MV AL Quamar: Maritime Lien - Historical Maritime Fraud

A maritime lien is often described as the barnacle” attaching to a ship’s hull. A maritime lien, in respect of a particular ship, travels with that ship, irrespective of whether that ship changes ownership. Ultimately, it is the ship itself which owes obligations which may be breached. The word lien” is derived from a Latin word ligament” which means binding.

- Dr. Soumi Mukherjee

A person who has obtained a decree from a court in a foreign country can approach an Indian court for enforcement of the said decree under the Civil Procedure Code, the Supreme Court had ruled in November 2000 in M.V. A.L. Quamar -vs- Tsavliris Salvage (International) Ltd.

A maritime lien is often described as “the barnacle” attaching to a ship’s hull. A maritime lien, in respect of a particular ship, travels with that ship, irrespective of whether that ship changes ownership. Ultimately, it is the ship itself which owes obligations which may be breached. The word “lien” is derived from a Latin word “ligament” which means binding. In common law, a lien is considered to be the right to hold or retain property which belongs to another person as a security for the performance of an obligation or for the payment of a debt.

Maritime lien and maritime claim both overlap each other at various levels, however both the terms are essentially different from each other. A maritime lien depends on the vessel, irrespective of any change in the ownership and it usually favours the claimant. On the other hand, a maritime claim ceases to exist if the vessel is sold to a third party.

Therefore, in case of maritime claim, the claimant has a right in personam, which means that the claimant can only claim against a particular person. However, in case of maritime lien, there is right in rem, i.e. the claimant’s rights are protected against the world at large. A maritime lien is a quasi-proprietary right and it usually provides many advantages to the plaintiff. Some basic characteristics of Maritime Lien is that it arises automatically, the jurisdiction cannot be questioned and it takes priority over any other form of security.