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A vessel may be released if the arresting party decides not to pursue the claim, for example, because doing so would not be financially worthwhile, and no other claimants come forward to take over the arrest, said Mr Derek Tan of Stoa Law Corporation.<\/p>\n
Mr Lim said the shipowner could also secure the vessel\u2019s release by providing \u201cappropriate security\u201d for the arresting party\u2019s maritime claim.<\/p>\n
The security could take the form of a bank guarantee, cash or a letter of undertaking, said Mr Tan.<\/p>\n
Another possibility, although less likely, is for the shipowner to successfully challenge the arrest on the grounds that it was wrongful or lacked a legal basis, said Mr Lim.<\/p>\n
The court could also order the ship to be sold \u201cpendente lite\u201d, with the proceeds paid into court as security for the claim.<\/p>\n
\u201cPendente lite\u201d is Latin for \u201cpending the litigation\u201d and refers to court orders taking effect before a case is concluded.<\/p>\n
“As the vessel is likely to incur expenses while under arrest and is likely to be a depreciating asset, the vessel could be sold by the court before the claim is decided,” said Mr Tan.<\/p>\n
“The time taken for a vessel to be sold by the court varies from case to case. If there are no ready buyers, it could be awhile. If and when the vessel is sold, the proceeds of that sale would typically be held in court until the claim is resolved.”<\/p>\n
The time needed to resolve matters relating to the vessel, including its arrest and the underlying claim, depends on the facts of each case, said Mr Tan.<\/p>\n
There may also be other claims against the vessel beyond the one that led to its arrest. It is not unheard of for it to take a few years before all the issues arising or related to the arrest of a vessel in Singapore are resolved, he added.
\u00a0<\/p>\n<\/div>\n
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