CYPRUS Law and Practice Contributed by: Kyriacos Scordis and Sofi Mylona, SCORDIS PAPAPETROU & Co LLC
• where the court orders that the arbitration award be annulled or ceases to have effect. As soon as the limitation period expires, the court no longer has jurisdiction unless a party with a legitimate interest submits an applica - tion, in which case the court may extend the prescribed limitation period for up to two years on an equitable and reasonable basis. 4. Maritime Liens and Ship Arrests 4.1 Ship Arrests Cyprus is not itself a party to the International Convention Relating to the Arrest of Sea-Going Ships, 1952. However, the English Administra - tion of Justice Act of 1956 ratifies this Conven - tion, and applies to Cyprus by virtue of its Con - stitution and Articles 19 and 29 of the Courts of Justice Law of 1960 (Law No 14/60). 4.2 Maritime Liens Cyprus law recognises the following maritime liens that give rise to an action in rem against, and a right to arrest, a vessel: • lien for damage, which is a lien for the amount of a claim arising only in tort against a ves - sel as a result of her negligent navigation or operation (such as a collision); • lien for salvage; • bottomry; • lien of the Master, officers and crew for wages and other emoluments; and • reimbursement to the Master of disburse - ments made by said Master out of their own pocket on behalf of the owners. The Supreme Court has jurisdiction to hear and determine all the claims of Section 1(1) of the English Administration of Justice Act 1956,
which are all described as “maritime claims” and for which arrest of a vessel can be requested (see 1.1 Domestic Laws Establishing the Authorities of the Maritime and Shipping Court s). 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. 4.3 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, employment 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 (Section1(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 therein by that person.
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