Orissa High Court Orders Arrest of MV Magnet Team Over Charter Agreement Breach

Silk Road Shipping Wins Admiralty Suit to Secure Claims Against Vessel at Paradip Port

In a significant ruling, the Orissa High Court has ordered the arrest of the vessel MV Magnet Team (IMO: 9233507) following a breach of charter agreement terms. The judgment, passed by Justice V. Narasingh, addresses the claim by Silk Road Shipping and Chartering Ltd., who sought the vessel’s arrest to prevent the frustration of their financial claims.

The case, identified as ADMLS No. 5 of 2025, was taken up under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017. Silk Road Shipping alleged that MV Magnet Team violated charter terms, resulting in dues amounting to Rs. 2,11,82,656, with an interest claim of 12% per annum until the dues are realized.

The court acknowledged the urgency, noting that the vessel was likely to leave the jurisdictional port at Paradip. Justice Narasingh emphasized that without the arrest order, the plaintiff's claims could become infructuous. The court directed the arrest of MV Magnet Team at Paradip Port, allowing the plaintiff to notify the Paradip Port Authority and serve the arrest warrant within 24 hours.

In addition to the arrest order, the court addressed the issue of deficit court fees, instructing Silk Road Shipping to deposit the required amount by November 3, 2025, to avoid dismissal of the suit.

The ruling also clarified that the vessel's cargo operations would not be hindered by the ongoing admiralty suit, allowing the unloading of cargo as per existing norms.

This decision underscores the court's commitment to upholding maritime claims and ensuring compliance with charter agreements, highlighting the judicial system's role in maritime commerce.

Bottom Line:

Admiralty jurisdiction - Prima facie case for arrest of a vessel established based on the violation of terms of the charter agreement, and to prevent frustration of Plaintiff's claim.

Statutory provision(s): Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 Section 4(1)(h)

Silk Road Shipping and Chartering Ltd. v. MV Magnet Team (IMO: 9233507), (Orissa) : Law Finder Doc id # 2801257