Sanko Steamship Co Ltd v Australia Gloria Energy Group Pty Ltd

In the Federal Court of Australia, Sanko Steamship Co Ltd sought relief from Australia Gloria Energy Group Pty Ltd, which was in default. Sanko applied for a default judgment under r 5.23(2)(c) of the Federal Court Rules 2011 (Cth), due to AGE's failure to respond to the proceedings. The court had to determine whether Sanko's application was appropriate under the circumstances and whether the claim was within the court's jurisdiction. The court found that AGE was indeed in default for not complying with the court's orders and failing to attend hearings. It was established that AGE did not respond to the proceedings or emails sent by Sanko's solicitors. The court concluded that the claim for relief was apparent on the face of the amended statement of claim and that it fell within the jurisdiction of the court.

The court found that the failure of a charterer to provide instructions or cargo in accordance with a charterparty constituted a breach of the charterparty, and the persistence in such behaviour demonstrated an intention to repudiate the agreement, entitling the owner or disponent owner to terminate the charterparty for breach. Sanko was justified in terminating the charterparty based on AGE's repudiation. Consequently, AGE's secondary obligation to pay damages for breach remained enforceable. The court granted Sanko's application for default judgment and ordered that AGE pay damages in the sum of USD 706,105.44, along with interest and costs. Additionally, the court ordered a garnishee order on AGE's bank accounts held with the Bank of China, Sydney branch, up to the sum of AUD 600,000 or the equivalent in any other currency.