Priyanka Shipping Ltd v Glory Bulk Carriers PTE Limited

Priyanka Shipping Ltd v Glory Bulk Carriers PTE Limited

An injunction is granted to enforce clause 19 because the breaches were deliberate, damages would not be adequate, and the Seller has a legitimate commercial interest in enforcing the restriction. Negotiating damages are not available as the Seller did not lose a valuable asset; only nominal damages are recoverable for past breaches.

Parties
Claimant: Priyanka Shipping Limited; Defendant: Glory Bulk Carriers Pte Limited
Jurisdiction
England and Wales
Judgment Date
28 October 2019
Procedural Posture
Commercial Contract Dispute / Final Judgment After Expedited Trial
Outcome
Injunction granted; damages counterclaim dismissed except for nominal damages; declaration granted for past breaches only.
Legal Topics
Negative Covenants, Injunctions, Damages, Negotiating Damages, Exclusive Jurisdiction Clauses
Contract Law Equity Negative Covenants Injunctions Damages Negotiating Damages Exclusive Jurisdiction Clauses

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Parties

Priyanka Shipping Limited

Claimant

Glory Bulk Carriers Pte Limited

Defendant

Procedural Posture

Commercial Contract Dispute / Final Judgment After Expedited Trial

Legal Issues

  1. 1 Whether an injunction should be granted to enforce clause 19 of the MOA
  2. 2 Whether damages in lieu of an injunction are appropriate
  3. 3 Whether negotiating damages are recoverable for breach of clause 19

Ratio Decidendi

An injunction is granted to enforce clause 19 because the breaches were deliberate, damages would not be adequate, and the Seller has a legitimate commercial interest in enforcing the restriction. Negotiating damages are not available as the Seller did not lose a valuable asset; only nominal damages are recoverable for past breaches.

Court Disposition

Injunction granted; damages counterclaim dismissed except for nominal damages; declaration granted for past breaches only.

Orders

  • The Buyer and the vessel LORY shall refrain from trading the Vessel or reselling for trading, except to complete any loaded voyage underway at the time of the order.
  • The injunction applies to the third fixture concluded on 24 September 2019.