Mahbub & Company successfully argues for summary rejection of admiralty suit on behalf of vessel in a dispute over transportation of cement clinker.
In a significant ruling within the Admiralty Jurisdiction on 20th July 2026, the Admiralty Court in the High Court Division of the Supreme Court of Bangladesh presided over by Justice Sikder Mahmudur Razi has delivered a judgment in Admiralty Suit No. 15 of 2025, rejecting the plaint filed by Metrocem Cement Ltd. against vessels owned by Madina Maritime Limited. The Court’s decision underscores the specific jurisdictional boundaries of the Admiralty Court.
The case originated from a claim by the Plaintiff, a major cement manufacturer (MetroCem), who alleged that the defendant vessel had delivered clinker owned by the Plaintiff to another major cement manufacturer (Tiger Cement) in a loan arrangement which Tiger Cemend allegedly failed to repay. The petitioner sought recovery of damages and compensation amounting to over BDT 3.64 crore, leading to the initial arrest of the vessels as security.
Although a claim of misdelivery was brought against the vessel initially, the Plaintiff amended its plaint so as to pivot its claim to one of failure to make payment against goods delivered on loan.
In this situation, the M&C team representing the Defendant vessel successfully challenged the maintainability of the suit arguing that according to Section 3 of the Admiralty Court Act, 2000, the dispute lacked the necessary maritime elements to invoke the special original jurisdiction of the Admiralty Court. The defense contended that the matter was essentially a commercial dispute involving a loan arrangement rather than a recognized maritime claim, thereby falling outside the ambit of the Act.
The High Court accepted these submissions, noting also that the cause of action was drastically altered by the subsequent amendment of plaint through which the suit ultimately lost its maritime character. Consequently, the Court allowed the application for rejection of the plaint and further directed the return of all original documents of the vessel that had been deposited as security during the proceedings.
The successful defendants, including Madina Maritime Ltd. and the vessels’ masters, were represented by Abu Bakar Siddique, Advocate, and Mahbub & Company’s Saqeb Mahbub, Partner and M Parvez Rana, Associate.
