The Bank of Scotland plc. v. The "Nel"

This was an application by a shipping agent and ad hoc supplier of bunkers to recover from the sale price of the Defendant vessel the value of bunkers sold with the ship and supplied by the applicant. The supplier did not render an invoice to the ship owner when the bunkers were delivered. The supplier said it intended to recover the price of the bunkers from the freight when paid and led evidence that it did not intend to sell the bunkers to the owner until the freight was paid. The court was satisfied that the intention of the supplier was to not transfer title in the bunkers to the ship owner until it was paid in full. The court therefore held that property in the bunkers had not passed and the supplier was entitled to the proceeds from the sale of the bunkers.