Afovos Shipping Co. S.A. v. Pagnan & Ors. - Mr. Justice Lloyd - Q.B. (Com.Ct.) - June 20, 1980

Withdrawal of time chartered vessel - Relief against forfeiture

Hire was not received by the owners’ bank on time due to an error in sending the telex transferring the hire. The owners’ bank had changed their telex number but had failed to correct their entry in the international directory. An employee at the charterers’ bank had sent a telex transferring the hire payment on the last day for payment but had failed to check that it had been received at the correct address despite the fact that the answerback sign had not been that for the bank. The charter-party obliged the owners to give 48 hours’ notice before withdrawing the vessel, and on the due date for payment they sent a telex purporting to give that notice. Two days later they withdrew the vessel and subsequently entered into a without prejudice agreement reinstating the charter-party for the balance of the charter period at the market rate. The owners sought a declaration that they were entitled to withdraw the vessel when they had.