Brief Facts:
This issue was decided in the case of Aurobindo Pharma Limited V. NYK Theseus .
En-route, the vessel, CCNI ARAUCO, caught fire at
Whether NYK Thesius can be arrested for claims against CCNI ARAUCO on the premise that both these vessels were managed and controlled by
Application by
- The registered owner of NYK Theseus, does not owe any personal liability and therefore in the absence of in personam liability of the registered owner in an action in rem against NYK Theseus is not tenable;
- The claim of the Auribindo that
Nippon Yusen Kabushiki Kaisha is the owner and/or deemed owner/true owner or real owner of NYK Thesius is stated to be a subterfuge to maintain an action in rem; - NYK Theseus is not the sister ship of M.V. CCNI ARAUCO 6327, in which Auribindos cargo was loaded.
Decision of the
The
- There is nothing so very wrong in one family setting up with common share holding multiple companies, each holding different assets. The mere commonality or common ownership, directorship or interlocking share-holding are by themselves not even prima facie evidence of one being the alter ego of the other. There must be an element of deceit, an attempt at fraud, something colourable.
- No effort was made to show as to who was the registered owner of M.V. CCNI ARAUCO 6327 against whom the maritime claim primarily arose.
- The plaint is conspicuously silent about the alleged claim of fraud or dishonest intent on the part of
Nippon Yusen Kabushiki Kaisha so as to justify the lifting of the corporate veil. - Mere identity of the shareholders or directors or the fact that the companies operate from one and the same address, by itself, is not sufficient to lift the corporate veil. Nor a one ship company is a taboo.
Conclusion
The
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Mr Kaushik Sochannam
Sochannam Legal
No. 502, 5th Floor
Reliable
Fort
400001
E-mail: kaushik@sochannamlegal.in
URL: www.linkedin.com/in/kaushik-sochannam-988b621a9/
© Mondaq Ltd, 2024 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source