Pan Ocean arrest lifted

The high court of Singapore has rescinded the arrest of a Pan Ocean boxship held there since June 2013.

It also upheld a lower court’s decision to strike out an action against the 2,742-teu STX Mumbai (built 2008) by Transocean Oil, according to Pan Ocean lawyers Clyde & Co.

Honourable Justice Belinda Ang has now ordered an inquiry into damages suffered by Pan Ocean after what Clyde called a “wrongful arrest”.

The court ruled the detention was carried out before Pan Ocean’s debt to Transocean fell due. The company, formerly STX Pan Ocean, was in court receivership at the time.

The law firm called the decision “significant” for other owners as it sets a precedent for the insolvency of a company not being a sufficient reason in itself to arrest a vessel.

The judge found Pan Ocean had "fully performed"  its part of the contract.

She said the doctrine of “anticipatory breach” of contract should not apply in cases of executed contracts.

Transocean is appealing to the Singapore Court of Appeal.