- January 25, 2023
- |Admiralty Practice/Shipping, Concise Law Reports (CLR)
Prime Paradise International Limited v Wilmington Savings Fund Society FSB (AC 10-2021) NAHCMD (25 January 2023)
Four applicants (the Banks) brought applications to compel Prime to comply with the preservation costs order dated 28 September 2021. In terms of that order Prime was ordered to provide security for preservation costs of the motor vessel “the Marvin Star” which was under arrest at the port of Walvis Bay. Prime was ordered to put up security for preservation costs because it was opposing the sale of the vessel claiming that it was the de facto owner of the vessel whereas the registered owner of the vessel did not oppose the sale of the vessel. Prime appealed to the Supreme Court against the preservation costs order, but the appeal was struck from the roll because according to the Supreme Court the order was an interlocutory order and Prime should have obtained leave to appeal.
Prime brought a counter application to have the Banks’ application stayed pending Prime’s application for leave to appeal being determined and if successful, until the appeal is determined by the Supreme Court. Prime explained that it was under a mistaken belief that it could appeal the preservation costs straight without obtaining leave. It submitted that the preservation order was novel as neither the Vice-Admiralty Court Rules nor the High Court Rules make provision for such an order. It also submitted that there are good prospects of success on appeal and that the Supreme Court may come to a different conclusion.
NDAUENDAPO J considered the matter.
The Banks’ application succeeded.
- Held further that, the counter application succeeds to the extent that the operation and execution of the Banks’ order is suspended pending the determination of the appeal against the preservation costs order that Prime intends to launch to the Supreme Court.
- Held further that, the application for leave to appeal to the Supreme Court is granted.