In Brief
M/s NKD Maritime Limited purchased the vessel M.V. Karnika through a judicial auction for demolition after the High Court ordered its sale to recover unpaid bunker charges. The Bill of Sale explicitly stated the vessel was sold 'free from all encumbrances.' However, the Port Authority and Customs Authority subsequently demanded anchorage and light dues charges accruing from when the vessel initially arrived in March 2020 through its removal in November 2020. The Supreme Court held that pre-sale liabilities must be met by the erstwhile owners or from sale proceeds held by Court officers, not imposed on the purchaser. Charges accruing post-sale were the purchaser's responsibility, but prior charges could not be fastened upon NKD. The appeal was dismissed.
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