Owners Of The Motor Vessel “Lillian S” V Caltex Oil (Kenya) Ltd [1989] EKLR | ||
Civil Appeal 50 of 1989 | 17 Nov 1989 |
Richard Otieno Kwach, Joseph Raymond Otieno Masime, James Onyiego Nyarangi
Court of Appeal at Mombasa
Owners of the Motor Vessel “Lillian S” v Caltex Oil (Kenya) Ltd
Owners of the Motor Vessel “Lillian S” v Caltex Oil (Kenya) Ltd [1989] eKLR
Owners of the Motor Vessel “Lillian S” v Caltex Oil (Kenya) Ltd
Court of Appeal, at Mombasa
November 17, 1989
Nyarangi, Masime & Kwach JJ A
Civil Appeal No 50 of 1989
(Appeal from an order of the High Court at Mombasa, Bosire J, in Admiralty Cause No 29 of 1988 dated 28th February, 1989)
Admiralty Law – admirality jurisdiction of the High Court Kenya – circumstances in which the jurisdiction can be invoked – Judicature Act (Cap 8), section 4 – Supreme Court Act, 1981 sections 20, 21.
Admiralty Law – goods supplied to a third party stored in a vessel –whether vessel owner incurs liability for the price of the goods – Supreme Court Act, 1981 sections 20, 21.
Injunction – ex-parte injunction – duty of applicant to make full and frank disclosure of material facts – consequence of non-disclosure of facts.
Caltex Oil, the respondent to this appeal, issued a writ in rem against the motor vessel Lilian S endorsed with a claim for Kshs 6,110,434/55 alleged to be due and owing from the owners of the motor vessel (the appellants).
The claim allegedly arose on account of a quantity of gas oil, fuel and bunkers supplied by Caltex. The writ was accompanied by a statement of claim and an affidavit to lead a warrant for the arrest of the vessel.
In the Bunker Delivery Report (BDR) a company called Southern Oil Supply Company (SOSCO) was named as the local agents for the owners of the ship and a copy of an invoice was directed to SOSCO and duly acknowledged by them as customers.
There was a contract whereby the respondent agreed to supply and SOSCO agreed to buy 550 metric tones of fuel oil and pursuant to that contract the respondent delivered 5, 478.55 metric tones of fuel oil on board the Lilian S as requested by SOSCO as a base for storing the fuel pending the sale and supply to other vessels. On the basis of these facts the ship was on the ex-parte application of Caltex ordered to be arrested.
The appellants being aggrieved applied for the setting aside of the ex-parte order. They contended that the owners of the motor vessel Lilian S,namely sea Guardian Company S.A of Panama, were not persons liable to the plaintiffs in an action in personam and that the persons who would in the circumstances of this care be liable in an action in personam to the plaintiff was SOSCO who were not the owners of the said motor vessel.
It was therefore submitted that as the gas fuel and bunker were not for use by the vessel, the court had no jurisdiction to entertain the application.
The trial court however declined to set aside the ex-parte order holding that from the facts averred an inference could be drawn that the gas oil and fuel was probably for use on the vessel.
Held:
1. Pursuant to section 4 of the Judicature Act (cap 8) of the admiralty jurisdiction of the High Court is exercised in accordance with the same procedure as in the High Court in England. That procedure is contained in the English Supreme Court Act, 1981 and more specifically in sections 20 and 21.
2. In order to maintain an action under section 20 (2) (m) of the 1981 Act, it is necessary to demonstrate a sufficiently direct connection between the agreement relied on and the operation of the ship.
3. The motor vessel was utilized as a base for storing the fuel oil before it was sold to other vessels. There was therefore no reasonably direct connection between the storage of the fuel oil and the operation and maintenance of the vessel.
4. Section 20 (20 (m) of the 1981 Act was not satisfied and so the claim did not fall under section 21(4). The High Court therefore did not have admiralty jurisdiction.
5. A question jurisdiction may be raised by a party or by a court on its own motion must be decided forthwith on the evidence before the court.
6. It is axiomatic that in ex-parte proceedings there should be full and frank disclosure to the court of facts known to the applicant.
7. Failure to make disclosure may result in the discharge of any order made upon ex-parte application.
Appeal allowed.
Cases
1. River Rima, The [1987] 3 All ER 1, CA; (1988) 2 LG Rep 193, HL
2. I Congreso del Partido [1983] 1 AC 244; [1981] 3 WLR 328, HL; [1978] 1 QB 500; [1981] 2 All ER 1064
3. Gatoil International Inc v Arkwright-Boston Manufacturers Mutual Insurance Co & others [1985] AC 255; [1985] 1 All ER 129; [1985] 2WLR 74, HL
4. Evpo Agnic, The [1988] 1 WLR 1090; [1988] 3 All ER 810
5. Brink’s-MAT Ltd v Elcombe & others [1988] 3 All ER 188; [1988] 1WLR 1350 CA
6. “Abidin Daver”, The [1984] 1 Lloyd’s Rep 339; [1984] AC 398; [1984]2 WLR 196, HL
7. Schwarz & Co (Grain) v St Elefterio [1957] 1 Lloyds Rep 283; [1957]2 All ER 374; [1957] 2 WLR 935
8. Moschanthy, The [1971] 1 Lloyd’s Rep 37
9. Gulf Venture, The [1984] 2 Lloyd’s Rep 455
10. Andria, The [1984] QB 477; [1984] 1 All ER 1126; [1984] 2 WLR 570, CA
11. River Jimini, The (29 June 1984, unreported) Rotterdam District Ct
12. Reg v Kensington Income Tax Commissioners ex parte Princess Edmond de Polignac [1917] 1 KB 486 CA
13. Lloyd’s Bowmaker Ltd v Britannia Arrow Holdings PLC (Lavens Third Party) [1988] 3 All ER 178
Texts
1. Saunders, JB (1969) Words and Phrases Legally Defined London: Butterworths 2nd Edn Vol 3 p 113
2. Institute of Chartered Shipbrokers Staff, Shipbrokers Manual LLP Incorporated Vol I page 90 para 3
Statutes
1. Supreme Court Act 1981 [UK] sections 20, 20(1)(a), 20(2)(a-s), 21(4), 21(4)(b)
2. Rules of the Supreme Court 1988 [UK] order 7 rules 5, 5(4), 5(5), 5(9); para 9; order 75 para 75/1/3; order 12 rule 8
3. Administration of Justice Act 1956 [UK] section 3(4)
4. Judicature Act (cap 8) section 4
Advocates
Mr Inamdar for the Appellant.
Mr Satchu for the Respondent.
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