THE "MAKASSAR CARAKA JAYA NIAGA III-39"

[2012] SGHC 175, Singapore High Court, Judith Prakash J, 29 August 2012

Admiralty - Expenses incurred during arrest - Priority of expenses - Whether expenses incurred by ship's manager could be given priority as sheriff's expenses

Leave to intervene had been granted to Megastar as managing agent for the defendant vessel. Megastar had incurred a number of expenses that could generally be described as being for the maintenance of the crew during her arrest. There was no evidence that the Sheriff had adopted such expenses and it was therefore up to the court to decide whether they should rank as Sheriff's expenses, enjoying priority over all other expenses, or whether they should rank pari passu with other claims. The court had to decide: (1) whether the expenses were a necessary and proper expense to be incurred by the sheriff in carrying out duties in connection with the arrest, detention, appraisement and sale and for the preservation and good management of the res; and (2) regard must be had to the equities of the particular case.