{"id":3230,"date":"2021-09-17T11:38:04","date_gmt":"2021-09-17T03:38:04","guid":{"rendered":"https:\/\/yhalaw.com.my\/?p=3230"},"modified":"2024-09-09T09:11:38","modified_gmt":"2024-09-09T01:11:38","slug":"admiralty-ship-arrest-judicial-sale-pendente-lite-wasting-asset","status":"publish","type":"post","link":"https:\/\/yhalaw.com.my\/my\/admiralty-ship-arrest-judicial-sale-pendente-lite-wasting-asset\/","title":{"rendered":"ADMIRALTY \u2013 SHIP ARREST \u2013 JUDICIAL SALE PENDENTE LITE \u2013 WASTING ASSET"},"content":{"rendered":"<p><strong>We have in our earlier legal updates <a href=\"https:\/\/yhalaw.com.my\/my\/shipping-law-ship-arrest-mortgage-action-in-rem-service-within-malaysia\/\">https:\/\/yhalaw.com.my\/shipping-law-ship-arrest-mortgage-action-in-rem-service-within-malaysia<\/a> set out the reasons when the court can order a sale of the vessel pending litigation (judicial sale <em>pendente lite<\/em>). One of the important factors is the vessel is deteriorating. What constitutes deterioration which will warrant judicial sale <em>pendente lite<\/em>?<br \/>\n<\/strong>One of the earliest judicial sale <em>pendente lite <\/em>ordered by the Malaysian court was the vessel \u201c<em>Yih Shen<\/em>\u201d on 15.4.<strong><u>1985<\/u><\/strong>. The court granted the order for appraisement and sale because \u201c<em>Yih Shen<\/em>\u201d was deteriorating and would reduce in price if she was allowed to be floating in waters of Penang harbour pending hearing of the main suit. Here are some of the photographs on the condition of Yih Shen in 1985 before sale.<\/p>\n<table style=\"height: 416px;\" width=\"514\">\n<tbody>\n<tr>\n<td width=\"310\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-medium wp-image-3234 aligncenter\" src=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic1-208x300.png\" alt=\"\" width=\"208\" height=\"300\" srcset=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic1-208x300.png 208w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic1-710x1024.png 710w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic1-768x1108.png 768w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic1-8x12.png 8w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic1-958x1382.png 958w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic1.png 1049w\" sizes=\"(max-width: 208px) 100vw, 208px\" \/><\/td>\n<\/tr>\n<tr>\n<td width=\"310\"><strong><u>Picture 1<\/u><\/strong> is the view of the ship\u2019s main deck. The main deck forms part of the external hull of the ship. As could be seen from the photograph, the main deck is heavily rusted and corroded.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"height: 553px;\" width=\"514\">\n<tbody>\n<tr>\n<td width=\"310\"><img decoding=\"async\" class=\"size-medium wp-image-3235 aligncenter\" src=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic2-211x300.png\" alt=\"\" width=\"211\" height=\"300\" srcset=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic2-211x300.png 211w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic2-720x1024.png 720w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic2-768x1092.png 768w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic2-8x12.png 8w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic2-958x1362.png 958w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic2.png 1056w\" sizes=\"(max-width: 211px) 100vw, 211px\" \/><\/td>\n<\/tr>\n<tr>\n<td width=\"310\"><strong><u>Picture 2<\/u><\/strong> is a photograph of the bridge and the ship\u2019s navigational system of Yih Shen. Generally, bridge and navigational system is not in use during arrest. As such, they are not crucial in determining whether the vessel is deteriorating or not. Generally, the parts which will deteriorate during the period of arrest are those items that are in use or are subject to the corrosion of sea water condition due to prolonged period of arrest.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"height: 452px;\" width=\"514\">\n<tbody>\n<tr>\n<td width=\"310\"><img decoding=\"async\" class=\"size-medium wp-image-3236 aligncenter\" src=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic3-204x300.png\" alt=\"\" width=\"204\" height=\"300\" srcset=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic3-204x300.png 204w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic3-697x1024.png 697w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic3-768x1129.png 768w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic3-8x12.png 8w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic3-958x1408.png 958w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic3.png 1016w\" sizes=\"(max-width: 204px) 100vw, 204px\" \/><\/td>\n<\/tr>\n<tr>\n<td width=\"310\"><strong><u>Picture 3<\/u><\/strong> is the cargo space ventilator trunk that allows airflow circulation in the cargo hold. This equipment is heavily rusted. Prolonged arrest will result in further corrosion as it is exposed to sea spray, rain and dry salt particles carried through the wind.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"height: 349px;\" width=\"514\">\n<tbody>\n<tr>\n<td width=\"310\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3237 aligncenter\" src=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic4-205x300.png\" alt=\"\" width=\"205\" height=\"300\" srcset=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic4-205x300.png 205w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic4-699x1024.png 699w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic4-768x1124.png 768w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic4-8x12.png 8w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic4-958x1403.png 958w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic4.png 1028w\" sizes=\"(max-width: 205px) 100vw, 205px\" \/><\/td>\n<\/tr>\n<tr>\n<td width=\"310\"><strong><u>Picture 4<\/u><\/strong> is the propeller that is heavily rusted.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"height: 876px;\" width=\"514\">\n<tbody>\n<tr>\n<td width=\"310\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3238 aligncenter\" src=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic5-208x300.png\" alt=\"\" width=\"208\" height=\"300\" srcset=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic5-208x300.png 208w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic5-710x1024.png 710w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic5-768x1107.png 768w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic5-8x12.png 8w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic5-958x1381.png 958w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic5.png 1032w\" sizes=\"(max-width: 208px) 100vw, 208px\" \/><\/td>\n<\/tr>\n<tr>\n<td width=\"310\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3239 aligncenter\" src=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic6-210x300.png\" alt=\"\" width=\"210\" height=\"300\" srcset=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic6-210x300.png 210w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic6-717x1024.png 717w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic6-768x1097.png 768w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic6-8x12.png 8w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic6-958x1368.png 958w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic6.png 1044w\" sizes=\"(max-width: 210px) 100vw, 210px\" \/><\/td>\n<\/tr>\n<tr>\n<td width=\"310\"><strong><u>Pictures 5 and 6<\/u><\/strong> are the anchor windlass and mooring winches which are poorly maintained. These items are crucial during arrest to prevent situation of \u201c<em>dragging anchor<\/em>\u201d which would have resulted in collision, grounding or stranding of the ship. Arrested vessels rely heavily on this equipment to stay at anchorage. Badly maintained equipment relating to anchor would pose a serious safety hazard to the ship and the crew on board.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"height: 411px;\" width=\"514\">\n<tbody>\n<tr>\n<td width=\"310\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3240 aligncenter\" src=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic7-208x300.png\" alt=\"\" width=\"208\" height=\"300\" srcset=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic7-208x300.png 208w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic7-709x1024.png 709w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic7-768x1109.png 768w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic7-8x12.png 8w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic7-958x1384.png 958w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic7.png 1028w\" sizes=\"(max-width: 208px) 100vw, 208px\" \/><\/td>\n<\/tr>\n<tr>\n<td width=\"310\"><strong><u>Picture 7<\/u><\/strong> is a photograph of the mooring lines which are heavily corroded. Mooring lines are crucial during arrest. Prolonged arrest is not recommended in this situation.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"height: 391px;\" width=\"514\">\n<tbody>\n<tr>\n<td width=\"310\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3241 aligncenter\" src=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic8-206x300.png\" alt=\"\" width=\"206\" height=\"300\" srcset=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic8-206x300.png 206w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic8-703x1024.png 703w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic8-768x1118.png 768w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic8-8x12.png 8w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic8-958x1394.png 958w, https:\/\/yhalaw.com.my\/wp-content\/uploads\/2021\/08\/pic8.png 1036w\" sizes=\"(max-width: 206px) 100vw, 206px\" \/><\/td>\n<\/tr>\n<tr>\n<td width=\"310\"><strong><u>Picture 8<\/u><\/strong> is the sheave with hook which will only be used during loading and unloading of the cargo. Not relevant when the ship is under arrest.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>","protected":false},"excerpt":{"rendered":"<p>When will an arrested vessel become a wasting asset? An analysis of the condition on MV Yih Shen, one of the first few vessels sold by the court in a judicial sale pendente lite proceeding.<\/p>","protected":false},"author":9,"featured_media":3258,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1576],"tags":[2341,1685,2394],"class_list":["post-3230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-admiralty","tag-sale-pendente-lite","tag-ship-arrest","tag-wasting-asset"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ADMIRALTY \u2013 SHIP ARREST \u2013 JUDICIAL SALE PENDENTE LITE \u2013 WASTING ASSET | Yew Huoi, How &amp; Associates | Leading Malaysia Law Firm<\/title>\n<meta name=\"description\" content=\"When will an arrested vessel become a wasting asset? 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