HSH Nordbank AG v MV "Baha Karahasan" - High Court (Durban and Coast Local Div) (Magid J) - 19 September 2003

Arrest of vessel - Whether action on arrest had lapsed - Whether South African court bound to release vessel pursuant to order of Turkish court - Whether arrest justified - Whether vessel should be ordered to be sold

The plaintiff Bank held a mortgage over the vessel Baha Karahasan. On 5 June 2003 the Bank arrested the vessel for payment of US$5,271,587 alleged to be due under the mortgage loan. The defendant vessel applied to set aside the arrest because (1) the Bank's action on the arrest had lapsed ("the lapse of action argument") a Turkish court had ordered the Bank to cause the vessel to be released from arrest ("the foreign court argument"), and (3) the Bank had not in any event made out a case justifying the arrest ("the justification argument"). In the alternative, the defendant contended that the vessel should not be sold.