Latest ruling sets a precedent,
writes Ray Smuts
IT NEVER rains but pours for the Sheriff of Cape Town in his ongoing, hitherto futile, bid to sell the Russian fleet replenishment vessel Argun, under arrest for 13 months over claims totalling more than R7 million.
The latest 'nyet' to the proposed auction sale comes from the Cape High Court were Mr Justice Hennie Erasmus ruled that the Sheriff, first applicant in the matter, was adequately secured in respect of his claim of more than R1,2 million - escalating at about R150 000 a month - and that his security would be adequate for a considerable time.
The judge found that the 4 816 gross ton, Belize-registered, Argun had been valued at US$1,2 million and that claims by the Sheriff and the second applicant Victoria and Alfred Waterfront Company. - owed R320 000 for berthing dues - and various arresting creditors totalled approximately 75% of the estimated value of the tidy vessel.
In spite of a May survey by Offshore Maritime Services of SA stating that the vessel was showing signs of neglect and deterioration to her plant ad fittings, the judge found it (the survey) had not shown as a probability that deterioration would be unduly severe in nature and or degree.
The proposal to sell Argun at auction sale was opposed by the vessel's owners, the Russian Federation, declared to be her lawful owner at an earlier court hearing despite a claim to the contrary by one arresting creditor.
Cape Town's deputy sheriff Keith Bateman told FTW this week that the matter would now be taken to the Supreme Court of Appeal as a matter of some urgency because of the effect this latest ruling will have on all future arrested vessels in South African ports.
Bateman said while there was intense interest in the sale of Argun - she could do nicely servicing vessels off the Port of Cape Town, for instance - the Russian Federation is said to be wanting to dispose of the vessel on its own terms.
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