The Mahkutai - Privy & Council (Lord Goff, Lord Jauncey, Lord Nicholls, Lord Hoffmann and Sir Michael Hardie Boys) - 22 April 1996

Charterers’ bill of lading contained Himalaya clause and an Indonesian exclusive jurisdiction clause - Cargo owners brought proceedings against vessel in Hong Kong - Whether shipowner entitled to claim benefit of Himalaya clause in order to enforce the jurisdiction clause

The vessel Mahiutai was sub-chartered for the carriage of a cargo of plywood from Jakarta to Shantou, China. Both the shipowners and the head charterers were Indonesian corporations. The bill of lading issued to the shippers was a charterer’s bill and contained an exclusive jurisdiction clause providing for any dispute to be determined in Indonesia in accordance with Indonesian law. It also contained a Himalaya clause providing that “every servant, agent and subcontractor [of the carrier] shall have the benefit of all exceptions, limitations, provisions, conditions and liberties herein benefiting the carrier as if such provisions were expressly made for their benefit, and, in entering into this contract, the carrier, to the extent of these provisions, does so not only on [his] own behalf, but also as agent and trustee for such servants, agents and subcontractors.”