NORDDEUTSCHE LANDESBANK GIROZENTRALE, SINGAPORE BRANCH V OWNERS OF THE SHIP OR VESSEL “BRIGHTOIL GLORY”

[2019] HKCA 395, HKSAR Court of Appeal, Hon Cheung JA and Kwan JA, 28 March 2019

Admiralty – Judicial sale of ship – Sale pendente lite – Leave to appeal against decision to stay order for sale

This was the plaintiff mortgagee’s application for leave to appeal a judicial decision that the sale pendente lite of the VLCC Brightoil Glory be stayed until 24 April 2019. Following arrest of the vessel in January 2019, an order for appraisement and sale had been made on 4 February 2019. Tenders were to be submitted by 28 March 2019 with completion to take place on 4 April 2019. The defendant owners then obtained the stay against which the plaintiff now sought to appeal on 27 March 2019. The reasons raised against a stay were broadly that the vessel was included on a list of assets on which a refinancing agreement was being negotiated by the defendants. The plaintiff’s application was based on an argument that inclusion of the list was potentially a contempt of court as it interfered with the judicial sale process. Concerns for the safety of the vessel in view of the coming typhoon season were also cited as a reason against a delay.