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Tanker arrested for non delivery of cargo
The case against the importer of the 'MT Shay', ex 'MT Shayban', has resumed at the Balochistan High Court on Aug 23, 2021. The vessel remained under arrest at the Gadani Shipbreaking Yard in Balochistan Province of Pakistan, as per Admiralty Suit No. 2/2021 dated July 021, for the short supply of cargo to QZY General Trading (Pvt) Ltd. of Yemen. The appellant claimed US$ 2,465,020 for alleged no-delivery of 2059 tons of gas oil. According to the counsel, Mr. Aga Zafar Ahmed, Advocate Supreme Court, of the ship breaker M/s. Al Hamza Trading & Ship Breaking Co, the case reserved for judgement on their application to reject the plaint/summary dismissal of the suit. He was hopeful that the decision will be in his client's/shipbreakers favour, but it may take 2-3 weeks to announce the judgment.
Tanker arrested in Gadani
The 'MT Shaybah' was arrested at the Gadani Shipbreaking Yard as per Admiralty Suit No. 2/2021 dated Jul 02, 2021, for the short supply of cargo to QZY General Trading (Pvt) Ltd of Yemen. The appellant claimed US$ 2,465,020 for alleged no-delivery of 2059 tons of gas oil. According to the lawyer in the case, the ship breaker M/s. Al Hamza Trading & Ship Breaking Co. of Karachi, through their counsels, Mr. Aga Zafar Ahmed, Advocate Supreme, had already moved an application for summary rejection of the Suit on the ground that the present owners of vessel/ship breaker are in no way connected to the plaintiff's claim. The counsels added that, the vessel importer has no information whatsoever on the claim as they purchased the vessel before the arrest of the ship and payments were made through a letter of credit. The Al Hamza Trading & Ship Breaking Co. had entered into a Memorandum of Agreement (MOA) dated June 10, 2021 for purchase of the vessel for demolition/recycling purposes with Libra Seaway Ltd and also opened a Letter of Credit (LC) No. 21INSU008904576 dated Jun 17, 2021 through Bank Alfalah Ltd in favour of the said Seller/beneficiary. Earlier, the Libra Seaway Ltd purchased the vessel from the M/s Arab Maritime Petroleum Transport Company (AMPTC) through a Memorandum of Agreement (MOA) dated June 3, 2021. The shipbreaker has contended the Plaintiff?s claim at the most is against (AMPTC), i.e. who was the owner of the vessel when the cause of action accrued. Therefore, the admiralty suit is not maintainable under the Admiralty Jurisdiction of High Courts Ordinance, 1980 and the courts have decided in several previous cases that such claim (alleged short delivery of cargo) cannot be imposed upon the new buyer. The vessel is still under arrest and only beached. Due to the arrest, no permission was given for demolition, including cold works by the authorities, including Environmental Protection Agencies. The ship-breaker is suffering losses daily towards bank charges for establishing a Letter of Credit. Due to summer vacations in the High Court of Balochistan, the case was now fixed on the urgent motion of the ship-breaker on Aug 13, 2021.
Beached
Beached at Gadani 07/2021 as Shay https://www.facebook.com/photo?fbid=295566412353850&set=pcb.10160746410273943
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