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ARTICLE · 19 JANUARY 2021

Protecting A Vessel's Creditors: Precautionary Measures Prohibiting Dealings And Transfers

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Article 37 of the Merchant Shipping Act (Chapter 234 of the Laws of Malta) is a mechanism which is particular to Malta, further securing Malta's position as the largest ship registry in Europe.

MaltaTransport
Jonathan De Maria
Jonathan De Maria
Katrina Abela
Katrina Abela
Nina Fauser
Nina Fauser
Krista Refalo
Krista Refalo
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Article 37 of the Merchant Shipping Act (Chapter 234 of the Laws of Malta) is a mechanism which is particular to Malta, further securing Malta's position as the largest ship registry in Europe.

Article 37 deals with the power of the Court to prohibit any dealing with a ship, or any share therein. Here, the Civil Court, First Hall, may, if it thinks fit, on a demand by a sworn application of a person claiming a right in or over a Maltese ship, make an order prohibiting any dealing with a Maltese ship, or any share therein.

Essentially, a person claiming a right in or over a vessel used in navigation, whether self-propelled or not, is entitled to submit a request to the Court to trigger the above-mentioned action under Article 37. The Court can only issue such order for a specified time, which cannot exceed a 1-year period. However, upon the request of the applicant, this period may be extended by the Court, for further periods of not more than one year each.

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