Paradip Port Authority Seizes Chinese Cargo Ship

Paradip Port Authority Seizes Chinese Cargo Ship Over Exchange Rate Dispute - Merhant Navy info

The Paradip Port Authority (PPA) on Tuesday detained the Chinese cargo vessel ZHE HAI 505 following a directive from the Odisha High Court. The action stems from a financial disagreement between the ship’s owner and Sandi Trading Ltd., a supplier of low-sulfur marine diesel.

Sandi Trading alleged that the shipowner owes Rs 99.81 lakh for the delivered fuel. The company sought legal recourse under the Maritime (Jurisdiction and Settlement of Maritime Claims) Act, 2017. The High Court, recognizing the validity of the claim within its maritime jurisdiction, ordered the ship’s arrest.

Local authorities and maritime police executed the seizure under the supervision of the appointed bailiff. The vessel will remain under PPA custody until further judicial direction.

This incident highlights the authority’s power to detain ships involved in maritime disputes, a provision enshrined in the Maritime Act to ensure the settlement of such claims.

Paradip Port Authority Seizes Chinese Cargo Ship Over Exchange Rate Dispute

The Paradip Port Authority (PPA) has seized the Chinese cargo ship ZHE HAI 505 in accordance with an order issued by the Odisha High Court.

The arrest was made on July 31 in connection with a financial dispute between the shipowner and a trading company over the delivery of low-sulfur marine diesel.

The dispute began when Sandi Trading Ltd, which supplied the low-sulfur marine diesel, claimed that the shipowner had failed to pay Rs 99.81 lakh.

The company moved the Odisha High Court seeking a decree under Section 4 of the Maritime (Jurisdiction and Settlement of Maritime Claims) Act, 2017.

The court concluded that the claim was valid within the maritime jurisdiction and found sufficient grounds to seize the ship.

Maritime Judge F. Narasimha ordered the arrest on July 29, 2024, and appointed Civil Judge (Senior Judge) Kojang as the bailiff to execute the order within 24 hours.

The PPA, local police, and other key officials were ordered to continue the arrest operation.

The arrest was carried out in the presence of local police, and Maritime Police Babita Dehuri confirmed that the ship had been seized on Tuesday.

The ship will remain at Paradip port pending court orders.

Maritime law allows the arrest of ships to enforce maritime claims related to their construction, management, operation, ownership, possession, or trade.

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