A shipbroker acting for charterers was owed USD 25,000 of commission by an Indian voyage charterer. The charter party provided that the charterer would deduct the commission.
ITIC wrote to the charterers, but did not receive any response. ITIC ascertained from local sources that the charterers were in deep financial trouble.
Nevertheless, a local lawyer was appointed to pursue the debt. ITIC further heard that it was rumoured the Indian charterer was to have a large investment from a foreign investor.
A letter was sent to the charterers stating if they did not pay the outstanding commission, winding up procedures would be commenced. This is where an application is made to the local court to place the debtor into liquidation. Again, the charterer’s did not respond with any offer of settlement. ITIC, as promised, commenced the winding up process, which prompted an immediate payment to the shipbroker from the charterer.