Dan-Bunkering (Singapore) Pte Ltd v The Ship Yangtze Fortune (Priorities) [2024] FCA 1149

Federal Court of Australia Dan-Bunkering (Singapore) Pte Ltd v The Ship Yangtze Fortune (Priorities) [2024] FCA 1149 NSD 958 of 2022 File numbers: WAD 238 of 2022 NSD 211 of 2023 NSD 597 of 2024

Judgment of: STEWART J

Date of judgment: 1 October 2024

Catchwords: ADMIRALTY – vessel owner's claim on demise charterer's liability to it for unpaid hire as instalments under a purchase lease – whether a general maritime claim – basis for proceeding in rem – whether charterer no longer the demise charterer at time proceeding commenced – whether charterer terminated the charter – whether owner accepted repudiation of the charter – whether charterer lost possession of the vessel and if so whether that terminated the charter – whether rights in rem crystallise on issue of writ or whether service on the vessel is required – whether owner's claim valid as against the fund constituted by the proceeds of the judicial sale of the vessel ADMIRALTY – priorities – whether sufficient cause to vary the usual rule that claims in the same class participate pari passu– status of necessaries claim – whether execution creditor – whether owner always goes last – marshalling – whether equity intervenes

Admiralty Act 1988 (Cth), ss 3(2), 4(3)(d), (f), (m), (w), 18, 24 International Arbitration Act 1974 (Cth), s 8(3) Admiralty Rules 1988 (Cth), r 31 Legislation: Federal Court Rules 2011 (Cth), rr 2.25(1)(a), (b)(ii) Senior Courts Act 1981 (UK), s 21(4) International Convention Relating to the Arrest of Sea-Going Ships, opened for signature 10 May 1952, 439 UNTS 193 (entered into force 24 February 1956), Art 3(4) International Convention on Arrest of Ships, 1999, opened for signature 12 March 1999, 2797 UNTS 3 (entered into force 14 September 2011), Arts 3(1)(e), (3))