The High Court of Fiji has ordered the State and the Fiji Islands Maritime Safety Administration (FIMSA, now operating as Maritime Safety Authority of Fiji, MSAF) to pay over $3 million in damages, interest and costs to businessman Sultan Mohammed Khan, following the wrongful seizure and sale of his vessel nearly two decades ago.
In a detailed ruling delivered on August 22, Justice Chaitanya Lakshman found that both the Official Receiver and FIMSA were liable for the unlawful vesting of Mr Khan’s vessel and the delay in registering its ownership.
The Court had earlier ruled on liability in October 2024, declaring that both defendants were at fault.
The ruling on August 22 finalised the quantum of damages of $800,000 for the replacement cost of the vessel, now obsolete in Fiji, $2.223 million for loss of income over 19 years, interest on lost income at 3.5% per annum, and $10,000 in costs.
Mr Khan claimed he had spent years repairing and upgrading the vessel, originally bought for $20,000, and was preparing to operate charter services when it was seized “on the eve of sailing to Lomaiviti, with passengers and cargo onboard.”
The vessel was reportedly capable of earning $15,000 monthly in charters.
“The plaintiff’s business was taking off, not at its peak,” Justice Lakshman wrote.
“The object of an award of damages is to give the plaintiff compensation for the damage suffered.”