Essar barge Nand Gaurav 'arrested' by court

Vol 18, PW 19 (21 May 15) People & Policy
     

A barge owned by Essar Offshore Subsea has been impounded as creditors line up to claim more than Rs50 lakhs ($78,000) in unpaid bills from the Ruia-owned company.

PETROWATCH learns officers from the office of the Sheriff of Mumbai, a department of the Mumbai High Court with the power to seal and auction properties, boarded vessel 'Nand Gaurav' on May 8 to serve an arrest order arising out of a case brought by equipment supplier Husnain Idris Udaipurwalla. Days earlier on May 6 court judge SC Gupte ordered the arrest following Udaipurwalla’s claim that Essar owes him Rs4.9 lakh ($7700) for paints, welding electrodes, cables and brake liners supplied to Gaurav in 2012-13 for which invoices were raised with a 30-day credit period.

“A prima facie case for arrest is made out,” ordered judge Gupte. Two other creditors, Evergreen Enterprises which is owed Rs15 lakh ($23,600) by Essar, and J.

Ibrahim which is owed Rs30 lakh ($47,000), asked the court during the Udaipurwalla case not to release Gaurav until their bills are paid. Judge Gupte had on May 5 allowed another creditor Accelerated Growth FZE to similarly arrest Gaurav within 72 hours.

And on May 8, ruling on unrelated cases by creditors Sumayla Marine Service and Transtar Marine & Offshore, judge Gupte gave Essar till 5pm to pay the first installment of amounts agreed in separate ‘consent terms’ on March 27.