Ship Arrest to enforce an Arbitral Award? Article by Dr. Arun Kasi
Shipping contracts often include an arbitration clause, for example, a voyage charterparty in an amended BIMCO GENCON 1994. When a dispute arises between the parties, say the charterer alleges the cargo was short delivered which the owner denies, the charterer may commence arbitral proceedings to pursue his claim, and might ultimately obtain an award. At the same time, a cargo claim is one within the admiralty jurisdiction of the court, [Sec 20(2) (h) Senior Courts Act 1981] for which the ship (or her sister ship) may be arrested. [Sec 21(4) Senior Courts Act 1981]. Hence, questions of ship arrest come into play at three stages here. First, whether the charterer may arrest the ship before the arbitral proceedings to secure the claim. Second, whether he may arrest the ship during the arbitral proceedings to obtain security. Third, whether he may arrest the ship to enforce an award. This article concerns only the third question; exploring the relationship between admiralty and arbitral awards.
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