Court Orders Arrest of Ship ‘Nirvana’ at Alang Over Unpaid Dues
Alang, Gujarat – May 9, 2025 — In a significant legal development affecting the ship recycling industry in Gujarat, the Gujarat High Court has ordered the arrest of the tanker ship Nirvana—previously known as Dancy Dynamic—currently being dismantled at the Alang Ship Breaking Yard. The arrest comes in response to a legal dispute over unpaid dues filed by Star Line Express Shipping, which claims it was not compensated for services rendered to the vessel over an 18-month period.
The ship, weighing 9,623 metric tonnes (MT), was purchased by Rushil Industries and is stationed at Plot No. 54 of the Alang yard, one of the world’s largest ship recycling facilities. The dispute centers on services, crew salaries, and operational expenses provided by Star Line Express Shipping between April 2023 and November 2024. According to court filings, the dues owed by the ship’s former operator were never settled, prompting Star Line to initiate legal proceedings.
In its petition to the Gujarat High Court, Star Line Express Shipping contended that despite repeated communications, the dues—comprising significant crew compensation and service-related charges—remained unpaid. The company requested that the vessel be arrested to prevent further disposal or scrapping until the financial claims are addressed.
After reviewing arguments from both Star Line Express and representatives of Rushil Industries, the Gujarat High Court ruled in favor of the plaintiff. The court ordered the immediate arrest of the vessel Nirvana and directed the Port Officer and Customs Officer at Alang to enforce the arrest without delay.
This legal move halts the ongoing scrapping operations of Nirvana and effectively freezes the asset until the outstanding financial claims are resolved. Sources within the ship-breaking industry note that such an arrest could complicate or delay the dismantling schedule, potentially leading to financial losses for the buyer and contractors involved.
Legal experts familiar with maritime and admiralty law say the arrest of a vessel under court order is a powerful tool in disputes involving unpaid debts or contractual violations. “A ship can be considered a legal entity in such matters,” said a senior maritime lawyer based in Ahmedabad. “When services are rendered and not paid for, the claimant can petition the court to detain the ship, ensuring that the asset is not liquidated before financial claims are adjudicated.”
This is not the first time a vessel at Alang has become embroiled in legal troubles. In a similar case, the ship Starlet, also docked at the yard, was recently caught in a legal dispute involving unpaid dues and ownership ambiguities. These recurring incidents raise questions about the financial and legal vetting procedures followed during the acquisition of vessels for scrapping.
Industry observers say that while Alang continues to attract vessels from across the globe due to its cost-effective dismantling capabilities, the rise in legal disputes suggests a growing need for tighter oversight. “There is a clear need for due diligence and more transparent contractual processes,” said an Alang-based ship recycler who wished to remain anonymous. “Otherwise, such court interventions will become more frequent, affecting operations and investor confidence.”
As of now, the vessel Nirvana remains under arrest and cannot be dismantled until further notice. Officials from Rushil Industries have yet to publicly comment on the court’s decision or indicate whether they will settle the dues or challenge the order further.
The Customs and Port Authorities have acknowledged receipt of the arrest order and are reportedly coordinating its execution.
With rising global scrutiny on shipbreaking practices and financial accountability, the unfolding events around Nirvana could set a legal precedent for future cases involving the industry.
