Admiralty Law in Bangladesh | Everything you need to know in 2023

Admiralty Law in Bangladesh | Everything you need to know in 2023

Admiralty Law in Bangladesh and Ship Arrest in Bangladesh in 2023

Barrister Tahmidur Rahman Best Lawyer In Bangladesh

24 Jan 2022

Barrister Tahmidur Rahman
Director, The Law Firm in Bangladesh

This article will explain in details about admirlty law in Bangladesh and ship arrest procedure with details.

Nature of Admiralty law in Bangladesh

The Admiralty Court Act of 2000 (which revoked the Admiralty Court Act).The High Court Act (1891) confers original jurisdiction on the High Court Division for accepting cases in the first instance. Chapter 3 of the 2000 Admiralty Act. The statute specifies that the High Court Division shall serve as the Court of Admiralty. Cases under the statute are decided by a special statutory procedure.

The Court has exclusive jurisdiction under the Act itself. Nonetheless, there is a There is a misunderstanding among attorneys regarding the correct terminology. should be assigned to the High Court’s admiralty jurisdiction. Division. There is a common misconception that lawsuits are decided by the Different statutes designate the High Court Division as a court of initial instance.

Ordinary Civil Original Jurisdiction is exercisedA sectional bench ofThe former Dhaka High Court, commenting on such a case, stated: This jurisdiction opined that it would be a misnomer to refer to it in this manner. as Original Civil Jurisdiction Ordinary.

The Honorable Mr. Justice Ruhul Islam accurately recognized the legal position upon observation: “Admiralty jurisdiction differs significantly from both ordinary original civil jurisdiction and extraordinary original civil jurisdiction of the United States.” the Supreme Court.

Admiralty Suits and Admiralty law in Bangladesh:

 

The High Court Division of the Supreme Court of Bangladesh is vested with admiralty jurisdiction. Article 101 of the Constitution of the People’s Republic of Bangladesh provides that the High Court Division shall have such jurisdiction as are conferred on it by the Constitution and by other laws.

Section 3 (1) of the Admiralty Court Act, 2000 proclaims that the High Court Division of the Supreme Court shall be the Court of Admiralty.

Sub-section (2) narrates the jurisdiction of the Court in details. Section 8 of the Act permits the hearing and disposal of admiralty suits by a single bench of the High Court Division. However, the Chief Justice may constitute a Division Bench comprising two or more judges for hearing and disposal of such suits.

Best Admiralty Law In Bangladesh Ship Arrest In Bangladesh

Nature of Admiralty Action in Bangladesh:

 

Maritime law has long allowed a plaintiff to proceed not only in persona (e.g. against a shipowner) but also in rem (against the thing itself, e.g. the ship). Therefore, admiralty action is an action in rem as well as in personam. Admiralty suit is an action in rem generally and cause of action arises due to collision of ships in the seas and/or for causing damage to cargo.

Thus, in admiralty law in Bangladesh, the remedy in an admiralty suit is essentially a remedy by way of compensation in money and that is why the Act of 2000 and Admiralty Rules provide for arrest of ships when it is within the territorial limits of Court.

The Act also provides for the release of an arrested ship on furnishing of adequate security for the claim amount. An action in rem is directed against the ship itself to satisfy the claim of the plaintiff out of the res. The ship is for this purpose treated as a person.

Such an action may constitute an inducement to the owner to submit to the jurisdiction of the court, thereby making himself liable to be proceeded against by the plaintiff in personam.

Proceeding For Ship Arrest in Bangladesh

In admiralty law in Bangladesh, It is however, imperative in an action in rem that the ship should be within jurisdiction at the time the proceedings are started. It is by means of an action in rem that the arrest of a particular ship is secured by the plaintiff.

The arrest of the foreign ship by means of an action in rem is thus a means of assuming jurisdiction by the competent court.

A suit against a foreign ship owned by a foreign company not having a place of residence or business in Bangladesh is liable to be proceeded against on the admiralty side of the High Court Division by an action in rem in respect of a cause of action alleged to have arisen by reason of a tort or a breach of obligation arising from the carriage of goods from a port in Bangladesh to a foreign port. 

A personal action may be brought against the defendant if he is either present in the country or submits to jurisdiction. If the foreign owner of an arrested ship appears before the court and deposits security as bail for the release of his ship against which proceedings in rem have been instituted, he submits himself to jurisdiction.

Procedure of an admiralty suit in Bangladesh:

 

The procedure for commencing an action on a claim under the admiralty jurisdiction of the High Court Division is as like as filing of a civil suit in a court of original jurisdiction.  

Institution of Admiralty suits in Bangladesh:

Section 6 of the Admiralty Court Act, 2000 of admiralty law in Bangladesh provides for filing of a suit in the Admiralty Court through a plaint in accordance with the provisions of the Code of Civil Procedure. Section 6 reads as: “suit under admiralty jurisdiction to be instituted by a plaint drawn up, subscribed and verified by the claimant as plaintiff according to the provisions of Code of Civil Procedure 1908 of Bangladesh”. Rule 3 of the Admiralty Rules, 1912 provides:

 

“In admiralty law in Bangladesh, a suit shall be instituted by a plaint drawn up, subscribed and verified according to the provisions of the Code of Civil Procedure, save what if the suit is in rem the defendants may (subject to such variations as the circurnstances may, require) be described as “the owners and parties interested in” the vessel or other property proceeded against instead of  name”.

 

The plaint must be signed and verified by the plaintiff, if he be an individual, and in the case of a firm by any one of its partners, and, it a corporation, by a director, the secretary or other principal officer. When the claimant seeks to arrest the vessel, the vessel would be named as a defendant. If the owners of the vessel are known they will be impleaded and named as other defendants. In addition, the defendant may also be described as

“the owners and parties interested in the vessel cases, the local agent of the ship is also impleaded as a defendant.

In most the plaint contains the names, description and place of residence of the plaintiff and the defendant/defendants; the statements of facts giving rise to the cause of action to the claimant for the suit and the time when it arose; the nature of claim as well as statements that the suit is maintainable within the admiralty jurisdiction of the court. The plaintiff in the plaint will seek appropriate relief or reliefs, i.e., the decree to be passed in the suit.

 Application for arrest of a ship or for injunction in Bangladesh

An application for arrest of a ship in admiralty law in Bangladesh or application for injunction, or direction requires affirmation. Affirmation is made by swearing an affidavit by the claimant or on his behalf by his authorised agent before the Commissioner of Oaths of the High Court Division. Until an affidavit by the claimant or his agent is filed no warrant of arrest shall be issued.

Rule 4 of the Admiralty Rules, 1912 prescribes that in suits in rem a warrant for the arrest of property may be issued at the instance either of the plaintiff or of the defendant at any time after the suit has been instituted, but no warrant of arrest shall be issued until an affidavit by the party or his agent has been filed.

 The affidavit shall state the name and description of the party at whose instance the warrant is to be issued, the nature of claim or counter-claim, the name and nature of the property to be arrested, and that the claim or counter-claim has not been satisfied.

Best Admiralty Law In Bangladesh Ship Arrest In Bangladesh Top Law Firm In Dhaka
Maritime Laws Of Bangladesh | Admiralty &Amp; Ship Arrest

How the plaintiff moves the plaint:

Upon filing the plaint, the plaintiff moves the same before the Admiralty Court the concerned bench of the High Court Division assigned to hear admiralty matters) and such court normally orders registration and admission of the suit and gives directions for issuing summons upon the defendants, fixing a date for their appearance and for filing the written statement.

Thereafter, the application for arrest of the vessel is. Moved and, if the court is prima facie satisfied with the submission of the plaintiff in favour of the claims, the Court passes an instant order for arrest of the ship and for keeping the same in the custody of the Marshal of the Admiralty Court.

The Marshal is appointed by the Chief Justice to execute the process of the Admiralty Court. The Court would further order that the vessel, the other defendants and the Port Authority, Customs Authority and the Port Police be informed about the order of arrest of the vessel and would also direct that the Port Authority, Customs Authority and the Port Police Authority render all necessary assistance to the Marshal of the Court in securing the arrest of the vessel.

While passing an order for arrest, it is usual for the Court to pass an order that, in the event of the defendants satisfying the Court that the vessel is under no obligation to pay the claimant or in the event of furnishing such security as against the amount to be determined by the Court, the ship may be released from arrest. The necessary orders of the Court admitting the suit and the arrest would be required to be drawn up by the office.

Signing of the Order by the judge:

Thereafter, the order would be signed by the judge presiding over the Admiralty Court and the party at whose instance the arrest order is passed would take out the necessary warrant and summons which shall be served by the Marshal of the Admiralty Court on the vessel, other defendants and the Port and Customs Authorities. 

Sometimes the Admiralty Court, instead of passing an instant order of arrest, will direct the defendants to show cause within a certain period of time, say within three or four days from the date of service of the order, as to why on the allegations of the plaintiff contained in the application for arrest, the vessel should not be arrested, and similar procedures, like those for the service of the warrants of arrest order will be folfowed in respect of the service of the said “show cause” notice on the defendants.

If you want to read more of Click here to know about Maritime Laws of Bangladesh

  • Step by Step Process
Best Admiralty Law In Bangladesh Ship Arrest In Bangladesh Top Law Firm In Dhaka Bangladesh

Execution of warrant of arrest:

 

Service of a warrant against a ship is to be effected by nailing or affixing the original writ or warrant for a short time on the main mast or on the single mast of the vessel and by taking off the process, leaving a true copy of it nailed or affixed in its place.

Normally, upon a warrant of arrest, the Marshal along with his assistants will proceed towards the Port where the ship is anchored for service of the same and the Marshal will go on board the ship and call the Master or in his absence the Officer-in- Charge of the ship and inform him by handing over the warrant of arrest that the vessel is under arrest of the Admiralty Court.

If the Master of, in his absence, the Officer-in-Charge of the ship refuses to accept the warrant, the Marshal will leave the warrant of arrest on board and will submit his report to the Court stating either that the writ has already been served or about the refusal to accept the writ of arrest and the fact of leaving the writ on the vessel because of refusal by the Master to accept it. 

If a writ of arrest is left on board by the Marshal because of the Master’s refusal to accept it, this would be deemed by the Court to amount to a good service of the arrest order. The Port having jurisdiction over the vessel will also be informed and served with the writ of arrest for the purpose of information and, upon receipt of the same, the Port Authority will not give any port clearance to the vessel until a release order is served upon them for the purpose of information.

Similarly, the Commissioner of Customs having jurisdiction over the vessel would also be informed about the arrest of the vessel and be served with the writ of arrest. He also will not grant any clearance to the vessel until a writ of release order is served on him for the purpose of information. The other defendants will also be served with the order of arrest of the vessel.62

Custody of the ship while under arrest

From the time of arrest the ship will be under the custody of the Marshal of the Admiralty Court and any interference with the same might be regarded as contempt. The Marshal requests the Port Authority to keep watch over the ship.

 

Appearance of defendants:

 

The defendants immediately upon receipt of the arrest order may cause their appearance in the suit through advocates and file written objections (W.O.) against the order of arrest, giving the grounds in favour of vacating such an order, or may furnish security by way of a Bank Guarantee executed by a local scheduled bank to the extent of the claimed amount, or such amount as determined by the Court for immediate release of the vessel, and file written objections in due course. Written objections are required to be affirmed by an affidavit on behalf of the defendants before the Commissioner of Oaths of the High Court Division.

Statement showing the extent of interest.

In an admiralty suit where a ship has been arrested any person not named in the writ but interested in the vessels may intervene and appear on the filing of an affidavit showing that he is interested in the vessel and may tille a statement showing the extent of his interest. Upon hearing of, the written objections filed by the defendant, if the Court is satisfied that the vessel has no obligation to pay the claimant of that the vessel is not liable to be arrested, the Court may set aside the order of arrest and order the release of the vessel. 

If the defendants furnish a Bank Guarantee through a local scheduled bank, for the immediate release of the vessel, the vessel will be released.

 Upon the furnishing of the Bank Guarantee, the maintainability of the arrest order can be challenged by filing written objections, and the Court may hear such objections and, if satisfied that the vessel is not under any obligation to satisfy the claims of the claimants, may return the Bank Guarantee to the bank concerned for cancellation.

In appropriate cases the Admiralty Court may consider to reduce the quantum of security to be furnished by way of Bank Guarantee for the release of the vessel. Hearing of such application for reduction of security amount may take some time.

Normally, written objections are taken up for hearing by the Court in due course and, unless there appears to be a very strong case in favour of the defendants and for release of the vessel, the Court would order that the objections be taken up at the time of the final hearing.

In a suit where only a notice to show cause as to why the vessel would not be arrested is passed by the trial Court, the defendants would appear and file written objections against such order and, upon hearing, if the Court is satisfied that the vessel is not liable to be arrested, the Court would reject the petition for arrest.

In the event the Court is satisfied that the vessel would be out of jurisdiction without satisfying the claims of the plaintiff, when a decree may be passed in his favour, the Court would order the arrest of the vessel.

Defendants possession as evidence in support of the defence

 

The defendants are required under the law to file a written statement in their defence in, reply to the allegations contained in the plaint. Where the defendants rely upon documents in their possession as evidence in support of the defence, they can produce and file the same in Court.

The defendants may also file such documents as they consider necessary for the defence before commencing the hearing of the suit. The Court also has the power to direct either the plaintiffs or defendants at any time during the pendency of the suit to produce such documents as are in their possession relating to any matter in question in the suit.

If you want to open a liaison office in Bangladesh or about branch formation click here!

“Tahmidur Rahman – The Law Firm in Bangladesh is considered as one of the leading corporate firms in Dhaka, Bangladesh”

BDLaw Firms Bangladesh

Court fee for admiralty suits in Bangladesh:

 

Court fee for admiralty suit is an important issue. The Admiralty Court Act, 2000 provides for the application of the Court Fees Act, 1870 in an admiralty suit. First Schedule to the Court Fees Act prescribes the rate of  advalorem fees payable on the valuation of a suit.

Where the suit is valued to an amount below Tk 2 lakh or where the claim amount as stated in the plaint does not exceed the said limit, the court-fee is fixed at Tk 7,100.00. For any amount exceeding taka 2 lakh court fee would be 1% of the exceeding amount plus [15% VAT]° (value added tax) on the total court fee calculated as such.

Maximum advalorem court fee in Bangladesh Admiralty Law

Proviso to section 7 of the Admiralty Act, 2000 provides for a maximum advalorem court fee of taka one lakh for the enforcement of maritime claim or questions. The same proviso provides that, the fees chargeable on a plaint in case of a claim by a master or member of the crew of a ship for recovery of wages shall be taka one hundred. 

Enforcement of judgment and decree:

When a suit is decreed in favour of the claimant and if there is no Bank Guarantee or security in substitution of the vessel, a sale by public auction of the arrested vessel would be ordered by the Court. An order for sale pendente lite of a ship under arrest is very exceptional but can be made in certain serious situations. 

Sale by public auction is conducted by the Marshal of the Admiralty Court. The Marshal of the Admiralty Court for this purpose prepares an inventory of the said vessel and puts the vessel in public auction at a date and time fixed by him.

Notices for auction sale

Notices for such auction sale is generally published in two national dailies one in English and the other in Bengali and also in local papers’ where the ship is arrested. The decree-holder pays the necessary expenses for the preparation of the said inventory by the Marshall and his team, the cost of advertisement in the papers and all other incidental expenses.

All such costs and expenses in connection with or relating to the auction sale of the vessel are considered as the first charge on the sale proceeds of the vessel. The highest bidder at a public auction will be allowed to purchase the vessel. The sale proceeds of the auction sale is deposited in the account of the Court/Marshall as per rules. 

However, such a sale is to be confirmed by the Admiralty Court. If the Court finds that the bid offer is very low, then it may set aside the auction and may direct a fresh auction and, upon sale, the Court will disburse the amount of the claimants. If there is a Bank Guarantee substituting a vessel the decretal amount will be satisfied out of the Guarantee.

 

The right to arrest a sister ship:

 

The admiralty jurisdiction of the High Court Division may be invoked by an action in rem not only against the offending ship in question but also against a “sistership’, i.e., a ship in the same beneficial ownership as the ship in regard to which the claim arose. Section 4 (4) of the Admiralty Act, 2000 specifically provides: 

In the case of any such claim as is mentioned in clauses (d) to (g) of sub-section 2 of section 3 of the Act, being a claim arising in connection with a ship, where the person who would be liable on the claim in an action in personam was, when the cause of action arose, the owner or charterer of, or in possession or in control of, the ship, the Admiralty jurisdiction of the High Court Division as the Court of Admiralty may (whether the claim gives rise to a maritime lien on the ship or not) be invoked by an action in rem against-

(a) that ship, if at the time when action is brought it is beneficially owned as respects all the shares therein by that person; or

(b) any other ship which, at the time when action is brought, is beneficially owned as aforesiad.

However, before the enactment of the Act of 2000 the High Court Division in exercising admiralty jurisdiction decided against proceeding in rem where the sister ship of the same owner was not concerned with the cause of action. In Kings Shipping Trading Co. vs. Ms. L.S. Lines & Other of the High Court Division observed:

“Admiralty Court in Bangladesh has been exercising the same jurisdiction as was conferred upon the High Court of Admiralty in England under the provision of Colonial Court of Admiralty Act 1890 and Colonial Courts of Admiralty (India) Act 1891. The High Court Division of the Supreme Court of Bangladesh never exercised Admiralty jurisdiction on the basis of practices of the English Court of Admiralty.

The principles of Administration of Justice Act 1956 extending Admiralty jurisdiction in England cannot be followed in Bangladesh, as the said Act is not applicable in Bangladesh. This Court exercising admiralty jurisdiction has no power to arrest any property or ship of the defendant other than the one which was concerned in the cause of action. The suit in rem is not maintainable, but in personam is maintainable.

Best Admiralty Law In Bangladesh Ship Arrest In Bangladesh Top Law Firm In Bangladesh Tahmidur Rahman Remura

“In appropriate cases the Admiralty Court may consider to reduce the quantum of security to be furnished by way of Bank Guarantee for the release of the vessel. Hearing of such application for reduction of security amount may take some time. Normally, written objections are taken up for hearing by the Court in due course and, unless there appears to be a very strong case in favour of the defendants and for release of the vessel, the Court would order that the objections be taken up at the time of the final hearing.”

Are you planning to file an admiralty related suit in Bangladesh?

Admiralty Suits in Bangladesh and Ship Arrest at Tahmidur Rahman Remura: TLS: The Law Firm in Bangladesh:

The legal team of Tahmidur Rahman, The Law Firm in Bangladesh Remura: TLS, The Law Firm in Bangladesh are highly experienced in providing all kinds of services related to Admiralty Suits in Bangladesh and Ship Arrest in Bangladesh . For queries or legal assistance, please reach us at:

E-mail: [email protected]
Phone: +8801847220062 or +8801779127165

Address: House 410, Road 29, Mohakhali DOHS

 

FAQ

Why should you a arrest a Ship in Bangladesh?

Bangladesh is one of the most favorable arrest jurisdictions for the following reasons: a) Bangladesh is not a signatory to any arrest convention; b) ship can be arrested in an action in rem; c) vessel can be arrested in an action in personam; d) ship can be arrested for security; e) ship can be attached even after loss of navigability; f) ship can be arrested for maritime lien as well as maritime claim; g) arrest lies for as many as nineteen claims; and The High Court Division of Bangladesh's Supreme Court exercises Admiralty Jurisdiction in accordance with the Admiralty Court Act of 2000 and the Admiralty Rules of 1912. Admiralty Rules provide that in suits in rem a warrant for the arrest of property may be issued at the instance of either the plaintiff or the defendant at any time after the suit has been commenced, but no warrant of arrest shall be issued until an affidavit by the party or his agent has been filed, and the following provisions have been complied with:- a) The affidavit shall state the name and description of the party at whose instance the warrant is to be issued, the
b) In a case involving the distribution of salvage, the affidavit must include the amount of salvage money awarded or agreed to be accepted, as well as the name, address, and description of the party holding the funds.

How to file an application for ship arrest in Bangladesh?

To file an application for ship arrest, the plaintiff/claimant must file a lawsuit and pay a court fee of Tk 1,000,000.00. In an action for wages, a court fee of Tk 100.00 must be paid. The complaint and accompanying documents must be filed with the section/office of the Court, and the application for arrest of the ship must be filed with the Court.

Typically, the application appears on the court's Daily Cause List the following business day. Nonetheless, if the Court is convinced of the matter's urgency, it prepares a supplemental cause list and hears the case on the same day. If a prima facie case is established in support of the claim, the court will admit the case and issue summons.

The application for arrest is then heard, and if the court is initially convinced of the application's merit, it issues an order for the arrest of the ship as security for the claim amount.
A ship arrest application is heard ex parte unless the defendants have filed a caveat. The Marshal of the Court serves the defendants with the arrest of ship order upon receipt of the claimant's fee and charge.
Similarly, the Admiralty Court has the authority to seize cargo on board or any property belonging to any party.

How an order for a ship arrest works?

The order for arrest may be vacated by the same court upon an application filed by the defendant on the grounds that the ship was wrongfully arrested, and the defendants may also file an application for a reduction in the amount of security, but hearings for such applications take one to two weeks.

When the ship is in a hurry, this type of application is typically not recommended. A ship is released from arrest upon depositing the claim amount with the court or providing a local bank guarantee. In Bangladesh, P & I Club's LOU is not recognized.

After the ship is released in exchange for a bank guarantee, the defendants may move for a reduction in the bank guarantee, and if granted, a revised bank guarantee will be provided. The Marshal also serves the release order upon receipt of the Marshal's fee.
If the ship has not been released by the defendants, the plaintiff may request the sale of the ship pendente lite.

The court then sells the ship at auction and holds the proceeds, which are paid to the plaintiff if he wins the case. If there are multiple claimants and the proceeds are insufficient to cover their claims, the Court applies the English Law of Priorities.

Which International Convention applies to arrest of ships in Bangladesh?

Both the International Convention relating to Arrest of Seagoing Ship 1952 and the International Convention of the Arrest of Ships 1999 have not been ratified yet by Bangladesh.

Is there any other way to arrest a ship in Bangladesh?

A ship could also be seized in execution of a decree issued by the High Court Division or a judgment issued by a foreign court against the ship's owner. Additionally, a ship can be attached prior to judgment in a suit in personam. A ship can be attached to a suit in rem if it is beached for scrap prior to the institution of the suit.

The Bangladesh Merchant Shipping Ordinance (MSO) of 1983 permits the Principal Officer of the Mercantile Marine Department to seize an unseaworthy vessel. Under the MSO, the High Court Division can detain a foreign ship for damage caused in any part of the world to the Government of Bangladesh or any Bangladeshi citizen or company, and the Principal Officer or Collector of Customs can detain a ship before an application to the High Court Division has been made.

In accordance with the Regulations for Working of Chittagong Port (Cargo and Container) 2001, the Chittagong Port Authority may detain a vessel until security has been provided for the amount of damage caused and the cost of removing the blockage of the navigational channel, or until the full amount has been paid.

Is saisie conservatoire or an freezing order applicable in Bangladesh Admiralty law?

Other than the arrest of a ship in an Admiralty proceeding or an execution proceeding to enforce a decree, there is no separate freezing order. The court may, however, grant an application for an injunction prohibiting a party from scrapping or removing a vessel.

For which types of claims can you arrest a ship?

In an action in rem, a ship could be arrested for any of the following claims:
(a) any claim to the possession or ownership of a ship or to the ownership of any share therein or for recovery of documents of title and ownership of a ship, including registration certificate, log book and such certificates as may be necessary for the operation or navigation of the ship; (b) any question arising between co-owners of a ship as to possession, employment or income of that ship; and (c) any claim in respect of a mortgage or charge on a ship or any share therein.
(d) any claim pertaining to towage of a ship or aircraft; (e) any claim pertaining to pilotage of a ship or aircraft; (f) any claim pertaining to goods or materials supplied to a ship for her operation or maintenance; and (g) any claim pertaining to construction, repair, or equipment of a ship or dock charges or dues.
(h) any claim for wages by a master or member of a ship's crew, or any claim for money or property recoverable as wages of a master or member of a ship's crew under the Merchant Shipping Ordinance, 1983, or in court; charterer or agent of the ship;
(i) any claim for forfeiture or condemnation of a ship or of goods which are being or have been carried, or have been attempted to be carried, or for the restoration of a ship or any such goods after seizure, or for droits of admiralty together with any other jurisdiction to grant reliefs as are provided under the provisions of this title.

Infographics
How To Form A Private Limited Company In Bangladesh_Best Corporate Law Firm In Bangladesh
Video Tutorial
Author’s Bio
About Meheruba Mahbub | One of the most innovative young lawyers in Bangladesh

Meheruba Mahbub is a finance partner and one of the Bangladesh's market leading international lawyers. She is head of the firm's Mergers and Acquisitions practice, which advises corporates and financial institutions on outbound and inbound investments, projects and financings.

Meheruba has a diverse finance practice , representing large banks, financial sponsors, and corporations. She specializes in acquisition and structured financings, loan portfolio purchase and financing, real estate financings, and inbound and outbound transactions. She has extensive expertise in the energy and infrastructure industries.
Work highlights

Meheruba has acted on many high-profile Finance and Commercial deals in Bangladesh and India. These include advising:

⦾ Standard Chartered Bank on the sale of a portfolio of loans in Bangladesh, the first in a series of similar deals in Bangladesh as part of the government’s directive to banks to focus on the robustness of their balance sheets.

⦾ the lending and underwriting banks on the refinancing of US$6.9bn worth of debt uninsured by the Summit Group

⦾ Brookfield Property Partners on the acquisition and financing of Unitech’s real estate portfolio

⦾ Enron on the US$3bn Dhabol power project (since renamed Ratnagiri Gas and Power), the first ever inward investment into the power sector

⦾ the sponsor and borrowers on the Sakhalin LNG project, the world’s largest integrated oil and gas project and the largest LNG financing in Russia

Email: [email protected]

Address: 2 Turner Street, Canning Town, E16 1FH, United Kingdom

Gender: Female

Job Title: Barrister and Senior Associate

Have a Different Question?

Email us anytime : [email protected]

Or call — +8801847220062 or +8801779127165

Pi Visa For Foreign Investor In Bangladesh

PI Visa for foreign investor in Bangladesh

PI Visa for foreign investor in Bangladesh • In order to apply for a work permit, foreign investors and employees must hold a PI (private investor) or E2/E3 (employment) VISA. • BIDA issues a letter of recommendation for obtaining a PI and E2/E3 VISA. • VoAs may be...

How To Form An Association In Bangladesh

How to form an Association in Bangladesh

How to form an Association in Bangladesh abd Section 28 of the 1994 Companies Act: Under section 28 of the Companies Act, a nonprofit organization may incorporate as a corporation. This Association will enjoy all the advantages of a limited liability company, but it...

Traffic And Road Laws In Bangladesh

Traffic and Road laws in Bangladesh

Traffic and Road laws in Bangladesh The administration of traffic and enforcement of traffic laws in Bangladesh have always been a mess. Our nation's road construction has never been able to keep up with the rapid increase of vehicles. In recent years, however, the...

F-1 Student Visa From Bangladesh

F-1 Student Visa from Bangladesh

F-1 Student Visa from Bangladesh: The most common visa for students wishing to study in the United States is the F-1 student visa. It is a temporary visa for foreign students who wish to study at an accredited school or college in the United States. The United States...

K-2 Visa For Children Of Us Citizens

K-2 Visa for Children of US Citizens

K-2 Visa for Children of US Citizens A K-2 visa allows the children of a K-1 fiance visa holder to enter the United States until an immigrant visa becomes available. To be eligible for one of these nonimmigrant visas, the applicant must be under the age of 21 and the...

Mediation in Bangladesh

Mediation in Bangladesh: A Complete OverviewBarrister Remura MahbubDirector, Tahmidur Remura TLS, Law Firm in Bangladesh12 Nov 2022The purpose of this article is to explain the entire process of mediation in Bangladesh: provisions that regulate mediation, step...

Joint Ventures in Bangladesh

Joint Ventures in Bangladesh: Types, Formation, and AgreementsBarrister Remura MahbubDirector, Tahmidur Remura TLS, Law Firm in Bangladesh10 Nov 2022The purpose of this article is to provide an in-depth overview of joint ventures (JV) in Bangldesh: types of...

VAT registration and enlistment in Bangladesh

VAT registration and enlistment in Bangladesh Every company in the country must have a unique Business Identification Number (BIN). A business must first obtain a VAT registration certificate before applying for a BIN. The annual turnover of a business determines...

VAT agent in Bangladesh

When and why is a VAT agent required in Bangladesh? A non-resident entity that conducts business in Bangladesh but does not have a fixed place of business must appoint a VAT Agent in Bangladesh, according to the Value Added Tax and Supplementary Duty Act, 2012, and...

Warisan and Succession Certificate in Bangladesh

Warisan and Succession Certificate in Bangladesh Warisan and Succession Certificate in Bangladesh is a vital document used to identify the heirs or successors of a deceased person. The Warisan Certificate is issued by the Ward Councilor's Office in the City...

How to get a Portugal Passport from Bangladesh

Portugal Passport By Investment The three most common routes to Portuguese citizenship for expats are outlined below. 1. Portuguese Passport By means of Marriage: After three years of marriage to a Portuguese citizen, one can acquire Portuguese citizenship through...

PI Visa for foreign investor in Bangladesh

PI Visa for foreign investor in Bangladesh • In order to apply for a work permit, foreign investors and employees must hold a PI (private investor) or E2/E3 (employment) VISA. • BIDA issues a letter of recommendation for obtaining a PI and E2/E3 VISA. • VoAs may be...

A complete guide on Franchise Business Registration in Bangladesh

Bangladesh is the seventh largest consumer of goods and services in the world. In Bangladesh, franchising is an established method for launching a business. The industries of transportation, beauty, fast food, education, wellness, mail delivery, clothing, and health...

How to form an Association in Bangladesh

How to form an Association in Bangladesh abd Section 28 of the 1994 Companies Act: Under section 28 of the Companies Act, a nonprofit organization may incorporate as a corporation. This Association will enjoy all the advantages of a limited liability company, but it...

F-1 Student Visa from Bangladesh

F-1 Student Visa from Bangladesh: The most common visa for students wishing to study in the United States is the F-1 student visa. It is a temporary visa for foreign students who wish to study at an accredited school or college in the United States. The United States...

Charter Party shipping contract in Bangladesh at 2020: Complete guide

Charter Party shipping contract in Bangladesh at 2020: Complete guide

Charter Party shipping contract in Bangladesh at 2020: A Complete guide

Tahmidgoldenpicturebackground E1569742859700

Tahmidur Rahman, Senior Associate, TR Barristers in Bangladesh

2 Jan 2020

Table of Contents

Find the subsections below, If you want to jump through specific sections instead of reading the whole article.

Tahmidur Rahman Maritime Laws Of Bangladesh | Admiralty &Amp; Ship Arrest

This post in details will explain in details about charter shipping contract in Bangladesh. The Charter Party Shipping Contract is very important for all Admiralty and Maritime personnels, investors and to all those interested in this business. Parties to the Charter Process must be vigilant while drawing up such an agreement. The charter party must represent the interests of the parties and be free from ambiguity and confusion. This article offers an description of the general terms and conditions of the Charter Group Agreement.

What is Charter and Charter Party?

 

In shipping it is often referred to as being on charter when a ship is contracted. The ship’s owner is always referred to as the owner and the charterer is referred to as the one who hires the ship or space thereof. The instrument of agreement is called the “charter party,” generally referred to as C / P.

There are common models for different types of charter developed by various foreign trade organizations and chambers of commerce including the ICC, BIMCO and the Baltic Exchange. C / P is usually drawn by mutual agreement (ship-owner and charterer or their agents) to separate clauses in each of the particular types with special conditions or exception / exemption indicated by lines.

Conventionally there are three major types of charter:

  1. Demise or Bare-boat charter
  2. Time charter
  3. Voyage charter

 

What is a Charter Party Shipping Contract?

 

The charter party is a contract document by which the shipowner agrees to lease, and the charterer agrees to hire, a vessel or all cargo space, or part of it, on the terms and conditions of the charter party.

If this is permitted under the terms of the charter party, the charterer may do so, enter subcontracts with other shippers. If your vessel is chartered, it is of the utmost importance that you read the charter party carefully, in particular the added clauses, until it is fully understood. It is advisable for the officers to read it as a matter of information and instruction, and it will do no harm to discuss it with them, in particular with the Chief Officer.

Charter Shipping Contract In Bangladesh

Types of Charter Parties in a shipping contract in  Bangladesh

 

Bare Charter or Demise:

 

Charter of the Bareboat Party. The shipowner, by this type of charter
Leases his entire vessel, and the charterer is responsible for
Operating it as if it were his own vessel. 

The charterer operates the vessel (in lawful trade) in a manner as if s/he is the owner. The charterer can even put his/ her own marking on the funnel.

However, the charterer can not raise any cash / finance against the ship because he / she is still not the owner of the ship. Some countries also allow the registration of a ship under bare-boat charter for the charter period or if the C / P leads to the eventual sale of the ship to the charterer.

However, the C / P must have a clause allowing the charterer to register a ship under a different flag for the charter period. Obviously, the administration of the bare-boat registry will seek the consent of the primary registry before the vessel is registered under the bare-boat registry. (Charter Shipping contract in bangladesh)

 

Time Charter:

The ship is chartered for a specific period , say about six months to one year, at a fixed rate (usually a daily rate) with the option of extending the period to complete the voyage. The Charter may be renewed or extended for a further period of time on mutual consent.

Charter hire is usually paid in advance, say about 15 or 30 days at a time. The owner keeps the master and the crew and keeps paying their wages.

The owner continues to pay for the insurance from companies like staveley head (hull and machinery and crew P&I). The charterer may take advantage of the P&I coverage for freight or other claims. There are special P&I charter clubs to provide coverage of the charterer ‘s requirements. (Charter Shipping contract in bangladesh)

Voyage Charter:

It is, in fact, an agreement between the owner (carrier) and the charterer (shipper) to transport a certain quantity of cargo from point A to point B at the agreed rate of freight per ton. It usually refers to a quantity with a + /-2 per cent option for either party.

The ship will serve the “Notice of Readiness” upon arrival at the loading port when it is ready for loading. If it is on liner terms, the owner (carrier) uses stevedores at both ends and pays for them.

However, the charterer must deliver the cargo to the loading hook and away from the hook at the discharge port. In most travel charters, however, loading and unloading is done by the charterer. (Charter Party Shipping contract in bangladesh)

“Tahmidur Rahman Remura Parnters is Considered as one of the leading firms in Shipping Law in Dhaka, Bangladesh”

Carpe Noctem Bangladesh

What are the terms to be present in a Charter Party Shipping Contract?

 

If applicable, these are the terms that should be present in a Charter Party shipping contract.

  • Name of the Vessel: The name must be mentioned in the Charter Shipping contract.                
  • Charter Period: The period of the voyag
  • Lay days/Cancelling: This term must include the Commencement date of the  voyage and the Cancelling date. 
  • Place of Delivery: The port of destination must be mentioned here. 
  • Cargo history: The previous history of the cargo need to mention before the  voyage starts.
  • Place of Re delivery: if applicable
  •  Bunkers on Delivery and Re delivery: if applicable
  • Rate of Hire: The rate of hire and the overtime hire rate must be mentioned in the Charter Party Shipping contract in bangladesh.
  •  Owners’ Payment Details: Owner’s bank details must be provided.
  •  Bunker Specifications: A detailed specification of the bunker must be provided.
  • Product description: A detailed description of the products along with the amount of products
  • Trading Limits: The limits of the voyage must be clearly mentioned so that the vessel does not depart from the original route.
  • Additional Clauses: Any other additional clauses as demanded by the ship owner or the investors in a Charter Party Shipping contract in bangladesh.
Charter Shipping Contract In Bangladesh_Contract Terms Bangladesh

Additional clauses that also should be present in a shipping contract in  Bangladesh

  1. SPEED OF THE VESSEL: Permitted speed of the vessel along with route must be inserted in the Charter Party Agreement.
  2. CARGOES: Permitted items as well as the capacity of the items in cargo must be mentioned. The consequences of carrying illegal items in the cargo should also be declared.
  3. Payment: It must be mentioned when the payment must be made and also when the advanced payment has to be made. The consequence of failure to pay must also be mentioned.
  4. OWNERS’ OBLIGATIONS: A detailed list of the obligations of the shipowner must be mentioned.

  5. CHARTERER’S OBLIGATIONS: A detailed list of the obligations of the charterer must be mentioned.

Additional terms in a Shipping contract in Bangladesh

 

  1. MASTER AND CREW: The powers, rights and obligations of the master and crew.

     

  2. LIEN: It must be noted that all freight, hire, sub-hire, freight and sub-freights shall be liable to the Owners for any amounts owed by the Charterers.

     

  3. PERFORMANCE OF VESSEL: Owners warrant that the vessel is and remains capable of maintaining, throughout the Charter period, speeds and bunker consumption for propulsion under normal working conditions and in moderate weather conditions.
  4. OFF-HIRE: It must be mentioned that the Vessel shall be off hire on each and every occasion that there is a loss of time arising out of or In connection with the Vessel being unable to comply with Charterers’ instructions (whether by way of interruption or reduction in the Vessel’s services, or in any other manner).
  5. SUB-LET: Charterers will not sub-let the Vessel without prior written permission from the Owner.
Charter Shipping Contract In Bangladesh

Further Important Terms of shipping contract in Bangladesh

  1. VESSEL/CARGO INSPECTIONS/BUNKER SURVEYS: 

    It must be noted that charterers are entitled, at their own time and expense, to cause their representative (which includes any independent surveyor appointed by charterers) to carry out inspections of the vessel and/or to observe the cargo operations and/or to ascertain the quantity and quality of the cargo, water and residues on board, including the collection of cargo samples, inspection and copying.

     

  2. OUTBREAK OF WAR:

    Either party should be allowed to cancel the Agreement on the outbreak of war or hostilities during the period of the Charter Party.

  3. DAMAGE:

    It has to be clarified who bears responsibility in the event of accident, danger, damage or disaster before or after the commencement of the voyage.

     

  4. LAW:

    It must be mentioned which law governs the Charter Party Agreement and where the dispute will be resolved.

Charter Shipping Contract In Bangladesh_Best Law Firm In Dhaka

Frequently Asked Questions about Charter Shipping contract in bangladesh

In regards to Charter Shipping contract in bangladesh people also ask these questions frequently, hence this FAQ content block is dedicated to answering your questions.

FAQ

What is charter party in shipping?

Charter party, contract by which the owner of a ship allows it to be used by others for the transport of a cargo. The shipowner continues to control the navigation and management of the vessel, but the charterer is responsible for its carrying capacity.

Is Charter Party a contract of carriage?

A charter party (sometimes a charter party) is a maritime contract between a shipowner and a charterer to hire either a passenger ship or a cargo ship or a pleasure yacht. The charter party is a contract for the transport of goods in the case of the employment of a tramp.

What are the types of Charter Parties?

There are three major types of charter parties: i) Voyage charter parties, ii) time parties, iii) bare boat parties.

What are the basic terms of a voyage charter party?

  • expected date of readiness to load
  • identity of parties
  • identity of vessel
  • warranty of seaworthiness 
  • present position of vessel 
  • obligation to proceed to loading port or place
  • identity of and safety of loading port or place
  • amount and nature of cargo to be loaded

What are the differences between voyage and time charter party?

A voyage charter is to hire a vessel and a crew to move between a load port and a discharge port. Time charter is the hiring of a vessel for a fixed period of time; the owner still owns the vessel, but the charterer chooses the ports and guides the vessel where to go.

What is the difference between Charter party Bill of Lading and Marine Bill of lading?

Differences Between the Charter Party Bill of Lading and the Marine Bill of Lading: Charter Party Bill of Lading includes a rule specifying that it is subject to a Charter Party. The Marine bill of charge does not contain such a clause or a similar wording.

What is freight payable in a Charter party?

"Freight" means the remuneration owed by the charterers to the owners for the performance of the contract. In the contract, it may be referred to as charter party freight. "Freight" is always payable in part in advance under the terms of the charter party, e.g. on loading or on the issue of bills of lading.

What is Laytime in Charter Shipping contract?

Legislation can be specified as the amount of time permitted for a ship in a charter for the loading and unloading of cargo at a port. If the ship fails to complete the work within this allocated time and the ship is forced to remain at the port for a longer period of time, then the ship owner will be liable to demolition (fine).

How to find the Charter party in a bill of lading?

Charter party bill of lading is another form of bill of lading used in the maritime mode of transport. If a shipper or group of shippers arranges for their goods to be chartered to their final destination, a vessel shall be chartered. This chartered vessel is intended to carry the goods solely for certain shippers or shippers.

Who is responsible for issuing the bill of lading?

A bill of lading is a legally binding document issued by a carrier to a shipper that specifies the type, quantity, and destination of the goods being transported. This document must be signed by an authorized representative from the carrier, shipper, and receiver and must accompany the shipped goods.

Charter Party Shipping Contract at TLS:

The legal team of TR Barristers in Bangladesh TLS are highly experienced in providing all kinds of services related to Admiralty and Maritime legal services. For queries or legal assistance, please reach us at:

E-mail: [email protected]
Phone: +8801847220062 or +8801779127165

Address:

 

Have a Different Question?

Email us anytime : [email protected]

Or call — +8801847220062 or +8801779127165

Tahmidur Rahman | Law Firm in Dhaka

Affiliated with TR Barristers in Bangladesh, A full service multi-directional law firm in Dhaka.

© 2018-2020 Tahmidur Rahman Matte IT Ltd.

NEED HELP?

Privacy Policy
Disclaimer
Client Login
Sitemap

Maritime Laws of Bangladesh | Admiralty & Ship Arrest

Maritime Laws of Bangladesh | Admiralty & Ship Arrest

Maritime Laws of Bangladesh | Admiralty & Ship Arrest | A complete overview of Admiralty Law in Bangladesh

Tahmidgoldenpicturebackground E1569742859700

Tahmidur Rahman, Senior Associate, TR Barristers in Bangladesh

12 Aug 2019

Table of Contents

Find the subsections below, If you want to jump through specific sections instead of reading the whole article.

Tahmidur Rahman|Tls- Law Firm In Dhaka

This post in details will explain Maritime Laws of Bangladesh | Admiralty & Ship Arrest, and Everything about Admiralty and Maritime law in Bangladesh that you need to know and be aware of.

 

What is Maritime or Admiralty Law? 

Maritime or Admiralty law deals with marine issues and private maritime disputes. The Chief Marine Officer Law Office consists of both national law on naval operations and private international law governing against independent individuals and ocean-going ships working or eating. While each legitimate locale usually has its own enactment overseeing maritime issues, significant advances in universal maritime law, including various multilateral treaties, may be recognized by the Law of the Sea, which is a group of open global laws managing navigational rights, mineral rights, waterfront jurisdiction, and maritime links between countries.The United Nations Convention on the Law of the Sea (UNCLOS) was adopted by 167 countries and the European Union, and discussions are settled at the ITLOS court in Hamburg. 

Maritime or Admiralty Law in Bangladesh

 

The Admiralty Law of the Country is mainly governed by Admiralty Act of 2000. The law on admiralty and maritime affairs can be traced back to the Law of the Admiralty Courts of 1840. The Act was subsequently drawn up by the Admiralty Court Act, 1861, the Courts of Admiralty Act, 1891 and the Admiralty Rules of 1912. Now in Bangladesh, the Admiralty Courts Act 2000 deals with all issues related to Admiralty. (Maritime Laws of Bangladesh | Admiralty & Ship Arrest)

Admiralty Court in Bangladesh

The High Court Division of Supreme Court of Bangladesh has an original jurisdiction to deal with the cases of admiralty. It extends to ships or vesselsanchored at any port of Bangladeshi. 

The Admiralty Court shall have jurisdiction in regards to Maritime Laws of Bangladesh | Admiralty & Ship Arrest | to hear and determine any question or claim in relation to:

  • (a) the possession or ownership of a ship;
  • (b) any question raised by the co-owners of a ship as to the possession, employment or income of that ship;
  • (c) any claim in respect of a mortgage or charge on a ship or any share thereof;
  • (d) any claim for damages made by a ship;
  • (e) any claim for damages made by a ship;
  • (f) any claim for loss of life or personal injury sustained in consequence of any defect in a ship
  • (g) any claim for loss of or damage to goods carried in a ship;
  • (h) any claim arising out of any agreement relating to the carriage of goods in a ship or to the use or hire of a ship;
  • (i)  any claim in the nature of salvage of life from a ship
  • (j) any claim in respect of towage of a ship or an aircraft;
  • (k) any claim for forfeiture or condemnation of a ship or of goods

     

     

Mode of exercise:

The admiralty jurisdiction of High Court Divisionmay be exercised in personamandaction in rem with some conditions.The Admiralty Jurisdiction of the High Court Division as the Court of Admiralty may be exercised through an action in rem against the ship, aircraft or property.

Institution of Suit :An action or a suit before the High Court Division shall be instituted by a plaint drawn up, subscribed and verified  according to the Code of Civil Procedure, 1908. As per section 7 of Admiralty Act 2000, the maximum court fee for Admiralty suits is Taka.1, 00,000 (One Lac), except the claims by the master or seamen for wages earned on board. (Maritime Laws of Bangladesh | Admiralty & Ship Arrest)

Maritime Law In Bangladesh

 

Overview of Ship Arrest in Bangladesh

 

Bangladesh is one of the most advantageous arrest jurisdictions for reasons such as, for example, Bangladesh is not a signatory to any arrest convention, the ship can be arrested in rem, the vessel can be arrested in person, the ship can be arrested for security, the ship can be attached even after the loss of navigability, the ship can be arrested for maritime ties as well as for maritime claims.

 

P & I club LIU / LOI is not accepted for release of the vessel and the vessel is released upon furnishing of the bank guarantee. The High Court Division of the Supreme Court of Bangladesh exercises Admiralty Jurisdiction under the Law of the Admiralty Court, 2000 and the Rules of Admiralty, 1912. Admiralty Rules provide that a warrant for the arrest of property may be issued in the case of either the plaintiff or the defendant at any time after the suit has been brought, but no warrant for the arrest shall be issued until an affidavit has been filed by the party or its agent and the following provisions have been complied with:-

 

  1. The affidavit shall state the name and description of the party at whose instance the warrant to be issued, the nature of claim or counter-claim, the name and nature of the property to be arrested, and that the claim or counter-claim has not been satisfied.
  2. In a suit of distribution of salvage the affidavit shall state the amount of the salvage money awarded or agreed to be accepted, and the name, address and description of the party holding the same

(Maritime Laws of Bangladesh | Admiralty & Ship Arrest)

Process of Application for Arrest of Ship in Bangladesh

 

In order to file an application for the arrest of a ship, the applicant must initiate a suit by paying Tk. 1.00000.00 as the fee of the Court. In a suit for wages Tk is charged by the Court. 100.00 is required to be paid for. The plaint along with the documents is to be filed in the section / office of the Court and the application for arrest of the ship is filed in the Court. Usually, the application comes up in the Daily Cause List of the court on the following working day. However, if the Court is satisfied with urgency of the matter it prepares a supplementary cause list and hears the matter on the same day. If prima facie case in made out in support of the claim the Court Admits the suit and directs issuance of summons. Thereafter, the application for arrest is heard and if the court is prima facie satisfied about the merit of the application it passes an order for arrest of the ship for security of the claim amount. An application for arrest of ship is heard ex-parte unless a caveat has been filed by the defendants. The order for arrest of ship is served upon the defendants by the Marshal of the Court on receipt of fee and charge paid by the claimant. Likewise, cargo on board or any property belonging to any party can also be arrested by the Admiralty Court.

 

How ‘Tahmidur Rahman & TR Barristers in Bangladesh Associates’ helps in regards to Admiralty related issues in Bangladesh

 

Tahmidur Rahman-“TR Barristers in Bangladesh handle a wide range of wet shipping issues in the ports of Dhaka, Chittagong and Khulna for both domestic and global customers, including ship owners, ship agents, P&I clubs, lenders, charterers and freight intrigues, together with their safety net providers. In addition, the company discussed the exchange of affiliations and different suppliers of freight forwarders to the maritime administrations. The firm has dealt with a range of load debates, including various issues, such as mass oil, grain and containerized products. In addition, the firm has some expertise in adjacent maritime links and universal expressions and laws. (Maritime Laws of Bangladesh | Admiralty & Ship Arrest)”

 

Maritime Shipping Law In Bangladesh 1

“TR Barristers in Bangladesh is Considered as one of the leading Maritime Shipping Law Firm in Dhaka, Bangladesh”

Carpe Noctem Bangladesh

Revocation of Order of Ship Arrest in Bangladesh

The arrest warrant may be vacated by the same court on the basis of an application filed by the defendant on the ground that the ship was wrongly arrested and the defendants may also file an application for a reduction in the quantity of safety, but hearing such an application takes 1 or 2 weeks. This kind of application is not generally advised when the ship is in a hurry. A ship shall be released from arrest on the deposit of the amount of the claim in the Court or on the furnishing of a local bank guarantee. The P&I Club LOU is not accepted in Bangladesh. Upon release of the ship upon furnishing of the bank guarantee, an application for a reduction of the bank guarantee may also be moved by the defendants, and, if allowed, a revised Bank guarantee would be furnished. The release order is also served by the Marshal upon receipt of Marshal’s  fee.

If the ship has not gotten released by the defendants, the plaintiff can pray for sale of the ship pendente lite and the Court sells the ship through auction and keeps the proceeds with the Marshal which is paid to the plaintiff if the suit is decreed in his favour. If there is more than one claimant and the proceeds cannot satisfy the claims, the Court applies the English Law of priorities. (Maritime Laws of Bangladesh | Admiralty & Ship Arrest)

International Conventions Applicable to Bangladesh Maritime Law

Neither the International Convention relating to Arrest of Seagoing Ship 1952 nor the International Convention of the Arrest of Ships1999 have been ratified by Bangladesh.

Other ways to arrest a ship in Bangladesh Jurisdiction of Admiralty Law

The ship may also be arrested by the applicant in the event of an order passed by the High Court Division or a judgment handed down by a foreign court against the owner of the ship. A ship may also be attached to a suit in person before a judgment is made. A ship may be attached to a suit in rem if it is beached for scrap before the suit is put in place. Under the Bangladesh Merchant Shipping Ordinance (MSO) 1983, the Principal Officer of the Mercantile Marine Department may detain an unseaworthy vessel. Under the MSO, the High Court Division may detain a foreign ship for damages caused in any part of the word to the Government of Bangladesh or any Bangladeshi citizen or company and to the Principal Officer or Collector of Customs can detain a ship before such application has been made to the High Court Division. Under the Regulations for Working of Chittagong Port (Cargo and Container) 2001the Chittagong Port Authority can detain a vessel until security has been given for the amount of damage caused and the Cost involved in removing the blockade of navigational channel or the total amount is paid.

Are there any alternatives e.g. saisie conservatoire or freezing order in Bangladesh Maritime Law?

There is no separate freezing order other than arrest of a ship in an Admiralty proceeding or in an execution proceeding to enforce a decree. However, an application for injunction to restrain a party from scrapping or removing a vessel can be passed by the Court.

 

Best Admiralty Law In Bangladesh

Claims through which you can arrest a ship in Bangladesh according to Bangladesh Maritime Law:

 

A ship may be arrested in an action for any of the following claims:

 

  • Any claim to the possession or ownership of a ship or to the ownership of any share or to the collection of documents of title and ownership of a ship, including a certificate of registration, a log book and the certificates that may be necessary for the operation or navigation of a ship;
  • Any question arising between the co-owners of a ship as to possession, employment or income of that ship;
  • Any claim in respect of a mortgage of or charge on a ship or any share therein;
  • Any claim for damage done by a ship;
  • Any claim for damage received by a ship;
  • Any claim for loss of life or personal injury sustained in consequence of any defect in a ship or in her apparel or equipment, or of the wrongful act, neglect or default of the owners, charterer or persons in possession or control of a ship or of the master or crew thereof or any other persons for whose wrongful acts, neglects or defaults the owners, charterers or persons in possession or control of ship are responsible, being an act, neglect or default in the navigation or management of the ship, in the loading, carriage or discharge of goods on, in or from the ship or in the embarkation, carriage or disembarkation of persons on, in or from the ship;
  • Any claim for loss of or damage to goods carried in a ship;
  • Any claim arising out of any agreement relating to the carriage of goods in a ship or to the use or hire of a ship;
  • Any claim in the nature of salvage of life from a ship or cargo or any property on board a ship or the ship itself or its apparel, whether services were rendered on the high sea or within territorial waters or inland waters or in a port, including any claim arising by virtue of the application by or under section 12 of the Civil Aviation Ordinance, 1960, (Ordinance XXXII of 1960) of the law relation to salvage to aircraft and their apparel and cargo;
  • Any claim in respect of towage of a ship or an aircraft;
  • Any claim in respect of pilotage of a ship or an aircraft;
  • Any claim in respect of goods or materials supplied to a ship for her operation or maintenance;
  • Any claim in respect of construction, repair or equipment of a ship or dock charges or dues;
  • Any claim for wages by a master or member of the crew of a ship or any claim for any money or property recoverable as wages of master or member of the crew under the Merchant Shipping Ordinance, 1983, or in the Court;
  • Any claim for disbursements made on account of or for the purpose of a ship by the Master, shipper, charterer or agent of the ship;
  • Any claim arising out of an act which is or is claimed to be a general average act;
  • Any claim arising out of bottomry or respondentia;
  • Any claim for forfeiture or condemnation of a ship or of goods which are being or have been carried, or have been attempted to be carried, or for the restoration of a ship or any such goods  after seizure, or for droits of admiralty together with any other jurisdiction to grant reliefs as are provided under the provisions of the Merchant Shipping Ordinance.

Is a ship arrest possible without discriminating its flag?

 

Any ship could be arrested irrespective of its flag if it’s within the jurisdiction of Bangladesh Admiralty or Bangladesh Maritime Law. (Maritime Laws of Bangladesh | Admiralty & Ship Arrest)

Is a ship arrest possible irrespectively of the debtor?

 

As long as the claim gives rise to an action  in rem, even if the ship belongs to a Foreign State the ship  would be arrested. But the ships belonging to the Government of Bangladesh, Bangladesh Army, Bangladesh Navy, Bangladesh Air Force, Bangladesh Rifles, Bangladesh Police and Coast Guard are indemnified.

 

 Can a Sister ship or a ship in association be arrested in Bangladesh according to the Maritime law?

A sister ship can be arrested. But a ship in associated ownership (sister company ship) cannot be arrested.

 

Can Bareboat and Time-Chartered vessels be arrested according to Bangladesh Maritime Law?

If the ship is on bareboat charter, it can be arrested and if it is on time charter it cannot be subjected to  arrest.

Does Bangladesh Maritime Court require counter-security in order to arrest a ship?

Counter-security is not required to be provided at the time the Court orders a ship to be arrested. However, the Code of Civil Procedure provides that where, at any stage of the case, it appears to the Court that the sole plaintiff is, or (where there are more than one plaintiff) that all the plaintiffs reside outside Bangladesh and that the plaintiff is not, or that none of the plaintiffs possesses, in Bangladesh, sufficient immovable property other than the property in suit, the Court may, either of its own  motion or on the application of any defendant, order the plaintiff or plaintiffs, within a time fixed by it, to     give security for the payment of all costs incurred and likely to be incurred by any defendant.

 

Is there any difference in respect to arresting a ship for a maritime claim and a maritime lien accoring to the Maritime Law in Bangladesh?

 

If the plaintiff’s claim is a maritime lien, the claim survives notwithstanding the change in ownership of a ship and the ship can be subjected to arrest. If the claim is a maritime claim and not a maritime lien the ship cannot be arrested if, before filing of the suit, ownership of the ship has changed.

Does Bangladesh Maritime Law recognise maritime liens? Under which International Convention, if any?

 

Sections 477 and 478 of the MSO recognize maritime liens to the Seaman’s wages and the Master’s wages respectively. No other statute recognizes maritime liens. However, Court follows English law of maritime liens.

What lapse of time is required in order to arrest a ship from the moment the file arrives to Tahmidur Rahman| TR Barristers in Bangladesh?

 

After receipt of file/documents along with Power of Attorney, a minimum of 2 days or 48 hours are required to obtain an order of arrest.

Does the aggrieved party need to provide a POA (Power of Attorney) or any other documents of the claim to the Admiralty Court of Bangladesh?

Power of Attorney executed by the client, notarized and attested by the Bangladesh High Commission in   the plaintiff’s country is required to be filed along with other documents to prove the claim. But the Court permits to file suit by dint of the scanned copy of the Power of Attorney subject to filing the original after authentication by the Ministry of Foreign Affairs and payment of stamp duty.

What original documents are required? What documents can be filed electronically and what documents require notarisation and/or apostille? And, when are they needed?

 

All documents in support of the claim along with correspondence between the parties are required to be   filed at the time of filling the suit and application for arrest. Original documents are required to be filed at    the time of trial.

Will Bangladeshi Courts accept jurisdiction over the substantive claim once a vessel has been arrested?

 

Court usually accepts jurisdiction over the substantive claim once the vessel has been arrested. However, the Court may refrain from adjudicating the substantive claim if any agreement of jurisdiction stipulates for foreign jurisdiction. In case of pendency of maritime arbitration, court maintains the arrest order for the purpose of security and stays the substantive suit.

 

 

Best Admiralty Law Firm In Dhaka Maritime Laws Of Bangladesh Admiralty Ship Arrest

“All documents in support of the claim along with correspondence between the parties are required to be   filed at the time of filling the suit and application for arrest. Original documents are required to be filed at    the time of trial.” (Maritime Laws of Bangladesh | Admiralty & Ship Arrest)

Foreign Investment In Bangladesh

Maritime and Admiralty Legal Services Offered by reputed law firms in Bangladesh like TR Barristers in Bangladesh

 

Prominent law firms in Dhaka Bangladesh regularly engage in maritime business to assist their clients with their extensive experience in the field of wet and dry shipping. Under Dry Delivery Work, the firm deals with disputes relating to contract of claims under marine protection or insurance policies, cargo or freight claims, capture of ships or arrest of ships, Ship registration, purchase and transfer of title and possession in Ships, Shipbuilding Contracts, Sale and Purchase of Second-hand Tonnage Contract, Arbitration in connection with various transport related Contracts The company spoke to the bearer, the shipper, the bank, the sailor and the director, the P & I Club and, furthermore, the owner of the ship at a high rate of achievement.  

Bangladesh Government urges overseas shipowners to enlist their vessels under the Bangladesh Flag. Government has established easy-going principles and guidelines for the advancement of shipping areas. TLS lawyer is in the process of providing assistance and advice and will help to avoid either litigation or infringements of state law to ensure the best possible outcome for their client and help ship owners to register their vessels with the Principal Officer-Mercantile Marine Department (POMMD), Chittagong through Bangladesh Inland Water and the BIWTA Transport Authority.

If you need any admiralty related help or would like to hire the best maritime related law firm in Bangladesh, please contact us on:

Call: +8801847220062 or +8801779127165 or +88+8801779127165

Or Email us: [email protected]

Maritime Laws Of Bangladesh | Admiralty &Amp; Ship Arrest

Want new articles before they get published?
Subscribe to our Awesome Newsletter.

Mediation in Bangladesh

Mediation in Bangladesh: A Complete OverviewBarrister Remura MahbubDirector, Tahmidur Remura TLS, Law Firm in Bangladesh12 Nov 2022The purpose of this article is to explain the entire process of mediation in Bangladesh: provisions that regulate mediation, step...

Joint Ventures in Bangladesh

Joint Ventures in Bangladesh: Types, Formation, and AgreementsBarrister Remura MahbubDirector, Tahmidur Remura TLS, Law Firm in Bangladesh10 Nov 2022The purpose of this article is to provide an in-depth overview of joint ventures (JV) in Bangldesh: types of...

VAT registration and enlistment in Bangladesh

VAT registration and enlistment in Bangladesh Every company in the country must have a unique Business Identification Number (BIN). A business must first obtain a VAT registration certificate before applying for a BIN. The annual turnover of a business determines...

VAT agent in Bangladesh

When and why is a VAT agent required in Bangladesh? A non-resident entity that conducts business in Bangladesh but does not have a fixed place of business must appoint a VAT Agent in Bangladesh, according to the Value Added Tax and Supplementary Duty Act, 2012, and...

Warisan and Succession Certificate in Bangladesh

Warisan and Succession Certificate in Bangladesh Warisan and Succession Certificate in Bangladesh is a vital document used to identify the heirs or successors of a deceased person. The Warisan Certificate is issued by the Ward Councilor's Office in the City...

How to get a Portugal Passport from Bangladesh

Portugal Passport By Investment The three most common routes to Portuguese citizenship for expats are outlined below. 1. Portuguese Passport By means of Marriage: After three years of marriage to a Portuguese citizen, one can acquire Portuguese citizenship through...

PI Visa for foreign investor in Bangladesh

PI Visa for foreign investor in Bangladesh • In order to apply for a work permit, foreign investors and employees must hold a PI (private investor) or E2/E3 (employment) VISA. • BIDA issues a letter of recommendation for obtaining a PI and E2/E3 VISA. • VoAs may be...

A complete guide on Franchise Business Registration in Bangladesh

Bangladesh is the seventh largest consumer of goods and services in the world. In Bangladesh, franchising is an established method for launching a business. The industries of transportation, beauty, fast food, education, wellness, mail delivery, clothing, and health...

How to form an Association in Bangladesh

How to form an Association in Bangladesh abd Section 28 of the 1994 Companies Act: Under section 28 of the Companies Act, a nonprofit organization may incorporate as a corporation. This Association will enjoy all the advantages of a limited liability company, but it...

F-1 Student Visa from Bangladesh

F-1 Student Visa from Bangladesh: The most common visa for students wishing to study in the United States is the F-1 student visa. It is a temporary visa for foreign students who wish to study at an accredited school or college in the United States. The United States...
Pi Visa For Foreign Investor In Bangladesh

PI Visa for foreign investor in Bangladesh

PI Visa for foreign investor in Bangladesh • In order to apply for a work permit, foreign investors and employees must hold a PI (private investor) or E2/E3 (employment) VISA. • BIDA issues a letter of recommendation for obtaining a PI and E2/E3 VISA. • VoAs may be...

How To Form An Association In Bangladesh

How to form an Association in Bangladesh

How to form an Association in Bangladesh abd Section 28 of the 1994 Companies Act: Under section 28 of the Companies Act, a nonprofit organization may incorporate as a corporation. This Association will enjoy all the advantages of a limited liability company, but it...

Traffic And Road Laws In Bangladesh

Traffic and Road laws in Bangladesh

Traffic and Road laws in Bangladesh The administration of traffic and enforcement of traffic laws in Bangladesh have always been a mess. Our nation's road construction has never been able to keep up with the rapid increase of vehicles. In recent years, however, the...

F-1 Student Visa From Bangladesh

F-1 Student Visa from Bangladesh

F-1 Student Visa from Bangladesh: The most common visa for students wishing to study in the United States is the F-1 student visa. It is a temporary visa for foreign students who wish to study at an accredited school or college in the United States. The United States...

K-2 Visa For Children Of Us Citizens

K-2 Visa for Children of US Citizens

K-2 Visa for Children of US Citizens A K-2 visa allows the children of a K-1 fiance visa holder to enter the United States until an immigrant visa becomes available. To be eligible for one of these nonimmigrant visas, the applicant must be under the age of 21 and the...

Call us!

/* home and contact page javasccript */ /* articles page javasccript */