Shipping Corp. of India Ltd. v. Jaldhi Overseas Pte Ltd.
United States Court of Appeals for the Second Circuit
585 F.3d 58 (2009)
In March 2008, the Shipping Corporation of India, Ltd. (SCI) (plaintiff) chartered a ship (the ship) to Jaldhi Overseas Pte Ltd. (Jaldhi) (defendant) to transport cargo from India to China. In May 2008, after Jaldhi failed to pay its balance owed to SCI, SCI obtained from the district court a maritime-attachment order pursuant to Rule B of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions of the Federal Rules of Civil Procedure (Rule B). The order applied to all of Jaldhi’s property, including all electronic fund transfers (EFTs) originated by, or for the benefit of, Jaldhi. Pursuant to the order, SCI attached EFTs totaling $4.8 million that were temporarily in the possession of intermediary banks in New York in which SCI’s bank and Jaldhi’s bank had accounts. Jaldhi was the beneficiary on $4.6 million of these EFTs and the originator on the remainder. The district court subsequently vacated the order to the extent that it covered EFTs of which Jaldhi was the beneficiary and certified the matter for review by the United States Court of Appeals for the Second Circuit.
Rule of Law
Holding and Reasoning (Cabranes, J.)
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