Plaintiff can\'t seize ship in lieu of debt
Publish date: 03 December 2004
Issue Number: 1231
Diary: Legalbrief Today
Category: Maritime
The Federal Court of Canada has upheld a decision that a vessel owned by the Shipping Corporation of India (SCI) cannot be seized to satisfy a long-standing judgment debt of the Indian Government just because the latter is a substantial shareholder of the SCI.
The decision, reports The Business Times, drives home the established principle that a corporation is a distinct legal entity from its shareholders. The plaintiff in this case, Foresight Shipping Co, seized the vessel in a bid to recover some of the US$1.39m it had won more than 10 years ago in an arbitration dispute with the Indian Government. Full report in The Business Times
