Landmark judgment from the Dubai Court of First Instance in complex shipping scenario arising out of the 2014 OW Bunker insolvency, involving arrest of the vessel and a claim for unpaid bunkers discussed “maritime debt” as defined by Federal Law No. 26/1981 concerning the Commercial Maritime Law (“CML”).

The Court of First Instance made three important findings, looking at the nature of the contractual relationship between the parties, that the Bunker Delivery Receipt (“BDR”) was merely a receipt or acknowledgment and lastly, that that the Physical Bunker Supplier (“PBS”) did not have a right to arrest the Vessel because the debt did not fall under one of the 15 categories of a “maritime debt” pursuant to the CML.

The implications of this Court of First Instance decision will be wide-ranging and influential.