by Georgina Maka’a
The High Court has frozen the ownership of the MV Avaikimaine, barring its sale, transfer or any change in ownership until a bitter legal dispute over the constituency-funded vessel is resolved.
In a recent significant ruling, Justice Gina Nott ordered that Rennell & Bellona Shipping Limited and its director, Dr Tautai Agikimua Kaituu, must not sell, transfer, mortgage, lease or otherwise deal with the ownership of the vessel while the case is before the court.
The court also restrained Kaituu, who is the constituency’s former MP, from taking any steps to alter the vessel’s legal or beneficial ownership and ordered the Registrar of Vessels not to register any transfer or ownership change involving the MV Avaikimaine until the proceedings are determined or further court orders are made.
The injunction was sought by Rennell & Bellona Constituency Community Company Limited and Rennell & Bellona MP John Junior Tuhaika, who claim the vessel was purchased using public funds under the National Shipping Grant Programme for the benefit of the people of Rennell and Bellona Constituency and should ultimately belong to the constituency company.
However, while preserving the vessel’s ownership status, the court rejected broader requests that would have placed the vessel’s day-to-day operations under the supervision of MP Tuhaika.
Justice Nott dismissed applications seeking to give the MP oversight of the vessel’s management, finances and operational decisions, ruling that such orders would effectively determine disputed rights before a full trial.
The judge found there was a serious question to be tried over who legally owns and controls the vessel, but said there was insufficient evidence that the ship was at immediate risk of being sold or that its operators had engaged in misconduct warranting judicial intervention in its daily operations.
Instead, the court held that preserving the existing ownership position was the appropriate course until the substantive issues are heard.
“The balance of convenience therefore favours preservation of the existing legal and beneficial ownership position pending trial,” Justice Nott ruled.
She noted that any change in ownership before the case is decided could undermine the effectiveness of a final judgment.
At the same time, the judge said the MV Avaikimaine should continue operating because it provides an important passenger transport service for the people of Rennell and Bellona Province.
The judge found that restricting the vessel’s operations or imposing a court-supervised management regime could adversely affect the communities that rely on its services.
The substantive case will determine whether the MV Avaikimaine is lawfully owned by Rennell & Bellona Shipping Limited or whether it should be transferred to the constituency company on the basis that it was acquired using public funds for the benefit of the people of Rennell and Bellona.
