Winding up – Liquidator – Priority of Dues of Mumbai Port on vessels over other creditors
On 5.5.2017, the High Court appointed provisional liquidator to take control of the assets of the Company and it was restrained from disposing of its assets. The operations were stopped and the vessel was anchored at the Mumbai Port.
The claim of Mumbai Port is in respect of anchorage charges for the vessel incurred post-liquidation after the winding up order.
Section 64 of the Major Port Trusts Act provides that Mumbai Port distrains or arrests & detains the vessel until payment of its dues. The Port has also powers to sell the distrained vessel for recovery of its dues.
The Mumbai Port has exercised the right under Section 64 and became a secured creditor of the Company.
HELD that the claims of anchorage, port charges, etc; submitted to the Official Liquidator were in personam and not in rem even if the Liquidator had sold the vessels. The claims would be against the Company under liquidation and not against the vessels. Mumbai Port was a secured creditor and its claim should be in priority over all other creditors.
Order dated 6.5.2025 of the High Court of Bombay (OS) in Interim Application NO.3292 of 2023 in Company Petition No.756 of 2014 of the Board of Mumbai Port Authority in the matter between Export Import Bank of India and another Vs. Official Liquidator of GOL Offshore Limited (Vessel Malviya-18) with connected matter.
