Seventh Edition (2012)

Table of Contents

   
PART I - JURISDICTION IN ADMIRALTY  
CHAPTER 1
 

History and Admiralty Jurisdiction of the High Courts

OPEN

Early History of the High Courts; Historical Development; Statutory Jurisdiction; Jurisdiction; Colonial Courts of Admiralty

 
CHAPTER 2
 

Specific Jurisdiction and Jurisdiction in Admiralty

OPEN

The three Indian Courts of Admiralty i.e. Bombay, Calcutta and Madras were courts of specific jurisdiction. In the course of time the jurisdiction of the High Courts of Calcutta, Bombay, Madras, Gujarat, Andhra Pradesh and Orissa have entertained Admiralty actions

 
CHAPTER 3
 

Building, Equipping or Repairing of any Ship

OPEN
The claimant can approach the court for arrest of a ship for unpaid dues towards carrying out repair work on ship, ship building or equipping  
CHAPTER 4
 

Necessaries Supplied or Services rendered to any Ship

OPEN
If it is conclusively shown that necessaries supplied or services rendered to any ship are prima facie 'necessaries' and are within the category of necessaries within the scope and ambit of section 5 of Admiralty Courts Act, 1861, admiralty action will lie  
CHAPTER 5
 

Bill of Lading of any Goods for Damage

OPEN
Any claim by the owner or consignee or assignee of any bill of lading of any goods carried into any port in India in any ship for damage done to the goods or any part thereof by the negligence or misconduct of, or for any breach of duty or breach of contract on the part of, the owner, master or crew of the ship, admiralty action will lie  
CHAPTER 6
 

Loss or Damage done by any Ship

OPEN
The claimant must establish that the ship has, done the damage (whether by collision or otherwise) to invoke admiralty jurisdiction over any claim for damage  
CHAPTER 7
 

Damage received by any Ship or Sea-Going Vessel

OPEN
Damage received by any ship or sea-going vessel whether such ship or vessel may have been within Indian waters or upon high seas at the time when the damage was received  
CHAPTER 8
 

Title, Possession, Ownership, Employment or Earnings of a Ship

OPEN
Article 1 of the Brussel Arrest Convention and also of the Geneva Arrest Convention deals with the above subject maritime claim although the conventions has not been adopted by legislation, the principles incorporated are applicable as per Supreme Court of India judgments to invoke admiralty jurisdiction for ship arrest in India read with Admiralty Court Act, 1861  
CHAPTER 9
 

Salvage

OPEN
Salvor has a maritime lien on the salvaged property. A successful salvage claim requires three proofs: marine peril; voluntary service rendered when not required as an existing duty or from a special contract; and success in whole or in part, or contribution to the success of the operation  
CHAPTER 10
 

Wages

OPEN
A seaman to whom wages are due has a right of action against the owner, the crew may bring an action in the Admiralty court either in personam against the owner, or in rem against the ship but he cannot recover wages beyond the day on which the suit is filed and if he fails to obtain relief by one process, the other remains open to him  
CHAPTER 11
 

Disbursements

OPEN
Disbursements by the master on account of the ship can be recovered in a suit for wages. The terms disbursements includes all proper expenditure made by the master on the ship and must generally be explained by reference to what are necessaries for ship  
CHAPTER 12
 

Bottomry & Respondentia

OPEN
Bottomry is a contract in the nature of a mortgage by which money is borrowed to be applied to the necessities of a ship  
CHAPTER 13
 

Towage

OPEN
The High Court has admiralty jurisdiction to hear and determine any claim in the nature of towage  
CHAPTER 14
 

Mortgage or Hypothecation

OPEN
By a mortgage the mortgagee acquires a right to the ownership of a vessel in a certain event, namely, on default of payment of principal and interest, since it is a transfer of all the mortgagor's interest by way of security for the payment of a loan  
CHAPTER 15
 

Claims relating to Cargo and Contract of Affreightment

OPEN
The High Court has Admiralty jurisdiction over any claim arising out of an agreement relating to the use or hire of a ship; or relating to the carriage of goods in a ship; or tort in respect of goods carried in a ship  
CHAPTER 16
 

Forfeitures

OPEN
A ship is liable to be forfeited under section 33, 35, 68 and 69 (Part V) of the Merchant Shipping Act 1958  
CHAPTER 17
 

Loss of Life or Personal Injury

OPEN
Ship is liable to be arrested for the enforcement of maritime claims, or seized in execution or satisfaction of judgments in legal actions arising out of collisions, salvage, loss of life or personal injury, loss or damages to goods and the like  
CHAPTER 18
 

Use or Hire of any Ship

OPEN
Unpaid dues for any use or hire of a ship, admiralty action will lie  
CHAPTER 19
 

Carriage of Goods or Passengers in any Ship

OPEN
Under the arrest conventions and the principles as adopted by the Supreme Court of India, admiralty action can be invoked  
CHAPTER 20
 

General Average

OPEN
The lien on cargo for general average charges can be exercised only by the shipowner in possession of the goods and, where necessary. it is his duty to other cargo owners to protect their interests by retaining possession of any goods in respect of which a contribution in G/A is outstanding  
CHAPTER 21
 

Pilotage

OPEN
A pilot may proceed either in rem or in personam for the authorised pilotage dues to which he may be entitled  
CHAPTER 22
 

Construction, Repair or Equipment of any Ship

OPEN
Construction, Repair or Equipment of any Ship are maritime claim  
CHAPTER 23
 

Dock, Port, Canal, Harbour, Waterway Charges and Dues

OPEN
Unpaid Charges and Dues in relation to Waterway, Dock, Port, Canal and Harbour are maritime claims  
CHAPTER 24
 

Cost or Expenses relating to Wrecked, Stranded, Abandoned and Sunken Ship

OPEN
Maritime claims includes cost or expenses relating to wrecked, stranded, abandoned and sunken ship  
CHAPTER 25
 

Cost or Expenses relating to the Preservation of Abandoned Ship and Maintenance of its Crew

OPEN
Maritime claims includes cost or expenses relating to the preservation of abandoned ship and maintenance of its crew  
CHAPTER 26
 

Insurance Premium

OPEN
Insurance Premium are within the category of 'necessaries'  
CHAPTER 27
 

Commission, Brokerage or Agency Fees

OPEN
Under the Geneva arrest convention and the principles as adopted by the Supreme Court of India, admiralty action can be invoked  
CHAPTER 28
 

Sale of a Ship

OPEN
The sale of a ship pending the suit is normally by public auction after publication of the notice of sale in such newspapers as the court may direct  
CHAPTER 29
 

Limitation of Liability

OPEN
Part X of the Indian Merchant Shipping Act, 1958 deals with Limitation of Liability  
CHAPTER 30
 

Publicly Owned Ships

OPEN
Action in rem against the Government of India in respect of claims against the Government or arrest, detention or sale of ships or cargo or other property belonging to the Government unless notice under section 80 (1) of the Code of Civil Procedure is complied with  
CHAPTER 31
 

Effect of Admiralty Action in Rem on Insolvency of Ship Owner

OPEN
Ship of a insolvent ship owner can be arrested, the ship owner will be replaced with the liquidator in place and stead of the ship owner  
CHAPTER 32
 

Oil Pollution

OPEN
Early History of the High Courts; Historical Development; Statutory Jurisdiction; Jurisdiction; Colonial Courts of Admiralty  
CHAPTER 33
 

Solicitors' Lien

OPEN
Early History of the High Courts; Historical Development; Statutory Jurisdiction; Jurisdiction; Colonial Courts of Admiralty  

 

   
PART II - ADMIRALTY PRACTICE  
CHAPTER 34
 

International Convention for Arrest of Ships

OPEN
Although the Brussel and Geneva conventions has not been adopted by legislation, the principles incorporated in the conventions are applicable for the enforcement of maritime claims against foreign ships as is held by the Supreme Court of India
 
 
CHAPTER 35
 

In Rem and Personam Actions

OPEN
An action in rem is directed towards a ship rather than against a person  which is an in personam or personal action  
CHAPTER 36
 

Ship and Sisterships

OPEN
The word "vessel" was substituted for "ship" The ships are deemed to be sisterships if they are in the same ownership when all the shares are owned by the same person or persons  
CHAPTER 37
 

Arrest

OPEN
The main purpose of arrest is to obtain security for satisfaction of judgment in the action in rem and it is necessary to arrest the ship in order to establish jurisdiction  
CHAPTER 38
 

Release

OPEN
In cases where the arrested ship is released on security being furnished for the plaintiff's claim, the suit, unless compromised, will proceed to trial and judgment in the normal course  
CHAPTER 39
 

Maritime Claim

OPEN
Article 1 (1) of the Brussels and Geneva International Conventions on Arrest of Ships defines 'Maritime Claim'  
CHAPTER 40
 

Maritime Lien

OPEN
Only a limited class of maritime liens are recognised  
CHAPTER 41
 

Possessory Lien

OPEN
Possessory liens are recognised as self-help remedies  
CHAPTER 42
 

Mareva Injunction

OPEN
There is no provision in the law of India for Mareva injunction  
CHAPTER 43
 

Attachment before Judgment

OPEN
"Attachment" before judgment of a ship, as of any other property, is available in all the Indian courts of ordinary civil jurisdiction having jurisdiction over the subject-matter of the claim for most kinds of claims, which would include claim for charter hire or stevedoring services or necessaries supplied  
CHAPTER 44
 

Lay Time

OPEN
The time during which a ship is lying, for the purpose of loading or discharging is Laytime, as distinct from moving with the object of carrying her cargo from one place to another  
CHAPTER 45
 

Effect of Arbitration Clause on Arrest

OPEN
Arbitration clause in the Charter Party Agreement or Bill of Lading are given effect to  
CHAPTER 46
 

Arbitration

OPEN
Merchant or the claimant has no right to arrest a ship in respect of a dispute arising under a contract, which contains an arbitration clause  
CHAPTER 47
 

Merchant Shipping Act 1958, s.443, 444

OPEN
Section 433 and 434 of the Merchant Shipping Act deals with detention of foreign ship that has occasioned damage and the power to enforce detention of ship  
CHAPTER 48
 

Claims Payable in Foreign Currency

OPEN
A sum of money expressed in a foreign currency can legitimately be claimed by the plaintiff and decreed by the court  
CHAPTER 49
 

Interest

OPEN
The question of interest on a claim in an Admiralty suit is dealt with in accordance with the provisions of Section 34 of the Code of Civil Procedure, 1908  
CHAPTER 50
 

Priorities

OPEN
The Indian courts will decide questions of priority on the same principles as the Admiralty Court in England and a contractual claimant  
CHAPTER 51
 

Applicable Law

OPEN
The applicable laws for ship arrest are the Admiralty Court Act, 1861, Admiralty Court Act, 1890 and Admiralty Court Act 1891  
CHAPTER 52
 

Limitation Periods, Time Bar

OPEN
The (Indian) Limitation Act 1963 applies to all claims within the Admiralty jurisdiction of the High Courts. The Act provides a three-year limitation period for actions for damage, wages, necessaries, salvage, and towage. In case of claims for loss or damage to cargo brought under bills of lading incorporating the Hague Rules, the one year period under rule 6 of Article III, providing for an extinguishments of the cause of action, itself may apply  
CHAPTER 53
 

Security for Costs and Damages

OPEN
Security for costs and damages is not a condition for the arrest, but while applying for the arrest an undertaking is required to be given in writing to pay such sum by way of damages as the court may award compensation in the event of a party affected sustains prejudice by the arrest  
CHAPTER 54
 

Wrongful Arrest

OPEN
The cases involving wrongful arrest are rare and there isnt a single decided case in India and to succeed in a claim for wrongful arrest, the owners must demonstrate that there is either mala fides (bad faith) or crassa negligentia (gross negligence) which implies malice  
CHAPTER 55
 

Admiralty Rules

OPEN
The Admiralty Rules of the High Courts provide that the rules and practice of the court in the matter of suits and proceedings on the original side of the court shall, if not inconsistent with the said Rules, apply to suits and proceedings on the Admiralty side of the court  
CHAPTER 56
 

Admiralty Suit and Pleadings

OPEN
Plaint, Judges Order, Undertaking etc  
CHAPTER 57
 

Counter Security

OPEN
The High court having admiralty jurisdiction has discretionary power to pass order for counter security if required  
CHAPTER 58
 

Application for Arrest

OPEN
The Admiralty Rules of the High Courts having Admiralty Jurisdiction require that a suit shall be instituted by a plaint drawn up, subscribed and verified according to the provisions of the Civil Procedure Code 1908  
CHAPTER 59
 

Order of Arrest and Warrant of Arrest

OPEN
The Admiralty Judge may pass a separate order arresting the ship and also sign the Judges Order for arrest of the ship. Warrant of Arrest are sometimes dispenses with by the Judge
 
CHAPTER 60
 

Writ of Summons

OPEN
A writ of summons on the vessel may not be required if warrant of arrest is properly served on the vessel  
CHAPTER 61
 

Service, Effecting the Arrest

OPEN
If the court has passed an order of arrest of the ship dispensing the Warrant of Arrest, in such event the Sheriff/marshal will issue a letter and the same along with copy of the order is served on the ship and other concerned authorities  
CHAPTER 62
 

Arrest of Ship

OPEN
A ship may be arrested to acquire jurisdiction; or  to obtain security for satisfaction of the claim when decreed; or  in execution of a decree  
CHAPTER 63
 

Release from Arrest

OPEN
Following its arrest, the ship is usually released from arrest after security has been provided by the ship owner or any interested parties for the claim. The security may be in the form of a bail bond, a payment of money into court, a bank guarantee or a letter of undertaking (LOU) from the ship owner's protection and indemnity club (P.& I. Club)  
CHAPTER 64
 

Security for Release of a Ship

OPEN
Security for the claim in the suit is furnished by means of a cash deposit in the registry or a bank guarantee for the amount stated in the warrant of arrest  
CHAPTER 65
 

Enforced Sale of the Ship

OPEN
In any action a court has power to order the sale of property which is perishable, likely to deteriorate or in relation to which there is good reason for sale  
CHAPTER 66
 

Appraisement and Judicial Sale

OPEN
Appraisement is the official valuation of the ship by a court appointed valuer in order to prevent the ship from being sold at too low a price  
CHAPTER 67
 

Condition of Sale

OPEN
The sale is free and clear of all maritime or other liens and encumbrances  
CHAPTER 68
 

Sheriffs Poundage

OPEN
Poundage is payable at 1 per cent of the amount received by the plaintiff in full or part satisfaction of a judgment or, in the event of the claim being satisfied, compromised or settled outside court, upon the amount of such satisfaction, compromise or settlement  
CHAPTER 69
 

Costs

OPEN
The court has the discretionary power to accept or reject the costs  
CHAPTER 70
 

Restrictions to invoke Admiralty Jurisdiction

OPEN
There are restrictions to invoke Admiralty Jurisdiction on issues such as arbitration, publicly owned ship, ship owned by government of foreign state, collision  
CHAPTER 71
 

Appeals

OPEN
Any party aggrieved by the order passed by the single judge of the trial court have an option to file an appeal before the division bench in the same High Court and any order passed by the appeal court of the High Court the aggrieved party may file an Special Leave Petition in the Supreme Court of India  
CHAPTER 72
 

Execution of Foreign Decree

OPEN
A Person who has obtained a decree from a court in a foreign country can approach an Indian court for enforcement of the said decree under the Civil Procedure Code, 1908  
CHAPTER 73
 

Parties and Pleadings

OPEN
In the title of the plaint in a suit in rem, after the name of the ship which is sued, its nationality is usually stated  
CHAPTER 74
 

Procedure for Ship Arrest

OPEN
Urgent application for obtaining order of arrest is moved before the Admiralty Judge  
CHAPTER 75
 

Presence of a Ship (Res) at the time of filing of Admiralty Suit

OPEN
Court can acquire jurisdiction if the writ or if the warrant of arrest is executed on the ship when it arrives within the territorial jurisdiction of this Court  
CHAPTER 76
 

Beaching of a Ship for Demolition

OPEN
Once a ship’s Bill of Entry is filed for demolition the ship is no longer considered as a ship and therefore Admiralty action cannot be initiated  
CHAPTER 77
 

Indian Flag Ship

OPEN
Ship flying Indian flag can be arrested by invoking admiralty jurisdiction  
CHAPTER 78
 

Detaining vessel under Merchant Shipping Act

OPEN
Ship can be detained under section 443, 444 of the Merchant Shipping Act  
CHAPTER 79
 

Indian Territorial Waters for Ship Arrest

OPEN
The limit of the territorial waters is the line every point of which is at a distance of twelve nautical miles from the nearest point of the appropriate baseline  
CHAPTER 80
 

One Ship Company

OPEN
It has long been the practice in the shipping business to arrange for several ships which are financed by a common source and managed or operated as a fleet, to be registered in the names of separate companies whose only asset is the particular ship registered in its name  
CHAPTER 81
 

Effect of Ship Arrest

OPEN
The effect of arrest is that it constitutes the ship or other property as security in the hands of the court for the claim in the action and this security cannot be defeated by the subsequent insolvency of the owner of the arrested property  
CHAPTER 82
 

Carrier's Identity

OPEN
Identification of the carrier may be problematic where goods are carried on a chartered vessel and the bill of lading is in the hands of a shipper or receiver who is not himself party to the charterparty  
CHAPTER 83
 

Indian Ships, Registration

OPEN
A ship entitled to fly the flag of a country needs to be registered in that country. The object of registration is to ensure that persons who are entitled to the privilege and protection of the Indian flag get them  
CHAPTER 84
 

Crew on Board after Arrest of Ship

OPEN
The Sheriff or the Marshal owes no duty to the crew on board as such. The relationship of the Sheriff or the Marshal to the crew will depend upon the circumstances as they affect the discharge of the Sheriff or the Marshal’s duty to retain custody of, and to preserve the ship  
CHAPTER 85
 

Necessaries, a Maritime Claim

OPEN
"Necessaries" is defined under section 5 of the Admiralty Courts Act, 1861  
CHAPTER 86
 

Claims relating to Cargo

OPEN
Admiralty jurisdiction can be invoked over any claim relating to Cargo  
CHAPTER 87
 

Claims for Unpaid Bunker Dues

OPEN
Unpaid dues of Bunker Suppliers are secured by a maritime claim and or a right to arrest the ship in rem to which the bunkers were supplied or her sister ship  
CHAPTER 88
 

Collision Actions

OPEN
The maritime claims in respect of which the power of arrest is recognised in law includes claims relating to damage caused by any ship either in collision or otherwise  
CHAPTER 89
 

Pan India Ship Arrest

OPEN
An order of arrest of a ship can be obtained from the Bombay High Court and executed on a ship anywhere in Indian waters  
CHAPTER 90
 

Piercing the Corporate Veil

OPEN
Bombay High Court in appeal allowed lifting the corporate veil to establish beneficial ownership for the purpose of arresting a sister vessel-ship even when there is no fraud element  
CHAPTER 91
 

Arresting Ship to obtain Security for Arbitral Award or Court Judgment

OPEN
A ship may be arrested for the purpose of obtaining security notwithstanding that, by virtue of a jurisdiction clause or arbitration clause  
CHAPTER 92
 

Foreign State Owned and Publicly Owned Vessel

OPEN
If the ship belongs to Government of Foreign State, in that event consent of the Central Government in India would be required to proceed against the vessel and its owners  
CHAPTER 93
 

Frequently Asked Questions on Ship Arrest

OPEN
Frequently asked question on Ship Arrest in India and Admiralty Laws of India  

 

   
PART III - RULES, CONVENTIONS, ACTS, ORDERS, LANDMARK CASES, GLOSSARY AND MISCELLANEOUS  
APPENDIX 1
 

Bombay High Court Rules

OPEN
Rules for regulating the procedure and practice in cases brought before the Bombay High Court under Admiralty jurisdiction  
APPENDIX 2
 

Madras High Court Rules

OPEN
Rules for regulating the procedure and practice in cases brought before the High Court of Judicature at Madras exercising Admiralty jurisdiction  
APPENDIX 3
 

Admiralty Court Act, 1861

OPEN
The jurisdiction conferred by this Act on the High Court of Admiralty may be exercised either by proceedings in rem or by proceedings in personam  
APPENDIX 4
 

Admiralty Court Act, 1890

OPEN
An Act to amend the law respecting the exercise of Admiralty Jurisdiction  
APPENDIX 5
 

Admiralty Court Act, 1891

OPEN
An Act to declare certain Courts in [India] to be Colonial Courts of Admiralty  
APPENDIX 6
 

The Major Port Trust Act, 1963

OPEN
An Act to make provision for the constitution of port authorities for certain major ports in India and to vest the administration, control and management of such ports in such authorities and for matters connected therewith  
APPENDIX 7
 

The Indian Ports Act, 1908

OPEN
An Act to consolidate the enactments relating to Ports and Port-charges  
APPENDIX 8
 

The Indian Bills of Lading Act, 1856

OPEN
An Act to amend the Law relating to Bills of Lading  
APPENDIX 9
 

The York-Antwerp Rules, 2004

OPEN
The York-Antwerp Rules, 2004 recognises two main type of allowances, 'common safety allowances' and 'common benefit allowances'  
APPENDIX 10
 

The Multi Modal Transportation of Goods Act, 1993

OPEN
An Act to provide for the regulation of the multimodal transportation of goods, from any place in India to a place outside India, on the basis of a multimodal transport contract and for matters connected therewith or incidental thereto  
APPENDIX 11
 

The Indian Carriage of Goods by Sea Act, 1925

OPEN
An Act to amend the law with respect to the carriage of goods by sea  
APPENDIX 12
 

The Merchant Shipping Act, 1958

OPEN
An Act to foster the development and ensure the efficient maintenance of an Indian mercantile marine in a manner best suited to serve the national interests and for that purpose to establish a National Shipping Board and a Shipping Development Fund, to provide for the registration of Indian ships and generally to amend and consolidate the law relating to merchant shipping  
APPENDIX 13
 

Brussels Convention on Arrest of Ships

OPEN
Having recognised the desirability of determining by agreement certain uniform rules of law relating to the arrest of seagoing ships, have decided to conclude Brussels Convention on Arrest of Ship  
APPENDIX 14
 

Geneva Convention on Arrest of Ships

OPEN
The States Parties to this Convention, Recognizing the desirability of facilitating the harmonious and orderly development of world seaborne trade, Convinced of the necessity for a legal instrument establishing international uniformity in the field of arrest of ships which takes account of recent developments in related fields,  
APPENDIX 15
 

Shipping Glossary

OPEN
Alphabetically arranged list of often difficult or specialised shipping words with their definition  
APPENDIX 16
 

Landmark Admiralty Cases

OPEN
Landmark court decision on admiralty laws in India mainly on ship arrest  

BCAS: 2102-1013
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