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Judgment
Vaibhavi D. Nanavati, J
Heard Ms. Paurami B. Sheth, learned advocate for the plaintiff, Mr. Premal Nanavati, learned advocate appearing with Mr. Anmol Surollia, learned
advocate for the defendant No.1, Mr. Raj Shekhar, learned advocate appearing for the Swedish Club and Mr. Ramjay Narayan, learned advocate
appearing for successful bidder  M/s. Kukkis Trading & Consultancy FZE LLC.
Following order came to be passed on 5.5.2021:Â
“By an order dated 23.04.2021, in auction proceedings held, the successful bidder Kukkis Trading & Consultancy FZE LLC was to deposit an
amount of Rs.7,75,00,000/Â before the Registry on or before 07.05.2021. To report compliance, matter is adjourned to 10.05.2021.
Registry to list the main Admiralty Suit with OJ Civil Applications No. 01 of 2021 and 02 of 2021 with this application on 10.05.2021.â€
The office note dated 7.5.2021 is is taken on record. It states that the bidder, M/s. Kukkis Trading & Consultancy FZE LLC submitted on 6.5.2021
a demand draft of Rs.7,75,00,000/Â (Rupees Seven Crores Seventyfive Lakhs only) bearing No.002433, dated 6.5.2021 drawn on HDFC Bank
towards bid amount in the Registry.
The Court Commissioner has filed a report dated 4.5.2021 with regard to the expenses incurred for sale of the vessel, which is also taken on
record.
The communication dated 30.3.2021 by the M/s. Kukkis Trading & Consultancy FZE LLC is duly produced by the learned Court Commissioner,
which is also taken on record.
By order dated 23.4.2021 bid of M/s. Kukkis Trading & Consultancy FZE LLC for INR 8,10,00,000/Â was accepted and following directions came
to be passed in paragraphs 8 to 17 :Â
“8. While considering the submissions of the respective Advocates and on overall aspects, this Court is of opinion that there is no need to go for
fresh auction and the bid of Kukkis Trading & Consultancy FZE LLC for INR 8,10,00,000/Â deserves to be accepted for following reasons:
a. The vessel being a depreciating asset of high value, going for the revised auction may cause more injury to the creditors rather than fetching a
better bid. The fact that the present second round of auction only attracted one bidder and at a lower price than the first round of auction is evidence
of this.
b. It is not necessary for this Court to go for fresh auction as in the past this Court has accepted the bids which are far less than the Valuation price
looking to various factors and considering such facts as the vessel is a depreciating asset, mounting expenses such as fuel, food and provisions for the
crew and the wages of the crew, the condition of the crew forced to continue on board the vessel and also that the reÂauction may add more cost to
it with no assurance of receiving better bid than the highest bid received in this case.
c. In the event a reÂauction is to be held at the instance of the Plaintiff, the Plaintiff has shown inability to provide for replacement crew and to
maintain the vessel pending the reÂauction.
d. The crew on board the vessel have been there for several months and substantial amounts have been already spent on fuel, food and provisions for
the crew as well Crew wages have also been increasing and benefit from a potential higher bid, if any in the reauction will be offset by these costs.
e. Thus, from both a commercial and a humanitarian angle, and since the Plaintiff is not agreeable to providing a replacement crew and maintaining
the vessel pending the reÂauction, there is reason to call for a reÂauction.
Kukkis Trading & Consultancy FZE LLC has already submitted draft for a sum of INR 35,00,000/Â towards EMD in favour of the Registrar, High
Court of Gujarat with the Court Commissioner at the time of tendering the Bid. The Court Commissioner shall hand over the said Draft/Cheque to the
Registry for encashment. Kukkis Trading & Consultancy FZE LLC shall deposit the balance amount of INR 7,65,00,000/Â with the Registry within
two weeks of issuance of this Order. No extension shall be granted.
10.Once the entire purchase price is paid by Kukkis Trading & Consultancy FZE LLC and then upon confirmation of credit in the Account only the
Court Commissioner shall proceed to issue a Bill of sale in favour of Kukkis Trading & Consultancy FZE LLC free from all liens, claims,
encumbrances, charges and interest of whatsoever nature and further hand over the possession of the vessel MT GP B4 (IMO No. 9246487) to
Kukkis Trading & Consultancy FZE LLC. Upon issuance of Bill of Sale, the Court Commissioner shall inform to port and Customs at Deendayal,
Kandla to facilitate the Purchaser, Kukkis Trading & Consultancy FZE LLC to take the possession and embarkation of their Crew and further
arrange to inform to Immigration Officer and/or Authority at Deendayal Port allow the crew members(Indians and/or Foreign Nationals) appointed by
Kukkis Trading & Consultancy FZE LLC to board the vessel.
11.The Swedish Club is permitted to start the formalities of the disembarkation procedure once the Registry confirms that the balance sale proceeds
have been deposited and the Immigration Officer and/or Authority is directed to allow the present crewmembers to disembark from the vessel, after
completion of all requisite formalities. Kukkis Trading & Consultancy FZE LLC is directed to arrange for replacement crew accordingly so that
existing crew can disembark as soon as possible after the sale proceeds have been received.
12.In this regard, Mr. Rajasekhar also submits that the order dated 15.03.2021 had permitted the Swedish Club to sign off the non MSM crew,
pending the sale, and had directed the relevant authorities to grant permission. He states that the order has not yet been acted upon by the authorities,
despite the required applications having been filed expeditiously. The relevant authorities are directed to immediately provide the requisite permissions.
13.Mr. Rajasekhar further submits that the Swedish Club will be proceeding with disembarkation only if the crew are agreeable to disembark and that
if any crew refuses to disembark, the Club will not be responsible for the same.
14.The existing crew currently on board the Defendant Vessel are directed to disembark, once formalities are complete, without causing any damage
to the Defendant Vessel. If any damage is caused by the existing crew members, they will be held responsible for the same.
15.The Swedish Club is permitted to bear the expenses of disembarkation in the first instance, with the issue of whether they will be expenses of the
arrest/ paid out in priority to be decided on next date of hearing.
16.As far as payment of wages to the crew members is concerned, though objected by Ms. Paurami Sheth and Mr. Manav Mehta, learned advocates
for respective Plaintiffs, this Court is of the opinion that the crew members, who have not received their salary since the past several months would be
entitled for 50% of the amounts as provided in Civil Application +No.3/2021 filed on behalf of the crew. The same shall be paid to them immediately
once the sale proceeds are received and in any case within 2 weeks thereof by the Court Commissioner. It is made clear that the amount of the
wages as ordered shall be paid from the amount of sale proceeds by remitting the same in the bank accounts as per the details submitted by the
learned Advocate Mr. Anmol Surolia for crew to the Court Commissioner. The order with regard to balance wages (which will be payable till they
have the opportunity to disembark), reimbursement of expenses and other orders will be passed on the application of the Swedish Club and crew
members after hearing all the parties on the next date of hearing.
17.The Court Commissioner shall file his Report containing all expenses incurred for sale of the Vessel and payment made by him by next date after
circulating to respective Advocates. This Court shall also consider OJCA No. 2 of 2021 filed by The Swedish Club for expenses relating to the vessel
and crew incurred as per orders of this Court. The Swedish Club is directed to file an affidavit with the Court Commissioner detailing the expenses
with supporting documents by 04.05.2021.
S.O. to 05.05.2021.
Considering the urgency to disembark the crew, liberty to mention in the event it is not listed.â€
The successful bidder  M/s. Kukkis Trading & Consultancy FZE LLC having deposited the entire amount by way of a demand draft of
Rs.7,75,00,000/Â (Rupees Seven Crores Seventyfive Lakhs only) bearing No.002433, dated 6.5.2021 drawn on HDFC Bank, the sale is confirmed in
favour of the M/s. Kukkis Trading & Consultancy FZE LLC. The Court Commissioner is directed to issue bill of sale forthwith. The parties are
directed to comply with the directions passed by the Court on 23.4.2021 and other orders passed from time to time.
Mr. Ramjay Narayan, learned advocate appearing for successful bidder  M/s. Kukkis Trading & Consultancy FZE LLC states that erstwhile
owner of the vessel may cooperate and ensure that the members of the crew may leave the vessel as the ownership is changed as also the expenses
which are incurred by the insurer and requested that certificate is required to be handed over to the new owner.
Needless to say that the erstwhile owner as well crew members shall cooperate for the smooth handing over of the vessel to the new owner.
Mr. Premal Nanavati, learned advocate appearing with Mr. Anmol Surollia, learned advocate for the defendant No.1 on instructions states that the
crew member will disembark the vessel without causing any encumbrances.
Mr. Raj Shekhar, learned advocate representing Swedish Club states that in compliance with the directions of the order dated 23.4.2021 the
applicant has filed affidavit with the Court Commissioner detailing the expenses with supporting documents. The Court Commissioner is directed to file
a report to that effect before the next date of hearing.
It is directed that on disbursement of the amount in favour of the crew members after proper verification as directed by order dated 23.4.2021, the
Registry is directed to deposit the remaining amount with a Nationalized Bank for a period of one month.
Let this matter be listed on 10.6.2021 for further orders.