AIR 1999 BOMBAY 280 ::(1999) 3 ComLJ 15 ::(1999) 3 AllMR 130 (BOM) ::1999 (4) BomCR 256 ::1999 (3) Mah LJ 109 ::1999 (2) Bom LR 366

Bombay High Court

Hon'ble Judge(s): D. G. Deshpande , J

(A) Bombay High Court (Original Side) Rules (1957) , R.941— Foreign Exchange Regulation Act (46 of 1973) , S.26— Admiralty jurisdiction - Plaintiff a foreign company - Applying for arrest of vessel - Has to give undertaking under R. 941 - Same not prohibited by S. 26 of FERA. Where the plaintiff is a Foreign Company and it has applied for arrest of property (Vessel in instant case), the plaintiff is required to give undertaking under R. 941 and the same is not prohibited under S. 26 of the Foreign Exchange Regulation Act. The wordings of the Section 26 will not attract a party who files a suit under admiralty jurisdiction of High Court and who applies under Rule 941 of the Bombay High Court Original Side Rules for arrest of the vessel, because what is prohibited by Section 26 is that a person resident in India and due or owing to a person or resident out of India. The plaintiff in instant case is a foreign company, not resident in India, nor it comes under Clause (ii) of a person resident outside India, because Rule 941 does not accept the undertaking to be given by the constituted attorney. The undertaking has to be given by the party applying for arrest and the party in the suit is the plaintiff.(Para 17) (B) Civil P.C. (5 of 1908) , O.7 R.10, O.7 R.10A, O.7 R.13— Scope - Return o....