Gujarat HC Directs Arrest Of Cargo Ship At Kandla After Company Exporting Parboiled Rice Claims $1.4 Million Loss Due To Delay In Shipping

The Gujarat High Court directed the arrest of a cargo ship at Deendayal Port, Kandla, following a claim by an exporting company that a delay in shipping caused a $1.4 million loss. The company, Farmart Service Private Limited, had entered into a contract to export 2000 metric tonnes of parboiled rice to Benin, West Africa. Due to the delay, the company incurred significant financial losses. The court ordered the customs authorities to arrest the vessel, MV SW South Wind I, and keep it under arrest until further orders. The court noted that the claim appeared to be a maritime claim arising from loss or damage to goods. The court also directed that if the defendant vessel or its owners deposit the claimed amount with interest, the arrest order would not be executed. The case highlights the legal recourse available to exporters facing financial losses due to shipping delays.