The comparison may be invidious – a mighty ship
with a lowly bird – but OSM Arena and Emus are suffering a similar fate – no
owner to claim for, no body to maintain and take care, nobody willing to
maintain, no body to sell and still none to buy – no money – debts keep rising
and uncertain future is totally bleak..
The ill-fated South Korean flagged Bulk carrier cargo ship
with IMO No. 8411334 and dimensions of 190 M length and 32 m beam with call sign - DSOC5 ‘OSM Arena’ got mired in to troubles
one after another is struck below the bow in muddy waters literally and
legally. From its and its occupant
pathetic conditions, it tried to get loose and came almost closer to the sands
of Marina – courtesy very severe cyclonic storm “Thane” that ravaged Pondy and
Cuddalore.
As posted earlier by me, Chennai was not the happiest of
its ‘port of call’ when it arrived here in Jan 2010. Calcutta High Court passed
an order that the said vessel should not to leave Portof Chennai without the
leave of Calcutta High Court. Orders were passed directing the Custom
authorities to ensure that the said vessel does not set sail without leave of the
High Court, Calcutta. The vessel which sure had forgotten sailing
and perhaps is unlikely to sail more, has been subject matter of litigation in
different ways.
The vessel was advertised for sale and there were some interested
parties but more litigation ensured that sale never fell through, money never
changed hands; its poor occupants continued to live in shackles without
visiting the shore though close to it, living in pathetic conditions with
little food that too coming as courtesy. Sad - the
Madras High Court had ordered the sale of vessel and tenders were floated for
sale in public auction in "as is where is" condition, free of all
liens. The tenderers were to pay EMD of Rs.25,00,000/- Following the floating of tenders, the
auction purchaser had deposited 25% of the bid amount and the balance was to be
deposited by borrowing from Bank. An amount of Rs.20.68 crores was reportedly
deposited by the auction purchaser. As there were more and more litigation, the
Auction purchaser stated that he had acted in good faith in submitting a
bonafide bid for purchase of the vessel and that because of the protracting
litigation and the objections to the sale, they shall mbe permitted to withdraw
the bid amount of Rs.20.68 crores including the EMD deposited by the auction
and the sale fell through.
Subsequently, Madras High Court directed Sea Traffic who had been taking care
of maintenance of supplies to the vessel would have first charge for the amount
spent by them and asked them to continue maintenance on the grounds that they receive
their dues on priority basis out of the
sale proceeds of the vessel.
A Kolkatta based company LMJ International inevitably got
into thick of litigation - from C.S.No.75
of 2011 on the file of Madras High
Court, it is understood that this
company being aggrieved by the order in
A.No.2504 of 2011 in C.S.No.75 of 2011 interalia directing the
Appellant/Intervener-LMJ International Limited to pay USD 671,658.24 and also
to pay a sum of Rs.50,57,544.90 to M/s.Sea Traffic, the agent, who are now
taking care of the supply of necessaries to the vessel M.V. OSM Arena, an appeal was filed.
According to it, M/s.Shinhan
Capital Company Limited purchased the vessel M.V. OSM Arena from M/s.Sunwoo
Merchant Marine Company Limited in Nov. 2009.
The ship was leased back to M/s.Sunwoo
Merchant Company Limited under the Vessel Lease Agreement. In 2009, there was amended mortgage and the
new lessee Ocean
Success (OS) Maritime Company Limited [OSM] incurred debt under the mortgage
security. By a Charter Party agreement
in Aug 2009, the vessel M.V. OSM Arena carried about 43,000 MT Bulk iron ore
belonging to LMJ International Limited from Haldia, Paradip, Vizag to a
designated Port in China. Vessel M.V. OSM Arena arrived at the Port of Haldia
in August, 2009 and completed the loading at the Port of Haldia
on 22.08.2009. At Paradip port, dispute and differences arose
between the LMJ and the vessel as to the payment of demurrage and issuance of
bill of lading. LMJ filed suit before
the Calcutta High Court interalia claiming that the bill of lading has been rightfully issued and valid.
In Jan 2010, the Appellant filed an application after getting
informing that the said vessel was arriving at the Port of Chennai. In Feb
2010, Calcutta High Court passed an order directing the Custom authorities to
ensure that the vessel not to leave the Port
of Chennai without leave of the High
Court, Calcutta.
During the pendency of the civil suit on the file of High
Court, Calcutta, three of the crew
members of the vessel which has been lying arrested in the Port of Chennai
filed suit before the High Court, Madras claiming the wages and compensation
payable up to 31.01.2011 together with future wages till the date of signing
off from the vessel. Remaining crew members on Board the vessel also
filed suit claiming outstanding wages due
from October, 2010 stating that the
owner of the vessel committed breach of contract by not paying the wages as per
the respective contracts of employment.
Though notice was served on the owner of the vessel, they failed to
appear and contest the suit. Since the
owner of the vessel failed to appear before the Court, sale of vessel M.V. OSM
Arena was ordered by Madras High Court. However
that had to be cancelled after Kolkatta HC ordered vessel’s arrest on business
dispute.
As if all these were not enough, LMJ
International Limited filed a Transfer Petition (Civil) no. 665 of 2011 before
the Supreme Court of India with application for stay. After some adjournments as no appearance was
made on behalf of the petitioner, the Hon’ble
Court dismissed the case for non-prosecution by
its order dated 9th July 2012.
The vessel remained stranded off the city coast since Dec
2010 with none to claim ownership. Now there
is news [today’s Times of India – Chennai edition] that the ship OSM Arena
stands arrested on fears that it could pose danger to ships during monsoon. The vessel
which has become a nightmare since its arrival has made its occupants suffer as
there had been blackout and sailors on board starving. Stating that such dead vessels post lurking
threat to others passing through, the Chennai Port Officials have arrested the
vessel on Tuesday, 25th Sept. 2012.
When it was moved away by cyclone Thane, it reportedly
had bunker fuel of around 400 tonnes –
the vessel lies abandoned and the 14 myanmarese sailors crew on board have not
seen the shore in the last 14 months. The International Transport Workers Federation
(ITF) is to approach the immigration department for
temporary landing permission to take them for a medical check-up. The sailors had been found starving during
several inspections by Coast Guard and shipping ministry officials earlier.
The vessel reportedly is in bad shape – with anchors, engines and life-saving equipment, including
signals not functioning. The newspaper
report quotes Chennai Port Trust deputy chairman P C Parida as saying that the
vessel will be in the custody of port until November and berth and outer
anchorage charges levied from the vessel operator. There had been suggestions
earlier to bring the vessel inside the port, but the authorities refused as
there was nobody to pay the berth charges. Chennai port is reported to charge Rs.93,000 a day for the
berthing. The vessel so far owes the port more than 1 crore for remaining in
the outer anchorage.
Perhaps, the vessel badly needs ‘euthanasia’ intentional ending of life so that its pain
and suffering can be relieved – so also of others who have got entangled in
messy legal tangle
With regards – S. Sampathkumar
26th Sept. 2012.