The Maritime Safety Authority of Fiji (MSAF) is set to appeal a significant court ruling that has mandated the agency to compensate a businessman more than $3 million. The order stems from a High Court decision last year in favor of Sultan Mohammed Khan, who was awarded damages, interest, and costs due to the wrongful seizure and sale of his fishing vessel nearly two decades ago.
The case, overseen by Justice Chaitanya Lakshman at the High Court in Suva, concluded that both the Official Receiver and the Fiji Islands Maritime Safety Administration (FIMSA), which is now known as MSAF, were responsible for unlawfully vesting Mr. Khan’s vessel and causing delays in the registration process of its ownership.
Mr. Khan, who invested significant time and money into repairing and enhancing the vessel—initially purchased for $20,000—was preparing to launch charter services when it was seized just before departure to Lomaiviti, accompanied by passengers and cargo. In the judgment delivered last year, Justice Lakshman ordered the defendants to pay $800,000 for the replacement cost of the vessel, alongside a staggering $2.223 million in lost income, interest calculated at 3.5 percent per annum on the lost income, and $10,000 in additional costs.
The legal representatives for Mr. Khan, RPatel Lawyers, have initiated “garnishee proceedings” to ensure the judgment amount is paid. During the legal proceedings, various banks were questioned about MSAF’s accounts. Bred Bank and ANZ Bank confirmed they hold no accounts for MSAF, while Bank of South Pacific indicated the existence of two term deposit accounts as of 2021. Westpac Bank acknowledged multiple accounts but raised a legal concern under section 20 of the State Proceedings Act regarding the enforcement of judgments against statutory bodies.
In response to the ruling, MSAF plans not only to appeal but also to seek a stay on the judgment due in August 2025. The case will be revisited on Friday to address the legal implications highlighted by Westpac Bank. This legal battle underscores the complexities associated with maritime law and the protection of business interests in Fiji, and it is hoped that a resolution will eventually be reached that serves justice for all parties involved.