Cuttack: Modifying conditions set by the trial court for the release of cargo ship MV Debi detained at Paradip port following seizure of cocaine worth Rs 220 crore on Dec 1, 2023, the Orissa high court has waived the Rs 10 crore bank guarantee and reduced the Rs 100 crore indemnity bond to Rs 75 crore.
However, the HC held that the special court under the Narcotic Drugs and Psychotropic Substances (NDPS) Act had not committed any illegality in passing the order in which the stringent conditions were set on Feb 12, 2024.
Additional district and sessions-cum-NDPS court at Kujang in Jagatsinghpur district had laid down the conditions while hearing the case of seizure of 22.22 kg of cocaine from the ship at Paradip International Cargo Terminal (PICT) berth.
Vietnam-based Asian Pacific Shipping Company, the owner of MV Debi, had filed a petition challenging the conditions imposed by the NDPS court and seeking the HC’s direction for interim release of the vessel which was seized by the Indian authorities for commission of a crime punishable under the NDPS Act.
Justice Aditya Kumar Mohapatra in his March 7 judgment said, “This court finds that the condition with regard to furnishing a bank guarantee would be a harsh condition so far as the petitioner shipping company is concerned since they are not having any bank account in India. Therefore, the condition requires reconsideration by this court. Accordingly, the condition is hereby waived.”
On the indemnity bond condition, Justice Mohapatra said the real value of the vessel has not yet been assessed by any certified valuer, but based upon the insurance declaration, the value has been arrived at Rs 100 crore.
Adopting a “reasonable approach” in the absence of valuation report by a certified valuer, Justice Mohapatra said, “Accordingly, the condition is modified to the extent that instead of Rs 100 crore, the petitioner shipping company shall now furnish an indemnity bond to the tune of Rs 75 crore and instead of one solvent surety for the like amount, they shall furnish two solvent sureties for the like amount.”
According to case records, MV Debi came from Gresik (Indonesia) to Paradip. The vessel reached Paradip on Nov 29, 2023 and commenced loading of cargo the next day. It was supposed to leave for Fredericia, Denmark. But during the process of loading of cargo, oil leakage on a crane was detected. During inspection, the cocaine packets were found affixed at a height of 57 ft to the ceiling beam of the crane operator’s cabin.
While seeking interim release of MV Debi, the shipping company had stated that as a result of the seizure, the vessel has been continuously berthed for more than one year at PICT, leading to financial loss to the tune of Rs 40 crore. Thus, a condition for release in the nature of bank guarantee would cause severe financial hardship to the company.
Cuttack: Modifying conditions set by the trial court for the release of cargo ship MV Debi detained at Paradip port following seizure of cocaine worth Rs 220 crore on Dec 1, 2023, the Orissa high court has waived the Rs 10 crore bank guarantee and reduced the Rs 100 crore indemnity bond to Rs 75 crore.
However, the HC held that the special court under the Narcotic Drugs and Psychotropic Substances (NDPS) Act had not committed any illegality in passing the order in which the stringent conditions were set on Feb 12, 2024.
Additional district and sessions-cum-NDPS court at Kujang in Jagatsinghpur district had laid down the conditions while hearing the case of seizure of 22.22 kg of cocaine from the ship at Paradip International Cargo Terminal (PICT) berth.
Vietnam-based Asian Pacific Shipping Company, the owner of MV Debi, had filed a petition challenging the conditions imposed by the NDPS court and seeking the HC’s direction for interim release of the vessel which was seized by the Indian authorities for commission of a crime punishable under the NDPS Act.
Justice Aditya Kumar Mohapatra in his March 7 judgment said, “This court finds that the condition with regard to furnishing a bank guarantee would be a harsh condition so far as the petitioner shipping company is concerned since they are not having any bank account in India. Therefore, the condition requires reconsideration by this court. Accordingly, the condition is hereby waived.”
On the indemnity bond condition, Justice Mohapatra said the real value of the vessel has not yet been assessed by any certified valuer, but based upon the insurance declaration, the value has been arrived at Rs 100 crore.
Adopting a “reasonable approach” in the absence of valuation report by a certified valuer, Justice Mohapatra said, “Accordingly, the condition is modified to the extent that instead of Rs 100 crore, the petitioner shipping company shall now furnish an indemnity bond to the tune of Rs 75 crore and instead of one solvent surety for the like amount, they shall furnish two solvent sureties for the like amount.”
According to case records, MV Debi came from Gresik (Indonesia) to Paradip. The vessel reached Paradip on Nov 29, 2023 and commenced loading of cargo the next day. It was supposed to leave for Fredericia, Denmark. But during the process of loading of cargo, oil leakage on a crane was detected. During inspection, the cocaine packets were found affixed at a height of 57 ft to the ceiling beam of the crane operator’s cabin.
While seeking interim release of MV Debi, the shipping company had stated that as a result of the seizure, the vessel has been continuously berthed for more than one year at PICT, leading to financial loss to the tune of Rs 40 crore. Thus, a condition for release in the nature of bank guarantee would cause severe financial hardship to the company.