Bank of Scotland v Fund Constituting the Proceeds of Sale of the MV ‘Golden North’ - Durban and Coast Local Division (McLaren J) - 13 March 1998

Admiralty practice - Priorities - Ranking of claims under section 11(4) of Admiralty Jurisdiction Regulation Act 105 of 1983 - Date when claim ‘arose’ within meaning of section 11(4)(c)(v)

The vessel Golden North was sold on 19 November 1996 for US$6.2 million, the proceeds of the sale constituting a fund in terms of section 3(11) of the Admiralty Jurisdiction Regulation Act 105 of 1983. A referee was appointed on 3 January 1997. On 3 January 1997 Marine Technical Co Ltd (‘Marine Technical’) lodged a claim for US$148,950 in respect of repair serves rendered to the vessel. The applicant bank objected to the claim. The referee recommended that the claim should rank in terms of section 11(4)(c)(v), which would have resulted in the claim ranking in priority to the bank’s claim.