OCM MARITIME NILE LLC AND ANOTHER V COURAGE SHIPPING CO AND OTHERS (THE “COURAGE” AND THE “AMETHYST”)

[2022] EWCA Civ 1091, Court of Appeal (Civil Division), Lord Justice Underhill, Vice President of the Court of Appeal, Civil Division, Lord Justice Newey and Lord Justice Males, 29 July 2022

Charterparty (demise) – Effect of sanctions – Registered owner seeking possession of vessels – Construction of charterparty terms – Entitlement to buy vessel at end of charterparty period – Relief from forfeiture – Conduct – Barecon 2001

The claimants were the registered owners of the vessels Courage and Amethyst, bareboat chartered to the defendants, and asserted that various events of default had occurred entitling them to terminate the charterparties. Their parent company had on 12 July 2019 entered into an agreement with the third defendant pursuant to which the claimants would own and the defendants would bareboat charter the vessels, as a result of which the claimants would be providing finance for the defendants' purchase transaction. The charters would be bareboat charters of a "hell or high water" character and on Barecon 2001 terms. The hire was composed of a fixed and a floating element and there was an option for the charterer to purchase, and an obligation to purchase on the final day of the charter. The purpose of the first two defendants was to enter into these charters. The third defendant was the controlling company and the manager of the vessels.