Mr. Justice S.J. Kathawalla the Admiralty Judge of the Bombay High Court
auction sold the vessel m.t. Pratibha Neera in an admiralty action filed
by Indian Register of Shipping.
By an order dated 2nd August, 2013 this Court ordered sale
of MT Pratibha Neera (“Defendant Vessel”). In pursuance of the order dated
2nd August, 2013 the Defendant Vessel was advertised for sale on 7th
August, 2013 and thereafter it was open for intending bidders to inspect
the Defendant Vessel and submit their bids to the office of Sheriff till
4:00 PM on 22nd August, 2013. Valuation report was not disclosed to any
bidder. This Court is informed that no prospective bidder approached the
office of Sheriff of Mumbai to board and inspect the Defendant Vessel and
only two bids were received; one being the bid by M/s. Preet Overseas and
the second bid by Maritime Venture Fund Ltd. On 23rd August 2013 Baltanas
Shipping Ltd. (Baltanas Shipping) and Best Oasis Ltd. appeared in Court
and requested the Court’s leave to participate in the bidding process by
submitting their earnest money deposit and sealed bids. Leave was
accordingly granted. Balatanas Shipping made the highest bid of Rs. 19.25
crores. Since the Defendant Vessel was valued at Rs. 23 crores this Court
asked all bidders present in court if they were ready and willing to
increase their bid higher than Rs. 19.25 cores offered by Baltanas
Shipping. There were no higher bids.
The matter was then stood over to 26th August, 2013, to
ascertain whether, in view of the present circumstances, to provide a
second opportunity to the bidders to reassess their bid and/or to see if a
re-auction would be appropriate and whether any party namely, the
Plaintiff, and/or the Mortgagee Banks were willing to maintain the
Defendant Vessel and bear the cost of re- auction.
When the matter was called out, Preet Overseas submitted a
bid of Rs. 19.5 crores, which was subsequently eclipsed, by a higher bid
of Rs. 19.75 placed by Baltanas Shipping. There were no further bids.
Considering the precarious condition of the Defendant
Vessel, the inclement weather conditions and the fact that all parties,
namely, the Plaintiff, and the first Mortgagee Bank and second Mortgage
Bank were unwilling to spend any money to maintain the Defendant Vessel
any further and bear the cost of reauction, it was agreed by all parties
that a bid lower than the value indicated in the appraisal report be
accepted. In view of the above circumstances this Court accepts the bid of
Baltanas Shipping, and the Defendant Vessel is directed to be sold to
Baltanas Shipping for Rs. 19.75 crores as per the terms and conditions of
sale. Baltanas Shipping are directed to deposit the entire amount of Rs.
19.75 crores on or before 6th September, 2013.
