What is maritime fraud ? what are the steps to check the charter party frauds ?
Maritime fraud occurs when one of the parties involved in an international trade transaction like the buyer, seller, shipowner, charterer, ship’s master or crew, insurer, banker, broker or agent illegally secures money or goods from another party to whom, on the face of it, he has undertaken specific trade, transport and financial obligations.
To check the c/p frauds all care should be taken by the master while issuing any b/l under that c/p to provide the true description of goods on the b/l. If any letter of authority is given to the agent for signing the B/L then such letter of authority should clearly mention the description of the goods so that he may not make any false declaration on behalf of the master
Kapoor then goes on to define maritime fraud as follows:
'Maritime fraud is a generic term commonly used to describe the obtaining of money, or services, or property in the goods, or a pecuniary advantage by one or more parties to a transaction from the other party or parties, by unjust or illegal means
Types of Maritime Frauds-
1. Documentary frauds - Some or all documnets specified by buyer for presentation by the seller to the bank to receive payment are forged.
2. Shipping frauds - scuttling, deviatoin, arson or accidental fires in which vessel or cargo is disposed off with the connivance of her owners.
3. Charterparty frauds - when one or two contracting parties default leaving the other to clear the mess. the contracting parties for a time or voyage charter are ship owner, charterer and cargo owner.
4. Theft of cargo by crew
The International Maritime Bureau (I.M.B.) defines maritime fraud as follows:
'An international trade transaction involves several parties - buyer, seller, shipowner, charterer, ship's master or crew, insurer, banker or agent. Maritime fraud occurs when one of these parties succeeds, unjustly and illegally, in obtaining money or goods from another party to whom, on the face of it, he has undertaken specific trade, transport and financial obligations.
MMD / MCA ORALS MASTER EXAM
