The “Catur Samudra” – High Court of Singapore (Steven Chong JC) – 15 January 2010

Admiralty jurisdiction – Charterers failing to pay hire – Shipowners arresting alleged sister ship owned by guarantor of charterparty obligations – Whether claim arising under a guarantee of charterparty obligations was a claim “arising out of an agreement relating to the use or hire of ” the chartered vessel – Whether defendant in possession or control of chartered vessel at time when cause of action arose – Whether arrest should be set aside

The plaintiff was the registered owner of the vessel Mahakam. The defendant (“HIT”) was an Indonesian corporation. On 11 December 2007 the plaintiff purchased the Mahakam from Heritage Maritime Ltd SA (“Heritage”) for US$67m. On the same day, pursuant to a Bareboat Charterparty (“the Bareboat Charter”), the Mahakam was leased back by the plaintiff to Heritage for a period of 60 months. It was a condition precedent under the Bareboat Charter that HIT should execute a guarantee in favour of the plaintiff to secure the due performance and payment of Heritage’s obligations under the charterparty. The guarantee was duly executed by HIT on 11 December 2007.