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IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)

Claim No. CL-2024-000487

Filed: 15 July 2024

BETWEEN:

THALASSA SHIPPING & LOGISTICS SA

Claimant

— and —

KORINTHIAN MARITIME HOLDINGS LTD.

Respondent

APPLICATION NOTICE

(Pursuant to Section 66 of the Arbitration Act 1996)

1. APPLICANT AND RESPONDENT DETAILS

Applicant (Claimant): Thalassa Shipping & Logistics SA, a Société Anonyme organised and existing under the laws of the Hellenic Republic, with its registered address at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece; Greek Tax Identification Number (AFM): EL-801456729 (the "Claimant").

Respondent: Korinthian Maritime Holdings Ltd., a private limited company incorporated and registered in the Republic of Cyprus under Registration No. HE 387421, with its registered address at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus (the "Respondent").

Solicitors for the Claimant: Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR, United Kingdom. Reference: Samuel Eklund (Responsible Partner) / Hannah Brinkley (Lead Associate).

This Application Notice is issued by the Claimant's solicitors, Calderwood & Harkness LLP, on behalf of the Claimant, and seeks the relief set out in Section 2 below.

2. DETAILS OF THE ORDER SOUGHT

The Claimant applies to this Honourable Court for an order pursuant to Section 66(1) and (2) of the Arbitration Act 1996 (the "Act") granting the Claimant permission to enforce the Final Award dated 28 June 2024 rendered in LCIA Arbitration No. 224718 (the "Award") as a judgment or order of this Court to the same effect.

Specifically, the Claimant seeks the following relief:

(a) Permission to enforce the Award in the amount of £96,450,000 (ninety-six million four hundred and fifty thousand pounds sterling), being the total of the substantive sums awarded by the Tribunal in favour of the Claimant, inclusive of damages, outstanding hire, restitutionary sums, loss of profit and market differential damages, and pre-award interest as more particularly set out in the Award;

(b) Permission to enforce the costs orders contained in the Award in the amount of £12,150,000 (twelve million one hundred and fifty thousand pounds sterling), comprising:

(i) £3,240,000 in respect of LCIA administrative costs and the fees and expenses of the Tribunal; and

(ii) £8,910,000 in respect of the Claimant's legal costs and disbursements, as assessed and allocated by the Tribunal at a rate of 85% to the Respondent;

(c) Accordingly, a total enforcement sum of £108,600,000 (one hundred and eight million six hundred thousand pounds sterling);

(d) Post-award interest at the rate of 5.25% per annum simple on the principal sum of £96,450,000 from 29 June 2024 (being the day following the date of the Award) until the date of actual payment, pursuant to the terms of the Award and/or Section 49 of the Act;

(e) An order that the Respondent do pay the Claimant's costs of and occasioned by this application, to be the subject of detailed assessment on the standard basis if not agreed; and

(f) Such further or other relief as this Honourable Court may deem just and appropriate.

3. GROUNDS OF THE APPLICATION

3.1 The Arbitration Agreement

The Claimant and the Respondent are parties to three time charter-party agreements (the "Charter-parties"), each of which is governed by English law and each of which contains an arbitration clause providing for the resolution of disputes by arbitration under the Rules of the London Court of International Arbitration (the "LCIA Rules"), with London, England, designated as the seat of arbitration. The three Charter-parties are as follows:

(a) A time charter-party dated 15 March 2019 in respect of the motor vessel Aegean Fortuna (IMO No. 9784521), a Supramax Bulk Carrier of 58,200 deadweight tonnage, registered under the flag of the Republic of the marshall Islands (the "Aegean Fortuna Charter");

(b) A time charter-party dated 22 January 2020 in respect of the motor vessel Crimson Horizon (IMO No. 9801334), a Handymax Bulk Carrier of 37,500 deadweight tonnage, registered under the flag of the Republic of Liberia (the "Crimson Horizon Charter"); and

(c) A time charter-party dated 10 June 2021 in respect of the motor vessel Volga Spirit (IMO No. 9756892), a Panamax Bulk Carrier of 76,400 deadweight tonnage, registered under the flag of the Republic of Cyprus (the "Volga Spirit Charter").

Under the terms of each Charter-party, the Respondent acted as the disponent owner of the respective vessels, and the Claimant acted as charterer. Each Charter-party incorporated substantially similar LCIA arbitration provisions, and in particular each provided that all disputes arising out of or in connection with the charter-party should be referred to and finally resolved by arbitration under the LCIA Rules, with the seat and legal place of arbitration in London, England. Certified copies of the three Charter-parties are exhibited to the First Witness Statement of Nikolaos Papadimitriou as Exhibits NP-2, NP-3, and NP-4.

3.2 The Dispute

Beginning in or around mid-2022, the Respondent committed serious and repudiatory breaches of all three Charter-parties, the nature of which may be summarised as follows:

(a) M/V *Aegean Fortuna*: The Respondent wrongfully and unilaterally effected early redelivery of the vessel on 18 June 2022, approximately fourteen months before the contractual redelivery date stipulated in the Aegean Fortuna Charter. The Respondent provided no lawful justification for this premature redelivery. The early termination of the charter deprived the Claimant of the benefit of its bargain over the remaining charter period, during which prevailing market rates were substantially lower than the contractual hire rate, thereby crystallising significant loss of bargain damages.

(b) M/V *Crimson Horizon*: The Respondent failed to make timely payment of hire in respect of the vessel from 1 July 2022 onwards. Hire arrears of £4,280,000 accrued before the Claimant, having served the requisite anti-technicality notice and allowed the appropriate grace period, withdrew the vessel on 15 September 2022 in exercise of its contractual withdrawal rights. In addition to the outstanding hire, the Claimant suffered substantial loss of bargain damages flowing from the premature termination of this charter.

(c) M/V *Volga Spirit*: The Respondent made a series of fabricated and dishonest off-hire deductions in respect of the vessel totalling approximately £2,740,000. The Tribunal found that these deductions were not supported by the factual evidence and were made without any genuine basis. The Claimant is entitled to restitution of the amounts wrongfully withheld.

The cumulative effect of the Respondent's breaches across all three Charter-parties caused the Claimant substantial financial loss, the quantification of which was the subject of detailed expert evidence during the arbitration proceedings. The full particulars of the disputes are set out in the Award and in the witness statement evidence filed in support of this application.

3.3 The LCIA Arbitration

The Claimant commenced arbitration proceedings by filing a Request for Arbitration with the LCIA on 14 November 2022, which was registered under LCIA Reference No. 224718. The Request for Arbitration encompassed the disputes arising under all three Charter-parties, the arbitration clauses of which were in materially identical terms and permitted consolidation of related claims.

The Tribunal was duly constituted on 8 February 2023 in accordance with the LCIA Rules, comprising the following members:

• Presiding Arbitrator: Sir Malcolm Fenton-Clarke, appointed by the LCIA Court pursuant to Article 5.8 of the LCIA Rules;

• Co-Arbitrator: Professor Athena Drakopoulos, nominated by the Claimant pursuant to Article 7 of the LCIA Rules;

• Co-Arbitrator: Dr. Henrik Dalmqvist, nominated by the Respondent pursuant to Article 7 of the LCIA Rules; and

• Tribunal Secretary: Ms. Fiona Beckett, appointed with the agreement of the parties.

The arbitration proceeded through the usual stages, including exchange of written submissions, disclosure of documents, exchange of factual and expert witness statements, and a substantive evidentiary hearing. The evidentiary hearing took place over ten hearing days from 11 September 2023 to 22 September 2023 (inclusive) at the International Dispute Resolution Centre (IDRC), 70 Fleet Street, London EC4Y 1EU.

It is material to note that the Respondent participated fully and actively in the arbitration at all stages. The Respondent was represented throughout the arbitral proceedings by the firm of Harkness Whitford & Co. (SRA No. 614823), of 12 Fetter Lane, London EC4A 1JP, under the supervision of Catherine Whitford, Partner. The Respondent served a substantive Defence and Counterclaim, called factual and expert witnesses, cross-examined the Claimant's witnesses, and made extensive written and oral submissions. There is and can be no suggestion that the Respondent was denied any opportunity to present its case or that the proceedings were conducted in any manner that was not fair and impartial.

3.4 The Final Award

The Tribunal issued its Final Award on 28 June 2024 (the "Award"). A certified copy of the Award is exhibited to the First Witness Statement of Nikolaos Papadimitriou as Exhibit NP-1.

The Award was made in London, England, which was the designated seat and legal place of the arbitration. The Award is therefore a domestic award for the purposes of Part I of the Arbitration Act 1996, and this Court has jurisdiction to entertain an application for its enforcement under Section 66 of the Act.

The Award determined the following sums in favour of the Claimant:

At the prevailing exchange rate as of the date of the Award (£1 = USD $1.2441, as of 28 June 2024), the total substantive award is equivalent to approximately USD $120,000,000.

In addition to the substantive sums, the Tribunal made the following costs orders, allocating 85% of the costs of the arbitration to the Respondent in light of its comprehensive defeat on all material issues:

Accordingly, the aggregate sum payable by the Respondent to the Claimant under the Award is £108,600,000.

The Award further provides for the payment of post-award interest at the rate of 5.25% per annum simple on the unpaid substantive sums from 29 June 2024 (being the day following the date of the Award) until the date of actual payment. The Claimant seeks enforcement of this continuing interest obligation as part of the relief sought in this application.

3.5 Non-Compliance by the Respondent

As of the date of this Application Notice, the Respondent has failed to comply with the Award in any respect. No payment of any sum, whether in respect of the substantive award, the costs orders, or post-award interest, has been made by the Respondent to the Claimant. The Respondent has not communicated any intention to satisfy the Award voluntarily, nor has it proposed any schedule or arrangement for the payment of the sums due.

Despite the passage of more than two weeks since the date of the Award, the Respondent has made no effort whatsoever to discharge its obligations thereunder. The Claimant's solicitors wrote to the Respondent's solicitors, Harkness Whitford & Co., on 3 July 2024 requesting confirmation of the Respondent's intention to comply with the Award, and again on 10 July 2024 providing a final opportunity for voluntary payment. No substantive response has been received to either letter. Copies of this correspondence are exhibited to the First Witness Statement of Nikolaos Papadimitriou as part of Exhibit NP-6.

The Claimant is therefore entitled, and finds it necessary, to enforce the Award as a judgment of this Court pursuant to Section 66 of the Arbitration Act 1996.

3.6 Statutory Basis for Enforcement

The statutory basis for this application is found in Section 66 of the Arbitration Act 1996, which provides as follows:

"66.— Enforcement of the award.

(1) An award made by the tribunal pursuant to an arbitration agreement may, by leave of the court, be enforced in the same manner as a judgment or order of the court to the same effect.

(2) Where leave is so given, judgment may be entered in terms of the award."

The conditions for the grant of leave under Section 66 are satisfied in the present case. In particular:

(a) The Award was made by a duly constituted tribunal pursuant to valid arbitration agreements contained in the three Charter-parties, each of which the parties entered into freely and voluntarily;

(b) The seat of the arbitration was London, England, within the jurisdiction of this Honourable Court;

(d) There is no available ground under Section 67 (substantive jurisdiction), Section 68 (serious irregularity), or Section 69 (appeal on a point of law) of the Arbitration Act 1996 on which the Award could or should be challenged. The Tribunal had undoubted jurisdiction; the proceedings were conducted with exemplary procedural fairness; and the Award contains no error of law on its face, let alone one giving rise to a right of appeal under the restrictive criteria of Section 69;

(e) No application to set aside or challenge the Award has been made by the Respondent as of the date of this Application Notice. The twenty-eight day time limit for any challenge under Sections 67, 68, or 69 of the Act (in the absence of any contrary agreement of the parties) has not yet expired, but the Claimant respectfully submits that there is no credible basis on which any such challenge could be mounted; and

(f) The Respondent has failed and refused to comply with the Award voluntarily, thereby necessitating the present application.

The Claimant respectfully submits that leave to enforce the Award should be granted without delay, and that judgment should be entered in terms of the Award in the aggregate sum of £108,600,000, together with continuing post-award interest as described above.

4. EVIDENCE RELIED UPON

This application is supported by the following evidence:

(a) The First Witness Statement of Nikolaos Papadimitriou, Chairman and Chief Executive Officer of Thalassa Shipping & Logistics SA, dated 15 July 2024, and the exhibits thereto, in which Mr. Papadimitriou provides evidence of the background to the Charter-parties, the disputes, the arbitration proceedings, the Award, and the Respondent's failure to comply with the Award;

(b) A certified copy of the Final Award dated 28 June 2024 in LCIA Arbitration No. 224718, including the operative part, the Tribunal's reasoning, the dispositive provisions, and all annexes and appendices thereto (exhibited as Exhibit NP-1);

(i) The Aegean Fortuna Charter dated 15 March 2019 (Exhibit NP-2);

(ii) The Crimson Horizon Charter dated 22 January 2020 (Exhibit NP-3); and

(iii) The Volga Spirit Charter dated 10 June 2021 (Exhibit NP-4);

(d) A certificate from the Registrar of the LCIA dated 8 July 2024, confirming the authenticity of the Award, the proper constitution of the Tribunal, and the finality of the Award under the LCIA Rules (Exhibit NP-5); and

(e) Evidence of the Respondent's failure to comply with the Award, including copies of correspondence from Calderwood & Harkness LLP to Harkness Whitford & Co. dated 3 July 2024 and 10 July 2024, and the absence of any substantive response thereto (Exhibit NP-6).

5. RESPONDENT'S DETAILS AND SERVICE

The Respondent's registered address is: 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus.

The Respondent's solicitors in the LCIA arbitration, and the solicitors whom the Claimant expects to be on the record for the Respondent in these proceedings, are: Harkness Whitford & Co., 12 Fetter Lane, London EC4A 1JP, United Kingdom (SRA No. 614823); for the attention of Catherine Whitford, Partner, International Arbitration Group.

The Claimant proposes to serve this Application Notice and all supporting evidence on the Respondent's solicitors at the address stated above, which is the address at which they have received correspondence and communications in connection with the arbitration and post-award matters. To the extent that Harkness Whitford & Co. decline to accept service or confirm instructions to act for the Respondent in these proceedings, the Claimant respectfully seeks permission to serve the Application Notice and supporting evidence out of the jurisdiction on the Respondent at its registered address in Nicosia, Cyprus, if necessary, by such method as the Court may direct. In that event, the Claimant will make a further application for permission to serve out and for directions as to the method and deemed date of service.

6. HEARING DETAILS

The Claimant requests that this application be listed for and dealt with at an oral hearing before a Judge of the Commercial Court.

The Claimant estimates that the hearing will require approximately one hour, on the assumption that the application is not contested or is contested only on limited grounds. In the event that the Respondent indicates an intention to oppose the application, the Claimant will provide revised time estimates as may be appropriate.

The Claimant respectfully seeks an expedited hearing of this application. The grounds for expedition are that there is a real and demonstrable risk that the Respondent may dissipate or deal with its assets so as to frustrate the enforcement of the Award. This risk is addressed more fully in the Claimant's separate application for a Worldwide Freezing Order, which is being filed contemporaneously with this Application Notice and which is to be heard on an urgent, without-notice basis. In light of those concerns, the Claimant respectfully asks that the present application for leave to enforce be listed at the earliest available date, and in any event to be heard at or before the return date for the freezing order application.

7. RELATED APPLICATIONS

The Claimant hereby gives notice that it is filing contemporaneously with this Application Notice the following additional application:

(a) An application, made without notice in the first instance, for a Worldwide Freezing Order (Mareva Injunction) pursuant to Section 44 of the Arbitration Act 1996 and/or Section 37(1) of the Senior Courts Act 1981, restraining the Respondent (whether by its directors, officers, employees, agents, or otherwise howsoever) from removing from the jurisdiction of England and Wales, or from disposing of, dealing with, or diminishing the value of, any of its assets worldwide, whether in its own name or not and whether solely or jointly owned, up to the value of £108,600,000, such order to be returnable on notice on 30 July 2024 or such other date as the Court may direct.

The grounds for the freezing order application are set out in full in the separate application notice and supporting evidence filed in connection therewith.

The Claimant reserves the right to make such further applications as may be necessary or appropriate to give effect to the enforcement of the Award, including without limitation applications for:

• Third-party debt orders (formerly garnishee orders) in respect of sums due or accruing due to the Respondent from third parties;

• Charging orders over any property of the Respondent within the jurisdiction;

• Orders for the examination of the Respondent's officers pursuant to CPR Part 71;

• Recognition and enforcement proceedings in other jurisdictions as may be required; and

• Any other enforcement measures that may be available and appropriate in the circumstances.

8. STATEMENT OF TRUTH

I believe that the facts stated in this Application Notice are true. I understand that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.

Signed: ________

Name: Hannah Brinkley

Position: Lead Associate, Calderwood & Harkness LLP Solicitors for the Claimant, Thalassa Shipping & Logistics SA

Date: 15 July 2024

9. ADDRESS FOR SERVICE AND SOLICITOR DETAILS

Claimant's Solicitors:

Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR United Kingdom

Reference: Samuel Eklund / Hannah Brinkley Telephone: +44 (0)20 7946 0321 Email: samuel.eklund@calderwoodharkness.com / hannah.brinkley@calderwoodharkness.com DX: DX 42618 Moorgate

All documents and communications in connection with this application and these proceedings should be directed to the Claimant's solicitors at the address stated above. The Claimant's solicitors are authorised to accept service of all documents on behalf of the Claimant.

Filed: 15 July 2024

Court Fee Paid: £10,000 (pursuant to the Civil Proceedings Fees Order 2008, as amended, Schedule 1, Fee 1.9(e) — proceedings to enforce an arbitral award where the amount exceeds £100,000)

Claim No.: CL-2024-000487

Matter Reference: TSL v. KMH — Enforcement of LCIA Award No. 224718

Head of Award	Amount (£)
Damages for wrongful early redelivery of M/V Aegean Fortuna	42,300,000
Outstanding hire in respect of M/V Crimson Horizon	4,280,000
Loss of bargain damages in respect of M/V Crimson Horizon	23,870,000
Subtotal — M/V Crimson Horizon	28,150,000
Restitution of fabricated off-hire deductions for M/V Volga Spirit	2,740,000
Loss of profit / market differential damages across all three charters	16,480,000
Pre-award interest at 5.25% per annum simple from the respective dates of breach to the date of the Award	6,780,000
Total Substantive Award	£96,450,000
Costs Category	Amount (£)
LCIA administrative costs and Tribunal fees and expenses	3,240,000
Claimant's legal costs and disbursements (85% allocation)	8,910,000
Total Costs Award	£12,150,000

IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)
Claim No. CL-2024-000487
Filed: 15 July 2024
BETWEEN:
THALASSA SHIPPING & LOGISTICS SA
Claimant
— and —
KORINTHIAN MARITIME HOLDINGS LTD.
Respondent
APPLICATION NOTICE
(Pursuant to Section 66 of the Arbitration Act 1996)
1. APPLICANT AND RESPONDENT DETAILS
Applicant (Claimant): Thalassa Shipping & Logistics SA, a Société Anonyme organised and existing under the laws of the Hellenic Republic, with its registered address at 14 Akti Miaouli, 4th Floor, Piraeus 185 35, Greece; Greek Tax Identification Number (AFM): EL-801456729 (the "Claimant").
Respondent: Korinthian Maritime Holdings Ltd., a private limited company incorporated and registered in the Republic of Cyprus under Registration No. HE 387421, with its registered address at 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus (the "Respondent").
Solicitors for the Claimant: Calderwood & Harkness LLP, 45 Moorgate, London EC2R 6AR, United Kingdom. Reference: Samuel Eklund (Responsible Partner) / Hannah Brinkley (Lead Associate).
This Application Notice is issued by the Claimant's solicitors, Calderwood & Harkness LLP, on behalf of the Claimant, and seeks the relief set out in Section 2 below.
2. DETAILS OF THE ORDER SOUGHT
The Claimant applies to this Honourable Court for an order pursuant to Section 66(1) and (2) of the Arbitration Act 1996 (the "Act") granting the Claimant permission to enforce the Final Award dated 28 June 2024 rendered in LCIA Arbitration No. 224718 (the "Award") as a judgment or order of this Court to the same effect.
Specifically, the Claimant seeks the following relief:
(a) Permission to enforce the Award in the amount of £96,450,000 (ninety-six million four hundred and fifty thousand pounds sterling), being the total of the substantive sums awarded by the Tribunal in favour of the Claimant, inclusive of damages, outstanding hire, restitutionary sums, loss of profit and market differential damages, and pre-award interest as more particularly set out in the Award;
(b) Permission to enforce the costs orders contained in the Award in the amount of £12,150,000 (twelve million one hundred and fifty thousand pounds sterling), comprising:
(i) £3,240,000 in respect of LCIA administrative costs and the fees and expenses of the Tribunal; and
(ii) £8,910,000 in respect of the Claimant's legal costs and disbursements, as assessed and allocated by the Tribunal at a rate of 85% to the Respondent;
(c) Accordingly, a total enforcement sum of £108,600,000 (one hundred and eight million six hundred thousand pounds sterling);
(d) Post-award interest at the rate of 5.25% per annum simple on the principal sum of £96,450,000 from 29 June 2024 (being the day following the date of the Award) until the date of actual payment, pursuant to the terms of the Award and/or Section 49 of the Act;
(e) An order that the Respondent do pay the Claimant's costs of and occasioned by this application, to be the subject of detailed assessment on the standard basis if not agreed; and
(f) Such further or other relief as this Honourable Court may deem just and appropriate.
3. GROUNDS OF THE APPLICATION
3.1 The Arbitration Agreement
The Claimant and the Respondent are parties to three time charter-party agreements (the "Charter-parties"), each of which is governed by English law and each of which contains an arbitration clause providing for the resolution of disputes by arbitration under the Rules of the London Court of International Arbitration (the "LCIA Rules"), with London, England, designated as the seat of arbitration. The three Charter-parties are as follows:
(a) A time charter-party dated 15 March 2019 in respect of the motor vessel Aegean Fortuna (IMO No. 9784521), a Supramax Bulk Carrier of 58,200 deadweight tonnage, registered under the flag of the Republic of the marshall Islands (the "Aegean Fortuna Charter");
(b) A time charter-party dated 22 January 2020 in respect of the motor vessel Crimson Horizon (IMO No. 9801334), a Handymax Bulk Carrier of 37,500 deadweight tonnage, registered under the flag of the Republic of Liberia (the "Crimson Horizon Charter"); and
(c) A time charter-party dated 10 June 2021 in respect of the motor vessel Volga Spirit (IMO No. 9756892), a Panamax Bulk Carrier of 76,400 deadweight tonnage, registered under the flag of the Republic of Cyprus (the "Volga Spirit Charter").
Under the terms of each Charter-party, the Respondent acted as the disponent owner of the respective vessels, and the Claimant acted as charterer. Each Charter-party incorporated substantially similar LCIA arbitration provisions, and in particular each provided that all disputes arising out of or in connection with the charter-party should be referred to and finally resolved by arbitration under the LCIA Rules, with the seat and legal place of arbitration in London, England. Certified copies of the three Charter-parties are exhibited to the First Witness Statement of Nikolaos Papadimitriou as Exhibits NP-2, NP-3, and NP-4.
3.2 The Dispute
Beginning in or around mid-2022, the Respondent committed serious and repudiatory breaches of all three Charter-parties, the nature of which may be summarised as follows:
(a) M/V *Aegean Fortuna*: The Respondent wrongfully and unilaterally effected early redelivery of the vessel on 18 June 2022, approximately fourteen months before the contractual redelivery date stipulated in the Aegean Fortuna Charter. The Respondent provided no lawful justification for this premature redelivery. The early termination of the charter deprived the Claimant of the benefit of its bargain over the remaining charter period, during which prevailing market rates were substantially lower than the contractual hire rate, thereby crystallising significant loss of bargain damages.
(b) M/V *Crimson Horizon*: The Respondent failed to make timely payment of hire in respect of the vessel from 1 July 2022 onwards. Hire arrears of £4,280,000 accrued before the Claimant, having served the requisite anti-technicality notice and allowed the appropriate grace period, withdrew the vessel on 15 September 2022 in exercise of its contractual withdrawal rights. In addition to the outstanding hire, the Claimant suffered substantial loss of bargain damages flowing from the premature termination of this charter.
(c) M/V *Volga Spirit*: The Respondent made a series of fabricated and dishonest off-hire deductions in respect of the vessel totalling approximately £2,740,000. The Tribunal found that these deductions were not supported by the factual evidence and were made without any genuine basis. The Claimant is entitled to restitution of the amounts wrongfully withheld.
The cumulative effect of the Respondent's breaches across all three Charter-parties caused the Claimant substantial financial loss, the quantification of which was the subject of detailed expert evidence during the arbitration proceedings. The full particulars of the disputes are set out in the Award and in the witness statement evidence filed in support of this application.
3.3 The LCIA Arbitration
The Claimant commenced arbitration proceedings by filing a Request for Arbitration with the LCIA on 14 November 2022, which was registered under LCIA Reference No. 224718. The Request for Arbitration encompassed the disputes arising under all three Charter-parties, the arbitration clauses of which were in materially identical terms and permitted consolidation of related claims.
The Tribunal was duly constituted on 8 February 2023 in accordance with the LCIA Rules, comprising the following members:
•  Presiding Arbitrator: Sir Malcolm Fenton-Clarke, appointed by the LCIA Court pursuant to Article 5.8 of the LCIA Rules;
•  Co-Arbitrator: Professor Athena Drakopoulos, nominated by the Claimant pursuant to Article 7 of the LCIA Rules;
•  Co-Arbitrator: Dr. Henrik Dalmqvist, nominated by the Respondent pursuant to Article 7 of the LCIA Rules; and
•  Tribunal Secretary: Ms. Fiona Beckett, appointed with the agreement of the parties.
The arbitration proceeded through the usual stages, including exchange of written submissions, disclosure of documents, exchange of factual and expert witness statements, and a substantive evidentiary hearing. The evidentiary hearing took place over ten hearing days from 11 September 2023 to 22 September 2023 (inclusive) at the International Dispute Resolution Centre (IDRC), 70 Fleet Street, London EC4Y 1EU.
It is material to note that the Respondent participated fully and actively in the arbitration at all stages. The Respondent was represented throughout the arbitral proceedings by the firm of Harkness Whitford & Co. (SRA No. 614823), of 12 Fetter Lane, London EC4A 1JP, under the supervision of Catherine Whitford, Partner. The Respondent served a substantive Defence and Counterclaim, called factual and expert witnesses, cross-examined the Claimant's witnesses, and made extensive written and oral submissions. There is and can be no suggestion that the Respondent was denied any opportunity to present its case or that the proceedings were conducted in any manner that was not fair and impartial.
3.4 The Final Award
The Tribunal issued its Final Award on 28 June 2024 (the "Award"). A certified copy of the Award is exhibited to the First Witness Statement of Nikolaos Papadimitriou as Exhibit NP-1.
The Award was made in London, England, which was the designated seat and legal place of the arbitration. The Award is therefore a domestic award for the purposes of Part I of the Arbitration Act 1996, and this Court has jurisdiction to entertain an application for its enforcement under Section 66 of the Act.
The Award determined the following sums in favour of the Claimant:
At the prevailing exchange rate as of the date of the Award (£1 = USD $1.2441, as of 28 June 2024), the total substantive award is equivalent to approximately USD $120,000,000.
In addition to the substantive sums, the Tribunal made the following costs orders, allocating 85% of the costs of the arbitration to the Respondent in light of its comprehensive defeat on all material issues:
Accordingly, the aggregate sum payable by the Respondent to the Claimant under the Award is £108,600,000.
The Award further provides for the payment of post-award interest at the rate of 5.25% per annum simple on the unpaid substantive sums from 29 June 2024 (being the day following the date of the Award) until the date of actual payment. The Claimant seeks enforcement of this continuing interest obligation as part of the relief sought in this application.
3.5 Non-Compliance by the Respondent
As of the date of this Application Notice, the Respondent has failed to comply with the Award in any respect. No payment of any sum, whether in respect of the substantive award, the costs orders, or post-award interest, has been made by the Respondent to the Claimant. The Respondent has not communicated any intention to satisfy the Award voluntarily, nor has it proposed any schedule or arrangement for the payment of the sums due.
Despite the passage of more than two weeks since the date of the Award, the Respondent has made no effort whatsoever to discharge its obligations thereunder. The Claimant's solicitors wrote to the Respondent's solicitors, Harkness Whitford & Co., on 3 July 2024 requesting confirmation of the Respondent's intention to comply with the Award, and again on 10 July 2024 providing a final opportunity for voluntary payment. No substantive response has been received to either letter. Copies of this correspondence are exhibited to the First Witness Statement of Nikolaos Papadimitriou as part of Exhibit NP-6.
The Claimant is therefore entitled, and finds it necessary, to enforce the Award as a judgment of this Court pursuant to Section 66 of the Arbitration Act 1996.
3.6 Statutory Basis for Enforcement
The statutory basis for this application is found in Section 66 of the Arbitration Act 1996, which provides as follows:
"66.— Enforcement of the award.
(1) An award made by the tribunal pursuant to an arbitration agreement may, by leave of the court, be enforced in the same manner as a judgment or order of the court to the same effect.
(2) Where leave is so given, judgment may be entered in terms of the award."
The conditions for the grant of leave under Section 66 are satisfied in the present case. In particular:
(a) The Award was made by a duly constituted tribunal pursuant to valid arbitration agreements contained in the three Charter-parties, each of which the parties entered into freely and voluntarily;
(b) The seat of the arbitration was London, England, within the jurisdiction of this Honourable Court;
(c) The Award is a final award disposing of all claims and counterclaims between the parties;
(d) There is no available ground under Section 67 (substantive jurisdiction), Section 68 (serious irregularity), or Section 69 (appeal on a point of law) of the Arbitration Act 1996 on which the Award could or should be challenged. The Tribunal had undoubted jurisdiction; the proceedings were conducted with exemplary procedural fairness; and the Award contains no error of law on its face, let alone one giving rise to a right of appeal under the restrictive criteria of Section 69;
(e) No application to set aside or challenge the Award has been made by the Respondent as of the date of this Application Notice. The twenty-eight day time limit for any challenge under Sections 67, 68, or 69 of the Act (in the absence of any contrary agreement of the parties) has not yet expired, but the Claimant respectfully submits that there is no credible basis on which any such challenge could be mounted; and
(f) The Respondent has failed and refused to comply with the Award voluntarily, thereby necessitating the present application.
The Claimant respectfully submits that leave to enforce the Award should be granted without delay, and that judgment should be entered in terms of the Award in the aggregate sum of £108,600,000, together with continuing post-award interest as described above.
4. EVIDENCE RELIED UPON
This application is supported by the following evidence:
(a) The First Witness Statement of Nikolaos Papadimitriou, Chairman and Chief Executive Officer of Thalassa Shipping & Logistics SA, dated 15 July 2024, and the exhibits thereto, in which Mr. Papadimitriou provides evidence of the background to the Charter-parties, the disputes, the arbitration proceedings, the Award, and the Respondent's failure to comply with the Award;
(b) A certified copy of the Final Award dated 28 June 2024 in LCIA Arbitration No. 224718, including the operative part, the Tribunal's reasoning, the dispositive provisions, and all annexes and appendices thereto (exhibited as Exhibit NP-1);
(c) Certified copies of the three time charter-party agreements containing the arbitration clauses relied upon:
(i) The Aegean Fortuna Charter dated 15 March 2019 (Exhibit NP-2);
(ii) The Crimson Horizon Charter dated 22 January 2020 (Exhibit NP-3); and
(iii) The Volga Spirit Charter dated 10 June 2021 (Exhibit NP-4);
(d) A certificate from the Registrar of the LCIA dated 8 July 2024, confirming the authenticity of the Award, the proper constitution of the Tribunal, and the finality of the Award under the LCIA Rules (Exhibit NP-5); and
(e) Evidence of the Respondent's failure to comply with the Award, including copies of correspondence from Calderwood & Harkness LLP to Harkness Whitford & Co. dated 3 July 2024 and 10 July 2024, and the absence of any substantive response thereto (Exhibit NP-6).
5. RESPONDENT'S DETAILS AND SERVICE
The Respondent's registered address is: 28 Themistokli Dervi Avenue, Suite 601, Nicosia 1066, Cyprus.
The Respondent's solicitors in the LCIA arbitration, and the solicitors whom the Claimant expects to be on the record for the Respondent in these proceedings, are: Harkness Whitford & Co., 12 Fetter Lane, London EC4A 1JP, United Kingdom (SRA No. 614823); for the attention of Catherine Whitford, Partner, International Arbitration Group.
The Claimant proposes to serve this Application Notice and all supporting evidence on the Respondent's solicitors at the address stated above, which is the address at which they have received correspondence and communications in connection with the arbitration and post-award matters. To the extent that Harkness Whitford & Co. decline to accept service or confirm instructions to act for the Respondent in these proceedings, the Claimant respectfully seeks permission to serve the Application Notice and supporting evidence out of the jurisdiction on the Respondent at its registered address in Nicosia, Cyprus, if necessary, by such method as the Court may direct. In that event, the Claimant will make a further application for permission to serve out and for directions as to the method and deemed date of service.
6. HEARING DETAILS
The Claimant requests that this application be listed for and dealt with at an oral hearing before a Judge of the Commercial Court.
The Claimant estimates that the hearing will require approximately one hour, on the assumption that the application is not contested or is contested only on limited grounds. In the event that the Respondent indicates an intention to oppose the application, the Claimant will provide revised time estimates as may be appropriate.
The Claimant respectfully seeks an expedited hearing of this application. The grounds for expedition are that there is a real and demonstrable risk that the Respondent may dissipate or deal with its assets so as to frustrate the enforcement of the Award. This risk is addressed more fully in the Claimant's separate application for a Worldwide Freezing Order, which is being filed contemporaneously with this Application Notice and which is to be heard on an urgent, without-notice basis. In light of those concerns, the Claimant respectfully asks that the present application for leave to enforce be listed at the earliest available date, and in any event to be heard at or before the return date for the freezing order application.
7. RELATED APPLICATIONS
The Claimant hereby gives notice that it is filing contemporaneously with this Application Notice the following additional application:
(a) An application, made without notice in the first instance, for a Worldwide Freezing Order (Mareva Injunction) pursuant to Section 44 of the Arbitration Act 1996 and/or Section 37(1) of the Senior Courts Act 1981, restraining the Respondent (whether by its directors, officers, employees, agents, or otherwise howsoever) from removing from the jurisdiction of England and Wales, or from disposing of, dealing with, or diminishing the value of, any of its assets worldwide, whether in its own name or not and whether solely or jointly owned, up to the value of £108,600,000, such order to be returnable on notice on 30 July 2024 or such other date as the Court may direct.
The grounds for the freezing order application are set out in full in the separate application notice and supporting evidence filed in connection therewith.
The Claimant reserves the right to make such further applications as may be necessary or appropriate to give effect to the enforcement of the Award, including without limitation applications for:
•  Third-party debt orders (formerly garnishee orders) in respect of sums due or accruing due to the Respondent from third parties;
•  Charging orders over any property of the Respondent within the jurisdiction;
•  Orders for the examination of the Respondent's officers pursuant to CPR Part 71;
•  Recognition and enforcement proceedings in other jurisdictions as may be required; and
•  Any other enforcement measures that may be available and appropriate in the circumstances.
8. STATEMENT OF TRUTH
I believe that the facts stated in this Application Notice are true. I understand that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth.
Signed: ________
Name: Hannah Brinkley
Position: Lead Associate, Calderwood & Harkness LLP Solicitors for the Claimant, Thalassa Shipping & Logistics SA
Date: 15 July 2024
9. ADDRESS FOR SERVICE AND SOLICITOR DETAILS
Claimant's Solicitors:
Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR United Kingdom
Reference: Samuel Eklund / Hannah Brinkley Telephone: +44 (0)20 7946 0321 Email: samuel.eklund@calderwoodharkness.com / hannah.brinkley@calderwoodharkness.com DX: DX 42618 Moorgate
All documents and communications in connection with this application and these proceedings should be directed to the Claimant's solicitors at the address stated above. The Claimant's solicitors are authorised to accept service of all documents on behalf of the Claimant.
Filed: 15 July 2024
Court Fee Paid: £10,000 (pursuant to the Civil Proceedings Fees Order 2008, as amended, Schedule 1, Fee 1.9(e) — proceedings to enforce an arbitral award where the amount exceeds £100,000)
Claim No.: CL-2024-000487
Matter Reference: TSL v. KMH — Enforcement of LCIA Award No. 224718
Head of Award | Amount (£)
Damages for wrongful early redelivery of M/V Aegean Fortuna | 42,300,000
Outstanding hire in respect of M/V Crimson Horizon | 4,280,000
Loss of bargain damages in respect of M/V Crimson Horizon | 23,870,000
Subtotal — M/V *Crimson Horizon* | 28,150,000
Restitution of fabricated off-hire deductions for M/V Volga Spirit | 2,740,000
Loss of profit / market differential damages across all three charters | 16,480,000
Pre-award interest at 5.25% per annum simple from the respective dates of breach to the date of the Award | 6,780,000
Total Substantive Award | £96,450,000
Costs Category | Amount (£)
LCIA administrative costs and Tribunal fees and expenses | 3,240,000
Claimant's legal costs and disbursements (85% allocation) | 8,910,000
Total Costs Award | £12,150,000

IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES COMMERCIAL COURT (QBD)

BETWEEN:

THALASSA SHIPPING & LOGISTICS SA

KORINTHIAN MARITIME HOLDINGS LTD.

APPLICATION NOTICE

Record

Parties

Dates

Amounts