The "Maldive Importer"

• Jurisdiction: Singapore
• Judgment Date: 02 December 1983
• Date: 02 December 1983
• Docket Number: Admiralty in Rem No 112 of 1982
• Court: High Court (Singapore)

The “Maldive Importer”

[1983] SGHC 22

Lai Kew Chai J

Admiralty in Rem No 112 of 1982

High Court

Admiralty and Shipping–Practice and procedure of action in rem–Stay of proceedings–Principles applied by court–Civil Procedure–Stay of proceedings–Action in rem–Limitation of liability–Whether procedural advantage in other forum is ground for stay of proceedings

The respondent's vessel Maldive Victory struck a reef in the Maldives and sank with a total loss of the cargo on board. The appellant cargo owner commenced in rem proceedings and claimed damages for the loss of its cargo. The respondent applied to stay the proceedings under the inherent jurisdiction of the court on the ground that the parties had by agreement evidenced by the relevant bills of lading agreed to refer and submit all disputes arising out of or in connection with the agreement in respect of which matters these proceedings were brought for determination in England or, at the option of the respondent, at the port of destination, ie the port of Male of the Republic of Maldives. The respondent's main contention was that under the United Kingdom Merchant Shipping Act, it could limit its liability under the claims due to a lower rate of conversion under the Act. The assistant registrar allowed the application and the appellant appealed.

Held, allowing the appeal:

(1) The application for a stay should be refused as it was made purely to obtain a procedural advantage which the ship owner was not entitled to in all the circumstances: at [10].

(2) It was clear that practically all the evidence was in Singapore with which the transactions to be investigated would have the closest nexus. The assistant registrar erred in not correctly applying the circumstances of these proceedings to the principles set down by the Court of Appeal in Amerco Timbers Pte Ltd v Chatsworth Timber Corp Pte Ltd [1977-1978] SLR (R) 112: at [11].

Amerco Timbers Pte Ltd v Chatsworth Timber Corp Pte Ltd [1977-1978] SLR (R) 112; [1975-1977] SLR 258 (folld)

El Amria, The [1981] 2 Lloyd's Rep 119; [1981] Com LR 136 (refd)

M Karthigesu and K Gopalan (Niru & Co) for the appellant

Denis Murphy and Vivian Ang (Godwin & Co) for the respondent.

Lai Kew Chai J

1 This is an appeal against the decision of the learned assistant registrar who allowed the respondents' application that all further proceedings be stayed. The parties have agreed to treat these proceedings as a test case which will determine...