CA-2025-000005 - [2025] EWCA Civ 1227

Lord Justice Phillips:

This appeal concerns the proper interpretation of clause 29 of the Baltic and International Maritime Council (“BIMCO”) Barecon 2001 standard form of bareboat charter. Clause 29 provides for the respective rights and obligations of the owners and the charterers of the relevant vessel in the event that it is repossessed by the owners following early termination of the charter pursuant to clause 28.

The issue, raised as a point of law under section 69 of the Arbitration Act 1996, is whether (i) clause 29 gives the owners the right, following termination, to require the charterers to sail the vessel to any port or place the owners consider to be convenient to them to take possession (provided the choice is not irrational or arbitrary) or (ii) the clause requires the owners to repossess the vessel as soon as reasonably practicable at its current port or call (or next scheduled port, if at sea) or at another port or place if those are not convenient for the prompt taking of repossession by the owners.

On 13 December 2024 His Honour Judge Pelling KC (“the Judge”) decided that the second of those interpretations was correct, allowing the appeal of the respondent charterers (“the Charterers”) from a partial final award of an LMAA arbitral tribunal to the opposite effect. The Judge granted the appellant owners (“the Owners”) permission to appeal to this Court.