Dan-Bunkering (Singapore) Pte Ltd v The Ship Yangtze Fortune (No 3)

Dan-Bunkering (Singapore) Pte Ltd sought to claim from the fund constituted by the proceeds of the judicial sale of the ship Yangtze Fortune, which was in the hands of the court following a default judgment in its favour against the vessel's bareboat charterer, Yangtze Fortune Co Ltd. China Merchants Energy Trading (Singapore) Pte Ltd sought to intervene in the proceedings, arguing that it had a claim against the vessel for bunkers supplied. The court had to determine whether the applicant had reasonable prospects of success in its claim, and if so, whether the fund constituted by the proceeds of the sale of the vessel was liable for the applicant's debts.

The legal issues before the court were the interpretation of sections 18 and 24 of the Admiralty Act 1988 (Cth) and rules 9.02 and 9.03 of the Federal Court Rules 2011 (Cth), particularly in the context of a claim made out of time. The court had to consider whether the applicant's claim was reasonable and whether the fund was liable for the applicant's debts. The court also had to decide whether the charterparty had terminated before the judicial sale of the ship, and if the applicant had made a conscious choice not to take steps in the proceeding.

The court found that the applicant did not have reasonable prospects of success in its claim, as there was no evidence that the charterparty had terminated before the judicial sale of the ship. Furthermore, the applicant had made a conscious choice not to take steps in the proceeding. The court held that the fund constituted by the proceeds of the sale of the vessel was not liable for the applicant's debts. The court exercised its discretion not to allow the applicant to join the proceeding, even if it had a reasonably arguable claim.

The court dismissed the interlocutory application filed by China Merchants Energy Trading (Singapore) Pte Ltd with costs.