The “Turtle Bay”: Court Refuses to Sanction Private Sale of Arrested Vessels
The High Court of Singapore, in The “Turtle Bay” [2013] SGHC 165, addressed the plaintiff bank's applications to sanction the private direct sales of the vessels Turtle Bay and Tampa Bay, which were arrested following the defendant shipowner's liquidation. The court, presided over by Belinda Ang Saw Ean J, dismissed the applications, emphasizing that such sales must protect all interested parties, not just the arresting party. The court ordered the vessels to be appraised and sold by the Sheriff, adhering to established procedures.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Sanction Applications dismissed; alternative prayer for Vessels to be appraised and sold by the Sheriff granted.
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court refused to sanction a private sale of arrested vessels, emphasizing the need for Sheriff-led sales to protect all claimants.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| The "Turtle Bay" | Defendant | Other | |||
| The "Tampa Bay" | Defendant | Other | |||
| Bank | Plaintiff | Corporation | Sanction Applications dismissed, Alternative prayer granted | Lost, Partial | Mark Tan Chai Ming, Low Yi Yang |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Belinda Ang Saw Ean | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Mark Tan Chai Ming | Asia Practice LLP |
| Low Yi Yang | Asia Practice LLP |
| Chong Chin Chin | Sheriff, Supreme Court, Singapore |
4. Facts
- The plaintiff bank commenced admiralty actions against the vessels Turtle Bay and Tampa Bay.
- The vessels were arrested in Singapore in January and February 2013.
- The defendant shipowner had gone into liquidation in Germany.
- The bank applied for default judgment and for the court to sanction private direct sales of the vessels.
- The court dismissed the applications to sanction the private sales.
- The court ordered the vessels to be appraised and sold by the Sheriff.
5. Formal Citations
- The “Turtle Bay”, Admiralty in Rem No 37 of 2013 (SUM No 1036 of 2013) and Admiralty in Rem No 44 of 2013 (SUM No 1040 of 2013), [2013] SGHC 165
6. Timeline
| Date | Event |
|---|---|
| Turtle Bay arrested | |
| Tampa Bay arrested | |
| Contract for Direct Private Sale of Turtle Bay dated | |
| Contract for Direct Private Sale of Tampa Bay dated | |
| Bank filed applications for default judgment and sale of Vessels | |
| Default judgment obtained | |
| Sanction Applications initially listed for hearing | |
| Adjourned hearing | |
| Sanction Applications dismissed | |
| Mortgagee bank arrested four small cargo vessels in The Union Gold | |
| Judgment issued |
7. Legal Issues
- Sanction of Private Sale
- Outcome: The court refused to sanction the private sale, holding that it did not adequately protect the interests of all potential claimants.
- Category: Substantive
- Sub-Issues:
- Departure from normal sale order
- Protection of all interested persons
- Propriety of substitute method of sale
- Related Cases:
- [2013] EWHC 1696
- [1977] 1 FC 603
- [1997] HKEC 767
- Admiralty Judicial Sale
- Outcome: The court emphasized the importance of an admiralty judicial sale in providing a clean title to the purchaser and protecting the rights of all interested parties.
- Category: Substantive
- Sub-Issues:
- Clean title
- Transfer of claims to sale proceeds
- Protection of all interested parties
- Related Cases:
- (1841) 1 Wm Rob 163
- [1962] 1 Lloyd's Rep 405
- [1993] 1 Lloyd's Rep 58
8. Remedies Sought
- Judicial Sale of Vessel
- Recovery of Debt
9. Cause of Actions
- Mortgage Enforcement
10. Practice Areas
- Admiralty
- Shipping
- Commercial Litigation
11. Industries
- Shipping
- Banking
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| In re Aro | Chancery Division | Yes | [1980] Ch 196 | England and Wales | Cited regarding the commencement of in rem proceedings before and after the insolvency of a defendant. |
| The Oriental Baltic | Court of Appeal | Yes | [2011] 3 SLR 487 | Singapore | Cited regarding the commencement of in rem proceedings before and after the insolvency of a defendant. |
| The Hull 308 | High Court | Yes | [1991] 2 SLR(R) 643 | Singapore | Cited regarding the commencement of in rem proceedings before and after the insolvency of a defendant. |
| The Convenience Container | Court of First Instance | Yes | [2007] 4 HKLRD 575 | Hong Kong | Cited regarding the commencement of in rem proceedings before and after the insolvency of a defendant. |
| The APJ Shalin | Not Available | Yes | [1991] Lloyd’s Rep 62 | England and Wales | Cited for the proposition that arranging a private sale of an arrested vessel after the court has commissioned the Sheriff to appraise and sell the vessel constitutes contempt of court. |
| The Jarvis Brake | Not Available | Yes | [1976] 2 Lloyd’s Rep 320 | England and Wales | Cited for the proposition that arranging a private sale of an arrested vessel after the court has commissioned the Sheriff to appraise and sell the vessel constitutes contempt of court. |
| Bank of Scotland plc v The Owners of the MV “Union Gold” | High Court | Yes | [2013] EWHC 1696 | England and Wales | Cited for the principle that the court should not order a sale to a buyer found by the arresting party, even if the proposed price is at or about the market value of the vessel, unless there are special circumstances. |
| The Tremont | High Court of Admiralty | Yes | (1841) 1 Wm Rob 163 | England and Wales | Cited for the principle that an admiralty judicial sale gives the purchaser a clean title to the vessel that is free from all liens and encumbrances. |
| The Acrux | Not Available | Yes | [1962] 1 Lloyd's Rep 405 | England and Wales | Cited for the principle that an admiralty judicial sale gives the purchaser a clean title to the vessel that is free from all liens and encumbrances and that existing maritime claims of all in rem claimants against the vessel are transferred to the sale proceeds of the vessel. |
| The Cerro Colorado | Not Available | Yes | [1993] 1 Lloyd's Rep 58 | England and Wales | Cited for the principle that an admiralty judicial sale gives the purchaser a clean title to the vessel that is free from all liens and encumbrances. |
| Readhead and Others v Admiralty Marshal, Western Australia District Registry and Others | Federal Court of Australia | Yes | (1998) 87 FCR 229 | Australia | Cited for the principle that an admiralty judicial sale gives the purchaser a clean title to the vessel that is free from all liens and encumbrances. |
| The Trenton | District Court | Yes | 4 F. 657 | United States | Cited for the principle that the sale of a vessel by a court of competent jurisdiction discharges her from liens of every description. |
| The Flad Oyen | High Court of Admiralty | Yes | (1799) 1 C. Rob. 134 | England and Wales | Cited for the principle that the title conferred by the Court in the exercise of its authority is a valid title against the whole world, and is recognized by the Courts of this country and by the Courts of all other countries. |
| The Helena | High Court of Admiralty | Yes | (1801) 4 C. Rob. 3 | England and Wales | Cited for the principle that the title conferred by the Court in the exercise of its authority is a valid title against the whole world, and is recognized by the Courts of this country and by the Courts of all other countries. |
| Castrique v. Imrie | House of Lords | Yes | (1869-70) L.R. 4 H.L. 414 | England and Wales | Cited for the principle that the title conferred by the Court in the exercise of its authority is a valid title against the whole world, and is recognized by the Courts of this country and by the Courts of all other countries. |
| The Ruby | Probate, Divorce and Admiralty Division | Yes | [1898] P. 52 | England and Wales | Cited for the principle that the title conferred by the Court in the exercise of its authority is a valid title against the whole world, and is recognized by the Courts of this country and by the Courts of all other countries. |
| Den Norske Bank ASA v Owners of the ship “Margo L” | High Court | Yes | [1997] HKEC 767 | Hong Kong | Cited for the principle that the role of the Admiralty Court is to ensure that any sale of the vessel is effected in such a way as to protect all Admiralty claimants, not merely the Plaintiff who arrested the ship. |
| The Silia | Not Available | Yes | [1981] Lloyd’s Rep 534 | England and Wales | Cited for the principle that the duty of the Sheriff is to realise the highest price from the sale for the benefit of all interested parties. |
| The Honshu Gloria | Not Available | Yes | [1986] 2 Lloyd's Rep 63 | England and Wales | Cited for the principle that the Admiralty Marshal was entitled to obtain the services of a classification society prior to the commission of sale in order to retain the vessel in class to achieve the highest price for the vessel. |
| The Westport (No 2) | Not Available | Yes | [1965] 1 Lloyd's Rep 549 | England and Wales | Cited for the principle that the Admiralty Marshal was permitted to arrange for repairs to the feed-water pump of the vessel in order to ensure that the vessel could be sold as a going concern at a higher price. |
| International Marine Banking Co v Dora [No. 2] | Federal Court | Yes | [1977] 1 FC 603 | Canada | Cited for the principle that the court will not endorse a sale by the plaintiff for which it now seeks the endorsement of the Court to give the transaction the appearance of a sale by the Court. |
| Bank of Scotland v “Nel” (The) | Federal Court | Yes | (1997) 140 FTR 271 | Canada | Cited as an example of a case where a private sale was allowed due to special circumstances, such as the risk of corrosion damage to the vessel. |
13. Applicable Rules
| Rule Name |
|---|
| Order 70 of the Rules of Court |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Admiralty in rem
- Arrested vessel
- Private sale
- Judicial sale
- Mortgagee
- Sheriff
- Appraisement
- In rem claims
- Clean title
- Sanction application
15.2 Keywords
- Admiralty
- Shipping
- Vessel Arrest
- Judicial Sale
- Private Sale
- Mortgage
- Singapore
- High Court
16. Subjects
- Admiralty
- Shipping
- Civil Procedure
- Sale of Goods
17. Areas of Law
- Admiralty Law
- Civil Procedure
- Shipping Law