Gulf Oil Trading Co. v. The Fund Comprising the Proceeds of the Sale of The Emerald Transporter - Full Bench (Natal Provincial Division) (Milne J.P., Leon A.D.J.P. and Howard J.) - 14 June 1985

Claims against associated ship - Whether ranking ahead of direct claims

The vessel Emerald Transporter was owned by Outer Ocean Navigation Corporation Ltd., a member of the Eddie Steamship group of companies. The order for the sale of the Emerald Transporter was granted at the instance of Mitchell Cotts Maritime (S.A.) Pty. Ltd., a creditor with a claim in respect of an associated ship, which caused the ship to be arrested in an action in rem . Gulf Oil had claims against the Emerald Transporter Fund amounting to U.S.$1,048,719 for the supply of bunkers and lubes to the vessel and to other associated ships. The bulk of the claims were in respect of associated ships. The ranking of these claims was disputed by Banque Paribas, a creditor with large claims secured by mortgages over the Emerald Transporter .