VidhiSangh

Supreme Court of India · 09/03/2018

SUNIL B. NAIK versus GEOWAVE COMMANDER

[2018] 5 S.C.R. 471 · 2018 INSC 225

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Summary

The Supreme Court upheld release of Geowave Commander from arrest. The claimants’ unpaid hire claims concerned their own support vessels hired by Reflect Geophysical, which merely held Geowave Commander under a bareboat charter. They had no contract or claim against its owners. Possession and control under a demise charter did not make the charterer its beneficial owner. The claimants could not secure debts concerning other vessels by arresting a third party’s ship. The security deposits and accrued interest were ordered returned to the shipowners.

Issues

  1. Whether unpaid hire claims concerning support vessels justified arrest of a different ship held by the debtor on bareboat charter.
  2. Whether complete possession and control under a demise charter constituted beneficial ownership.
  3. Whether the claimants could appropriate the security deposited for release of the respondent vessel.

Held

Result

Appeals dismissed; parties to bear their own costs. Interim order dissolved and the security deposits, with accrued interest, ordered returned to the respondent vessel’s owners.

Judgment PDF: Supreme Court of India, [2018] 5 S.C.R. 471.