Budget Marine Limited & Ors v Astimewa Sdn Bhd

Appellant(s):

• Budget Marine Limited
• Budget Marine Sdn Bhd
• Nct Forwarding & Shipping Sdn Bhd

Respondent(s): Astimewa Sdn Bhd

• YA Datuk Supang Lian
• YA Dato' Collin Lawrence Sequerah
• YA Datuk Wong Kian Kheong

• The plaintiff, a scrap metal seller, chartered two vessels from the third defendant for the carriage of scrap metal from Sabah to Penang Port under a Fixture Note (FN).
• The FN stipulated the third defendant's full responsibility to comply with towage recommendations, including monitoring weather and seeking shelter, while the Bills of Lading incorporated the Hague Rules.
• During the voyage, a tropical storm led to the vessels deviating from the passage plan and leaving shelter, resulting in the total loss of the cargo at sea due to the barge's structural failure.

• Whether a party can appeal a High Court judgment that is wholly in its favour, requiring a purposive construction of Section 67(1) of the Courts of Judicature Act 1964.
• Whether the carrier defendants fulfilled their non-delegable duty of due diligence to make the vessels seaworthy and cargoworthy under Article 3(1) of the Hague Rules, and if they could rely on exceptions under Article 4(2) or limit liability under the Limitation Convention.
• Whether an indemnity clause in the bills of lading, which sought to relieve the carrier from liability, was void under Article 3(8) of the Hague Rules.

• The Court dismissed the first defendant's appeal, holding that a party cannot appeal a judgment wholly in its favour, applying a purposive construction of Section 67(1) of the Courts of Judicature Act 1964.
• The Court affirmed that the second and third defendants breached their non-delegable duty of due diligence under Article 3(1) of the Hague Rules by failing to ensure the barge's cargoworthiness and to properly supervise the Master's navigation, thereby precluding reliance on Article 4(2) exceptions or liability limitation under the Limitation Convention.
• The Court upheld the High Court's decision that the indemnity clause in the bills of lading was void under Article 3(8) of the Hague Rules, which prohibits clauses relieving carriers of liability for negligence in their duties.