German bank awarded close to €2 million

German bank Commerzbank Aktiengesellschaft was authorised to withdraw the sum of €1,991,421 deposited at court, following the sale by auction of MV Emma Sophie, formerly known as MV Sophie Blten.

The case dates back to 2 January 2008 when the owners of MS Sophie Bolten pledged to sell the vessel to German firm Orange 10 GmbH for the amount of €17,620,420.

Commerzbank issued a mortgage of €24,401,811 to cover the sale of the Liberian registered vessel. The sale happened on 18 November 2011, and the vessel’s name was changed to MV Emma Sophie.

However shortly after the purchase, the Orange 10 went into liquidation and the German bank claimed the mortgage amount. The ship was sold by auction in Malta and the amount of €1,991,421 were deposited at the Maltese Courts on 20 March last year.

Lawyer Ann Fenech, on behalf of Commerzbank filed a claim at the Civil Court requesting to withdraw the owed amount. Five months later the Civil court granted Fenech the right to withdraw €1,891,421, as Malaysian company General Shipping Ltd, had also filed a claim over the amounts.

Representing the Malaysian registered company, lawyer John Bugeja claimed his client was owed  €62,026 for services provided to MV Emma Sophie between 8 March and 24 September 2012. Yet, during the proceedings no evidence was exhibited proving that money was owed to General Shipping Ltd

Mr Justice Joseph Zammit McKeon ruled that while Commerzbank has exhibited documentation as proof of the mortgage payment owed to them, General Shipping Ltd had failed to follow suit. Thus the Judge ruled that the Malaysian has no legal claim over the amount deposited at court, and ordered that Dr Ann Fenech, on behalf of Commerzbank Aktiengesellschaft withdraws the full amount of  €1,991,421 in favour of the German bank.