Recoverability of Wage Payments Made to Seafarers by a P&I Club as Sheriff’s Expenses – A Landmark Decision in India

The Indian courts, in the recent decision of the Bombay High Court in The Swedish Club v V8 Pool Inc. and Other. (Commercial Appeal Nos. 108 and 111 of 2021), were accorded the opportunity to pronounce upon whether crew wages incurred post-arrest could be ranked as Sheriff’s (or marshal’s) expenses. The judgment also considered whether recoupment of such wages, as well as sustenance provisions supplied by a Protection & Indemnity Club (“P&I Club“) pursuant to the Maritime Labour Convention, are also to be treated as Sheriff’s expenses by virtue of subrogation to all “top-drawer” recovery.

Rajah & Tann Singapore LLP was heartened by the opportunity to act alongside the P&I Club’s Hong Kong offices, and to formulate legal submissions in conjunction with its Bombay counsel team. The Club was advised by Kendall Tan and Yip Li Ming from the Shipping & International Trade Practice.

For more information, click here to read the full Legal Update.

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