MAREVA COMPANIA NAVIERA SA vs. INTERNATIONAL BULKCARRIERS LTD CASE BRIEF

By: Okinyo Ronald Makonjio

MAREVA COMPANIA NAVIERA SA vs. INTERNATIONAL BULKCARRIERS LTD (The Mareva case)

Facts

The applicant, Mareva Compania Naviera S.A. vide a writ on 25^th June 1975 claimed against the respondent, International Bulkcarriers S.A., for unpaid hire and damages for repudiation of a charter party. Through an ex-parte application, Donaldson J granted an injunction in favour of the applicants until 17.00 hours on 23^rd June restraining International Bulkcarriers (the charterers) from removing or disposing out of the jurisdiction moneys standing to the credit of the charterers, account at a London bank. Mareva Compania Naviera (the ship-owners) appealed against Donaldson J’s refusal to extend the injunction beyond 17.00 Hrs. on 23^rd June 1975.

Issue: Whether the court should grant an ex-parte order sought by the plaintiff to restrain the defendant dispersing/ disposing his assets.

Holding: The court granted the ad personam order/ injunction pursuant to the 1925 Act which stated: ‘A mandamus or an injunction may be granted or a receiver appointed by an interlocutory order of the court in all cases in which it shall appear to the court to be just or convenient.’

Rationale: The order could be made even though it dealt with assets in which the plaintiff claimed no direct right.

Judgment: Appeal allowed. Injunction continued.