Chennai: The Madras high court has ordered the arrest of a Dominican flagged ship ,CSD Marg Cauvery, berthed at present in Karaikal port for its failure to repay the loan amount of about Rs 30 crore availed from the Singapore branch of Indian Bank.
Passing orders on a petition from Indian Bank, Justice K.K. Sasidharan issued the arrest orders and directed the authorities to file a report on January 20.
According to the bank, the ship belongs to Marg India’s subsidiary company in Singapore, which had availed $8.3 million as loan from the Indian bank's Singapore branch in August 2009. As per the conditions, the owner was to repay the loan in 20 equal installments.
The first installment was made on November 21, 2009. Thereafter, the borrower had suggested various proposals for settling the dues by bringing in an investor.
But the bank rejected them. As on date, the company has to pay Rs 29.31 crore.
The ship was now found berthed at Karaikal port within the jurisdiction of Madras high court, prompting the bank to seek its arrest.
Pointing out that Indian Bank was a nationalized bank dealing with public money, the judge said the ship should be arrested at Karaikal or wherever found within the territorial water of India.
