OGHIAANOUS KHOROUSHAN SHIPPING LINES CO. OF KISH v Owner of the vessel(s) TINA I (IMO No. 9267156)
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Case Significance
The "Tina I" [2024] SGHCR 12 was a decision of the General Division of the High Court (Admiralty in Rem No 87 of 2022, Summons No 2279 of 2024) delivered by AR Navin Anand on 1 November 2024. The claimant, Oghiaanous Khoroushan Shipping Lines Co. of Kish, and the defendant, the owner of the vessel "TINA I" (IMO No. 9267156), had agreed on the quantum of security and on the form of security through payment into court to avoid the arrest of the vessel, but were at an impasse over the inclusion of a sanctions clause. The clause would allow the defendant to refuse payment out to the claimant on the grounds of sanctions imposed by the United States of America. The defendant applied for the sanctions clause to be a term of the security, which the claimant resisted. AR Navin Anand framed the central issue as how, if at all, foreign sanctions should affect the provision of security to avoid the arrest of a vessel, referring to Steven Chong JCA's keynote address "Sanctions: Between a Rock and a Hard Place" at the Singapore Shipping Law Forum 2024 on 17 October 2024.
Summary
In this admiralty action in rem in the General Division of the High Court arising from a 2020 collision between the vessels "Shahraz" and "Tina I", the claimant (an Iranian-domiciled owner) and the Greek-incorporated defendant owner had agreed on the quantum and form of security but were at an impasse over the inclusion of a sanctions clause that would allow the defendant to refuse payment out on grounds of United States sanctions, given that the claimant and the "Shahraz" were on the US OFAC SDN List. Assistant Registrar Navin Anand declined to order inclusion of the sanctions clause, instead ordering that the defendant was at liberty to provide security by paying S$653,476.16 into court, without prejudice to its right to moderate the amount, and directed the parties to file written submissions on costs.
What was the central issue in The "Tina I" [2024] SGHCR 12?
AR Navin Anand considered how, if at all, foreign sanctions should affect the provision of security to avoid the arrest of a vessel. The parties had agreed on the quantum and form of security but disagreed over including a sanctions clause referencing United States sanctions.
Who were the parties in The "Tina I" [2024] SGHCR 12?
The claimant was Oghiaanous Khoroushan Shipping Lines Co. of Kish and the defendant was the owner of the vessel "TINA I" (IMO No. 9267156). AR Navin Anand delivered the decision on 1 November 2024 in Admiralty in Rem No 87 of 2022.
Cases Cited (8)
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Judgment
Read the full judgment on the official Singapore Courts portal.
Read on eLitigationSource: eLitigation ([2024] SGHCR 12)