Gujarat High Court orders auction sale of a vessel m.v Infinity

The High Court of Gujarat at Ahmedabad in Admiralty Suit No. 38 of 2015 in Application No. 115 of 2016, has ordered auction sale of the vessel m.v Infinity, a vessel presently near Valsad There are four admiralty suits filed by different parties before the Gujarat High Court at Ahmedabad while the application for auction sale has been taken out by the registered mortgagee that was allowed by the Hon'ble Mr. Justice R.M. Chayya. Dr. Shrikant Hathi, Managing Partner of Brus Chambers representing the registered mortgagee appearing with counsel Mr. Ankit Shah is of the view that the vessel being an depreciating asset should be sold and the sale proceeds be invested by the court in the suit pending the hearing of all the four admiralty suits. The Court is of the opinion that it would be in the interest of all the parties i.e. parties of all 4 suits that the defendant vessel be ordered to be put to auction sale on "as is where is" basis. Hence, the Defendant Vessel "MV Infinity" is hereby ordered to be put to auction sale on "as is where is" basis after obtaining appropriate valuation report from expert valuer. The objections raised by the intervener and the plaintiff of Admiralty Suit No.36 of 2015 deserve no consideration and are hereby rejected.

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Mumbai, Maharashtra, April 5, 2017 /India PRwire/ -- The High Court of Gujarat at Ahmedabad in Admiralty Suit No. 38 of 2015 in Application No. 115 of 2016, has ordered auction sale of the vessel m.v Infinity, a vessel presently near Valsad

Vessel location can be found at https://www.google.com/maps?q=20.70606803894043,72.85812377929688&z=17&hl=en

There are four admiralty suits filed by different parties before the Gujarat High Court at Ahmedabad while the application for auction sale has been taken out by the registered mortgagee that was allowed by the Hon'ble Mr. Justice R.M. Chayya.

Dr. Shrikant Hathi, Managing Partner of Brus Chambers representing the registered mortgagee appearing with counsel Mr. Ankit Shah is of the view that the vessel being an depreciating asset should be sold and the sale proceeds be invested by the court in the suit pending the hearing of all the four admiralty suits.

The Court is of the opinion that it would be in the interest of all the parties i.e. parties of all 4 suits that the defendant vessel be ordered to be put to auction sale on "as is where is" basis. Hence, the Defendant Vessel "MV Infinity" is hereby ordered to be put to auction sale on "as is where is" basis after obtaining appropriate valuation report from expert valuer. The objections raised by the intervener and the plaintiff of Admiralty Suit No.36 of 2015 deserve no consideration and are hereby rejected.

In view thereof, following order was passed:

1. That the Defendant Vessel viz. M.V. Infinity is placed for sale forthwith and the Registrar General will nominate an officer of this Court not below the rank of Deputy Registrar by 12th April, 2017, who shall act as Court Commissioner till the completion of sale of the Defendant Vessel M.V. Infinity. The Court Commissioner so appointed is entitled to take assistance from the Advocates appearing for the parties in all suits after prior intimation to the Advocates.

2. The sale of the Defendant Vessel M.V. Infinity should be through public auction. The costs and expenses of the publication and sale shall be borne by both applicants - plaintiffs in the first instance for which purpose, the applicants - plaintiffs shall deposit the necessary amounts wit the Court Commissioner of this Court, which costs and expenses, the applicants - plaintiffs will be entitled to be reimbursed from out of the sale proceeds of the Defendant Vessel first.

3. The officer so appointed as Court Commissioner shall appoint Ericson & Richards having its offices at 1st Floor, Laxmi Sadan, Guru Nanak Road, Patel Colony, Jamnagar - 361008, Gujarat which is a company based in India as surveyors/valuers to act on behalf of this Court and Court Commissioner shall call for quotations for appraisal/valuation for the defendant Vessel on or before 19th April, 2017.

4. The Court Commissioner shall also call for quotation for publishing the advertisement for Sale/ inviting offers as per draft notice from Tradewinds having e-mail I.D. pranjal.borkotoky@tradewindsnews.com, print as well

as web edition "Divya Bhaskar" in Gujarati language (Ahmedabad and Rajkot Editions) and "Indian Express", in English language (Ahmedabad and Bombay Editions) on or before 21th April, 2017.

5. Upon receipt of above mentioned quotations from various agencies the Court Commissioner shall call upon the applicants - plaintiffs through its Advocates to deposit the said amount towards expenses for Valuation and Public Advertisement with him within a period of 7 days. If there is any objection to the reasonableness of the quotations received then the same shall be communicated to the Court Commissioner who shall file the note to place the matter before the Court and seek urgent directions.

6. Upon receipt of the amounts from the Advocate for the applicants - plaintiffs, the Court Commissioner shall inform Ericson & Richards, Jamnagar to submit their valuation report in sealed cover to Court Commissioner on, or before, 29th April, 2017 and the same shall open in the Court. The Court Commissioner to release the payment in favour of Ericson & Richards on submission of their report.

7. The Court Commissioner shall settle the terms and conditions of the auction sale and public Advertisement with the concerned Advocates and prepare draft notice on, or before, 15th April, 2017 so as to obtain quotations from the newspapers mentioned in paragraph 4(d) above.

The Advertisement inter alia shall incorporate other matters such as.

1. Last date for submitting offer in sealed cover,

2. Physical Inspection of Vessel within 12 days from the date of publication of the advertisement.

3. Submission of Bids by foreign Bidders in US Dollar currency and by Indian Bidders with an option to bid in Indian Currency, within 15 days from the date of publication of the advertisement.

4. Date of opening of Bids in Court shall also be mentioned in the advertisement and shall be not later than 10 days from the date of submission of sealed offers by the bidders.

5. It will be open for the applicants - plaintiffs and/or their nominee to participate in the sale and submit their bid for the Defendant Vessel.

6. Discretion of this Court to arrange for interse bidding if required,

7. Initial deposit of 37,000 USD for foreign Bidders and INR 25 Lacs for Indian Bidders if bidding in Indian Currency to be submitted along with the Bid by Demand Draft or Pay Order in favour of The Registrar, Gujarat High Court, Ahmedabad which shall be refunded to all unsuccessful bidders.

8. The balance payment of purchase price as per the direction of this Court.

9. The possession of the vessel will be handed over only upon full payment of the purchase price and free from all liens, claims, encumbrances, charges and interest of whatsoever nature.

8. On receipt of the said valuation report, the Court Commissioner shall proceed to issue the advertisements in Trade winds, "Divya Bhaskar" in Gujarati Language (Ahmedabad and Rajkot Editions) and "Indian Express", in English language (Ahmedabad and Bombay Editions) on, or before, 05th May, 2017. Upset price will not be mentioned in the advertisement.

9. The Court Commissioner shall place before this Court the sealed bids received along with the valuation report in sealed cover on the date as published in the advertisement. On opening Bids and Valuation report this Court may decide whether interse bidding is required and pass further orders for the same, if any. In case it is decided not to have any interse Bidding after the opening of the Bids, this Court shall proceed to confirm the sale of the Defendant Vessel.

10. Payment of balance purchase price as per agreed terms and conditions of sale as may be directed by this Court.

11. The expenses incurred for publishing advertisements, charges of valuer or any other expenses by the Court Commissioner shall be considered as expenses in the course of Sale and shall be paid first. Similarly the charges paid or deposited by the applicants - plaintiffs shall be considered as expenses in the course of Sale and shall be reimbursed first to the Advocate for the said applicants. The Court Commissioner shall be entitled for remuneration which will be fixed at later stage which will also be considered as expenses in the course of Sale and shall be paid first before any other payment. All these expenses shall be first appropriated from sale proceeds on confirmation of Sale and before disbursement of any other payment or amount.

12. The Auction purchaser shall get the Defendant vessel free from all lien, claims, encumbrances, charges and interest of whatsoever nature. The possession of the Defendant Vessel shall be handedover to the auction purchaser only upon deposit of full payment before this Court.

Notes to Editor

The vessel Infinity had arrived Alang for breaking had drifted without anchor to Valsad and was grounded there and is presently lying in a soft sand at Valsad

http://timesofindia.indiatimes.com/city/surat/Bulk-carrier-washes-ashore-at-Valsad-coast-of-Gujarat/articleshow/54413346.cms

http://deshgujarat.com/2016/09/29/a-big-ship-stuck-at-dandi-coast-to-stay-here-at-least-till-diwali/

https://www.fleetmon.com/maritime-news/2016/14979/bulk-carrier-infinity-drifted-alang-and-grounded/

https://wn.com/infinity_liberian_ship_at_daati_near_valsad


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