The Madras High Court has ordered the "arrest" of a Dominican-flagged ship, now berthed in Karaikal port in Puducherry, for failing to repay about Rs 30 crore mortgage it had taken from Indian Bank's Singapore branch.
Justice K K Sasidharan recently issued the arrest orders saying "if the vessel is permitted to leave the port, it would be difficult for the arrest of the vessel and to realise the amount."
The bank's counsel S Vasudevan submitted that the ship CSD Marg Cauvery belongs to Marg India's subsidiary company in Singapore which had availed itself of 8.3 million dollars as loan from Indian Bank's Singapore branch in August, 2009.
As per the conditions, the owner was mandated to repay the loan in full by 20 equal instalments and the first instalment was made on November 21, 2009.
Later, the company made several proposals for settling the dues by bringing in an investor but the bank rejected them.
As on date, the company owes the bank Rs 29.31 crore, the counsel contended, adding, that the ship was found stationed in Karaikal port within the jurisdiction of the Madras High Court, prompting the bank to seek its arrest along with its engines, gears, tackles, apparels, plant, machinery and paraphernalia.
Acceding to the plea, Justice Sasidharan pointed out that Indian Bank was a nationalised bank dealing with public money and that substantial amount was due from the company.
The ship should be arrested at Karaikal in the union territory of Puducherry or "wherever found within the territorial waters of India."
He directed the authorities to file a report to the court onJanuary 20.
