STX Pan Ocean Co Ltd (respondent - charterer) was unsuccessful in obtaining an arrest order in Italy for the arrest of the MV Wisdom C, but later successfully arrested the MV Wisdom C in Cape Town, South Africa, pursuant to s 5(3) of the Admiralty Jurisdiction Regulation Act 105 of 1983, to secure due payments and the repudiation of a charterparty agreement in a counterclaim against United Enterprises Corporation (applicant - shipowner) in London arbitration. Subsequently, the MV Wisdom C was released from arrest pursuant to a letter of undertaking of an amount acceptable to the respondent. After the MV Wisdom C left the jurisdiction, the applicant applied for the deemed arrest to be set aside and for the letter of undertaking to be declared null and void (claiming res judicata) or, in the alternative, for security to be furnished in respect of its claims in the arbitration proceedings in London.

Held: Application to set aside the arrest of MV Wisdom C and counter-­application for security for its claim in the arbitration proceedings pending in London dismissed.

Article 3.3 of the Arrest Convention 1952 (adopted in Italy) prohibits the rearrest of a ship if it has been arrested in any one jurisdiction and when bail or any other security has been given to procure the release of the ship from arrest. The provision did not apply in this case because the MV Wisdom C was released in Italy without bail.