Cargo Vessel ‘MV Magnet Team’ Arrested at Paradip Port Over ₹2.11 Crore Dues
Odisha High Court orders detention of Panama-flagged bulk carrier after shipping agency’s petition; vessel to remain anchored pending legal proceedings
Paradip (Odisha), Oct 31: A 24-year-old cargo vessel, MV Magnet Team, was arrested at Paradip Port on Tuesday following a directive from the Odisha High Court (HC) over unpaid maintenance dues amounting to ₹2.11 crore. The arrest order, issued by the High Court’s Admiralty Jurisdiction Bench, has brought operations at the Paradip International Cargo Terminal (PICT) under heightened scrutiny. The vessel, currently under detention, remains anchored at the port’s berth awaiting further legal proceedings.
According to court documents, the arrest was made pursuant to an order passed by Justice V. Narasingh on October 27, after Silk Road Shipping & Chartering Ltd., a shipping agency, filed a civil suit against the MV Magnet Team for non-payment of dues by the vessel’s operating company. The plaintiff alleged that despite repeated reminders and contractual obligations, the operators of MV Magnet Team failed to clear outstanding maintenance payments totaling ₹2,11,82,656.
Justice Narasingh, in his order, observed that unless the defendant vessel was immediately arrested, “the cause of the plaintiff will be frustrated and the suit will be rendered infructuous.” The court’s reasoning emphasized the importance of preserving the plaintiff’s claim under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, which empowers Indian High Courts to order the arrest of ships in cases involving maritime debts and unpaid dues.
Court-Directed Arrest Carried Out at Paradip Port
Following the High Court’s directive, the court at Kujang issued an arrest warrant for the vessel. On Tuesday morning, an executive magistrate, accompanied by local police officials, executed the order and formally detained MV Magnet Team within the Paradip harbour area.
Additional Superintendent of Police (ASP) Smurti Ranjan Kar confirmed the development, stating, “The vessel has been arrested in compliance with the Odisha High Court’s order. Security measures at Paradip Port have been strengthened to ensure safety and compliance during the detention period.”
Kar further added that the crew of the Panama-flagged ship is being allowed to remain on board, with port and security officials maintaining close supervision. The arrest is civil in nature, and the vessel will remain under detention until further orders from the High Court.
Background of the Dispute
The plaintiff, Silk Road Shipping & Chartering Ltd., had approached the Odisha High Court seeking a decree against the vessel and its operating company for the recovery of dues. The company prayed for a court order directing the defendants to pay ₹2,11,82,656 along with interest at 12 percent per annum until full realization of the claimed amount.
The petition alleged that the operating company of MV Magnet Team failed to honour maintenance and service obligations, causing financial losses to the plaintiff. In maritime law, ships are treated as distinct legal entities, meaning that creditors can pursue claims directly against the vessel itself, regardless of the owner’s nationality or financial status.
In this case, the HC determined that sufficient grounds existed to issue an arrest order, ensuring that the vessel could not leave Indian waters before the dues were settled or a resolution was reached through court proceedings.
Vessel Details and Current Status
MV Magnet Team (IMO: 9233507) is a 24-year-old bulk carrier registered under the flag of Panama. According to marine tracking databases, the vessel was built in 2001 and has been engaged in international bulk cargo operations, transporting commodities such as coal and iron ore between ports in Russia, Southeast Asia, and the Indian subcontinent.
Port authorities confirmed that the ship arrived from Russia and docked at Paradip on Saturday, carrying a cargo of coking coal meant for industrial clients. It had berthed at the Paradip International Cargo Terminal (PICT) for unloading operations. However, following the High Court’s order, the vessel’s movements have been restricted, and unloading operations are expected to be suspended until further notice.
“The vessel is currently anchored and will remain under arrest until the dues are cleared or the court issues fresh instructions,” a senior Paradip Port official said, adding that the case has drawn attention within shipping circles due to the rare use of Admiralty powers in the state.
Legal and Operational Implications
Experts note that the arrest of MV Magnet Team underscores the growing reliance on India’s Admiralty courts for enforcing maritime claims. The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, enacted in 2017, consolidates the legal framework for the arrest and detention of vessels in Indian territorial waters. It provides for claims related to damage, loss, repair, charter, crew wages, and other maritime debts.
In the current case, the court’s intervention aims to ensure that creditors’ rights are protected in international shipping disputes. If the vessel’s operators fail to clear the dues or provide security equivalent to the claim, the court could eventually order the sale of the ship, with proceeds directed toward satisfying the plaintiff’s claim.
Meanwhile, the Paradip Port Trust and PICT officials have been coordinating with the police and the local magistrate to ensure compliance with court orders. Maritime lawyers handling the case suggest that the next hearing could determine whether the vessel’s owners furnish a bank guarantee or make partial payment to secure its release.
Security Tightened; Crew Cooperation Reported
Following the arrest, Paradip Port authorities have increased vigilance across berthing areas, especially near the detained vessel. ASP Smurti Ranjan Kar confirmed that additional police personnel have been deployed and that coordination with the port’s marine department is ongoing.
“The arrest has been peaceful. The vessel’s captain and crew have cooperated with authorities and are complying with all procedural formalities,” a senior port security officer said.
Awaiting Court’s Next Step
The next hearing in the Odisha High Court is expected to review the defendant’s response and determine whether the vessel can be released upon payment or security. Until then, MV Magnet Team will remain anchored at Paradip Port under court custody.
The incident has once again highlighted the legal complexities of international maritime operations and the growing role of Indian ports and courts in adjudicating high-stakes commercial disputes involving foreign-flagged vessels.
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