The high court recently allowed traders to remove their cargo brought in by MV Khalijia-III, on furnishing bank guarantee to the tune of Rs 14 crores. The cargo ship recently collided with MSC Chitra at the Mumbai harbour resulting in a major oil spill and disruption of services at the dock.
Simit Singapore Pvt. Ltd., which rendered salvage services to Khalijia-III had moved the high court for securing their payment of $5.2 billion.
Acting on their plea, a single judge bench of the high court restrained traders from removing the cargo — 230 heavy steel rolls. The court had, however, vacated the interim order after Simit Singapore moved an international arbitrator at London and secure order of issuing surety of $7 billion.
The salvage service provider then moved an appeal before division bench, which allowed the traders to remove their cargo after providing bank guarantee of Rs 14 crore. The bank guarantee will be kept alive during the pendancy of arbitral proceedings at London.