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ARTICLE · 02 JULY 2021

Right To Arrest Vessels Post-judgment/award – What Is The Tide?

The right to arrest a vessel in an action in rem, i.e. an action against property, is primarily used to obtain security for a future court judgment or arbitral award.

MalaysiaTransport
The right to arrest a vessel in an action in rem, i.e. an action against property, is primarily used to obtain security for a future court judgment or arbitral award. But can such right of arrest be exercised against a vessel after a judgment or arbitral award has been obtained pursuant to an in personam action (i.e. an action against a person)?
 
This is an important question as the advantages and benefits of arrest are manifold. An arrest, which forces the vessel to remain within a jurisdiction, can be exercised based on a prima facie case at the commencement of the in rem proceedings and is relatively easier to obtain than an injunction. The arrest also places pressure on the party whose vessel has been arrested to provide security for the vessel's release and once judgment in an in rem action has been obtained, the arresting party enjoys higher priority from the proceeds of sale of the vessel as compared to certain categories of creditors.

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