Ceto Shipping Corporation v Savory Shipping Inc [2022] EWHC 2636 – 21 October 2022 (Baker J)

The demise charter contained a purchase obligation by Charterers at expiry. Title would pass automatically provided “Charterers have paid all hire… and… all management fees... due”. Charterers subsequently faced claims for management fees and crew wages, and a Singapore Court ordered the Vessel’s sale. Charterers, who disputed these claims, argued that disputed debts were not “due” and that Vessel title had passed to them. The Court disagreed; reasonable business persons would consider an amount due despite being disputed. There was nothing unfair to Charterers about a bona fide dispute depriving Charterers of the passing of title when they had failed to satisfy the conditions set out in the c/p.