Court Approved Private Sale in Favour of Mortgagee

Authors: Louis Cassar Pullicino
Published on March 1, 2016
Tags: , ,
Practices: Admiralty & Maritime Litigation, Litigation, Arbitration & ADR, Shipping sale, purchase & charterparties
In a judgment delivered on the 18th February 2016 in the case Pacific Seaways Shipbuilding Inc vs m.v. Kay, the Civil Court, First Hall, approved a private sale of a ship in favour of a mortgagee who had enforced its rights against the ship after the shipowner had defaulted on its obligations. This decision is novel and welcome as it enables a creditor who has an executive title in accordance with Maltese Law, in this case the mortgagee, to request the Court to approve the private sale of the ship in its favour and to order that the price determined for the sale of the ship be set off against the amounts of the claim due to the same execution creditor.