Karnataka High Court halts Gujarat firm from removing wreckage of MV Princess Miral after ship's Panama owner alleges foul play

The Karnataka High Court recently stayed any operation by a Gujarat-based firm to remove the wreckage left behind by a merchant shipping vessel, MV Princess Miral, which had sunk near the coast of Dakshina Kannada in 2022 after facing bad weather [5 Ocean Administration Inc. v. The Deputy Commissioner].The interim order was passed by Justice CM Poonacha on a petition by the owner of the sunken vessel, a Panama-based company named 5 Oceans Administration Inc., which has accused Gujarat-based firm, Bansal Endeavours LLP, of attempting to unjustly profit off the ship’s sinking..MV Princess Miral is a merchant shipping vessel that carried steel coils, which sank near the Karnataka coast (Dakshina Kannada) in June 2022 after experiencing bad weather. The vessel was on its way from Malaysia to Lebanon at the time. The Indian coastguard is said to have rescued around 15 crew members aboard the vessel before it sank completely on June 21, 2022.The ship’s owner, 5 Oceans has now challenged a June 8, 2023 order passed by the Dakshina Kannada District Magistrate, by which Bansal Endeavours LLP was permitted to remove the vessel’s wreckage. 5 Oceans alleged that this order was passed behind its back, and under a private arrangement with Bansal Endeavours."The impugned order is passed in June at the back of the Petitioner while all along the Petitioner was awaiting permission ... It is highly irregular, even assuming in cases where there has been abandonment of a vessel ... for any authority to award a contract/ mandate for wreck removal and compensation to a private third party without so much as a tender or inquiry into available qualified contractors, much less on the basis of an unsolicited request by a third party,” the petition stated.The company added that the June order falsely claimed that 5 Oceans did not come forward to claim the vessel..5 Oceans further contended that Bansal Endeavours does not have the expertise or the experience to carry out the process of removing the underwater wreckage and that its operation may have an adverse environmental impact if it is not done properly.5 Oceans also asserted that it still owns the sunken vessel and its wreckage, the worth of which is bound to be “nothing short of a few million United States Dollars.”"The vessel is comprised of tonnes of steel and other metals, motors, engines, and various other physical material appurtenant to a large cargo vessel. Even in the current condition, the value of the vessel is nothing short of a few million United States Dollars. The Petitioner has the first and only right to the Vessel and its value,” the plea stated..The company added that it had diligently been following up with the authorities for permission to remove the wreckage for months after the debunkering process (the process of removing oil from the sunken ship to prevent leaks) was declared as completed.As per 5 Oceans, the District Magistrate initially cited the Karnataka Assembly Elections to delay the process when he was approached for permission in April this year. Later, he is said to have indicated that the permission may be granted after the monsoons get over.While so, 5 Oceans has alleged that it came to know only in October that Bansal Endeavours was given permission to remove the wreckage by an order passed in June 2023.5 Oceans termed this order manifestly arbitrary, malafide and without jurisdiction. It added that the order was passed at the instance of a “meddlesome interloper” (Bansal Endeavours LLP) who has “continuously indulged in speculative and profiteering activities in order to make unfair, gains from a deeply unfortunate situation.”Bansal Endeavours has also been accused of having misappropriated the fuel that was aboard the vessel for unjust enrichment instead of handing it over to 5 Oceans after the LLP was hired earlier by 5 Oceans to carry out debunkering last year..On October 19 (Thursday), the High Court sought the response of the LLP as well, apart from the District Magistrate of Dakshina Kannada and the Old Mangalore Port Authority. The Court also granted 5 Oceans interim relief by acceding to their interim prayer to stay the “in situ removal” of the wreckage, which the company said would allow Bansal Endeavours to “tear apart the vessel, limb from limb, and destroy her.”The matter will be heard next on November 16. 5 Oceans Administration Inc. was represented by advocates Arjun Rao, Maitreyi Bhat and Dr. Srikanth Hathi..[Read Order]