New Delhi. Andhra Pradesh High Court has ordered the arrest of foreign bulk carrier MV Polar Star parked at Visakhapatnam Port. The action arose from a dispute over payment of dues by the Latvian Ship Management Company against ship owners. The company claims that the ship owner did not pay the amount due under the management contract, which is approximately $8.33 lakh (more than Rs 7.6 crore). The court, using admiralty jurisdiction, ordered the ship to be detained until the owners deposited the claim amount or presented acceptable security.
According to media reports, according to maritime law, the arrest of a ship does not mean that the ship has been seized, rather it is not allowed to leave the port. This step is taken to recover the disputed amount. Ships are expensive to operate and cost millions of dollars daily, so detention puts financial pressure on owners. In this case, the court made it clear that the entire structure of the ship, engine, machinery, equipment, furniture, fuel and other technical items will be under arrest, although loading and unloading of cargo can continue.
How Indian law applies to a foreign ship can be understood under the principles of maritime law. When a foreign ship enters the port or border of a country, it temporarily becomes subject to the laws of that country. Under this, the people present on the ship are bound to follow the local rules and if there is any dispute related to the ship then the local court can take action. As soon as MV Polar Star reached Visakhapatnam Port, this ship came under the purview of Indian law. The dispute originated from a ship management agreement.
According to the report, Latvia’s Dawson Ship Management Sia had signed an agreement with the ship’s owners on September 5, 2024. According to the agreement, the company would ensure operation of the ship, recruitment of crew, technical maintenance, purchase of machinery and adherence to safety rules. In return, the owner had to pay a management fee of $17,500 per month and other operating expenses.
The company alleges that the owners continued to default in payments and despite the settlement agreement signed in October 2025, the first installment was not paid. The amount currently owed is reported to be $833,148, which includes management fees, operating expenses and legal costs.
The company told the court that emails were sent several times for payment, but no concrete response was received. Therefore, as soon as the ship reached India, an arrest order was taken from the court. Arrest of ships is an important legal measure in international maritime trade. About 90 percent of the world’s trade takes place via sea routes, and these rules ensure that service providers get paid on time and contracts are adhered to.
