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maltatoday | SUNDAY • 17 SEPTEMBER 2023 11 LAW CLASSIFIEDS LAW REPORT MALCOLM MIFSUD Mifsud & Mifsud Advocates AN Executive Warrant of Ar- rest of Sea Vessels which is issued may only be revoked following an application con- taining all desired submissions together with all documents sustaining such application, either totally or partially, for any reason valid at law. This was outlined in Nassau Mar- itime Holding DAC vs M/V DOMINIA decided by the First Hall, Civil Court on the 8 August 2023 and confirmed by the Court of Appeal on the 5 September 2023. The First Hall, Civil Court was presid- ed by Judge Anna Felice whilst the Court of Appeal was pre- sided by Judges Mark Chetcu- ti, Christian Falzon Scerri and Josette Demicoli. A warrant of arrest of the ves- sel M/V DOMINIA was filed on the 23 May 2023 and be- came executive on the 5 July 2023. The captain of the ves- sel filed an urgent application in the First Hall, Civil Court requesting the warrant of ar- rest of the vessel to be revoked because valid reasons accord- ing to law were presented and based on the fact that there was lack of effective redress as a result of the administrative shortcomings of this part of the Court Registry. The First Hall, Civil Court stated that these proceedings were based on Ar- ticle 281 of Chapter 12 of the Laws of Malta which states the following: (1) Without prejudice to any other right under this or any other law, the person against whom an executive act has been issued or any other person who has an interest may make an application, containing all de- sired submissions together with all documents sustaining such application, to the court issuing the executive act praying that the executive act be revoked, ei- ther totally or partially, for any reason valid at law. The First Hall Civil Court outlined that it is strongly held by jurisprudence that a proce- dure according to Article 281 of Chapter 12 of the Laws of Malta is essentially limited to what may result from the Act itself. The procedure does not reopen the merits of the de- spite between the parties. The claimants on behalf of the vessel affected by the warrant of arrest are basing their claim on the fact that the company that owns the vessel, Morfini SPA, initiated preventive pro- cedures in the Court of Bari, Italy in July 2021, of which that Court ordered a ban on judicial acts against the same Morfini SPA. A restructuring plan of the company was presented to that Court in February 2022. In February 2023, the creditors did not approve the restruc- turing plan and in fact, judicial bankruptcy proceedings were initiated against the company. The Court had approved once again the company's request for a ban on judicial proceed- ings by creditors. However, this decision was never notified to the creditors. The Court quoted Article 8 of the European Regulation on Insolvency 2015/848 which states the following: 1. The opening of insolven- cy proceedings shall not affect the rights in rem of creditors or third parties regarding tangible or intangible assets, movable or immovable, both the specif- ic assets and the collections of indefinite assets holistically that change from time to time, belonging to the debtor who are located in the territory of an- other Member State at the time of the opening of the proceed- ings. Since the credit of Nassau Maritime Holding is secured by a First Priority Mortgage, this constitutes a right in rem and is protected by Article 8 of Regulation 2015/848. The same position is reflected in Article 25(5) of Act XXIV of 2022. Therefore, the First Hall Civil Court denied the request of the claimants to revoke the warrant of arrest of M/V DOMINIA. The claimants appealed the decision of the First Hall Civil Court on four grounds. Firstly, they stated that the First Hall Civil Court erroneously reject- ed their request to revoke the warrant of arrest because the ban on judicial proceedings by creditors was never noti- fied to its creditors. Secondly, they insisted that the applica- ble law was Italian law and that Act XXIV of 2022 is inapplica- ble. Thirdly, they said that the First Court limited itself when it raised doubts about the ju- risdiction of the Court of Bari where a vessel is arrested in Maltese waters and lastly, they said that the procedures de quo amount to forum shopping. The Court of Appeal in its de- cision stated that the creditor's opposition was not based on the lack of notification and the Court did not put such con- sideration as the main reason of the rejection of the request. The First Hall Civil Court com- pared the provisions of Act XXIV of 2022 to show that the Maltese law contains identi- cal provisions to the European regulation and not that it was applicable. It concluded that there was no forum shopping because the issue is regarding the validity of the warrant of arrest of the vessel in Maltese waters issued by the creditor as a precaution arising from a mortgage guarantee for credit due. The Court rejected the appeal and the warrant of arrest of the vessel was not impugned. An executive warrant of arrest of sea vessels may only be impugned for a valid reason at law HOLIDAY ACCOMMODATION MARSALFORN, Gozo - holiday apart- ments for short or long lets with mag- nificent sea-views. Call 21556021, 27556021, 79426883 PROPERTY TO LET SHOP TO LEASE - Class 4 B 60 sqm corner shop to lease in San Gwann. Key money €49,888 and €40 a day rental. Call on 79703404. XLENDI - catering premises in prime site to let. Can be used for other com- mercial purposes. 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