I remember that quite well, we were berthed waiting to leave on another - perhaps Asiafreighter.
To be picky, though it was doubtless a Paxman, did the label not say English Electric?
From memory, it didn't quite burst into flames, but blew an exhaust gasket, causing it to blow dense smoke into the Engine Room.
The Chief (Alec Young?) opened the Engine Room door, saw the extent of the smoke, concluded they could not get in, shut down the diesel I suppose, and released the CO2.
However, both main engines were kept running as usual, and the shaft gennies were on line, so she berthed quite normally as soon as we sailed.
I remember it was a public holiday weekend, maybe Easter. Even before we sailed, Nick Constantis was rounding up men and refilling facilities, ready to get the 96? bottles off and recharged.
From what we heard he was entirely successful and she sailed on time - bottles out, ashore, refilled, refitted all in about 24 hours. American can do at its best!
Re the Diesel Alternators, at first they used to run them during Standbyes, but because the shaft generators were on too they were on very light load and rattling themselves to bits.
The procedure was then modified and they were test started before End of Passage and then shut down ready for action if required, before being put on line at FWE.
That is how I remember it anyway - Particulars Believed Correct But Not Guaranteed!