The Egyptian judiciary's integrity has been confirmed by this ruling, which has also resulted in the refund of $200,000 that had been unlawfully collected.

The dispute dates back to October 2015, when a shipping company sought to discharge the cargo loaded onto the “PRINCESS K” vessel (IMO 9495404, MMSI 636024875 -sailing under the flag of Liberia. ), which was under a precautionary seizure in the Suez Port roadstead at the time. The cargo was then to be towed to the quay at Adabiya Port for discharge.

The applicable ministerial decree

The Red Sea Ports Authority only agreed to this operation on the condition that a towage contract was signed, setting a fee of $200,000. However, the applicable ministerial decree set the maximum cost for such towage at no more than $18,500.Due to the urgent nature of the situation, the risk of cargo damage, and the potential for delay penalties resulting from failing to take delivery promptly, the company paid the demanded amount, and the vessel was subsequently towed and the cargo unloaded.

Initiated legal proceedings

The acting party then initiated the following legal action by filing a lawsuit to have the towage contract declared void on the grounds of duress — a defect of consent — and to recover the excess amount collected by the Authority in violation of the ministerial decree. The case was litigated through the various levels of the Egyptian judicial system — first instance, appellate, and the Court of Cassation — culminating in a final, irrevocable judgment that was upheld by the Egyptian Court of Cassation, according to Dr. Waleed M. Mansour, Attorney before the Court of Cassation

During the initial proceedings

During the initial proceedings, the court ruled in absentia, sentencing the Chairman to one year in prison and ordering his dismissal from office. The Chairman subsequently appealed against the judgment, but the court of first instance upheld both the prison sentence and the dismissal. Consequently, the Red Sea Ports Authority promptly paid the remaining balance, totalling $256,667.97 (including the principal amount and accrued interest), based on the US dollar exchange rate as of the date of the judgment's execution. This sum is equivalent to 13,324,885.26 Egyptian pounds.

Related: RINA: Over €60 million in compensation for the sinking of the Al Salam 98 ferry.

This ruling confirms the integrity of the Egyptian judiciary,

Dr. Waleed M. Mansour said to  "Maritime Tickers " that this ruling confirms the integrity of the Egyptian judiciary, while also emphasising that one should not simply resign oneself to actions that run counter to Egyptian law. If charges that are not legally due must be paid, regardless of the stated basis for their collection, the P&I Club representative and/or the vessel’s representative must formally register an objection through the vessel’s shipping agent at the time of payment. Subsequently, legal proceedings should be initiated to annul the action and recover the amounts paid without legal justification. 

# Waleed M. Mansour#PRINCESS K” vessel #Red Sea Ports Authority #Adabiya Port #A court ruling # P&I Club