The plaintiff, a UAE bank, brought a claim against the defendant vessel and its owner for AED 6,390,809.68 or USD 1,740,179.63 plus interest, and sought the arrest of the defendant vessel. The plaintiff claimed that it had advanced a loan to the defendant shipowner. The matter was heard ex parte as the defendants did not opt to contest. The plaintiff had also initiated a proceeding against the defendants in the UAE by filing a case in the Plenary Commercial Circuit at Sharjah Federal Court of First Instance. This raised the issue as to whether the judgment of the UAE Court in the plaintiff's favour should be enforced in the Pakistan proceedings, or whether the claim should be decided anew on its merits in Pakistan.

Held: Judgment for the plaintiff in the terms below.

Even though the matter proceeded ex parte against the defendants, it is still the duty of the Court to evaluate the plaintiff's claim and the evidence led within the parameters of law.

Having examined the loan and ship mortgage agreements, it is clear that the plaintiff has a first preferred Panamanian ship mortgage over the defendant vessel. On the facts, the defendants have clearly defaulted on the mortgage. The plaintiff's claim falls within s 3 of the Admiralty Jurisdiction of High Courts Ordinance 1980. The present claim may thus be decided on its own merits as an action at rem against the defendants by treating the same as an original and independent cause of action. However, the plaintiff has no objection if the order of priority for settling claims as applicable in the admiralty jurisdiction is applied in executing the plaintiff's UAE judgment.

It is clear that the UAE foreign judgment has been given after due deliberation and taking into account the provisions of different statutes and case law, as applicable in the jurisdiction of the UAE. This foreign judgment is therefore conclusive and satisfies the criteria laid down for recognition and enforcement in the law. The judgment directs the second defendant to pay the plaintiff AED 5,723,557, together with interest.

There cannot be two decisions with regard to the same loan transaction/finance facility; that is, one passed in the foreign jurisdiction as above and another one in the present proceedings. The judgment given by the Court of Sharjah (UAE) is to be executed through the present proceedings.

In the connected suits, particularly Admiralty Suits No 2 and 7 of 2018, the order of priority of settling the claims of the different plaintiffs has already been determined, according to which the plaintiff's claim in these proceedings will be settled after payment of the dues/charges of Karachi Port Trust, and the wages of the master and crew of the vessel (Admiralty Suit No 6 of 2018 - Khan v MV Miski (CMI2172)).