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As per case facts, Plaintiff filed a suit for maritime claim due to unpaid hire by the bareboat charterer and sought arrest of vessel M.V.Nereus Progress. The High Court granted
...interim arrest. Defendant (vessel owner) sought to vacate the arrest, arguing the charter-party was terminated by notice and the charterer was a gratuitous bailee, making the arrest unsustainable under Admiralty Act Section 5(1)(b). The question arose whether a bareboat charter by demise could be effectively terminated by mere notice without actual repossession, affecting the liability for maritime claim at the time of arrest. Finally, the High Court held that effective termination of a demise charter requires actual recovery of possession or overt acts of repossession, not just a notice. Since the defendant failed to show such actions, the plaintiff's prima facie case was upheld, and the interim arrest order was made absolute. The defendant's application to vacate the order was dismissed.
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