With thanks to our good friend Senior Advocate Zarir Bharucha in Mumbai who appeared for the successful claimants, we can report that the Madras High Court recently resisted attempts by Polaris Galaxy interests to avoid liability for misdelivery of a cargo of fuel oil in Singapore back in 2022. Once again this was a case where an LOI was issued. Once again that LOI proved to be worthless. It was issued by a paper company of no real substance called “Profitable Wealth”! Those interested in the case can read Zarir’s briefing note here.
The defence put forward by Polaris Galaxy interests in the proceedings was similar to the one put forward by Maersk Katalin interests in Singapore. It was based on the English High Court case The Sienna. Those interested can read our thoughts on that by clicking here.
The upshot is that a carrier who delivers without original bills does so at its peril. Attempts to get around liability based on the causation defence (which was successful in The Sienna) are problematic at best. The lesson of course is to get a proper LOI from a company of substance as this is the only protection a carrier has if things go wrong.
Nick Burgess
Partner
