Barbury (Panama) SA and Another v Cross Oceanic Navigational Services Pte Ltd; The Enfield

• Jurisdiction: Singapore
• Judgment Date: 28 May 1982
• Date: 28 May 1982
• Docket Number: Civil Appeal No 29 of 1981
• Court: Court of Appeal (Singapore)

The “Enfield”

[1982] SGCA 22

Wee Chong Jin CJ

,

Lai Kew Chai J

and

T Kulasekaram J

Civil Appeal No 29 of 1981

Court of Appeal

Admiralty and Shipping–Admiralty jurisdiction and arrest–Action in rem–Arrest of vessel as security for disbursement claim–Sale of ship and transfer of ownership before arrest–Whether court had admiralty jurisdiction over ship–Section 4 (4) (1) (a) High Court (Admiralty Jurisdiction) Act (Cap 6, 1970 Rev Ed)

On 15 May 1980, the respondent arrested the motor vesselEnfield as security for its claim of disbursement which it incurred as the owner's agent in Madras in February, March and April 1980.

The appellant applied to set aside the respondent's writ and all proceedings thereunder, on the ground that the ownership of the Enfield had been transferred from Enfield Shipping Corp SA to Barbury (Panama) SA (“Barbury”) since the accrual of the causes of action. As such the requirements of s 4 (4) (1) (a) of the High Court (Admiralty Jurisdiction) Act (Cap 6, 1970 Rev Ed) had not been complied with. The High Court dismissed the appellant's application and it appealed.

Held, dismissing the appeal:

(1) The purported sale of the vessel to Barbury was a device and a sham designed to defraud claimants such as the respondent so that the vessel as a security was put out of its reach: at [7].

(2) The court was entitled to look at the transactions and determine the true beneficial ownership of the vessel. The evidence amply confirmed that Barbury did not carry the true face of a corporate bona fide purchaser and Enfield Shipping Corp SA was at all material times the beneficial owner of the vessel: at [8].

Aventicum, The [1978] 1 Lloyd's Rep 184 (refd)

Maritime Trader, The [1981] 2 Lloyd's Rep 153 (refd)

High Court (Admiralty Jurisdiction) Act (Cap 6, 1970 Rev Ed)s 4 (4) (1) (a) (consd)

Lo Kok Siong (Allen & Gledhill) for the appellants

S Selvadurai (Selvadurai, Pala Krishnan & Partners) for the respondent.

Judgment reserved.

Lai Kew Chai J

(delivering the judgment of the court):

1 On 15 May 1980 the respondents arrested motor vessel Enfield of Panama in these admiralty proceedings as security for their claim of US$47,437.89 for disbursements which they had incurred as owner's agents in Madras in February, March and April 1980. In the affidavit leading to the warrant of arrest, it was deposed that Enfield Shipping Corp SA was the owner of the vessel at the time the cause of action had...