The Ntama was to carry 383 cartons containing filtrona dua, filters for cigarettes, from Cyprus to Piraeus, Greece. The relevant bill of lading incorporated the Hague Rules. On 15 April 1977, the cargo was delivered in a damaged condition at Patra instead of Piraeus. On 27 March 1978 Th D Georghiades SA (Georghiades), the cargo owners, commenced proceedings in Greece. On 20 July 1978 they also commenced proceedings in the Supreme Court of Cyprus in its admiralty jurisdiction.
In interlocutory proceedings relating to the arrest warrant the trial Judge, relying on art 3.6 of the Hague Rules, held that the action which Georghiades brought in Greece prevented the second action in Cyprus from being time-barred. The shipowner appealed on the ground that the correct issue to be decided was whether the Cyprus proceedings were brought within the relevant limitation period provided by art 3.6 of the Hague Rules. Georghiades argued that the trial Judge had no jurisdiction to decide the case at that early stage as a preliminary issue in interlocutory proceedings.
Held: Appeal allowed. Claim is time-barred and extinguished.
The deciding factor in determining whether an action is time-barred is the date on which the suit before the Court is brought and not whether other proceedings have been instituted within the period of limitation. The words 'unless suit is brought within one year' in art 3.6 of the Hague Rules meant 'unless the suit before the Court' was so brought. Accordingly, the Greek proceedings do not prevent the action in Cyprus from being time-barred under art 3.6.
On the argument that the time-bar issue could not be decided at that early stage of the proceedings, the Court held that was too late now to embark on appeal on this new argument which was never raised before the trial Judge.