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Lilian S V Caltex Ltd

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Lilian S V Caltex Ltd
The MV Lilian S

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Owners of the Motor Vessel “Lillian S” v Caltex Oil
(Kenya) Ltd
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Court of Appeal, at Mombasa
Nyarangi, Masime & Kwach JJ A

November 17, 1989

Civil Appeal No 50 of 1989
(Appeal from an order of the High Court at Mombasa, Bosire J, in
Admiralty Cause No 29 of 1988 dated 28th February, 1989)
Admiralty Law – admirality jurisdiction of the High Court Kenya – circumstances in which the jurisdiction can be invoked – Judicature Act
(Cap 8), section 4 – Supreme Court Act, 1981 sections 20, 21.
Admiralty Law – goods supplied to a third party stored in a vessel – whether vessel owner incurs liability for the price of the goods – Supreme
Court Act, 1981 sections 20, 21.
Injunction – ex-parte injunction – duty of applicant to make full and frank disclosure of material facts – consequence of non-disclosure of facts.
Caltex Oil, the respondent to this appeal, issued a writ in rem against the motor vessel Lilian S endorsed with a claim for Kshs 6,110,434/55 alleged to be due and owing from the owners of the motor vessel (the appellants).
The claim allegedly arose on account of a quantity of gas oil, fuel and bunkers supplied by Caltex. The writ was accompanied by a statement of claim and an affidavit to lead a warrant for the arrest of the vessel.
In the Bunker Delivery Report (BDR) a company called Southern Oil
Supply Company (SOSCO) was named as the local agents for the owners of the ship and a copy of an invoice was directed to SOSCO and duly acknowledged by them as customers.
There was a contract whereby the respondent agreed to supply and SOSCO agreed to buy 550 metric tones of fuel oil and pursuant to that contract the respondent delivered 5, 478.55 metric tones of fuel oil on board the Lilian
S as requested by SOSCO as a base for storing the fuel pending the sale and supply to other vessels. On the basis of these facts the ship was on the ex-parte application of Caltex ordered to be arrested.

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The appellants being

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