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Lloyd's Maritime Law Newsletter

ICL Shipping Ltd and Anr v Chin Tai Steel Enterprise Co Ltd and Ors (The "ICL Vikraman") - QBD (Com Ct)(Colman J) - 10 October 2003

Limitation of liability - 1976 Limitation Convention - Cargo lost after carrying vessel collided and sank - Taiwanese cargo owner bringing in rem proceedings in Singapore against sister ship and obtaining P&I Club letter of undertaking as condition of release of vessel - Singapore not a "State Party" to 1976 Convention - Cargo owner obtaining London arbitration award in its favour in amount exceeding amount payable under letter of undertaking - Shipowners bringing limitation claim in England under 1976 Convention and establishing limitation fund in England - Shipowners applying for permission to serve limitation proceedings on cargo owner out of jurisdiction and for injunction restraining enforcement of letter of undertaking - Whether shipowners had jurisdiction to bring limitation claim under 1976 Convention - Whether "legal proceedings" in Article 11.1 included arbitration proceedings - Meaning of "any applicable Convention" in CPR 61.11(5)(c)

On 26 September 1997 the vessel ICL Vikraman collided with another vessel in the Malacca Strait and sank with the loss of 26 lives and all her cargo. One of the cargo owners, Chin Tai Steel Enterprise Co Ltd ("Chin Tai"), a Taiwan corporation, arrested a sister ship, the ICL Raja Mahendra in Singapore. The bills of lading incorporated a London arbitration clause contained in the underlying charterparty.

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