Read the full judgment text of HCCT15/2006 on BabelCite. This 高等法院原訟法庭 judgment was delivered on 7 March 2006 before Deputy High Court Judge L. Chan.
Construction and Arbitration Proceedings — Cargo Sale — Interim Relief — Arbitration Ordinance Cap. 341 s.2GC and Schedule 5 Article 9 — Rules of the High Court Order 29 r.4 — Perishable Goods — Charterparty incorporating GENCON 1994 form — Bill of Lading incorporating charterparty terms including arbitration clause — Failure to discharge cargo at Nigerian port due to Government order — Risk of cargo deterioration and danger to vessel — Court’s power to grant sale order pending arbitration — Larner v Fawcett [1950] principle applied. The plaintiff, owner of vessel M/V “New Market”, entered into a voyage charterparty with the 1st defendant for carriage of cement cargo from China to Port Harcourt, Nigeria. Despite arrival at destination, cargo was not discharged due to receivers’ failure to present original Bill of Lading amid regulatory restrictions in Nigeria. The court held that it had jurisdiction under Arbitration Ordinance s.2GC and Schedule 5 Art. 9 and Rules of the High Court Order 29 r.4 to grant an interim order allowing the plaintiff to sell the cargo to prevent its loss through deterioration and danger to the vessel. No defendants opposed the application. The court ordered the sale and proceeds to be paid into court pending arbitration, and ordered costs against defendants. This decision affirms the court’s power to grant interim relief for sale of perishable goods in arbitration-related disputes before tribunal formation, ensuring protection of parties’ interests and prevention of injustice due to delay.
Legal issues: Interim relief for sale of perishable cargo
Outcome: The court ordered the plaintiff to be at liberty to sell the perishable cargo and to pay the proceeds (after deducting expenses) into court pending arbitration; and the defendants were ordered to pay the costs of the application to the plaintiff, to be taxed.
Cited by 1 case