Can a ship be ‘arrested’? Andhra Pradesh High Court says yes, orders Latvian vessel to be held

“The vessel by name ‘MV Polar Star’ along with her hull, engines, gears, tackles, bunkers, machinery, apparel, plant, furniture, fixtures, equipment, and all other appurtenances presently at the anchorage of the Visakhapatnam Port, is ordered to be arrested until the suit claim of USD 833,148 is deposited,” said the court on March 5.

Foreign ships subject to local jurisdiction

• A foreign vessel, no matter under what flag she flies, owes temporary and local allegiance to the sovereign of any port to which she comes, and the persons in such a vessel must obey the laws and regulations of the port.
• All foreign merchant ships and persons in it fall under the jurisdiction of the coastal state as they enter its waters and the coastal states are entitled to assume jurisdiction in respect of maritime claims against foreign merchant ships lying in their waters.
• These ships are liable to be arrested and detained for the enforcement of maritime claims.
• Therefore, the foreign ship is subject to the jurisdiction of the local authorities in respect of maritime claims and it is liable to be arrested for the enforcement of such claims.

Court invokes admiralty powers

• Since the vessel is anchored at Visakhapatnam port, within the territorial jurisdiction of this court, this court has admiralty jurisdiction over the same as per the provisions of the Admiralty (Jurisdiction and Settlement of Maritime Claims), 2017, the court stated.
• This court is satisfied that an arguable maritime claim is made out by the petitioner, warranting a conditional order of arrest of the vessel till furnishing security for the maritime claim.
• The port officer shall execute the warrant and effect the arrest, seizure and detention of the said vessel “M V Polar Star” along with her hull, engines, gears, tackles, bunkers, machinery, apparel, plant, furniture, fixtures, equipment, and all other appurtenances, as ordered.
• After execution of the arrest, the port officer is directed to submit compliance report in detail to this registrar (judicial), High Court of Andhra Pradesh, Amaravati, within two weeks.
• It is made clear that this order will not in any way prevent the loading and unloading of cargo of the vessel.

Suit posted for further hearing

• The Andhra Pradesh High Court issued notice to the defendants in the commercial suit and directed that the matter be listed after three weeks for further proceedings.
• Until the ship-owner deposits the claim amount or furnishes security acceptable to the court, the bulk carrier will remain under arrest at Visakhapatnam port, securing the petitioner’s maritime claim while the dispute proceeds through the court.

Justice B S Bhanumathi was hearing a commercial admiralty suit filed by Dawson Ship Management Sia.

Ship manager’s claim

• The petitioner, Dawson Ship Management Sia, is a limited liability company incorporated in the Republic of Latvia that provides technical and crew management services to ship owners and charterers worldwide.
• According to the suit, the company entered into a Ship Management Agreement dated September 5, 2024, with the vessel’s owners to provide comprehensive management services for the bulk carrier MV Polar Star, which sails under the Liberian flag.
• Under the agreement, the contract initially covered the period from September 10, 2024 to September 10, 2025.
• It was subsequently extended until August 25, 2026 through an addendum dated August 25, 2025.
• The company undertook wide-ranging operational responsibilities, including crew management, involving recruitment of qualified masters and seafarers, technical management, such as procurement of stores and lubricants, dry-docking and vessel surveys, ensuring compliance with international maritime safety and environmental regulations and implementation of obligations under the International Safety Management (ISM) Code.
• The agreement required the ship-owner to pay a monthly management fee of USD 17,500, apart from reimbursing operational and maintenance expenses incurred in managing the vessel.

Debt acknowledged in settlement deal

• The petitioner told the Andhra Pradesh High Court that the ship-owner had defaulted on its contractual payment obligations, resulting in substantial outstanding dues.
• The dispute escalated when the ship-owner entered into a Settlement and Debt Deferral Agreement on October 25, 2025, acknowledging that it owed USD 1,458,000 to Dawson Ship Management and its affiliate companies, Dawson Group FZC (UAE) and Elmor Shipping Denizcilik Limited, Turkey.
• Under the settlement arrangement, the ship-owner agreed to clear the admitted liability through nine monthly instalments of USD 162,000.
• Payments were to begin February 10, 2026, and be made on the 10th day of each month.
• However, the petitioner informed the court that the very first instalment was not paid, triggering immediate enforcement rights under the agreement.

Outstanding amount crosses $833,000

• The company quantified its present claim at USD 833,148, which includes USD 656,148 towards management fees and operational expenditures incurred between October 1, 2025 and February 16, ߪ USD 162,000, representing the first unpaid instalment under the settlement agreement; and USD 15,000 towards legal costs.
• The petitioner submitted that while total expenses and fees during the relevant period amounted to USD 1,009,748, the ship-owner had paid only USD 353,600, leaving a large unpaid balance.

Payment demands ignored

• Counsel appearing for the petitioner told the court that the company repeatedly sought payment through email communications sent on January 12, 30 and February 15, 16, 17, and 26.
• Despite these reminders, the ship-owner allegedly failed to clear the outstanding dues or respond with any concrete payment plan.
• The petitioner also expressed concern that the vessel might leave Indian waters or be transferred to defeat the maritime claim, leaving the company with no effective means to recover its dues.
• The vessel had arrived at Visakhapatnam Port on February 15, 2026, and was expected to depart shortly, making urgent judicial intervention necessary, the court was told.