ATL Shipping took 11 days to provide security to obtain the release from the arrest of its post-panamax bulker New Legend (built 2012), which was seized in the Indian port of Chennai on 27 February.
The 93,100-dwt New Legend was permitted to resume trading on 8 March after a €2.26m ($2.45m) deposit was lodged with the High Court of Madras to cover the damages that Elbsun GmBH & Co KG of Germany claims it suffered when the bulker slammed into its 889-teu container ship Elbsun (built 2012) while it was anchored off Istanbul on 17 September 2023.
The case, which lawyers believe is the first before an Indian court involving a collision that took place outside of the country’s territorial waters, is set to continue in the High Court of Madras.
According to maritime lawyers, collision cases involving a vessel underway hitting a stationary ship are very straightforward.
The responsibility for safe navigation lies with the moving vessel. In such cases, the defendant, ATL Shipping in this case, has limited legal options beyond disputing the quantum of the claim.
Elbsun GmBH’s claim for damages includes €1.56m for repairs to the Elbsun, which was hit in its stern, and a further €527,833 for 51 days of loss of hire while the ship was being repaired.
The company is also seeking interest calculated at 18%.
At the time the shipowner was seeking the arrest of the New Legend, it told the court that despite assurances given by the bulk carrier’s owners that they would provide a letter of undertaking for the loss suffered by the Elbsun, they failed to do so for more than five months.
Shashank Agrawal of SSA Legal along with Counsel Parth Contractor, who acted for the interests of the owners of the Elbsun, told TradeWinds on Monday they were surprised that the owners of the New Legend took 11 days to come up with the required security as it is usually posted within 48 hours in most cases they have been involved with.
The New Legend immediately departed Indian waters following its release from arrest, and according to vessel tracking website MarineTraffic, is heading for the Brazilian port of Santos.
