Navios International Inc v The Ship Huang Shan Hai

Navios International Inc brought proceedings against The Ship Huang Shan Hai, seeking the release of the ship from arrest. The dispute centred on the sufficiency of bail bonds offered by the defendant to secure the release of the ship. The court was required to determine whether the bail bonds were sufficient under the relevant rules and whether an affidavit on information and belief by a solicitor could satisfy the requirements for a proposed surety's financial circumstances. The court also had to consider whether the proposed surety being a foreign corporation was relevant to the sufficiency of the bail and whether modern commercial practices should be taken into account.

The court found that the proposed surety, Bank of China, was creditworthy and met the necessary requirements. It was a significant international bank and authorised deposit-taking institution regulated under Australian law, with substantial assets in Australia. The court held that it was appropriate for Bank of China to be the sole surety for the bail bonds, given its financial standing and the fact that it was regulated under Australian law. The court rejected the argument that the affidavit on information and belief was insufficient and allowed the bail bonds to be filed by Bank of China as sole surety. The court also noted that the development of modern commercial practices was a relevant consideration in this matter.

The court ordered that the defendant had leave to file the bail bonds of Bank of China in each proceeding and that the defendant pay the costs of the objection to bail proceedings. The court also ordered that the defendant's solicitor provide an undertaking to pay specific sums within two weeks of the orders. The vessel was to be released from arrest, subject to the filing of the bail bonds and the defendant's solicitor providing the specified sums. The court further ordered that further steps required by the Admiralty Rules were stood-over until 3 February 2012, or such earlier date as the Court might fix, when the matter was to be relisted for directions.

Note: Further steps as otherwise required by the Admiralty Rules are stood-over until 3 February 2012, or such earlier date as the Court might fix, when the matter is to be relisted for directions.