Ship Fuels & Trade DMCC secures warrant for arrest of M/V Zhong Peng You Yi to safeguard substantial maritime claim.
In a significant move within the realm of admiralty law, the Madras High Court has ordered the arrest of the vessel M/V Zhong Peng You Yi amid a dispute over a substantial maritime claim. The decision was rendered by Justice Senthilkumar Ramamoorthy following a detailed hearing on March 18, 2026. The plaintiffs, Ship Fuels & Trade DMCC and associated parties, have filed a claim seeking the recovery of USD 2,615,036.65, citing losses due to the wrongful withdrawal and unavailability of the vessel, which was moved to China under the guise of repairs.
The case revolves around a Time Charter Party agreement concerning the defendant vessel, previously known as "M/V HT INGOT." The agreement involved a deposit and payments towards bunkers made by the plaintiffs. However, the vessel's relocation to China has rendered it inaccessible to the plaintiffs, prompting them to compute losses for wrongful withdrawal based on current hire charges compared to the charter party rates.
Justice Ramamoorthy acknowledged the plaintiffs' assertions and recognized the claim as a legitimate maritime claim under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017. Given the urgency and potential for the vessel to exit the court's admiralty jurisdiction, the court directed the issuance of a warrant of arrest for the vessel. This order also includes notifying the Port authorities to ensure compliance.
This decisive action by the Madras High Court underscores the importance of maritime claims and the legal mechanisms available to secure such claims, offering a measure of protection to the plaintiffs. It exemplifies the court's readiness to act swiftly in cases where maritime assets are at risk of becoming inaccessible.
Bottom Line:
Admiralty law - Maritime claim under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 - Court directed the issuance of a warrant of arrest for the vessel to secure the maritime claim.
Statutory provision(s): Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017
