The ‘Catur Samudra’ [2010] SGHC 18

Johanna Hjalmarsson

Arrest – sister vessel

The plaintiff owner of the vessel Mahakam was pursuing a claim for charter hire in respect of that vessel against the defendant, HIT. On 11 December 2007, the plaintiff had purchased the Mahakam from Heritage and had leased it back under a bareboat charterparty on the BARECON 2001 form. That charterparty contained a condition precedent that HIT would execute a guarantee in favour of the plaintiff for Heritage’s obligations under the charterparty. Heritage defaulted on hire payments and a notice of termination was served. The claim against Heritage was put to London arbitration. This was the plaintiff’s claim against HIT, amounting to US$30,777,566.44. The claim was under a guarantee, also dated 11 December 2007, for payment of hire owed by Heritage, a wholly owned subsidiary of a company owned by HIT, and for damages for breaches of the bareboat charterparty. In support of that claim, the plaintiff had arrested HIT’s vessel, the Catur Samudra, in Singapore, resulting in this case before the High Court of Singapore.