{"id":2874,"date":"2021-02-04T17:18:33","date_gmt":"2021-02-04T09:18:33","guid":{"rendered":"https:\/\/yhalaw.com.my\/?p=2874"},"modified":"2024-09-09T09:11:41","modified_gmt":"2024-09-09T01:11:41","slug":"shipping-law-ship-arrest-mortgage-action-in-rem-service-within-malaysia","status":"publish","type":"post","link":"https:\/\/yhalaw.com.my\/my\/shipping-law-ship-arrest-mortgage-action-in-rem-service-within-malaysia\/","title":{"rendered":"SHIPPING LAW \u2013 SHIP ARREST \u2013 MORTGAGE \u2013 ACTION IN REM \u2013 SERVICE WITHIN MALAYSIA"},"content":{"rendered":"

Q: Can I file a Writ In Rem in Kuala Lumpur and have the ship arrested in Kota Kinabalu?<\/strong><\/p>\n

A: Yes. This is because Section 7(2) of the Courts Judicature Act 1964<\/u><\/em><\/strong> (\u201cCJA 1964\u201d) allows any writ and warrant issued within the High Court Malaya be executed or served anywhere in Malaysia. This would include Sabah and Sarawak.<\/p>\n

Cases In Point: <\/em>Re Aro Co Ltd [1980] 1 All ER 1067 (EWCA); The Monica S [1967] 2 Lloyd’s Rep 113; \u2018The Fierbinti\u2019 [1994] 3 SLR 864 and Nassau Maritime Holdings Designated Activity Co v The Owners of the Ship or Vessel ‘Cape Lambert’ [2020] 11 MLJ 561<\/em><\/p>\n

Q: What is a Writ In Rem?<\/strong><\/p>\n

\"\"<\/p>\n

A: A Writ In Rem<\/em> is a legal document that invoke the admiralty jurisdiction of the High Court against \u201cthe thing<\/em>\u201d or \u201cres<\/em>\u201d in dispute. The thing or res<\/em> is usually a ship. A Writ In Rem can be\u00a0distinguished from a normal writ which is issued against a person or body of person. This is also known as a Writ In Personam<\/em>. A Writ in Rem may be issued even when the res<\/em> is outside the territorial jurisdiction of the court. It can then be served when the res<\/em> eventually comes within the court\u2019s territorial jurisdiction.<\/p>\n

 <\/p>\n

Q: How can I invoke the admiralty jurisdiction of the High Court?<\/strong><\/p>\n

A: Admiralty jurisdiction of the High Court may be invoked if the criteria set out in Sections 20 and 21 of the UK Seniors Court Act 1981<\/u><\/em><\/strong> (\u201cSCA 1981<\/strong>\u201d) are fulfilled.<\/p>\n

Q: My company has failed to pay the loans of the bank in respect of a ship mortgaged to the bank. Can the bank arrest the ship of my company?<\/strong><\/p>\n

A: Yes. Mortgage or charge on a ship falls within the category in Section 20(2)(c) of the SCA 1981<\/em>. Admiralty jurisdiction of the High Court may be invoked.<\/p>\n

Q: What if my company has sold the ship to a new buyer. Can the bank still pursue the claim against the res i.e. the ship?<\/strong><\/p>\n

A: Yes. Mortgage claim falls within the category where an action in rem<\/em> may be brought against the res<\/em> in connection with the mortgage. Unlike in a situation of cargo damage claim (which is explained in our previous legal update), the bank does not have to show the owner is liable in personam<\/em> to pay the loan. Hence, even if the owner of the vessel has changed, an action in rem<\/em> can still be brought against the res<\/em> i.e. the ship.<\/p>\n","protected":false},"excerpt":{"rendered":"

What can a bank do if a mortgagor cease to pay his\/her loan vested in a ship? Can I invoke an admiralty writ in rem in High Court of Malaya but serve and execute them in the High Court of Sabah & Sarawak?<\/p>","protected":false},"author":1,"featured_media":2881,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1576],"tags":[1596,1685,1686,1687],"class_list":["post-2874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-admiralty","tag-demurrage-detention-charges","tag-ship-arrest","tag-shipping-law","tag-writ-in-rem"],"_links":{"self":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts\/2874"}],"collection":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/comments?post=2874"}],"version-history":[{"count":2,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts\/2874\/revisions"}],"predecessor-version":[{"id":2882,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/posts\/2874\/revisions\/2882"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/media\/2881"}],"wp:attachment":[{"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/media?parent=2874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/categories?post=2874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yhalaw.com.my\/my\/wp-json\/wp\/v2\/tags?post=2874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}