Court condones 135-day delay in filing written statement in admiralty suit, reaffirming special statute precedence.
In a significant ruling, the Kerala High Court has determined that the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, takes precedence over the Commercial Courts Act, 2015, in matters pertaining to maritime claims. This decision came in the case involving India Steamship Company and others against C.V. Gangadharan and others, where a 135-day delay in filing a written statement was condoned.
Presiding over the matter, Justice M.A. Abdul Hakhim highlighted the importance of the Admiralty Act as a special statute governing maritime claims, thereby superseding the general provisions of the Commercial Courts Act for such disputes. The case revolved around the defendants' delay in submitting their written statement in an admiralty suit regarding compensation claims related to a 2009 incident on a vessel.
The court acknowledged that the Admiralty Act, 2017, is a special legislative framework designed to address maritime claims and is subsequently more pertinent than the Commercial Courts Act, which generally handles commercial disputes. The Admiralty Act, introduced after the Commercial Courts Act, specifically confers admiralty jurisdiction to select High Courts for maritime claims, thus excluding commercial courts from such matters.
Justice Hakhim further clarified that the provisions of the Code of Civil Procedure (CPC), 1908, as applicable to admiralty proceedings, are only directory in nature, allowing for flexibility in condoning delays if justified. The court noted that the original proviso to Rule 1 of Order VIII CPC applies to admiralty proceedings, which means written statements filed beyond 90 days can be accepted if the delay is satisfactorily explained.
In this particular case, the defendants cited several reasons for their delay, including the closure of their shipping business in 2017-18, the departure of key employees, and challenges in retrieving old files. The court found these explanations sufficient and ordered the acceptance of the written statement.
This judgment underscores the autonomy of the Admiralty Act in governing maritime claims, reaffirming the High Courts' exclusive jurisdiction over such disputes as per the special statute. The decision is expected to provide clarity in the procedural handling of admiralty suits, ensuring that maritime claims are adjudicated under the appropriate legal framework.
Bottom line:-
Admiralty law - Written statement filing - Commercial Courts Act, 2015, does not override Admiralty Act, 2017, for proceedings under admiralty jurisdiction - Delay in filing written statement under Admiralty Act, 2017, can be condoned if sufficiently explained, as provisions of CPC govern such cases and are directory in nature.
Statutory provision(s): Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017; Commercial Courts Act, 2015; Civil Procedure Code, 1908 (Order VIII Rule 1); Limitation Act, 1963.
India Steamship Company v. C.V. Gangadharan, (Kerala) : Law Finder Doc id # 2923704
