PAKISTAN Law and Practice Contributed by: Faisal Daudpota, Daudpota International
Power of Attorney and Documentation • The PoA and any supporting affidavits originating outside Pakistan must be notarised or apostilled in the country of origin. • Originals v copies – while photocopies may be accepted during the initial filing to urgently secure a warrant, original documents must usually be filed or produced before the court to verify authenticity, especially if challenged. Translation Requirements • All documents submitted to the High Court of Sindh must be in English. • If the original documents are in another language, they must be accompanied by a certified English translation. Security Deposit (Counter-Security) • Court costs: the court requires payment of stand - ard court fees for institution of the suit. • Arrest costs/undertaking: the arresting party must provide an undertaking (and sometimes a deposit) to cover the bailiff’s fees and the initial costs of maintaining the vessel while under arrest. • Security for wrongful arrest: this is a rare excep - tion and only possible in complicated cases where the defendant has a counter claim. Although not always mandatory, the court has the discretion to order the plaintiff to furnish security for any dam - ages the shipowner might suffer if the arrest is deemed wrongful or unjustified. • Release security: to release the vessel, the defend - ant must provide security (typically a P&I Club Letter of Undertaking or a bank guarantee) to the satisfaction of the court, usually covering the full claim amount plus costs. 5.6 Arresting Bunkers and Freight The following is a breakdown of the legal position in Pakistan. Arresting Bunkers (as Property/Goods) • Action in rem: a claim for “necessaries” supplied to a ship – which includes bunkers (fuel) – can sup - port an action in rem against the vessel. • Arrested property: if bunkers are supplied and a lawsuit is filed, the court may arrest the ship, and in
some circumstances, cargo (including bunkers) on board, to secure the claim. • Limitation: it is important to note that case law in Pakistan (specifically in the Sindh High Court) has indicated that a bunker supply claim may not hold a maritime lien (which is the highest form of claim), but it is a valid maritime claim that can lead to ves - sel arrest. Arresting Freight (as Property/Proceeds) • Freight as “res”: freight (money payable for the carriage of goods) can be attached as property belonging to the ship-owner or person in posses - sion of the ship. • Attachment: if the freight is unpaid, it can be arrest - ed or attached to satisfy maritime claims relating to the carriage of goods or the hire of a ship. 5.7 Sister-Ship Arrest A sister-ship arrest is possible in Pakistan. The following are the key points regarding sister-ship arrests in Pakistan: • Definition of a sister-ship: under Section 4 (4)(b) of the AJHCO 1980, a claimant can arrest a ship that is, at the time the action is brought, beneficially owned as regards the majority shares by the same person who is liable in an action in personam. • Pre-condition for arrest: the person who would be liable for the claim (owner, charterer, etc) must, at the time the cause of action arose, have been the owner, charterer, or in possession/control of the ship, and must still beneficially own the majority shares in the sister-ship at the time of arrest. • Excluded entities: recent judicial interpretation by the Supreme Court of Pakistan has clarified that the “beneficial owner” must hold the major - ity shares, thereby excluding mere time-charterers or demise-charterers from the definition, meaning a ship cannot be arrested for the debt of a mere charterer. • Procedural requirement: an action in rem must be filed in the High Court (such as the Sindh High Court or Balochistan High Court) along with an affi - davit, based on which a warrant of arrest is issued.
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