Some observations on the Uncitral draft convention on judicial sale of ships

Abstract

Judicial sale of a ship and distribution of the proceeds to creditors represent the final chapter of any in rem proceeding (or its equivalent in civil law jurisdictions). The judicial sale must secure the best possible price for the ship, permitting more creditors can satisfy their credits. This finality will only be achieved if the sale confers title a ‘clean title’ on the purchaser, extinguishing all rights and interests over the ship. This process shall ensure that the purchaser may deregister the ship from its old flag and re-register under new ownership in a new flag and sail worldwide without any concern of re-arrest. This article provides some notes on the UNCITRAL Draft Instrument on judicial sale of ships focused on the conditions for a judicial sale of a ship conducted in one State Party to have effects in another Contracting State