Arrest warrant on Chahat recalled

By S.S. Selvanayagam

Colombo Commercial High Court recalled the arrest warrant issued against the ship Chahat lying at Colombo Port. High Court Judge E.A.G.R. Amarasekera issued the order releasing the motor tanker in accordance with the agreement recorded by the Court.

This order was made upon an application made by Counsel Farman Cassim with Charaka Jayaratne instructed by Integrated Associates appeared for the Defendant ship Chahat.

The High Court made this order upon application of the Defendant’s Counsel that the sum allegedly claimed be deposited in an interest bearing dollar account in a separate account dedicated to this case. The objection, if any, to the main application is to be filed on 16 January.

The said ship had been engaged in trading within the territorial waters of Sri Lanka under a time charter between the bare boat charter Swift Shipping and Trading (Pvt) Ltd. and Lanka IOC PLC Sri Lanka. This ship is a Sri Lankan flagged one with the registered owner of Chahat Shipping Lines Inc of Panama.

The ship had been arrested by order of the Court pursuant to an Action in Rem initiated by Plaintiff Assurance Forerningen SKULD of Norway.

Damayanthi Franciz instructed by K.P. Law Associates appeared for the Plaintiff. The Plaintiff is a protection and indemnity association in Norway carrying the business of protection and indemnity insurance for ships.

The Plaintiff stated that in the course of its business, the Plaintiff at the request of Prime Tankers of Dubai effected insurance to eight vessels including Chahat.

The Plaintiff claims that a total sum of US$ 171,365.28 is due to the Plaintiff as premiums on the insurance effected for the Prime Tankers LLC.

It complained that despite numerous demands and requests made to the Prime Tankers, the Plaintiff has still not been paid the said sum of money. The Plaintiff claims it is entitled to proceed against the Defendant vessel for the recovery of the said sum of money.

The Defendant contends the owner of the M.T. Chahat is Swift Shipping and Trading (Pvt) Ltd., the bare boat charter of the vessel. It states that the relevant person in terms of the Admiralty Jurisdiction is Prime Tankers LLC of Dubai.

It maintains the Plaintiff is not entitled to proceed and institute action against the M.T. Chahat in view of the fact that the registered owner of the vessel is not Prime Tankers LLC of Dubai.