E-AUCTION CATALOGUE FOR SALE OF MV TAMILNADU" THROUGH M/s. MSTC LTD. FOR TRADING / SCRAPPING
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E-AUCTION CATALOGUE
FOR SALE OF MV TAMILNADU”
THROUGH M/s. MSTC LTD.
FOR TRADING / SCRAPPING
Page 1 of 37THE TECHNICAL SERVICES (FLEET) DEPARTMENT
Date: 25.01.2019
To,
THE PROSPECTIVE BUYERS,
Dear Sir,
E-Auction Ref: MSTC/WRO/The Shipping Corporation of India Ltd.
Mumbai/6/Nariman Point/18-19/28814
Re: Sale of MV “TAMILNADU ” through MSTC E-auction for Trading / Scrapping on
“as is where is, what is basis and no complaint basis”.
1. MV ―TAMILNADU ‖, a single hull bulk carrier vessel , built at ―M/s Hindustan
Shipyard Ltd, Visakhapatnam, India ‖, in 2000, DWT 45792 MT, GT 28029 MT, LDT
10793.793 Long Tons, is available for sale for Scrapping/further trading on ―as is
where is what is basis‖ at Colombo Anchorage, Sri Lanka
Offers are invited from Indian/International ship breakers / Buyers (―Bidders‖) for
sale of the above mentioned vessel, through the e-auction portal of MSTC Ltd. i.e.
www.mstcecommerce.com. The E-auction shall be conducted by MSTC Ltd. on
05.02.2019, Tuesday from 1300 hrs. (IST).
2. We are enclosing herewith the e-auction catalogue along with terms and conditions
for the sale / supply of this vessel for onward Trading/Scrapping by the buyer. If
interested, you are requested to register with MSTC on their portal
www.mstcecommerce.com and submit your bid on the day and at the time in the
manner as described in the e-auction catalogue.
3. The following may kindly be noted in respect of this e-auction:-
a. Physical delivery of the vessel would be provided basis the location of vessel
at the time of sale / supply at Colombo Anchorage, Sri Lanka (―Colombo
Anchorage‖) , on ―as is where is what is and no complaint basis‖. The delivery
of the vessel will include the fuel oils and lubricating oils remaining
onboard as at the time of delivery on ―as is where is what is and no
complaint basis‖ (without any guarantee of condition, state and quality).
b. Bidders will submit the pre-bid EMD non interest bearing Earnest Money
Deposit (“EMD) as mentioned in the auction catalogue after completing the
registration formalities with MSTC.
Page 2 of 37c. Acceptance or otherwise of the H1 bid will be communicated to the bidder by
SCI/MSTC Ltd, within a period of 30 (thirty) days from the date of close of
auction. If the said thirtieth day is a holiday or declared as a holiday, the offer
shall remain open for acceptance till the next working day. The above period
of 30 days may be mutually extended in writing. However, the Bidder once
identified as H1 bidder will not be allowed to withdraw the bid within the said
period of thirty days. In case of withdrawal, EMD shall be impounded and all
the consequential provisions related to the backing out will be applicable to
such cases as provided in the ―Guidelines for removal / suspension/ banning
of entities‖ (Available in SCI Website – www.shipindia.com).
d. Bidder should note that SCI is not bound to accept the H-1 rate or any rate
and also reserves the right not to sell the vessel or defer the finalization of
sale/supply of the vessel.
e. For this sale/supply transaction, all applicable taxes, Customs duties, Octroi
duty, Cess, Levies, Excise duties, Sales tax, VAT, Cesses, Goods and Services
Tax (GST), other taxes/expenses etc. as may be applicable from time to time
will be borne and paid by / recovered additionally from the Buyer(s).
f. Buyers agree and acknowledge that as on the date of the first importation
of the Vessel in India for plying she was exempted from payment of duty
under the relevant notification in force at the relevant time. Buyers
expressly undertake to bear any liability for payment of any import duty /
levies, taxes which may accrue by reason of sale of the Vessel or become
due or payable pursuant to the sale of the vessel.
g. Bidders are also required to note that the responsibility of filing the fresh Bill
of Entry for break-up of the vessel and for payment of import duty if any, of
customs on the vessel is that of the buyer.
h. The vessel would be delivered to buyer free from all encumbrances, if any,
pertaining prior to date/time of delivery of vessel to buyer.
4. Schedule for sale of vessel MV ―TAMILNADU‖ for Trading/Scrapping is as under
Date and time for receiving pre-bid EMD: 04.02.2019 (Monday) Up to 2000 hrs ( IST)
DD/PO in favour of MSTC Ltd.
Payable at Mumbai to be submitted in a box
kept for the purpose at MSTC Ltd., 607,
Raheja Centre, Nariman Point,
Mumbai-400 021 (India).
Commencement of e-auction: 05.02.2019 (Tuesday), 1300 Hrs (IST)
NOTE :
Page 3 of 375. Bidders may note that the pre-bid EMD box will be closed at 2000 hrs. (IST) on
04.02.2019 and no pre-bid EMD will be accepted thereafter. The intending Bidders
shall be required to certify (in the pro-forma attached) whether they intend to
purchase the vessel for scrapping or for trading at the time of submission of pre-bid
EMD.
6. The vessel will be available for inspection at Colombo anchorage, Sri Lanka ,
during 25.01.2019 to 04.02.2019 from 0900 hrs to 1700 hrs. You are requested
to contact Technical & Offshore Services Division, 5th floor, Shipping House, 245
Madame Cama Road, Nariman Point, Mumbai – 400021 or at Technical Services
(Fleet) Department, 4th floor, Mumbai – 400021. Contact no. 0091 22 2277 2153,
2277 2128, 0091 22 2277 2167 Fax: +91-22-22854790.
a. Mr. Nirav Thakar, DM (TS-F),
Email: nirav.thakar@sci.co.in,
Contact no. 009122 2277 2153
b. Mr.B. Chakravarti, DGM (TS-F),
Email: b.chakravarti@sci.co.in,
Contact no. 009122 2277 2128
c. Mr. Mahesh Kumar Balaraman DGM(TS-F & MSV),
Email: maheshkumar.balaraman@sci.co.in,
Contact no. 0091 22 2277 2167
d. Capt. Anil Kumar Sharma GM (OS&TS-F)
E.mail : anil.sharma@sci.co.in
Contact no. 009122 2277 2175
Interested parties for purchase of the vessel can log on to
MSTC‘s website 'www.mstcecommerce.com' or 'www.mstcindia.co.in' for further details.
New parties for registration may contact MSTC Ltd, Mumbai.
Contact Person: Mr. Jamil Akhtar / Mr. Dibyendu Paul / Mr. Surya Kant
Tel: 0091-22-22022296, 0091-22-22823767, 0091-22-22040698.
E.mail : jakhtar@mstcindia.co.in, dpaul@mstcindia.co.in, suryakant@mstcindia.co.in
IMPORTANT NOTICE:-
Please note that the intending bidders are required to register as “Buyer”
with MSTC and submit the documents as mentioned on MSTC website.
Canvassing in connection with tenders is strictly prohibited and tenders
submitted by the bidders who resort to canvassing will be liable to rejection.
************
Page 4 of 37TERMS & CONDITIONS OF E-AUCTION FOR PURCHASE SALE OF VESSEL FOR
TRADING / SCRAPPING ON “AS IS WHERE IS WHAT IS AND NO COMPLAINT
BASIS” FOR ONWARD TRADING / SCRAPPING BY BUYER.
7. The Shipping Corporation of India Ltd., shall be hereinafter referred to as
SELLER, is owner of the vessel and MSTC Ltd as its SELLING AGENT.
8. Those parties who are interested in buying the vessel for trading / scrapping
purposes are required to be registered with MSTC portal i.e.
www.mstcecommerce.com. The successful bidder ( ― B u y e r ‖ ) will not be entitled to
assign i t s right to buy the vessel to any third party or nominate any third party,
once i t i s declared to be the highest bidder. In other words, the benefit of MOA
will be only in favor of the successful Bidder /B u ye r and not any third party. The
Seller assumes that the participating Bidder / Buyer has sufficient liquidity to honor
the bid. Seller reserves the right to cancel any bid, if they find that the bidder / buyer
would not be in a position to honor its bid/commitment due to financial liquidity.
9. The intending B idders are required to submit their declaration as per Performa
(Ref: Annexure – A) along with their pre-bid EMD declaring their intention for
buying the vessel either for trading or scrapping.
Note: In the declaration, Witness and authorized signatory of bidder should not be
the same person.
10. All bidders are required to bid in US Dollars only. Bidders residing or having
registered office outside the territory of India (“Foreign Bidders”) must make
payments in US Dollars only. Bidders residing or having registered office within the
territory of India (Indian bidders”) must make payment in Indian Rupees only. (At
the applicable exchange rate declared on the auction floor), however Indian bidders
can make payment in US Dollars subject to the compliance of provisions of AP (DIR
Series) Circular No. 39 dated 28.04.2008 of RBI. However, strict KYC compliance as
per clause no. 44 of the e-auction catalogue is mandated for all payments.
11. Pre-bid EMD is of USD 250,000/- (US Dollars T w o H u n d r e d F i f t y
T h o u s a n d only) or Rs.1,78,00,000/- (Indian Rupees One Crore Seventy
Eight Lakhs only). The MSTC New York bank details and MSTC Mumbai bank
details are given below:
Note: BANK TRANSFER CHARGES EITHER WAY WOULD BE ON BIDDER‟S A/C.
For USD Dollar payments only - Name and Bank Details of the MSTC Ltd
Bank of India, New York Branch (SWIFT BKID US33) for credit to RFC account at
Mumbai Overseas Branch with Cayman Island for ultimate credit to account No.4048
2021 0000002 of MSTC Ltd. with Bank of India, Kolkata Overseas Branch (SWIFT
BKID IN BBCOS).
Page 5 of 37For Indian Rupees payments only - MSTC MUMBAI BANK DETAILS:
Name of the beneficiary : MSTC Limited
A/c Number : 019081400000071
Bank Name : YES BANK LTD
Branch Name : DALHOUSIE BRANCH
Centre : KOLKATA, WEST BENGAL
Bank IFS Code : YESB0000190
12. Bidders are advised to seek clarification, if required, regarding the vessel, her
particulars, equipment and any document, at least 24 hrs prior to submission of
bid in the e-auction. No dispute in this regard will be entertained by the
Seller/Selling Agent after submission of bids. The successful B idders will not
raise any dispute regarding the terms and conditions of the e-auction or about the
particulars or condition of the ship or contest the same once the Bidder has been
declared as the successful bidder for the vessel. Any Bidder acting in contravention
of the terms and conditions mentioned herein (―Defaulting bidder‖) will be debarred
/ forbidden from participating in all future tenders for the same vessel whenever
fresh bids are invited.
13. The pre bid non-interest bearing EMD made by the intending bidder through
RTGS/NEFT/Electronic transfer would be deemed to have been received, only if the
same is credited to MSTC‘s Account by 2000 hrs. (IST) on the
04.02.2019(Monday); otherwise the Bidder would be deemed to have committed
default and shall be treated as per provisions of the Terms and Conditions of
this e-auction.
Please note that intending B idders should ensure that the payment of EMD is
deposited in such a way that the same is credited to MSTC‘s account as mentioned
above. Each tender is a separate financial transaction and therefore EMD paid for
any other transaction/tender is not adjustable against this Tender / Sale.
14. The successful bidder will be intimated through email by SCI about the
acceptance of the bid within thirty days after close of auction. Bidder/Buyer will be
solely responsible for any consequence arising from non receipt of notice or any
other correspondence due to non- functioning of its mode of communication.
15. On intimation of confirmation by the Seller, the successful Bidder(s) shall make
payment of an amount equivalent to the 10% (Installment A) of the vessel purchase
price, alongwith applicable taxes, within 4 (four) banking days to SCI‘s Bank
Account. Also Buyer shall execute Memorandum of Agreement (“MOA”) with the
Seller immediately thereafter as per draft MOA attached. Please note that on signing
of the said MOA, the EMD paid would be treated as security deposit which will be
adjusted against any shortfall / recovery of payments. Any such adjustment will be
alongwith applicable Goods and Services Tax (GST), VAT taxes.
16. Immediately after the execution of MOA, the successful B u y e r shall be issued
Page 6 of 37notice by Seller for the payment of balance amount (Installment B) including
cost of bunker remaining onboard (―ROB‖) and taxes Goods and Service Tax
(GST), Cesses, any other applicable duties within 4 (four) banking days and
thereupon to take delivery of the vessel within 24 hrs. after the money is credited
in the Seller's Bank Account without any deduction of taxes at source. In the event
that the buyer does not take the delivery within 24 hours on any ground whatever
any / all operational expenses incurred after expiry of 24 hours will be on Buyers
account with applicable taxes / GST / VAT etc.
17. If the successful bidder does not make payment of the balance amount and meet
alongwith the applicable GST/ VAT / sales tax/duties requirement and taxes,
when they become due in terms of this Clause, the Seller shall be entitled to
terminate the MOA forthwith, time being the essence, and forfeit the amounts
already paid by the Buyer / successful bidder, and in addition the buyer /
successful bidder shall then be liable for damages and all costs as provided herein
below. Applicable taxes, Goods And Services tax (GST) will be charged extra.
18. The installment amount (A) and (B) as mentioned above should be paid by
Demand Drafts/Pay Orders in favor of the SELLER on any scheduled bank
payable at Mumbai for Indian Bidders / Buyers and payable at London (only in
convertible foreign exchange and NOT in INR) in case of Foreign Bidders/
Buyers. If the successful bidder fails to pay the installment (A), then the
security deposit of USD 250,000/- (US Dollars Two Hundred Fifty Thousand only)
/ Rs. 1,78,00,000/- (Indian rupees One Crore Seventy Eight Lakhs only), will be
forfeited. Similarly, if the successful Bidder has paid the installment (A) but
fails to pay the installment (B) within the stipulated period, then the Security
Deposit of USD 250,000/- (US Dollars Two Hundred Fifty Thousand only) / Rs.
1,78,00,000/- (Indian rupees One Crore Seventy Eight Lakhs only), and the 10%
amount of purchase price paid as installment (A) will be forfeited. This forfeiture by
the SELLER in both the above events shall be without prejudice to any other
action by the SELLER against the Successful B idder. The SELLER shall also in
that event be at liberty to resell the vessel to any other party and any deficiency
together with all expenses/losses arising from the resale which will also include
the cost incurred for maintaining the vessel until completion of the resale, shall be
borne by the Defaulting Bidder who shall also pay compensation for interest at the
rate of 20% (twenty percent) per annum on the balance due of the original price
to the SELLER till completion of the resale. SELLER in his s o l e l y a t t h e
discretion may also grant extension in the period of payment under very special
circumstances, on request of the successful bidder, provided successful bidder
pays to the SELLER interest at the rate of 20% per annum along with the
applicable taxes on the balance amount due for the period of extension allowed in
writing by SELLER from the date of payment. In case the SELLER agrees for any
extension in payment period as mentioned above, the successful bidder shall in
addition to the above payment of interest at the rate of 20% per annum, also
reimburse to the SELLER the actual cost of maintaining the vessel including but
not restricted to crew wages, bunkers, port dues, provisions, stores and other
supplies, etc. for the period of extension allowed along with applicable taxes. Until
Page 7 of 37the payment of the full purchase price (without any deduction of taxes at source) of
the vessel and delivery thereof, SELLER will remain in exclusive possession of the
vessel and the successful bidder will have no right whatsoever therein.
**Please Note that Cheque is not acceptable as mode of any payment of either the EMD
or any other payments under this document or the MOA.**
19. The Foreign Bidder / Buyer can pay these amounts in SCI‘s London bank account
in convertible foreign exchange and forward the proof of payment along with
the proforma in (Ref: Annexure – A) and same should be specified on the cover.
PLEASE NOTE ALL PAYMENTS TO BE MADE BY THE BUYER, ONLY IN WHOSE
NAME THE VESSEL PURCHASE OFFER IS GIVEN (AS PER KYC DECLARATION).
The SCI London bank details for US Dollar payments.
The Shipping Corporation of India Ltd.
State Bank Of India, 15 King Street,
London – EC2V 8EA, U.K.
USD A/C No. : 10802103
Swift : SBINGB2L
IBAN : GB22SBIN60836510802103
Sort Code : 60-83-65
Corresponding Bank : CITI BANK, 111 WALL STREET, NEW YORK
Swift Code : CITIUS33
Corresponding Bank Account no.(USD) : 36002753
SCI MUMBAI BANK DETAILS for Indian Rupees payments:-
STATE BANK OF INDIA, OVERSEAS BRANCH, CUFFE PARADE,
MUMBAI 400 005
I.F.S.C. CODE SBIN0004791
MICR NO. 400002063
NEFT CODE. SBIN0004791
BANK STATE BANK OF INDIA
BANK ADDRESS OVERSEAS BRANCH,
WORLD TRADE CENTER,
CUFFE PARADE, COLABA, MUMBAI 400005
TELEPHONE 022 22181518 / 22181557
ACCOUNT NAME THE SHIPPING CORPORATION OF INDIA LTD.
SHIPPING HOUSE 245 MADAME CAMA ROAD,
NARIMAN POINT, MUMBAI – 400021
CURRENT ACCOUNT 10937613420
NO.
SWIFT CODE SBININBB103
20. If the payments from the successful bidder are not received and credited into
Seller‘s account before the expiry of the notice period, which (―notice period‖) is as
Page 8 of 37follows :-
a) For the 10% vessel price, plus applicable GST within 4 banking days from the date
of acceptance of bid (clause 15);
b) For the 90% vessel price, alongwith estimated Bunkers (H.O., D.O,) Lubricating
oils plus applicable GST / VAT within 4 banking days from the date of intimation
(clause 16);
the su cce ss fu l Bi dde rs wo u l d be l i abl e to pay all costs/expenses of the SCI
due to the delay in the delivery of the vessel to them. Such detention charges
would interalia include but not restricted to standing charges, Port/Berth
charges, Fuel consumption, interest on the balance amount @ 20% per annum, etc.
The applicable taxes Goods and Services tax (GST) as applicable, will be charged
additionally.
21. Seller would then issue a document i.e ‗Instrument of sale‘ which would transfer
ownership and signify physical delivery of the vessel at the contractually
agreed place of delivery of the vessel, i.e at Colombo Anchorage to the
Buyer by SELLER. This is subject to payment of the full consideration payable
hereunder being credited into the SCI account and also after completion of GST /
VAT / Sales Tax formalities by the Buyers and payment of detention charges, if
any alongwith applicable taxes.
22. Security Clause in National & Global E-auctions
It may please be noted that as per Govt. of India guidelines ―while evaluating the
bids regard would be paid to National defense security considerations.‖
23. Seller serves their rights to amend /modify the terms and conditions contained
herein full or in part at any point of time and no party shall have any right
whatsoever to raise any demur or protest in that regard on that count.
SPECIFIC TERMS & CONDITIONS:-
24. Sale agreement will be as per the attached draft Memorandum of Agreement
hereinafter called ‗MOA‘(―MOA‖). Registering of a bid by the BIDDER would
signify unconditional acceptance of all terms and conditions stated therein.
25. SELLER does not bind itself to accept the highest offer or any offer or to assign
any reasons for non-acceptance. SELLER also reserves its right not to sell the
vessel at all or to defer/cancel finalization of the sale. SELLER also reserves its
right to have at its sole discretion individual negotiations only with the highest
bidder.
26. The particulars of the vessel and of t h e vessel‘s certificates are given at
Annexure–B & Annexure – D, respectively f o r ready reference, but without any
guarantee. Bidders should satisfy themselves thoroughly by physical inspection of
the vessel as also of the classification records before submitting their offer and
for this purpose inform names of persons for inspection of the vessel and
Classification Records. Submission of a bid will be deemed to imply that the
B idders have submitted their offer after p r o p e r a n d t h o r o u g h inspection
of the vessel and classification records and they have accepted the same without
Page 9 of 37any reservation, and waive off any right to raise any protest regarding the vessel
and/or the documents related thereto.
27. The pre bid EMD of the successful bidder would be retained with the Seller till
final settlement of accounts. (Please also refer Para 43(ix) below).
28. The offers should be for net price for the vessel on the " as is where is what is
and no complaint" basis at the port and at the time of handing over vessel to Buyer
and no demur or protest at any point of time whatsoever shall be entertained.
Bidders may please note that for the bunkers remaining on board MV
―TAMILNADU‖, which are chargeable to Buyer, rates/taxes chargeable or any
import duty leviable / assessable / payable thereon would be borne and paid by the
buyers solely.
29. The Buyer shall assume all responsibility for obtaining the necessary approval of
the Director General of Shipping and/or any other statutory authority or
Government of the concerned country for the purchase of the vessel.
30. The vessel shall be and remain in every respect at the entire risk of the Buyer from
the date of issue of the ‗ Instrument of Sale‘. Should the vessel be lost or become
a constructive or compromised total loss before the issue of the Instrument of Sale,
the deposit money and the portion of the balance purchase price paid by the
Buyer if any, shall be returned in full to the Buyer without any interest thereon
and this agreement shall be considered null and void.
31. The sale and the delivery of the vessel will be on "as is where is what is and no
complaint basis", in substantially the same condition as inspected at Colombo
anchorage, or the vessel‘s condition as on date of handing over but excluding the
under mentioned items:-
Stores and miscellaneous items:
i. Hawsers and wire ropes and portable items that have been
temporarily placed, left on board, for the safety of the vessel.
ii. Plans and documents.
iii. Publications and Instruments/Equipment of IMD, ISM manuals
and documents or publications of other Institutions.
iv. All items on hire or temporarily placed on board for carrying out
repairs or Operational need.
v. Personal effects of officers and crew and Bonded stores, if any.
Apart from above, additional items as per Annexure – ‗E‘ (which have been excluded
from sale & hence not covered in the amount of offer under the E-auction) will be
returned to the Seller by the Buyer free of cost.
32. The delivery of the vessel will include the fuel oils and lubricating oils remaining
onboard as at the time of delivery on ―as is where is what is and no complaint‖
basis (without any guarantee of condition, quality). The quantities of bunker
ROB i.e. fuel oils and lubricating oils, will be determined by joint survey during
handing over of the vessel to the Buyer(s) and full bunkers ROB is chargeable to
the Buyer. Please note that cost of all unused oil in drums (even if seal is broken)
/elsewhere is also chargeable. The final quantity of bunkers determined by such
joint survey cannot be linked or compared with any other declaration of quantity
made by the Seller at the time of e-tender. Buyers will have to deposit the amount
Page 10 of 37for estimated cost of fuel oils/lubricating oils remaining onboard unconditionally
along with installment –‗B‘. Payments shall be made in the same currency as the
purchase price. The actual cost of oils remaining onboard will be calculated at the
price prevailing at the port of delivery (as applicable to Seller) and on the date of
delivery of the vessel. The Seller absolves itself from providing any documents or
explanations towards the methodology for cost of bunker (fuel oils and lubricating
oils) so arrived at the time of e-tender. Excess amount if any as compared to
deposited amount will be refunded to the Buyer and in case of shortfall of amount
as compared to deposited amount; based on the available ROB as on date of
delivery will be recovered from EMD along with applicable taxes.
33. The Buyer shall comply with all necessary import/other formalities required to be
followed for eventual transfer of the vessel to their ownership.
34. Bidders should note that the transaction covered by this e-auction and to be
recorded in the Memorandum of Agreement ( M O A ) will be treated as a
transaction subject to applicable Sales taxes including but not restricted to Goods
and Service Tax / VAT at the rate applicable under the Sales Tax/VAT law relevant
tax laws and applicable provisions of the concerned state, at the time of conclusion
of the sale / delivery of the vessel.
35. All port trust charges, duties etc. wages and such other charges and expenses, as
may be or become due after the vessel's delivery and the charges of watchmen,
whom the Buyer may post on the vessel at their risk and cost, shall be borne and
paid by the Buyer while the port trust charges and crew charges of the vessel
payable, if any, prior to i s su an ce o f the ‗ I nst ru me nt o f S al e ‘ shall be borne
by the Seller.
36. The Buyer may post with prior authorization from the Seller maximum 4
personnel/watchmen on board at Buyer's costs, risk and expenses along with all
applicable taxes after executing the Memorandum of Agreement.
37. EMD of the unsuccessful B idders will be returned within three days after the e-
auction proceedings. No Interest will be paid on the amount deposited towards EMD
by unsuccessful Bidder(s).
38. In respect of wireless communication equipment, attention is invited to the D.G.
Shipping letter No. 11-MA(JSG) (NT)/83 dated 7th/9th July, 1984 referring to the
letter No.R-1101/7/84-LR dated 8.6.1984 addressed by the Wireless Adviser to the
Govt. of India to the Indian National Ship-owners Association (copy attached
Annexure - C). Buyers are advised to have a license from Wireless Planning & Co-
ordination (WPC), Ministry of Telecommunication prior taking over the vessel.
Otherwise SCI will condemn & destroy all transmitting /receiving equipment on
board by following WPC guidelines prior handing over the vessel. SCI will erase
ship‘s particulars including name, call sign from electronic memory of EPIRBs
(Emergency Position Indicating Radio Beacons (―EPIRB‖) and other radio
communication equipment onboard immediately after delivery of the vessel to
prevent false alarm being transmitted. The Buyer will be liable for any action taken
by any Authority due to wrong activation of the EPIRBs. It will be responsibility of
the buyer to transfer the ownership of the vessel to their name. After delivery of the
vessel Seller will not held responsible for any false activation of EPIRB/any
communication equipment.
39. In case of scrapping the vessel the buyer has to ensure that the hull of the vessel
Page 11 of 37shall be completely scrapped, dismembered or destroyed within the period allowed
to the BUYER by the concerned Port/Government authorities from time to time and
it shall be the sole responsibility of the BUYER to ensure that this is done. It is
specifically a g r e e d a n d u n d e r t a k e n by the Buyer that obtaining space for
beaching of the vessel from the c o n c e r n e d port authorities will be the sole
responsibility of the BUYER and the SELLER is not concerned with this, nor the
Seller can be held accountable / liable for any contravention in compliance of any
law / regulation by the Buyer for these purposes. Whether or not the Buyer
succeeds in getting permission or space for beaching of the vessel from the Port
Authorities, shall not be a ground for non performance of this terms or for retaining
payment of the balance consideration payable hereunder by the Buyer. T he Buyer
will still be responsible to make payment to the Seller of the installments of
purchase price a l o n g w i t h a p p l i c a b l e t a x e s / G o o d s a n d c o m p l e t e
S e r v i c e s T a x requirement (GST) as specified in this e-auction on their due dates
and receive delivery of the vessel and in no case the BUYER can or will be allowed
to withdraw from his contractual obligations or terminate the contract on this
account. Bidders / Buyers may specifically take note of the limitations and
difficulties at ports for scrapping of vessels including long waiting delays before
getting berth for breaking from Port Authorities and the bidder may like to take
these into account before bidding.
40. It is also the responsibility of the bidder to ascertain about the admissibility of this
vessel's scrapping space requirements keeping in view the vessel's dimensions, draft
and other particulars. The Buyer will not be entitled to raise any i s s u e on this
account. Whether or not the Buyer succeeds in getting permission of space for
beaching of the vessel from the Port Authorities, the Buyer will still be responsible
to make payment to the Seller of the installments of purchase price along with
applicable taxes as stated in this e-auction on their due dates and in no case the
BUYER can or will be allowed to withdraw from his contractual obligation or
terminate the contract on this account.
41. In case vessel is scrapped, the buyer has to submit to SCI the proof of demolition
/ scrapping of the vessel from the competent authority of the port where she has
been scrapped.
42. Status of Bunkers Remaining Onboard will be uploaded on websites one day before
e-auction i.e. on 04.02.2019. The final R.O.B may vary from the uploaded figure
marginally or substantially and Seller absolves itself from providing any explanation
for such variance.
43. Position about GST/ Sales Tax/VAT
Applicable taxes
I. ―Taxes‖ means all applicable national / federal, state, provincial and local income,
withholding (including any withholding taxes on employees and consultants),
corporate, Goods and Services Taxes (GST), custom charges or duties or similar
Taxes or duties and other taxes and governmental charges, arrears or levies,
Cesses and any related interest or penalties, arising pursuant to the transaction
contemplated under this agreement.
II. The taxes, including Goods and Services Tax (GST), as and wherever applicable
will be charged and recovered extra from the Buyer.
III. Parties shall be responsible for and undertake to pay to the treasury of the
Page 12 of 37Government, in a timely manner, Taxes in accordance with the Applicable Laws
pertaining to and arising out of their respective obligations and duties under this
Agreement; and their performance under this Agreement. Parties shall also comply
with all procedural requirements relating to the Taxes. The Seller shall not be
liable to compensate for any loss of taxes which may arise to the Buyer post sale /
supply of such vessel on account of any reason whatsoever including any
litigation, of taxes or otherwise.
IV. Bidders should note that the transaction covered by this e-auction and
eventually to be recorded in the Memorandum of Agreement will be treated as
a transaction subject to Sales applicable taxes including Goods and Services
Tax (GST) / VAT / which will be charged at the applicable rate applicable under
the Sales Tax/VAT law of the concerned state, applicable tax provisions, at the
time of conclusion of the sale of the vessel / supply of the vessel.
V. The sale / supply of the vessel is on the basis of "as is where is what is and no
complaint basis" at the time of handing over to buyer and in substantially the
same condition as when inspected at Colombo anchorage Sri Lanka. The Buyer
will be given delivery of the vessel at Colombo Anchorage, Sri Lanka.
VI. If the delivery of the vessel is taken for scrapping locally at the same port in
the State in which the vessel is lying at the time of its inspection or at any
other port within the same State, the Buyer will be charged tax at the rate
applicable under the Sales relevant tax laws including Goods and Services Tax
/ VAT (GST) law of such state. The Buyer shall, before taking delivery of the
vessel, pay full sale price together along with the full amount of GST / Sales
Tax/VAT as applicable taxes without deduction of any taxes at source.
VII. If the Buyer, after delivery, desires to take, beach and break the vessel at a port
other than where the vessel is located at the time of its inspection, the Buyer
shall, while signing the MOA, indicate the Port/Place where he intends to
transport the vessel for Beaching/Breaking after delivery. The Seller may agree
to the proposal of the Buyer provided the Buyer undertakes an absolute
obligation to take the vessel to such port/place within reasonable time and shall
not direct the vessel to any other port/place. Further, the Buyer shall, before
taking the delivery of the vessel, pay to the Seller full sale price together
with the amount equivalent to full amount of Central Sales Tax as agreed along
with applicable taxes.
VIII. It may please be noted that the Seller shall not deliver the Instrument of Sale of
vessel and effect delivery of the vessel to the Buyer, unless Buyer has paid all
the amounts including amount in respect of applicable total tax involved in the
transaction, to the Seller.
IX. Retaining a part of the EMD till buyer submits proof of demolition:— Whenever
a vessel is sold for demolition, a proof of demolition of the vessel is required to
be submitted by the Seller to the Registrar of Ships Mercantile Marine
Department (MMD) to process closure of registry. Therefore, if the vessel is
purchased for demolition(scrapping) by the H-1 bidder, then ten percent of the
earnest money deposit or Rupees 10 lakhs, whichever is lower will be retained
by SCI till such time the H-1 bidder submits one of the proofs of
demolition of the vessel as mentioned below:-
a) C e r t i f i c a t e of demolition from the scrap yard.
b) Certification from local customs department.
Page 13 of 37c) Certification of the local administration / respective classification society.
44. The prospective buyer who intends to participate in purchase of SCI vessel
through SCI Selling Agency i.e. M/s. MSTC Mumbai, should comply with
following KYC Norms:
KYC Norms (for bidders)
a) For foreign bidders:
I. Letter of good standing from a reputed bank with details of bank account of
the bidder along with the solvency certificate from the bank.
II. Cancelled cheque(s) from their bank account(s) to be submitted.
III. Certification of Registration or Certificate of Incorporation.
IV. For countries not having system of registration, Identity confirmation letter
from Chamber of Commerce.
b) For Indian bidders:
i) PAN Card
ii) Goods and Serives Tax (GST) Registration certificate. (provisional certificate
can be submitted till the time the final certificate is issued to the bidder by
concerned GST Jurisdictional authority, VAT /CST Registration Certificate.
iii) Cancelled cheque(s) from their Bank account(s) to be submitted.
iv) Certification of Registration or Certificate of Incorporation.
Note:
1) Bidders already registered shall be allowed to participate only after compliance
with the revised KYC norms.
2) All financial transactions towards sale of vessel must be made by the authorized
and identified bidder only through the bank account (registered with MSTC) in
respect of which the cancelled cheque is given, irrespective of whether bidder is
Indian or Foreign.
3) KYC documents should be strictly in the name of bidders only.
45. Legal Jurisdiction/Arbitration:
i. If any dispute should arise in connection with the interpretation and
fulfillment of this contract, same shall be decided by arbitration in the city of
Mumbai, India, Indian Law to apply. The Arbitration shall be governed by the
provisions of the Arbitration and Conciliation Act, 1996, as amended from time
to time. The disputes between the parties shall be referred to a single Arbitrator
to be jointly appointed by the parties hereto. If the parties cannot agree upon
the appointment of the single Arbitrator, the dispute shall be r e f e r r e d t o
three Arbitrators, each party appointing one Arbitrator, the third being
appointed by the two Arbitrators. If either of the appointed Arbitrators refuses
or is incapable of acting, the party who appointed him, shall appoint a new
Arbitrator in his place.
ii. The award rendered by the Arbitral tribunal shall be final and binding upon
the parties.
Page 14 of 37iii. To any contract of sale resulting from or in connection with this e-auction, the
laws in force in India shall apply and the ‗Civil Court of Mumbai‘ alone
shall have the jurisdiction to the exclusion of all other courts, to entertain
and adjudicate any dispute arising out of the above terms and
conditions/contract MOA.
46. Cartelization is not permitted.
47. The Buyers shall not indulge in the practice of Cartelization or any other anti
competitive practices with respect to the e-auction.
48. The principal and agent (on behalf of principal), both cannot bid in the same
tender/e-auction. If done, such an instance will render both the bids invalid.
49. One agent shall represent and submit bids on behalf of only one principal in a
subject tender. Violation will lead to disqualification of the bids.
Page 15 of 37ANNEXURE „A‟
PLEASE FILL UP ALL THE INFORMATION AS REQUIRED IN THIS FORM AND TO BE
SUBMITTED TO M/s. MSTC Ltd, MUMBAI ALONGWITH PRE BID EMD.
From : M/s. Tel No :
Address: Fax. No:
E-mail :
PAN :
MSTC Buyer No.: Mobile :
To,
Director (Technical & Offshore Services),
The
th
Shipping Corporation of India Ltd.,
5 Floor, Shipping House,
Mumbai – 400 021 (INDIA).
Sub: Sale of MV ―Tamilnadu‖, for ____________(Please fill either Trading / Scrapping as
applicable)
I/We hereby declare that my/our offer is for the vessel as a whole unit and
I/we have satisfied my/ourselves about the description of the vessel given in
the e-auction after physical inspection & I/we hereby confirm my/our
unconditional acceptance of all the terms and conditions of the e-auction. I/We
have noted that these are given by SELLER without any guarantee of whatsoever
nature, whether for particulars or for any other description of the vessel.
2. Pre-Bid EMD:
Demand Draft / Pay Order No. _________________________________________ dated ____ for
Rs. 1,78,00,000 /- (Indian Rupees One Crore Seventy Eight Lakhs only) payable in
favour of MSTC Ltd payable at Mumbai OR USD 250,000/- (United States Dollars Two
Hundred Fifty Thousand only) in favour of MSTC Ltd payable at Kolkata drawn on
_________enclosed towards pre- bid EMD.
OR
Documentary proof of the Electronic Fund Transfer as specified in the e-auction
catalogue is enclosed herewith.
AUTHORISED SIGNATORY OF THE BIDDER
WITNESS SIGNATURE (WITH SEAL /STATUS/DESIGNATION)
FULL NAME & ADDRESS (IN CAPITAL) FULL NAME & ADDRESS (IN CAPITAL)
TELE. NO. TELE. NO.
E MAIL E MAIL
FAX/MOBILE NO. FAX/MOBILE NO.
DATE DATE
Page 16 of 37ANNEXURE – „B‟
PARTICULARS OF THE VESSEL –MV TAMILNADU‖ IMO NO. 9107631
(WITHOUT GUARANTEE)
1. Type of vessel : BULK CARRIER VESSEL
2. Year Built/Country : 2000/SOUTH KOREA
3. Date of delivery : SEPTEMBER 2000
4. Port of Registry : MUMBAI
5. Flag : INDIAN
6. Official Number/Call sign : 2757/VVMA
7. Class with : IRS /BV
8. LOA/LBP : 193.493 MTRS/185.958 MTRS.
9. Breadth (Moulded) : 30.406 MTRS.
10. Depth (Moulded) : 16.392 MTRS .
11. Gross Tonnage : 28029 MT.
12. Net Tonnage : 16154 MT.
13. Deadweight/Draft (Summer) : 45792 MT. / 11.822 MTRS
14. Light ship (As built) : 10967 MT (10793.793) long tons)
15. Details of Main Engine : WARTSILA SULZER TYPE : 5RTA62,
SINGLE SCREW
16. Details of Generator Sets : YANMAR - M220 L-EX, 750 RPM,
650 KW
17. Details of Propeller (as built) : G-CU AL 10 NI F650- 4 BLADES
DIA 6100 MM
18. Spare Propeller : ONE
19 Spare Tail End Shaft : ONE
20. Spare Anchor : ONE
21. Lightship draft Fwd 0.283 m, Aft – 5.196 m, Mean-
2.740 m
The above particulars of the vessel which is being sold on "as is where is what is and
no complaint basis" are being furnished without any guarantee. Bidders must ensure
that any/all clarifications of the above particulars are made before
submitting their bid. No claims/complaint of any nature will be entertained from
the Buyer after submission of their e-auction bids.
************
Page 17 of 37ANNEXURE - `C‟
COPY OF LETTER
Telex : D.G. SHIP – 2813
Telephone – 263631 – 5
Telegram : `D:G:SHIP‘
GOVERNMENT OF INDIA
MINISTRY OF SURFACE TRANSPORT
DIRECTORATE GENERAL OF SHIPPING
―JAHAZ BHAVAN‖ WALCHAND HIRACHAND MARG
MUMBAI – 400 001.
No. 11-MA(JSG) (NT)/83 Date : 7.7.1984/9.7.1984
The Indian National Shipowners‘
Association, F-Maker Tower, Cuffe Parade,
Mumbai – 400 005.
Sub : Illegal use of marine communication sets in Gujarat
Sir,
Wireless adviser to the Government of India has directed as follows for all concerned by
his letter No. R-1101/7/84-LR dated 8.6.1984 addressed to the Monitoring Station,
Ahmedabad :
―Possession of wireless communication equipment fitted on board condemned ships
bought by various parties for converting it into scrap is to be dealt under the `Indian
Wireless Telegraphy (Possession) Rules1965‘. These rules are administered by the P & T
Department.
The rule 3 of the said rules provides that no person shall possess a wireless telegraphy
apparatus except under and in accordance with a license issued under these rules. The
sub-rule (2) of the said rules further provides that no person shall sell, hire or otherwise
transfer a complete wireless set to any person who is not in a possession of a valid
license issued in his name either under these rules or under the Indian Telegraph Act,
1985.
From the above, it can be seen that the person who buys a condemned ship and which
is fitted with wireless telegraph apparatus is to obtain in the first instance a possession
license from P & T Department and subsequently to comply with sub-rule (2) as
mentioned above.
Attention of ship owners is drawn to rule 3(2) and of all other as applicable as otherwise
it is an offence for non-compliance with the provision.
Yours faithfully,
Sd/- x x x
(J.S. Gill)
Deputy Nautical Adviser to the Govt. of India
*****
Page 18 of 37ANNEXURE – „D‟
MV “TAMILNADU”
VALIDITY OF STATUTORY CERTIFICATES
Sr. No. Certificates Due Date
1. Special Survey (Hull) 04.09.2020
2. Class, Load Line, I.O.P.P. Certificate, 04.09.2018
3 I.S.P.S. [10.05.2019]
Cargo Ship Safety Equipment, Cargo Ship
3. Safety Radio & Cargo Ship Safety Construction 04.09.2018
Certificate
4. Dry-docking Survey due 27.10.2018
10.12.2018
5. Tail Shaft Survey
7. Safety Management Certificate 15.02.2019
8. Continuous Survey (Machinery) 04.09.2020
The above particulars of the vessel which is being sold on "as is where is what is and
no complaint basis‖ are be i n g f u r n i s he d w i th o u t a n y gu arantee . Bidders mu st
e n s u r e t h a t any/all clarifications of the above particulars are made before
submitting their bid. No claims/complaint of any nature will be entertained from the
Buyer after submission of their e-auction bids.
**********
Page 19 of 37ANNEXURE – „E‟
Items to be removed from MV “TAMILNADU”
Buyers may kindly note that In addition to the items mentioned in para 9 of
specific term and condition. The following equipments of M V ―TAMILNADU‖ will
be taken by the Sellers (i.e. SELLER) from the Buyers of the vessel free of all
costs and expenses and the Buyers shall arrange to deliver these items to
Seller before the vessel handed over to buyer.
1. Freon Cylinders
2. Acetylene Cylinders
3. Satellite Phone
4. Any other hired items.
SPARE PARTS - NIL
Page 20 of 37MEMORANDUM OF AGREEMENT (M.O.A.)
Sale of M V “ T A M I L N A D U ” for S c r a p p i n g on “as is where is what is
basis and no complaint basis” at Colombo Anchorage.
This MEMORANDUM OF AGREEMENT for MV ―Tamilnadu‖ made on this ___ day
of __, 2019 at Mumbai Between The Shipping Corporation of India Ltd.,
having its registered Office at "Shipping House", 245, Madame Cama Road,
Mumbai-400 021 (hereinafter called the Sellers) of the one part, and
______________ having its registered office at _________________________(hereinafter
called the Buyers) of the other part would be described in this Memorandum of
Agreement (hereinafter briefly referred to as MOA). The vessel MV ―TAMINADU‖ is
hereinafter referred to as the "Said Vessel".
AND WHEREAS it has been mutually agreed by and between the parties hereto that
the Sellers shall sell and the Buyers shall purchase the said vessel ―as is where is
what is basis and no complaint basis‖ for a price of USD _________ (United States
Dollars ____________________ only) (hereinafter referred to as the Sale Price),
excluding applicable taxes / cesses etc and on the terms and conditions mutually
agreed upon between the parties hereto (as hereinafter appearing).
Whereas the particulars of the vessel are more specifically set out in
Annexure `B' hereto. However the same do not constitute any representations
from the Seller. Buyers are therefore required to ascertain the same
independently.
Whereas it is agreed between the parties that the Buyer has already conducted a
physical inspection of the vessel on ________ and the physical delivery of the
vessel will be given to the Buyers on "as is where is what is and no complaint basis
" at ___________________ India depending upon the location of the vessel at the time
of its delivery and compliance of the terms of this MOA.
Now this memorandum of agreement witnesses that it has been mutually
agreed by and between the parties as follows:
1. The non interest bearing Earnest Money Deposit (―EMD‖) of USD _______/-.
(USD _____________ only)/Rs. _________/- (Indian Rupees ____________ only)
received with the tender shall automatically stand converted as security deposit
of USD _______/- (USD _______ only)/Rs. _____/- (Indian Rupees ____________
only), immediately upon acceptance of the offer by the Sellers and shall be
refunded only after the vessel is delivered to the Buyers and upon completion
of all contractual formalities, furnishing documents to the Seller etc. The Sellers
will in no case be liable to pay interest on EMD. Upon acceptance, the Buyer has
to deposit 10% of sale price alongwith applicable taxes / GST, VAT etc.
2. PAYMENT
The Buyers shall make all payments towards the sale price of the vessel on
scheduled dates and the sale price will be paid by the Buyers to the Sellers, net
of all taxes. All Applicable taxes will be borne additionally by the buyers and
without deduction of any taxes at source as follows:-
INSTALMENT (A)
Page 21 of 37Rs.________________ (Rupees _________________ only @ exchange rate of 1 USD =
____ INR) equivalent to the 10% of the sale price has been paid by the
Buyers before executing the Memorandum of Agreement (MOA), and the same
has been credited into Seller‘s bank account No. 10937613420.
INSTALMENT (B)
Rupees __________ (Rupees ____________________ only) or USD ___________ ( USD
_________________________________________ )an amount equivalent to the 9 0% of
the sale price shall be paid free of bank charges by buyers to Sellers in their
Current Account No. 10937613420 ____________‖ within four days‘ notice from
Seller. Buyers will also have to pay estimated cost of fuel/lub oil remaining on
board vessel along with applicable taxes, GST / VAT etc. as mentioned in Clause
7-c. Immediately after the execution of Memorandum of Agreement, the Sellers
shall give to the Buyers four banking days' notice by fax/email or letter by
courier service to make payment of the balance of the sale price and for
compliance of sales, applicable taxes (GST / Vat) etc requirement as per Clause-
16. The buyer will be entitled to thereafter take delivery of the vessel within 24
hours after the money is credited in the SELLER‘s Bank Account No No.
10937613420, with State bank of India. The payments made by the Buyers by
Pay Order/Demand Drafts/Bank Transfer would be deemed to have been
received by the Sellers, after the money has been duly credited into the Sellers
Account and confirmation thereof has been received from the Seller‘s Bank.
a. If the payments from the Buyers are not received and credited before the expiry
of the notice period the Buyers would be liable to pay all costs/ expenses of the
Sellers due to the delay in the delivery of the vessel to them. Such detention
charges would include standing charges, Port/Berth charges, Fuel consumption,
and interest at the rate of 20% (twenty percent) per annum on the balance
amount. The `Instrument of Sale' would be released by Sellers only after all the
payments from the BUYERS have been duly confirmed by the Sellers Bank to
have been credited into the Sellers account and also after completion of Sales
applicable Tax /GST, VAT formalities by the Buyers and payment of detention
charges, if any alongwith applicable taxes on detention charges. It is clarified that
mere signing and execution of this MOA does not transfer any rights, title or
interest in the vessel from the Sellers to the Buyers. The Buyers shall be lawfull
owner of the vessel only upon complete payment of all installments and applicable
taxes under this MOA. The same shall be evidenced by the Instrument of Sale
executed by the Sellers.
b. If the Buyers fails to make do not make payment of either of the installments
and / or the applicable taxes thereupon the balance sale price and do not meet
Sales the applicable tax GST / VAT requirement when they become due in terms
of this clause, the Sellers shall be entitled to put an end to terminate the contract
forthwith, time being the essence of the payment of the balance sale price and
meeting Sales app l i c ab l e Tax, GST / VAT requirement, and forfeit the
amounts already paid by the Buyers and also adjust the applicable taxes from
such deposits / payments made so far by the Buyers. Additionally Sellers will be
entitled to damages and all costs as provided herein below:
Page 22 of 37i) The installment amount (A) and (B) as mentioned above should be paid by
Demand Draft/ Pay Order/ Bank Transfer in favour of the Sellers in Seller‘s
nominated Account. If the Buyers fail to pay the installment (A) within the
stipulated period, then the security deposit of Rs.________ (Indian Rupees
_________ only) will be forfeited. Similarly, if the Buyers have paid the installment
(A) but fails to pay the installment (B) within the stipulated period, then the
Security Deposit of __________ (Indian Rupees ___________only) and the
installment (A) viz. Rs.__________ (Rupees _______________________ only) an
amount equivalent to the 10% amount of the sale price paid by the Buyers will be
forfeited. This forfeiture by the Sellers in both the above events shall be without
prejudice to any other right of action by the Sellers against the Buyers. The Sellers
taxes as applicable will be charged / adjusted additionally.
ii) The Seller shall also in that event be at liberty to resell the vessel to any other
party and claim any deficiency together with all expenses/losses arising from the
resale which will also include the cost incurred for maintaining the vessel
until completion of the resale, f r o m the defaulting Buyers who shall also pay
compensation for interest at the rate of 20% (twenty percent) per annum on the
balance due of the original price to the Sellers till completion of the resale.
Sellers at their discretion may also grant extension in the period of payment under
very special circumstances, on request of the Buyers, provided the Buyers pay to
the Sellers interest at the rate of 20% (twenty percent) per annum on the balance
due of sale price for the period of extension as may be allowed in writing by
Sellers from the date of payment. In case the Sellers agree for any extension in
payment period as mentioned above, the Buyers shall in addition to the above
payment of interest at the rate of 20% p.a., also reimburse to the Sellers the
actual cost of maintenance including crew wages, bunkers, port dues, provisions,
stores and other supplies, etc. for the period of extension allowed alongwith
applicable taxes. Until the payment of the full sale price of the vessel and
delivery thereof, Sellers will remain in exclusive possession of the vessel and the
Buyers will have no right whatsoever therein.
3. TAXES
I. ―Taxes‖ means all applicable national / federal, state, provincial and local
income, withholding (including any withholding taxes on employees and
consultants), corporate, Goods and Services Taxes (GST), custom charges or duties
or similar Taxes or duties and other taxes and governmental charges, arrears or
levies, Cesses and any related interest or penalties, arising pursuant to the
transaction contemplated under this agreement.
II. The taxes, including Goods and Services Tax (GST), as and wherever
applicable will be charged and recovered extra from the Buyer.
III. Parties shall be responsible for and undertake to pay to the treasury of the
Government, in a timely manner, Taxes in accordance with the Applicable Laws
pertaining to and arising out of their respective obligations and duties under this
Agreement; and their performance under this Agreement. Parties shall also comply
with all procedural requirements relating to the Taxes. The Seller shall not be liable
to compensate for any loss of taxes which may arise to the Buyer post sale / supply
of such vessel on account of any reason whatsoever including any litigation, of taxes
or otherwise.
Page 23 of 37IV. From the date of sale, delivery of the vessel, the responsibility and liability of
payment of Customs duties, Cesses arising on any account, whatsoever, in any
manner, whenever originating is solely on the Buyers. The Buyers will also be
responsible and liable for Octroi, fees, excise duties, levies, Sales tax / VAT and
Goods and Services Tax (GST) and other taxes expenses, etc. All fees, levies,
expenses payable to any Authority, Government/Semi-Government, etc. for this
sale/delivery/scrapping of the vessel shall be solely on account of the Buyers and
payable by the Buyers alone. Buyers agree and acknowledge that as on the date
of the first importation of the Vessel in India for plying she was exempted from
payment of duty under the relevant notification in force at the relevant time.
Buyers expressly undertake to bear any liability for payment of any import duty /
levies, taxes which may accrue by reason of sale of the Vessel or become due or
payable pursuant to the sale of the vessel.
4. INSPECTION
4.1. The Buyers agree and acknowledge that they have physically inspected the
vessel at the Colombo anchorage on _________ and the classification records and
have submitted their bid, after full and complete satisfaction of the particulars
of the vessel. The Buyers further agree and acknowledge that their offer has
been accepted, subject only to the terms and conditions of this MOA.
5. DELIVERY OF VESSEL
5.1 If the Buyer wishes to take delivery of the vessels through a representative/
third party, such representation must be duly authorized by the competent
authority of the Buyer. Such letter of authority shall be presented to the Seller
upon which delivery will be allowed at the Buyer's own responsibility and risk.
No claim shall be entertained against Seller on any account whatsoever if the
delivery is taken by the representative / third party.
5.2 The Buyers shall take delivery of the vessel with all faults and errors of
description including any deficiency on account of any taxes in any
manner whatsoever, without any allowance or abatement whatsoever ―on as
is where is, what is, and no complaint basis‖. Any damage or normal
deterioration of the vessel and / or discrepancy in the certificates
particularized in Annexure ‗D‘ to the terms and conditions of E-auction will
not absolve the Buyers from their obligations to conclude the sale. No
complaint, claim of any nature or otherwise from the Buyers will be accepted or
entertained by Sellers at the time of making due payment or at the time of
taking delivery of the vessel as the sale is outright, definite and without item
by item inspection.
5.3 In consideration for payment of sale price in full by the Buyers as
mentioned at Clause 2 and upon the BUYERS meeting the Sales Tax / VAT /
GST applicable taxes requirements fully the Sellers shall furnish the Buyers
with a `Instrument of Sale‘ document formally transferring and signifying
change of ownership of the s a i d vessel (―Instrument of Sale‖) thereby passing
on the ownership and the risk of the vessel to the Buyers on "as is where is
w h a t i s , basis at the time of handing over vessel to Buyers. The
‗ I n s t r u m e n t of Sale‘ shall certify that the vessel is free from all
encumbrances, mortgages, maritime liens and any other debts any arising
solely in the course of its operations and not anything otherwise, till the date /
Page 24 of 37time of delivery of vessel to buyer. The ownership of the vessel will be deemed
to have passed on from the Sellers to the Buyers from the date of issue of
`Instrument of Sale' irrespective of any collateral acts to be completed by the
Buyers. In the event of any delay in execution of the `Instrument of Sale' and
delivery thereof to the Buyers beyond 4 (four) banking days from the date of
full and final payment by the Buyers, ( including all payments towards
the Sellers applicable taxes under this MOA), the Sellers shall be liable to
refund the entire payment received from the Buyers immediately with interest
@ 20% (twenty percent) per annum if demanded by the Buyers or both
Sellers and Buyers will mutually agree to extension for execution of `Instrument
of Sale' and delivery subject to interest at 20% (twenty percent) per annum
being paid by the Sellers for the period of extension agreed alongwith applicable
taxes / GST.
6. The sale price offered for the vessel will be on "as is where is w h a t i s a n d
n o c o m p l a i n t basis" where it is lying at the time of tender and excluding all
applicable taxes and bunker/L.O cost. It is agreed by and between the
parties hereto, that the vessel is not being sold on the basis of LDT (Light
Displacement Tonnage).
7. The sale and the delivery of the vessel will be on "as is where is what is and
no complaint basis at the time of handing over to buyer", afloat at the place
where the vessel has been lying at the time of tender but excluding the under
mentioned items–
a) Stores and miscellaneous items.
I. Hawsers and wire ropes and portable items that have been
temporarily placed, left on board, for the safety of the vessel.
II. Plans and documents.
III. Publications and Instruments/Equipment of IMD or other
Institutions.
IV. All items on hire or temporarily placed on board for carrying out
repairs to vessel.
V. Personal effects of officers and crew.
VI. Bonded stores, if any.
b) Apart from (a) above additional items as per Annexure - `E‟ (which have
been excluded from sale and hence not covered in the amount of offer under the
tender) will be returned to the Sellers by the Buyers free of cost.
c) The delivery of the vessel will include the fuel oil/lubricants remaining onboard
on ―as is where is , what is and no complaint‖ basis (without any guarantee of
quality, condition or state) and the quantities would be determined by a joint
survey during handing over of the vessel to the Buyers. Buyers shall be liable
to pay to Sellers the cost of all unused oil in drums (e ven seal is
broken)/elsewhere. Buyers will have to pay for the same separately. The final
quantity of bunkers determined by such joint survey cannot be linked or
compared with any other declaration of quantity made by the Seller. Buyers will
have to deposit the amount for estimated cost of fuel oils/lubricating oils
remaining onboard unconditionally along with installment (B) of Clause – 2.
Payments shall be made in the same currency as the sale price. The actual
cost of oils remaining onboard will be calculated at the price prevailing at the
port of delivery (as applicable to Seller) and on the date of delivery of the
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