Seizing a vessel: understanding the procedure

Table of contents

La vessel seizure allows a creditor to block or sell a vessel to obtain payment of a debt.

Although a ship is legally movable property, the seizure of a ship does not follow the usual rules for the seizure of tangible movable property.

Le transport code provides a framework for this procedure. It distinguishes between two types of seizure: protective seizure and enforcement seizure. These two mechanisms have different objectives, but both aim to protect the rights of maritime creditors.

What is a precautionary seizure of a vessel?

La precautionary seizure is a protective measure. Its purpose is to temporarily immobilise a vessel to secure a debt. The vessel can no longer be used or sold. It is a provisional measure that precedes the obtaining of a writ of execution.

This enables the creditor to ensure that the debtor does not sell his vessel or move it to avoid his obligations.

Why carry out a precautionary seizure?

Arrest is carried out when a creditor fears that the debtor will try to avoid paying his debt by moving or selling the vessel.

The detention of a vessel is an important pressure measure. The debtor, who often owns or operates the vessel, can no longer use it to generate income until the debt has been settled. This is a major obstacle to their economic activity.

In the event of precautionary arrest, the vessel is blocked in the port where it is located, and may not leave port without the authorisation of the judge. This authorisation may be granted subject to the provision of a sufficient guaranteeoften a bank guarantee.

The protective attachment procedure

The procedure begins with a request to the enforcement judge. The creditor must prove that his claim is founded in principle. This means that they must show that the debtor owes them money, even if the debt has not yet fallen due. Unlike other types of seizure, it is not necessary to obtain a writ of execution to carry out a protective seizure.

Once authorisation has been obtained, a bailiff will serve the writ of attachment on the debtor and the ship's captain. This means that the vessel is officially detained. Any attempt to move the vessel without authorisation may result in prosecution.

The effects of seizure

The main effect of the attachment is to immobilise the vessel. The debtor can no longer use the vessel for his business or sell it.

This immobilisation is costly for the debtor. For example, port charges may be invoiced for prolonged parking of the vessel. These additional costs often encourage the debtor to pay his debt quickly in order to free up his vessel.

The protective attachment remains in place until the debtor settles the claim or provides sufficient security. If the debtor does not obtain authorisation to move his vessel, he risks incurring significant financial losses.

Attachment: when the vessel is sold

Unlike the seizure of property for safekeeping, the foreclosure is a procedure for selling a vessel. It takes place after a enforcement order has been obtained. The purpose of execution is to sell the vessel to repay the creditor's debt.

Conditions for execution

In order to carry out a seizure in execution, the creditor must have a enforcement order. This may be a court order or a notarial deed. Once this title has been obtained, the creditor can ask the court to sell the vessel in order to recover the funds.

Seizure and execution procedure

Seizure and execution begins with a summons to pay. This is a formal act ordering the debtor to settle his debt. If the debtor does not pay, the creditor can then ask the court to set the terms of sale.

Le starting price of the sale is set by the judge according to the value of the vessel. A price setting is determined, and the sale is announced in a legal notices. This allows potential buyers to be informed of the sale and to prepare themselves to take part in the auction.

Sale of the vessel

The sale of the vessel can be carried out by a notary or by a ship brokerdepending on the type of vessel.

Creditors with maritime mortgages registered on the vessel are informed of the sale. These creditors have a priority right to the proceeds of the sale. This means that they can recover part of the sum before the other creditors.

If the sale is unsuccessful, the court may decide to set a minimum sale price. NEW PRICE and to relaunch the procedure.

Regulations: Transport Code and international law

The Transport Code

The seizure of ships is governed by the transport code. This code lays down specific rules for the seizure of ships, different from those applicable to other tangible movable property.

International regulations

Ship seizures may also be governed by international conventions. The best known is the 1952 Brussels Conventionwhich unifies certain rules concerning the precautionary arrest of ships. This convention is applicable in the signatory countries, and facilitates the enforcement of maritime claims internationally.

In order to invoke this agreement, the creditor must allege an maritime debtFor example, a bank loan taken out to acquire the vessel. The seizure must be carried out in a Contracting StateThis guarantees that the seizure will be recognised in all signatory countries.

Another agreement, the United Nations Convention on the International Effects of the Judicial Sale of Ships (or Beijing Convention), was adopted in December 2022. This convention aims to harmonise the rules governing the judicial sale of ships worldwide.

Although not yet in force, it provides a more coherent international framework for ship sales, ensuring that such sales are recognised in different countries.

Ship seizure and maritime arbitration

Conservatory measures in arbitration proceedings

In the context of maritime arbitration, it is possible to seize property before the dispute is decided. The aim is to protect the creditor's interests during the arbitration procedure.

The arbitral tribunal or the court may order precautionary measures, such as the seizure of the vessel or the imposition of a fine. bank guarantee to prevent the debtor from moving or selling the vessel before the final decision.

These measures are often requested when the creditor fears that the debtor is trying to dispose of its assets in order to avoid enforcement of a possible arbitration award.

Jurisdiction of national courts and arbitration

The competence of the State judge to order precautionary measures is expressly recognised by the civil procedures code. This means that, even if the dispute is referred to an arbitral tribunal, the judge can still order protective measures, such as the seizure of a vessel.

If a precautionary seizure is carried out, the creditor must continue the procedure with a view to obtaining an enforcement order. This title may be issued by an arbitration tribunal. If the creditor does not continue the proceedings within the time limit set, the attachment will be lifted. The judge may also decide to maintain the attachment during the arbitration proceedings, especially if the proceedings are international.

Conclusion

La vessel seizure is a key procedure in maritime law, making it possible to secure payment of claims through the detention or sale of a vessel.

Governed by specific transport code and international conventions such as the Brussels and Beijing Conventions, this procedure offers maritime creditors a powerful tool for protecting their rights.

Preventive seizure enables a vessel to be blocked quickly, while execution seizure leads to its forced sale if the debtor does not regularise his situation.

Given the economic importance of a ship, the vessel seizure is often an effective means of exerting pressure to settle debts.

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