CYPRUS Law and Practice Contributed by: Kyriacos Scordis and Sofi Mylona, SCORDIS PAPAPETROU & Co LLC
Establishing the Authorities of the Maritime and Shipping Courts ). Maritime liens enjoy certain advantages over certain other permitted actions in rem of Section 1 (1) of this Act, in the time of creation of the lien, in priority and in the enforceability of the security. In general, maritime liens are not extinguished by the sale and transfer of ownership of the ship. 5.3 Liability in Personam for Owners or Demise Charterers A vessel may be arrested at any time, regardless of who its owner is, in an action in rem in respect of a claim related to: • her possession or ownership (Section 1 (1)(a) of the English Administration of Justice Act 1956 (the “Act”)); • a claim by a co-owner as to possession, employ - ment or earnings of that ship (Section 1 (1)(b) of the Act); • a claim under a registered mortgage (Section 1 (1) (c) of the Act); • a claim for her forfeiture or condemnation (Sec - tion1 (1)(s) of the Act); or • a claim by a maritime lien holder or chargee of that vessel. In all other claims of Section 1 (1) of the Act, an arrest can be made in an action in rem 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 the vessel, or was in possession or control of the vessel; and • at the time when the action is brought, the vessel is beneficially owned with respect to all the shares A bunker supplier can arrest a vessel in an action in rem, provided that its claim falls within the permissi - ble in rem action under the Administration of Justice Act 1956 (in particular, Section 1.1 (m) – “any claim in respect of goods or materials supplied to a ship for her operation or maintenance”). therein by that person. 5.4 Unpaid Bunkers
Although the supply of bunkers may give rise to a maritime claim, that claim is not a claim whereby a vessel may be arrested irrespective of who its owner is (see 5.3 Liability in Personam for Owners or Demise Charterers ). Therefore, an arrest for unpaid bunkers can only be made in an action in rem 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 the vessel, or was in possession or control of the vessel; and • at the time the action is brought, the vessel is beneficially owned with respect to all the shares therein by that person. Thus, a bunker supplier who acts as an intermediary whereby the ship-owner/demise charterer has no con - tractual link and therefore no in personam liability may have no right to arrest. While some physical suppliers have argued that the contractual relationship is estab - lished by the bunker receipt, this on its own is unlikely to give rise to a contractual relationship without clear wording, a course of dealing or other evidence to establish an intended contractual relationship. In the case of a bareboat chartered vessel, the char - terer usually assumes full control and management of the ship, including the responsibility for appointing crew, maintaining the ship and covering operational expenses. 5.5 Arresting a Vessel A warrant for the arrest of a vessel can only be applied for at the time of, or at any time after, the commence - ment of proceedings in rem against that vessel. Such proceedings are commenced by the issuance of a writ of summons. The name, place of residence and occupation of every claimant and defendant should be included in the structure of the writ of summons, alongside a concise statement of the claim made or the relief or remedy sought. In order to arrest a vessel, the plaintiff must file an ex parte application, which must be supported by an affi - davit. The affidavit must state the nature of the claim, and the aid of the court is required, since the claim remains unsatisfied.
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