Right To Enforce An 'In Rem' Claim Is Not Lost Where The Claim Is Issued After The Court Has Ordered The Sale Of The Vessel

Bank of Tokyo-Mitsuibishi UFJ Ltd v Sanko Mineral (The MV Sanko Mineral) [2014]EWHC 3927 (Admlty)

Cargo Interests began proceedings in the U.S. against the Defendant former owner of the M/V SANKO MINERAL for breach of a contract of carriage. The bill of lading under which the claim was brought incorporated the terms of a charterparty which contained a time bar of 12 months from discharge of cargo.

The Defendant entered reorganisation proceedings in Tokyo, which were recognised by the English court under the Cross-Border Insolvency Regulations 2006. Cargo Interests submitted a claim in the reorganisation proceedings.

An in rem action was issued in the English Admiralty Court by the Claimant bank in respect of a mortgage on the vessel. The Court ordered the sale of the vessel, and that any party with a claim in rem should...