What is the inconsistency and incoherence between the above two rules?
It is provided in the Arrest Rules that upon an applicant's proper request an arrest can be ordered against the vessels either owned by the owners and/or the managers and/or the charters who are responsible for the claims, or managed and/or chartered by the owners and/or the managers and/or the charters who are responsible for the claim.
It is further set out in the Auction Rules that the owners of the vessel which can be sold by auction must be the defendant in action against whom the claim be lodged and further must be the one who is responsible for the claim.
It can be seen from the above that the Arrest Rules of course cover the case of the demise chartered vessel whereas the Auction Rules do not. If the owners are found not liable and the responsible charters refuse to provide the guarantee as requested in exchange for release of the arrested vessel, it consequently gives rise to the problem where a demise chartered vessel is arrested pursuant to the Arrest Rules but cannot be further sold by auction pursuant to the Auction Rules.
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