Gujarat HC Detains Bulk Carrier for Alleged Cargo Shortfall
The Gujarat High Court has ordered the arrest of the bulk carrier MV Nikator at Kandla Port over an alleged short delivery of cargo to a Vadodara-based pharmaceutical company. The court’s directive requires the Port Officer and Customs Authorities to detain the vessel until further notice.
The order was issued during the hearing of an Admiralty Suit filed under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017. The court ruled that the arrest could be avoided if the parties interested in the vessel deposit a total of ₹2.89 crore with the court, covering the value of the alleged cargo shortage, customs charges, and legal costs.
Justice N R Mehta, in an oral order, instructed the court’s Registrar to issue a warrant for the arrest of MV Nikator (IMO 9544372), including its hull, engines, machinery, bunkers, equipment, and all associated items. The arrest can be executed at any time, including nights, Sundays, or public holidays, as long as the vessel remains in Indian territorial waters at Kandla Port.
The required deposit to avoid arrest includes ₹1.98 crore for the allegedly undelivered cargo, ₹15.69 lakh for customs duties and taxes, and ₹75 lakh for legal costs, with an additional interest of 18% per year from the date the suit was filed until payment is made.
The case was filed by Nandesari Drugs and Pharmaceuticals Pvt. Ltd., a manufacturer of active pharmaceutical ingredients in Vadodara, claiming financial loss due to the short delivery of cargo. The company had purchased Bright Yellow Crude Sulphate in bulk from Komoditas Trading FZC LLC, loaded on MV Nikator at Sohar Port in Oman under three bills of lading dated January 21.
The first two bills covered 3,250 metric tonnes each, and the third covered 3,300 metric tonnes, totaling 9,800 metric tonnes. The vessel’s Master confirmed the cargo quantity through the bills of lading, after which the buyer completed payment.
Upon arrival at the discharge port, shore-based weighing revealed a shortage of 407.3 metric tonnes. The pharmaceutical company contacted the vessel’s agents on January 28 for clarification and subsequently filed the claim, holding the vessel and its owners responsible for the alleged breach of obligations.
Following the hearing, the High Court directed its Registry to send the arrest order to Port and Customs Authorities at Kandla Port by email and issued notice to the defendants. The matter is scheduled to return to court on February 6.
