn on Catholic Syrian Bank, bearing numbers 192242 to 192248 in favour of the Registrar General of this Hon’ble Court, as security for the claim of the Petitioner. 4. That this Hon’ble Court has vide its order dated 22nd June 2016, inter-alia, directed that the vessel M.V. Maharshi Mahatreya be released and accordingly modified the order of arrest dated 20th June 2016. 5. That the Petitioner and the 2nd Respondent Varun Shipping Company Limited with the intention of amicably settling their disputes have had discussions amongst themselves and have arrived at a settlement on the following terms and conditions and pray that this honourable court may be pleaded to record the same and pass an order issuing appropriate directions in terms thereof. (a) That the Petitioner shall be entitled to receive a sum of Rs.50,00,000/- (Rupees Fifty Lakhs only) in full and final settlement of all his claims for wages and costs due from the Second Respondent to the Petitioner. (b) That the parties agree that the said sum of Rs.50,00,000/- (Rupees Fifty Lakhs only) may be paid to the Petitioner from and out of the sum of Rs.64,82,880/- (Rupees Sixty Four Lakhs Eighty Two Thousand Eight Hundred and Eighty only) deposited by the Second Respondent in favour of the Registrar General of the Hon’ble Court vide seven Demand Drafts on 22.06.2016. (c) The said sum of Rs.50,00,000/- (Rupees Fifty Lakhs only) payable under Clause (b) above may be remitted to the NRE Bank Account of the Petitioner as per details below: Beneficiary Name: Rajkiran Sadanand Raikar STATE BANK OF INDIA Account No.NRE30426052317 IFSC CODE –SBIN0004257 Bank Address: PBB Rajarampuri, Branch Code 4257, Kolhapur, Maharashtra 416008. (d) The balance amount remaining in deposit in this Hon’ble Court after payment of the sum of Rs.50,00,000/- (Rupees Fifty Lakhs only) to the Petitioner as per clause (c) above, i.e. Rs.14,82,880 (Rupees Fourteen Lakh eighty two thousand and eight hundred and eighty only) may be paid over to the Second Respondent, in the form of a demand draft in favour of Varun Shipping Company Limited. 6. That the parties agree that in view of the above, they do not have any further claims against each other.
6. That the parties agree that in view of the above, they do not have any further claims against each other. That the Petitioner shall have no rights or claims to seek re arrest of the Respondent No.1 vessel or any of her sister ships or any other ships belonging to Varun Shipping Company Limited or its affiliate companies. It is therefore prayed that this Hon’ble Court may be pleased to record the above and issue appropriate direction for payment to the parties hereto as set out in Clauses 5(c) and 5(d) above.” 6. In view of the aforesaid settlement, learned counsel for the petitioner seeks to withdraw this Civil petition filed in this Court in the original Admiralty jurisdiction under Section 9 and 26 read with Order 7 Rule 1 Civil Procedure Code, akin to a Civil suit. 7. This Court, had intended to examine the question of maintainability and other relevant Questions of law as framed above, in these kind of petitions under Section 9 read with Order 7 Rule 1 Civil Procedure Code in original Admiralty jurisdiction of this Court on the basis of judgment cited at Bar initially by the learned counsel for the petitioner in the case of M.V. Elisabeth & others Vs. Harwan Investment and Trading Co. Ltd. ( AIR 1993 SC 1014 ). 8. However, in view of the aforesaid settlement between the parties and withdrawal of the petition sought by petitioner from this Court, leaving open the aforesaid questions of law and maintainability, the present petition is dismissed as withdrawn in view of the settlement arrived at between the parties. The Registrar General will act in accordance with the Consent terms above and release Rs.50.00 Lakhs to the bank account No.NRE30426052317 of the petitioner Rajkiran Sadanand Raikar with SBI, (IFSC Code SBIN0004257) in the aforesaid settlement terms in favour of the petitioner and shall make over the balance amount, after deducting the incidental expenses and bank charges, out of Rs.64,82,880/- vide 7 Demand Drafts aforesaid, to the Respondent 2 Company Varun Shipping Company Limited. Petition Dismissed as withdrawn. No costs.