The Maritime Safety Authority of Fiji (MSAF) is set to challenge a significant court ruling that requires the agency to pay over $3 million to businessman Sultan Mohammed Khan. This decision stems from a High Court judgment issued last year that found MSAF responsible for the wrongful seizure and subsequent sale of Khan’s vessel nearly two decades ago.
Justice Chaitanya Lakshman presided over the case, which was revisited in Suva. In his ruling, Justice Lakshman held both the Official Receiver and the Fiji Islands Maritime Safety Administration (FIMSA) accountable for the unlawful transfer of ownership concerning Khan’s vessel, as well as for delays in properly registering its ownership.
Khan, who initially purchased the vessel for $20,000, testified that he invested years into repairing and upgrading it with plans to operate charter services. His venture was abruptly halted when the vessel was seized shortly before its scheduled departure to Lomaiviti, carrying passengers and cargo.
In the judgment assessing damages, Justice Lakshman ordered MSAF and the other defendants to compensate Khan $800,000 for the replacement cost of the vessel, $2.223 million for lost income, along with interest calculated at an annual rate of 3.5% and $10,000 in additional costs. Following the judgment, Khan’s legal team, RPatel Lawyers, initiated garnishee proceedings to secure the payment owed to their client.
Complications arose during the proceedings as banks responded to queries about MSAF’s accounts. While Bred Bank and ANZ Bank confirmed they have no accounts associated with MSAF, the Bank of South Pacific (BSP) acknowledged holding two term deposit accounts since 2021. Westpac Bank, however, noted that while it has multiple accounts, it raised a legal concern regarding the enforcement of judgments against statutory bodies under section 20 of the State Proceedings Act.
In addition to appealing the ruling, MSAF plans to request a stay of execution on the judgment due in August 2025. The matter is scheduled to be heard again on Friday to address the legal issues highlighted by Westpac Bank, reflecting the ongoing complexities of this legal battle and the significant financial implications for all parties involved.
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