The Maritime Safety Authority of Fiji (MSAF) is embarking on an appeal following a significant court ruling that requires the agency to compensate businessman Sultan Mohammed Khan over $3 million. This decision originates from a High Court verdict delivered last year that found in favor of Khan, who was awarded damages, costs, and interest due to the wrongful seizure and subsequent sale of his fishing vessel nearly two decades ago.
Justice Chaitanya Lakshman presided over the case at the High Court in Suva, ruling that both the Official Receiver and the Fiji Islands Maritime Safety Administration—now called MSAF—were culpable for unlawfully taking control of Khan’s vessel and for causing delays in the registration process of its ownership.
Mr. Khan had invested considerable resources, including time and money, into repairing and preparing his vessel for charter services after acquiring it for $20,000. His plans were abruptly halted when the vessel was seized just before a scheduled departure to Lomaiviti, while carrying passengers and cargo. In the judgment issued last year, Justice Lakshman ordered a total compensation that includes $800,000 for the replacement cost of the vessel, alongside an astonishing $2.223 million for lost income, calculated interest at 3.5 percent per annum on the lost earnings, and an additional $10,000 in costs.
Khan’s legal team at RPatel Lawyers has initiated “garnishee proceedings” to secure the payment of the judgment amount. During this legal framework, various banks were approached regarding MSAF’s financial accounts. Bred Bank and ANZ Bank confirmed they do not hold accounts for MSAF, while Bank of South Pacific acknowledged the presence of two term deposit accounts as of 2021. Additionally, Westpac Bank highlighted multiple accounts but raised legal questions about enforcing judgments against statutory bodies under section 20 of the State Proceedings Act.
In light of this ruling, MSAF intends not only to appeal but also to request a stay on the judgment, which is due for August 2025. The matter will be revisited on Friday to discuss the legal implications presented by Westpac Bank. This ongoing legal dispute emphasizes the challenges in maritime law and the safeguarding of business interests in Fiji. There remains hopeful anticipation that a just resolution will be achieved that balances the interests of all parties involved.