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Admiralty Disputes and Remedies in Bangladesh: What the Admiralty Court Can Do for You

When a ship owes you money, the ship itself can be made to pay. Bangladesh's Admiralty Court can arrest a vessel in Chattogram or Mongla within a day or two of its arrival, hold it until security is posted, and sell it to satisfy your claim, whoever owns it and wherever it is registered. This article explains which disputes the Court hears, what remedies it grants, and how The Justice Corner uses them for clients.

The Admiralty Court of Bangladesh

The Admiralty Court is not a lower civil court. Under section 3(1) of the Admiralty Court Act, 2000, the High Court Division of the Supreme Court is itself the Court of Admiralty, and a designated bench sits in Dhaka to hear maritime cases. It exercises the constitutional jurisdiction of the High Court Division under Article 101.

That status matters in practice. In Basic Bank Limited v. M.V. Crystal Sapphire (2026), the Court held that the bar in the Artha Rin Adalat Ain, 2003 does not stop a bank from enforcing a ship mortgage in admiralty, because that bar is aimed at ordinary civil courts. The bank obtained a decree for over Tk 128 crore payable from the sale of the vessel.

Three features set admiralty apart from ordinary litigation:

It reaches foreign ships and foreign parties. Section 3(5) applies whether the vessel is Bangladeshi or foreign and wherever its owner lives. A ship flying any flag can be arrested once it enters Bangladeshi waters.

It acts against the ship itself. An action in rem treats the vessel as the defendant. The claimant does not need to chase an owner hidden behind a single-ship company in Panama or the Marshall Islands.

It moves fast. A plaint and an arrest application can be presented, admitted and an arrest order served before a ship finishes discharging. In Island Oil v. M.T. Mandala (2026), the vessel reached Chattogram's outer anchorage on 2 April and was under arrest on 4 April.

Ships are mobile assets. A claimant who waits for the next port call may wait years. The Admiralty Court exists so that a maritime creditor can act while the ship is here.

Disputes the Admiralty Court can resolve

Section 3(2) of the Act lists eighteen kinds of maritime claim, clauses (a) to (r). They fall into seven practical groups.

Recent judgments show how widely these heads are used.

Crew wages. In four suits over MT Fadl-E-Rabbi and MV Crystal Gold (2025), Bangladeshi officers and ratings obtained decrees ranging from US$37,921 to US$253,586 per suit, payable from the proceeds of court sales.

Ship repairs and dock dues. Chittagong Dry Dock obtained a decree of Tk 6.56 crore for repairs and 100 days' jetty charges (2026).

Freight. A Marshall Islands owner recovered unpaid freight from the end receiver of a urea cargo under a chain of voyage charters (Melimas Shipping v. BCIC, 2025).

Collision abroad. A claimant whose ship was struck in Hong Kong arrested the offending vessel when she came to Sitakunda for breaking (Asset Wonder v. M.V. Athens, 2014).

Ship mortgages. A state bank enforced its mortgage against a Bangladeshi bulk carrier (Basic Bank v. M.V. Crystal Sapphire, 2026).

Barges and inland craft. A barge temporarily lashed into a river causeway was still a "ship", so its owner's hire claim stayed in admiralty (Penta Marine v. Niko Resources, 2011).

If your dispute touches a ship, her cargo, her crew or the services she receives, it very likely belongs in this Court.

Remedies the Admiralty Court can grant

The Court's remedies run from the first day of the suit to the final distribution of money.

1. Arrest of the vessel

Arrest is the defining admiralty remedy. On presentation of the plaint and an affidavit under Rule 4 of the Admiralty Rules, 1912, the Court issues a warrant. The Marshal serves it, and the port authorities stop the vessel from sailing. The Court has described arrest as the very foundation of its jurisdiction over a foreign ship.

An action in rem is available in three situations under section 4:

Claims attached to the ship itself under section 4(2): ownership, co-ownership, mortgages and forfeiture.

Maritime liens under section 4(3): damage done by a ship, salvage, crew wages, master's wages and disbursements, and bottomry. A lien travels with the ship even after she is sold, so a buyer, including a ship-breaker, takes her subject to it (Asset Wonder v. M.V. Athens).

Other maritime claims under section 4(4), such as bunkers, repairs, charter hire and cargo claims, where the person liable owned, chartered or controlled the ship when the claim arose and still beneficially owns her when the suit is filed. The same rule allows arrest of a sister ship in the same beneficial ownership.

2. Security and release

Most arrested ships are released on a bank guarantee or P&I club letter in favour of the Marshal. The guarantee then stands in place of the ship. The Court has ordered security of US$10 million for a claim over an undelivered crude oil cargo (Shanghai Lisheng v. MT Gala, 2025). It has also reduced security where a claim was inflated, as in Grandee v. M.V. Princess Jia Jia (2026), where a US$2.78 million claim was secured at US$250,000. The Court may also accept substitute security, such as the registration certificates of other vessels in the same fleet (Gagasan Johor v. Banglar Shikha).

3. Judicial sale and distribution

If no security is given, the Court can order the ship appraised and sold by auction, and holds the proceeds in the Marshal's account. Claimants are then paid by priority. Seamen's wages rank above every other lien or charge under section 479 of the Merchant Shipping Ordinance, 1983, followed by the master's lien. A judicial sale gives the buyer clean title, free of earlier liens.

4. Money decrees in rem and in personam

At trial the Court can pass a decree against the vessel, against her owners, managers, charterers and local agents, or against all of them jointly. Decrees carry interest: 6% to 12% from filing in recent cases, and 10% from decree in crew wage suits, with higher rates where a contract provides for them.

5. Attachment, injunctions and interim orders

The Court is not limited to ships. In Melimas Shipping v. BCIC it attached a whole cargo of urea and the proceeds of a letter of credit to secure unpaid freight. In Topcom Holdings v. Government of Bangladesh (2019) it granted an interim injunction over letter of credit payments, later lifting it only on conditions that kept the claimant protected. Under Order XXXIX of the Code of Civil Procedure, which applies through Rules 51 and 60 of the Admiralty Rules, it can preserve property and money pending trial.

6. Declarations of ownership and return of documents

Under section 3(2)(a) and (b) the Court can decide who owns a ship, settle co-owners' disputes over her employment and earnings, and order the return of registration certificates, log books and operating documents.

7. Security in support of foreign arbitration

Many charterparties choose London or Singapore arbitration. An arbitration clause does not oust the Court's jurisdiction in rem (Global Radiance v. M.T. Ariana, 2026; Topcom). The Court will keep a ship under arrest, or hold a guarantee, so that a future arbitral award can actually be paid.

The procedure: from filing to remedy

An admiralty suit follows the Admiralty Court Act, 2000, the Admiralty Rules, 1912 and, where those are silent, the Code of Civil Procedure, 1908. A typical claim moves through ten stages.

Preparation and verification. We gather the contract, invoices, bills of lading, delivery notes, crew documents or survey reports, and check the vessel's registry, ownership chain and charter position. For a foreign client, the power of attorney is executed, notarised, stamped and authenticated in line with the Power of Attorney Rules, 2015. Limitation is checked at this stage.

Filing the plaint. Under section 6 of the Act and Rule 3 of the Admiralty Rules, the suit begins with a plaint drawn up, signed and verified as the Code of Civil Procedure requires. It names the vessel as defendant ("owners and parties interested"), the owner, manager, charterer and local agent as principal defendants, and the port and customs authorities as pro forma defendants so that orders reach them. Court fee is paid on the claim value.

Admission and the arrest application. The plaint is presented to the Admiralty bench with an application for arrest, supported by the affidavit Rule 4 requires: the claimant, the nature of the claim, the property to be arrested and the fact that the claim is unpaid. In a wage or possession suit against a foreign ship, the affidavit must also confirm notice to that state's consul. The Court can admit the suit and order arrest the same day.

Arrest. The Marshal of the Court serves the warrant on the vessel. The order is sent to the Chattogram or Mongla port authority, customs and the Department of Shipping, which stop the ship from sailing. Cargo, freight or letter of credit proceeds can be attached by separate order.

Appearance, security and release. The owner or other interested party enters appearance, usually through a local agent and counsel. To free the ship, they furnish a bank guarantee or other approved security in favour of the Marshal. The Court fixes the amount and may raise or reduce it. Once security is accepted, the Court orders release.

Interlocutory challenges. The defence may apply to vacate the arrest, reduce security, reject or return the plaint, or stay the suit for arbitration. The plaintiff may apply for injunctions, further attachment or, if no security is given, interim sale of the vessel.

Sale pending suit, if needed. Where an arrested ship is abandoned or deteriorating, the Court can order appraisal and sale by auction through the Marshal. The proceeds are held in the Marshal's account in place of the ship.

Written statement and issues. Contesting defendants file a written statement, and may counterclaim, for example for wrongful arrest. The Court frames issues. If no defendant contests, the suit proceeds ex parte, but the plaintiff must still prove the claim.

Evidence and hearing. Witnesses depose and documents are exhibited. A foreign plaintiff's witness must hold a valid power of attorney. The Court hears argument and decides each issue on the balance of probabilities.

Decree and realisation. The Court passes a decree in rem against the vessel or her proceeds, in personam against the liable parties, or both, with interest and costs. The decree is executed under the Code of Civil Procedure: by encashing the bank guarantee, by payment from the Marshal's sale account according to priority, or against the defendant's other assets. Either side may appeal to the Appellate Division.

The early stages decide most cases. A properly prepared filing and an arrest of the right ship usually produce security within days. Once security is posted, many claims settle long before trial.

Why admiralty claims fail

Admiralty is powerful, but it is technical. The Court has dismissed or released strong-looking claims for reasons that had nothing to do with whether the money was owed. These are the most common.

Arresting the wrong ship. A charterer, operator or manager is not the "beneficial owner" of a ship. Arresting a vessel because a database lists the debtor as "operator" or "group owner" will fail (Acquila Voyager v. M.V. Jin Ace, 2011; Globe Ocean v. M.V. Telerig, 2026). In BanBridge v. M.V. Majestic Vera (2026) the arrest collapsed, and with it the whole suit against foreign companies.

Assuming every claim is a maritime lien. Bunkers, stores, repairs and management fees carry no maritime lien under Bangladeshi law. If the ship has been sold before you sue, those claims cannot follow her (Island Oil v. M.T. Mandala; Global Radiance v. M.T. Ariana). A clause in a supply contract choosing US law does not change this.

Delay. Supply and contract claims are generally barred after three years. Cargo claims under bills of lading governed by the Hague Rules are barred one year after delivery, and negotiations do not stop time (Hasan Vegetable Oil Mills v. MT Sceptre, 2011). The ship's absence from Bangladesh does not extend these periods.

A defective power of attorney. A power executed abroad must be stamped within three months and authenticated in Bangladesh within two months under the Power of Attorney Rules, 2015, and must carry the attorney's photograph and identity details. A supplier's bunker claim was dismissed on this ground alone (Ban Hoe Leong v. MT Fadl-E-Rabbi, 2025).

The wrong plaintiff. A ship cannot sue in her own name. A company in liquidation can sue only through its liquidator (Gagasan Johor v. Banglar Shikha, 2025). A proprietorship must sue in its proprietor's name.

Missing parties. If the shipper or the charterer is the real party at fault, it must be joined (Hasan Vegetable Oil Mills; Creative Chemicals v. MV Ocean Hope, 2013).

Poor evidence. Seafarers must prove engagement and discharge through endorsements in the original Continuous Discharge Certificate. Endorsements written onto photocopies cost one group of claimants their interest and part of their claim (Capt. Abdul Hayee Miah v. MV Ocean Pearl, 2015).

Each of these is avoidable with careful preparation before the plaint is filed.

If your vessel has been arrested

Every day a ship sits under arrest costs her owner hire, port charges and goodwill. The Admiralty Court gives owners, charterers and cargo interests several ways to fight back.

Apply to vacate the arrest. If the claimant has no maritime claim against this ship or her owner, the Court will release her without security. The Court did exactly that in Globe Ocean v. M.V. Telerig (2026), Cetus Maritime v. M.V. Schuyler Trader (2025), where only the bunkers had been arrested, and Acquila Voyager v. M.V. Jin Ace (2011).

Challenge non-disclosure. An arrest obtained by hiding material facts, such as a parallel suit and arrest abroad or an arbitration clause, can be set aside. Trade Venture v. M.V. Phuc Hai Star (2011) is the leading example, though the Appellate Division later restored that arrest on its facts.

Reduce the security. Security must reflect the claimant's best reasonably arguable case, not the figure in the plaint. The Court can fix a lower amount, as it did in Grandee (2026), relying on the Appellate Division's decision in S.M. Monirul Islam v. MV You Bang, 51 DLR (AD) 90.

Seek rejection or return of the plaint. A claim that is time-barred on its face, or that has no connection with Bangladesh once the ship is gone, can be ended early (Island Oil, 2026; BanBridge, 2026).

Recover your guarantee. When a suit fails, the Court directs the bank guarantee to be returned or released (Creative Chemicals, 2013; Hasan Vegetable Oil Mills, 2011; Island Oil, 2026).

Counterclaim for wrongful arrest. Damages are available where the arrest was made in bad faith or with gross negligence, the test from The Evangelismos that the Court has confirmed is good law in Bangladesh (Shanghai Lisheng, 2025). The bar is high, which is why the earlier steps matter most.

Speed is everything. An owner who instructs counsel the day the warrant is served can often have the vessel released, or the security cut down, before the losses mount.

How The Justice Corner can help

The Justice Corner is a Dhaka chamber led by Mohammad Imam Hossain (Tareq), Advocate of the Supreme Court of Bangladesh and Barrister-at-Law of the Middle Temple. Admiralty work sits in the High Court Division, which is where we practise. We act for claimants and for owners, so we know how arrests are won and how they are defeated.

What we do for clients:

Urgent arrests. We prepare the plaint, the Rule 4 affidavit and the arrest application so they can be filed the moment a vessel is reported at Chattogram or Mongla outer anchorage. We check the vessel's registry and ownership chain first, so the arrest is made against a ship that can lawfully be held.

Claim strategy. We decide whether your claim carries a maritime lien, falls under section 4(4), or must proceed in personam, and we pick the remedy that will actually produce payment.

Foreign claimants. We advise overseas suppliers, owners, charterers, banks and P&I correspondents on Power of Attorney Rules compliance, authentication and the correct name of the plaintiff, so the suit is not lost on a technicality.

Crew and seafarer claims. We act for masters and crew in wage claims, including proof through CDCs, wage accounts and portage bills, and in claims against the sale proceeds of abandoned vessels.

Defence of arrested vessels. We move to vacate wrongful arrests, reduce excessive security, recover guarantees and pursue wrongful-arrest counterclaims.

Security for arbitration. We obtain and defend arrests that secure London, Singapore and other foreign arbitrations, and coordinate with arbitration counsel abroad.

Finance and ownership. We enforce ship mortgages for banks, resolve co-ownership disputes and recover ship documents.

Trial and appeal. We take suits through evidence and judgment in the Admiralty Court, and onward to the Appellate Division.

Our approach rests on detailed knowledge of the Admiralty Court's current case law. We track its judgments on maritime liens, sister-ship arrest, security and limitation as they are delivered, and we bring that knowledge to every file.

Talk to us

If a vessel connected to your claim is in, or heading to, Bangladeshi waters, or if your own ship has just been arrested, contact The Justice Corner immediately. Hours matter in admiralty.

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This article is general information about Bangladeshi admiralty law and is not legal advice on any particular case.