JUDGMENT

Ong Chee Kwan J:

Introduction

[1] The vessel "STINGRAY" (IMO No: 9505871) (now known as "BLUERAY") of the Port of Liberia ("Vessel") was arrested by the Plaintiff in this action in rem as security for the Plaintiff's claims against one Nostalgia Pacific Incorporated ("Nolstagia") pursuant to an arbitration proceeding between the parties in London.

[2] Gladys Holdings Incorporated ("Gladys"), an intervener to this action in rem, had offered an alternative security to the Plaintiff for the release of the Vessel which was not accepted by the Plaintiff.

[3] This judgment deals with the Notice of Application on 9 July 2024 ("Enclosure 47"), filed by Gladys against the Plaintiff praying for the following orders from this Court :

(a) a declaration that the Plaintiff's refusal to accept the security offered was wrongful;

(b) a declaration that the Plaintiff's refusal to accept security offered was unreasonable;

(c) damages suffered by Gladys due to the Plaintiff's refusal to accept the offers for security and or prolongation of the arrest be assessed, and paid by the Plaintiff;

(d) damages and expenses arising from the Plaintiff unreasonably insisting on an excessive quantum of security;

(e) cost of, and incidental to, this application be paid by the Plaintiff on an indemnity basis.

[4] Gladys subsequently withdrew the aforesaid prayer (d) of encl 47.

[5] On 7 January 2025 this Court dismissed Gladys' application under encl 47 with costs on the ground that in the circumstances of this case, the Plaintiff was entitled not to engage with Gladys on its offer of security.

Background Facts

Admiralty In Rem Action As Security For London Arbitration

[6] On 6 January 2024, the Plaintiff commenced this Admiralty in Rem action in Malaysia against the Vessel. The Plaintiff's generally endorsed Admiralty Writ in Rem indicates the claim against the Vessel as one arising out of a breach of a charterparty dated 7 July 2023 entered into between the Plaintiff as Charterers and Nostalgia as Owners of the Vessel ("the Charterparty").

[7] The Plaintiff had commenced an arbitration claim for breach of the Charterparty against Nostalgia in London on 27 December 2023 ("the London Arbitration"). With the view to seeking security for its claim in the London Arbitration, the Plaintiff commenced this Admiralty in Rem action against the Vessel.

[8] At the time when the cause of action arose and issuance of Admiralty Writ in Rem on 6 January 2024 for breach of the Charterparty, Nostalgia was still the registered and beneficial owners of the Vessel.

Vessel's Change Of Ownership

[9] However, before the Vessel called to the Malaysian territorial waters, a change of name and ownership of the Vessel occurred sometime around 4 February 2024 whereupon Gladys became the registered and beneficial owners of the Vessel (now renamed BLUERAY).

[10] As the Plaintiff's Admiralty Writ in Rem had not been served on the Vessel, the fact about the change of name and ownership of the Vessel to Gladys was rightly brought to the attention of this Court by the Plaintiff.

Vessel Arrested

[11] The Plaintiff, quite properly, amended the admiralty Writ in Rem and applied to this Court to obtain a fresh Warrant of Arrest to reflect the new name for the Vessel with the view to arrest the Vessel as security for the Plaintiff's claim against Nostalgia in the London Arbitration.

[12] The Vessel was subsequently arrested in this action in rem by the Sheriff of the High Court at Port of Tanjung Pelepas, Johor on 6 May 2024.

Gladys' Involvement In Admiralty In Rem Action

[13] It is not disputed that private negotiations between the Plaintiff's London solicitors Messrs. MFB Solicitors and Nostalgia's solicitors, Messrs. Preston Turnbull LLP for the provision of alternative security in lieu of arrest of the Vessel by way of Escrow Agreement had been ongoing way before the Vessel was arrested by the High Court Sheriff in this action. In fact, these private negotiations between the Plaintiff and Nostalgia'