THE MASTER, OFFICERS AND CREW OF SS "HONG HO" v SS "HONG HO"

[1929] 8 SSLR 22

Judge (s)
Sproule A.C.J

Facts of the Case

This was a case in the Admiralty Jurisdiction of the court in which, the masters, the
officers and the crew of SS Hong Ho sued the vessel in rem to recover sums due to
them in respect of wages.

The owner of the SS Hong Ho also owned two others. For many years, their repairs
were executed by The Singapore Slipway and Engineering Company (“the Company”)
at Tanjung Rhu.

The Company gave the owners indefinite credit and on 31st January 1928, $30,000
and $40,000 were owed to them by the owners in respect of former repairs to the three
vessels.

In December 1927, SS Hong Ho’s propeller was damaged and went to the Company
for repairs and was put on the slip on December 29th. On 19th January, 1928, SS Hong
Ho was launched again after the hull and under-water work has been completed and
later she was moored for further repairs as near as the slipway as could safely be
done.

Meanwhile, the owner’s cheque paid to the Company’s account of $5,000 was
dishonoured. Nearing the end of January, 1928, the cheque by the owner has been
dishonoured for the second time. Within January 30th till 3rd February 1928, a new pipe
(which is a vital part of the ship) was ordered for the ship but not fitted into place.

On 31st January, the owner went to see the Secretary of the Company and regretted
that he could not meet his debt and is in negotiation for a sale of his fleet with another
party.
The Directors of the Company then decided that SS Hong Ho should be held up at the
slipway and the piston-valves were removed by the Company to prevent the ship from
being moved.

The owner admitted via a letter on 1st February that his steamer was at the Company’s
dock and was under seizure and in enforced idleness. He also asked for its release
and more time to meet the debt. The Company in reply refused the owner’s request
thus asserting their lien.

The repairs were completed on 6th February but the piston-valve was retained. On 10th
February, a watchman was placed on board the steamer by the Company. The Master
and Chief Engineer remained on board till June, all the while SS Hong Ho remains in
the Company’s possession.

This suit is filed on 16th May by the Master, Officers and Crew of SS Hong Ho for
claims of wages of $9,000. SS Hong Ho was sold by a consent Order of Court for an
amount of $16,000. The Company’s claim for present repairs exceeds $13,000. At the
same time, the ship was under mortgage to the Lee Wah Bank.

Issue(s)
1. Whether the Company had successfully maintained a good possessory lien.

2. Whether the Company has the priority of all other claimants against the money paid
into Court from the Order of Court dated 11th June.

Law(s) and Judgment(s)

In order for the company to take priority over the wages and the mortgage, the
Company shall maintain a possessory lien over the ship as shipwrights. The
possession must have a right of continued possession as well as actual and
uninterrupted. The lien must also be a particular lien, one that is founded upon the
cost of present repairs.

By virtue of the decision in the case of The Rellim, 39 TLR 41, there is an exact parallel
in the removal and retention of piston-valve. The watchman was on board in the
repairer’s interests. The owner himself admitted that the ship was at the Company’s
dock and in the Company’s power. Therefore, the Company’s possession was as
actual as possession if a ship by a repairer could be and that it was uninterrupted and
continuous.

Whether the possession were in exercise of a particular lien for the payment of the
present repairs, the Court stated that the ship was accepted by the Company for repair
upon an indefinite credit basis, following the former course of dealing between the
shipwrights and the owners. But when the owner’s financial appeared shaky, the
shipwrights decided to exercise their possessory lien and hold the ship until the
present repairs, still uncompleted, had been paid for in cash.

In conclusion, the Court held that the Company has successfully maintained a good
possessory lien, complete and continuous, for the present repairs of the ship and is
entitled in priority over both the claimants of wages and mortgage.