Banque Worms v Owners of the Ship Or Vessel Maule and others: PC 24 Feb 1997

(Hong Kong) The ship-owners challenged the arrest of the ship under a mortgage in favour of the bank. They said no instalment was due.
Held: The plaintiffs were not obliged to give notice accelerating repayment of the loan before exercising their express power of sale under that clause. It follows that the writ, though defective on its face, was capable of cure by amendment, and should not have been struck out.


Lord Browne-Wilkinson, Lord Lloyd of Berwick, Lord Hope of Craighead, Lord Hutton, Sir John Balcombe


[1997] UKPC 9




Merchant Shipping Act 1894, Merchant Shipping Act 1995


CitedThe Cathcart 1867
. .
CitedZeeland Navigation Co Ltd v Banque Worms ComC 15-Jun-1994
The court decided that a notice under ship mortgage was valid to authorise the arrest and sale of the ship. . .
CitedFletcher and Campbell v City Marine Finance Ltd 1968
A power of sale under a ship mortgage can only be exercised when a sum is due. . .
Lists of cited by and citing cases may be incomplete.


Updated: 01 June 2022; Ref: scu.159221