HSBC BANK PLC V THE OWNERS AND/OR DEMISE CHARTERERS OF THE SHIP OR VESSEL "APELLIS"

[2017] HKCFI 1785, High Court of the Hong Kong SAR, Court of First Instance, Hon Anthony Chan J, 4 October 2017 (judgment), 11 October 2017 (reasons)

Admiralty - In rem action - Arrested vessel sold by court order - Application for default judgment from highest-ranking creditor - Whether service of motion for default judgment needed

This was the application of the plaintiff bank for judgment in default of acknowledgement of service in an action in rem. A writ was served on the vessel on 5 August 2016 and she was sold pursuant to a court order made upon the application of the bank. The defendant owners had not put up security or contested the proceedings. The bank's case was in pursuance of enforcement of a secured loan agreement and a first preferred ship mortgage upon which the defendants had defaulted. There was no indication of any other party having a claim ranked higher in priority to that of HSBC. HSBC sought judgment in default of acknowledgement of service. The question was whether a notice of motion needed to be served.