Greatship (India) Ltd v Oceanografia SA de CV [2012] EWHC 3468 (Comm) (05 December 2012)

Greatship (India) Ltd v Oceanografia SA de CV [2012] EWHC 3468 (Comm) (05 December 2012)

On the proper construction of Clause 10(e) of the BIMCO Supplytime 89 form, Owners are not required to give Charterers five banking days' notice before exercising the right to suspend performance of obligations for non-payment; the right to suspend arises immediately upon payment becoming due and remaining unpaid, and there is no basis for implying a notice requirement.

Citation
[2012] EWHC 3468 (Comm)
Parties
Claimant/owners: Greatship (India) Limited; Respondent/charterers: Oceanografia SA de CV
Jurisdiction
England and Wales
Judgment Date
05 December 2012
Procedural Posture
Appeal Under Arbitration Act 1996, S.69 / Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed; in favour of Owners
Legal Topics
Charterparty Construction, Right to Suspend Performance, Notice Requirements, Implied Terms, Standard Form Contracts
Commercial Law Maritime Law Arbitration Charterparty Construction Right to Suspend Performance Notice Requirements Implied Terms Standard Form Contracts

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Parties

Greatship (India) Limited

Claimant/owners

Oceanografia SA de CV

Respondent/charterers

Procedural Posture

Appeal Under Arbitration Act 1996, S.69 / Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Whether Clause 10(e) of the BIMCO Supplytime 89 form requires Owners to give Charterers five banking days' notice before exercising the right to suspend performance of obligations for non-payment

Ratio Decidendi

On the proper construction of Clause 10(e) of the BIMCO Supplytime 89 form, Owners are not required to give Charterers five banking days' notice before exercising the right to suspend performance of obligations for non-payment; the right to suspend arises immediately upon payment becoming due and remaining unpaid, and there is no basis for implying a notice requirement.

Court Disposition

Appeal allowed; in favour of Owners

Orders

  • Declaration that Owners are not required to give Charterers five banking days' notice before suspending performance under Clause 10(e) part [4]
  • Further directions and consequential matters to be determined after hearing counsel