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FAR EASTERN SHIPPING COMPANY vs.

COURT OF APPEALS and PHILIPPINE PORTS AUTHORITY

G.R. No. 130150; October, 1998

FACTS:M/V PAVLOAR, o!"e# $"# o%er$te# b& t'e F$r ($)ter" S'*%%*"+ Co%$"& -F(SC, $rr*e# $t t'e

Port o M$"*$ $"# !$) $))*+"e# 2ert' o t'e M$"*$ 4"ter"$t*o"$ Port, $) *t) bert'*"+ )%$ce.G$*"o, !'o !$) $))*+"e# b& t'e A%%e$"t M$"*$ P*ot) A))oc*$t*o" to co"#6ct t'e #oc7*"+

$"e6er) or t'e )$e bert'*"+, bo$r#e# t'e e))e $t t'e 6$r$"t*"e $"c'or$+e $"# )t$t*o"e#'*)e *" t'e br*#+e, !*t' t'e $)ter o t'e e))e, V*ctor $$"7o, be)*#e '*. Ater $ br*e*"+ oG$*"o b& $$"7o o t'e %$rt*c6$r) o t'e e))e $"# *t) c$r+o, t'e e))e *te# $"c'or ro t'e6$r$"t*"e $"c'or$+e $"# %rocee#e# to t'e M$"*$ 4"ter"$t*o"$ Port. T'e )e$ !$) c$ $"# t'e

!*"# !$) *#e$ or #oc7*"+ $"e6er). 'e" t'e e))e re$c'e# t'e $"#$r7, o"e'$ *e rot'e %*er, G$*"o or#ere# t'e e"+*"e )to%%e#. 'e" t'e e))e !$) $re$#& $bo6t te"#) )6%er*or to $"#to be tr6)te# t'$" t'$t o t'e $)ter. =e *) "ot 'e# to t'e '*+'e)t %o))*be #e+ree o )7* $"#

b6t 6)t '$e $"# e>erc*)e t'e or#*"$r& )7* $"# c$re #e$"#e# b& t'e c*rc6)t$"ce), $"# 6)'o!" b& $" e>%ert *" '*) %roe))*o". @"#er e>tr$or#*"$r& c*rc6)t$"ce), $ %*ot 6)t e>e

e>tr$or#*"$r& c$re. 4" t'*) c$)e, C$%t. G$*"o $*e# to e$)6re 6% to )6c' )tr*ct )t$"#$r# o c$#**+e"ce re6*re# o %*ot) *" t'e %eror$"ce o t'e*r #6t*e). A) %*ot, 'e )'o6# '$e $#e )

'*) #*rect*o") !ere %ro%t& $"# )tr*ct& oo!e#.

-e%te# b& )t$t6te, t'e e))e or 'er o!"er) $re *$be or $ #$

c$6)e# b& t'e "e+*+e"ce or ot'er !ro"+) o t'e o!"er) or t'o)e *" c'$r+e o t'e e))e. A+e"er$ r6e, t'e o!"er) or t'o)e *" %o))e))*o" $"# co"tro o $ e))e $"# t'e e))e $re *$

$ "$t6r$ $"# %ro>*$te #$$+e) c$6)e# to %er)o") or %ro%ert& b& re$)o" o 'er "e+*+e$"$+ee"t or "$*+$t*o".

CRESCENT PETROLEUM

The facts are as follows: Respondent M/V Lok Maheshwari (Vessel) is an oceangoing vessel oregistry that is owned by respondent hipping !orporation of India (!I)" a corporation organie$isting %nder the laws of India and principally owned by the &overn'ent of India It was ti'echarrespondent !I to *alla Merchant Marine !o Ltd (*alla)" a o%th +orean co'pany *alla" in t%chartered the Vessel thro%gh a ti'e charter to Trans'ar hipping" Inc (Trans'ar) Trans'ar f%rtchartered the Vessel to ,ortserv Li'ited (,ortserv) -oth Trans'ar and ,ortserv are corporations orand e$isting %nder the laws of !anada

.n or abo%t ove'ber 0" 0112" ,ortserv re3%ested petitioner !rescent ,etrole%'" Ltd (!ra corporation organi#ed and e$isting %nder the laws of !anada that is engaged in the b%siness o

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petrole%' and oil prod%cts for the %se and operation of oceangoing vessels" to deliver 'arine f%el oils(b%nker f%els) to the Vessel ,etitioner !rescent granted and confir'ed the re3%est thro%gh an advice viafacsi'ile dated ove'ber 4" 0112 5s sec%rity for the pay'ent of the b%nker f%els and related services"

petitioner !rescent received two (4) checks in the a'o%nts of 67088"88888 and 67488"88888 Th%s"petitioner !rescent contracted with its s%pplier" Marine ,etrob%lk Li'ited (Marine ,etrob%lk)" another!anadian corporation" for the physical delivery of the b%nker f%els to the Vessel

.n or abo%t ove'ber 9" 0112" Marine ,etrob%lk delivered the b%nker f%els a'o%nting to6708"299 incl%sive of barging and de'%rrage charges to the Vessel at the port of ,ioneer &rain"Vanco%ver" !anada The !hief ;ngineer .fficer of the Vessel d%ly acknowledged and received the deliveryreceiptMarine ,etrob%lk iss%ed an invoice to petitioner !rescent for the 67080"98888 worth of the b%nkerf%els ,etitioner !rescent iss%ed a check for the sa'e a'o%nt in favor of Marine ,etrob%lk" which check wasd%ly encashed

*aving paid Marine ,etrob%lk" petitioner !rescent iss%ed a revised invoice dated ove'ber 40"0112 to ,ortserv Li'ited" and/or the Master" and/or .wners" and/or .perators" and/or !harterers of M/V LokMaheshwari in the a'o%nt of 6708"29988 with instr%ction to re'it the a'o%nt on or before 1

.n May " 011?" the trial co%rt iss%ed a writ of attach'ent against the Vessel with bondat ,4">08"88888 ,etitioner !rescent withdrew its prayer for a te'porary restraining order and posted there3%ired bond

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