KDB Capital Corporation Ltd. v. Navi-Bunkering Crop – CA REM/02/2018-2022

In the case between Navi-Bunkering Corp. (Plaintiff-Respondent) and M.V. “Evangeli” and KDB Capital Corp. (Defendants-Appellants), the primary issue concerned whether the Plaintiff’s claim for the supply of bunkers to the vessel could be enforced in rem against the vessel under Section 2(1)(l) and Section 3(4) of the Admiralty Jurisdiction Act No. 40 of 1983. It was held that the Plaintiff’s action was properly constituted as an in rem action, as the demise charter between the Owner and the charterer was not validly terminated in the absence of physical redelivery or actual repossession. The principle reaffirmed is that a demise charter only terminates upon the actual redelivery of possession or a demonstrable overt act to retake possession, not by mere contractual notice. Reliance was pla