The Orissa High Court has eased the conditions imposed by a Special Court under the Narcotic Drugs and Psychotropic Substances (NDPS) Act for the release of MV Debi, a cargo vessel that has been under detention at Paradip Port since December 1, 2023, following the seizure of cocaine worth ₹220 crore from onboard.
In a significant relief to the vessel’s owners, Justice A.K. Mohapatra set aside the requirement for a ₹10 crore bank guarantee, which had been stipulated by the Additional District & Sessions Judge-cum-NDPS Court in Kujang, Jagatsinghpur district. Additionally, the court reduced the indemnity bond amount from ₹100 crore to ₹75 crore.
The NDPS court had initially imposed these conditions on February 12 while deliberating on the case of 22 packets of cocaine, weighing 22.22 kg, found on the ship at the Paradip International Cargo Terminal (PICT) berth. The vessel’s owner, Vietnam-based Asian Pacific Shipping Company, had moved the High Court, challenging the conditions and seeking interim release of the ship, which Indian authorities had seized under the NDPS Act.
In a judgment delivered on March 7, Justice Mohapatra noted that the requirement to furnish a bank guarantee placed an excessive financial burden on the petitioner, particularly given that the company does not have a bank account in India. “This court finds that imposing such a condition would be an unduly harsh measure for the petitioner. Hence, it warrants reconsideration and is accordingly waived,” the court observed.
Justice Mohapatra further stressed the importance of a practical approach in determining the indemnity bond, as the vessel’s actual value has not been formally assessed by a certified valuer. However, based on the insurance declaration, its estimated worth stands at ₹100 crore.
“In view of this, the requirement has been modified—rather than an indemnity bond of ₹100 crore, the petitioner will now provide a bond worth ₹75 crore. Additionally, instead of a single surety, they must furnish two solvent sureties for the equivalent amount,” the court ruled.
The High Court, however, clarified that the trial court had not erred in setting the conditions in its order dated February 12, 2024.
In its petition, the shipping company had argued that the vessel had been stranded at PICT for over a year due to the seizure, resulting in substantial financial losses exceeding ₹40 crore. The company contended that imposing a bank guarantee would cause severe financial hardship.
Advocates Sukumar Mahesh Tirthani and Prateik Parija represented the vessel and its owners in court.
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