PEMILIK KAPAL ATAU VESSEL "PDZ MEWAH" (NO. IMO: 9064009) DARI PELABUHAN KLANG (PDZ HOLDINGS BERHAD) DAN BUNKERING (SINGAPORE) PTE LTD

PEMILIK KAPAL ATAU VESSEL "PDZ MEWAH" (NO. IMO: 9064009) DARI PELABUHAN KLANG (PDZ HOLDINGS BERHAD) DAN BUNKERING (SINGAPORE) PTE LTD

Court held that admiralty jurisdiction was properly invoked under UK SCA 1981; the ship registry is only prima facie evidence and may be displaced; on the balance of probabilities the transfer of the vessel to PDZ Holdings was a sham—hurried, at undervalue, effected after novations pumped up intra-group indebtedness, involving common directors and deficient documentation—so beneficial ownership remained with Dai Zhun at commencement of the action; filing a proof of debt did not extinguish the plaintiff's pre-judgment statutory lien and did not bar the in rem action; contractual late payment interest at 2.5% monthly was recoverable; accordingly plaintiff's claims were allowed and PDZ...

Citation
WA-27NCC-8-01/2017 (Mahkamah Tinggi)
Parties
Plaintiff: Dan-Bunkering (Singapore) Pte Ltd; 1st Defendant: PDZ Holdings Berhad; 2nd Defendant: Perkapalan Dai Zhun Sdn Bhd (in liquidation)
Court
High Court
Jurisdiction
Malaysia
Judgment Date
3 August 2020
Case Number
WA-27NCC-8-01/2017 (Mahkamah Tinggi)
Procedural Posture
Admiralty in Rem / Judgment (trial Concluded)
Outcome
Plaintiff's claim allowed; Dai Zhun declared beneficial owner of the vessel; 1st Defendant's counterclaim dismissed
Legal Topics
Vessel Arrest, Beneficial Ownership Vs Registered Ownership, Sham Transaction, Undue Preference, Statutory Lien, Novations, Directors Fiduciary Duties, Contractual Late Payment Interest, Proof of Debt, Judicial Sale
Source Language
Malay/English
Admiralty Law Maritime Law Company Law Insolvency Law Contract Law Vessel Arrest Beneficial Ownership Vs Registered Ownership Sham Transaction +7 more

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Parties

Dan-Bunkering (Singapore) Pte Ltd

Plaintiff

PDZ Holdings Berhad

1st Defendant

Perkapalan Dai Zhun Sdn Bhd (in liquidation)

2nd Defendant

Procedural Posture

Admiralty in Rem / Judgment (trial Concluded)

Legal Issues

  1. 1 Whether admiralty jurisdiction properly invoked under s.20(2)(m) and s.21(4) UK SCA 1981
  2. 2 Whether ship registry entry is conclusive proof of beneficial ownership or only prima facie
  3. 3 Whether prima facie registered ownership can be displaced by evidence of beneficial ownership

Ratio Decidendi

Court held that admiralty jurisdiction was properly invoked under UK SCA 1981; the ship registry is only prima facie evidence and may be displaced; on the balance of probabilities the transfer of the vessel to PDZ Holdings was a sham—hurried, at undervalue, effected after novations pumped up intra-group indebtedness, involving common directors and deficient documentation—so beneficial ownership remained with Dai Zhun at commencement of the action; filing a proof of debt did not extinguish the plaintiff's pre-judgment statutory lien and did not bar the in rem action; contractual late payment interest at 2.5% monthly was recoverable; accordingly plaintiff's claims were allowed and PDZ...

Court Disposition

Plaintiff's claim allowed; Dai Zhun declared beneficial owner of the vessel; 1st Defendant's counterclaim dismissed

Orders

  • Plaintiff's claim as pleaded in the Statement of Claim is allowed
  • Declaration that Perkapalan Dai Zhun Sdn Bhd was the beneficial owner of the vessel PDZ Mewah at commencement of the action (19.1.2017)