REGISTERED NO. DL-33004/2002

The Gazette of India

EXTRAORDINARY

PART II —Section 2

PUBLISHED BY AUTHORITY

No.

34]

NEW DELHI, TUESDAY, JULY 20, 2002/SRAVANA 8,1924

Separate paging is given to this Part in order that it may be filed as a separate compilation.

RAJYA SABHA

The following Bill was introduced in the Rajya Sabha on the 30tlh July, 2002.—

BILL No. LXVI OF 2002

A Bill further to amend the Merchant Shipping Act, 1958, and the Major Port Trusts

Act, 1963.

BE it enacted by Parliament in the Fifty-third Year of the Republic of India as

follows:—

CHAPTER I

PRELIMINARY

1.(1) This Act may be called the Merchant Shipping (Amendment) Act, 2002.

Short title and

commencement.

(2) It shall come into force on such date as the Central Government may, by notification

in the Official Gazette, appoint and different dates may be appointed for different provisions

of this Act.

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[PART II—

CHAPTER II

AMENDMENT OFTHE MERCHANT SHIPPINOACT, 1958

2. For section 76 of the Merchant Shipping Act, 1958 (hereinafter referred to as the

principal Act), the following section shall be substituted, namely.—

Substitution of

new

section

for section 76

44 of 1958

"76 (7) Every Indian ship, when going to sea from any port or place, bhall be

provided with officers duly certifi cated under this Act in accordance with such manning

scales as may be prescribed.

Certificates of

rnmjirtency to

be held by

officers

of

ships

Provided that the Central Government may prescribe different manning scales for

different types of ships

(2) Every ship, whether at sea or in any port or place, shall engage such number

of persons and with such qualifications as may be prescribed for maintaining

watches."

3. In section 87 of the principal Act, in sub-section (2), in clause (h), for the words "by

a ship", the words "by different types of ships" shall be substituted

Amendment

oF section 87

4. In section 95 of the principal Act,—

Amendment

of section 95

(I) in suo-aecnon ^J;, iur umu^eu {u.) unu �), uic luuuwmg nauisc aiiau uc

!>ubbiumcu, ikuiicly —

"(a) to issue licence, to regulate and control the recruitment and placement

service, and to—

(i) ensure that no fees or other charges for recruitment or placement

of seafarers are borne directly or indirectly or in whole or in part, by the

seafarers,

(u) ensure that adequate machinery and procedures exist for the

investigation, if necessary, of complaints concerning the activities of

recruitment and placement services; and

(m) to maintain registers of seamen in jespect of the categories of

seamen,";

(u) sub-section (2) shall be omitted,

(ill) in sub section (J), for flames (b) and (c) the following clauses shall be

substituted, namely —

"CM the lew and collection of such fees as may be specified for the issue

of licences to recruitment and placement servicos, renewal of suUi licences and

services to be rendered by the seamen's employment office,

(c) the '.ssi'e nf directions by the Central Government io any seamen'.-,

employment office or any recruitment and placement service with reference to

the exercise of any of its powers;

(ca) the conditions under which the recruitment and placement service to

recruit and place seafarers abroad,

(cb) the circumstances and conditions under which licence to be suspended

or withdrawn,

(cc) the conditions under which seafarers' personal data to be processed

by the recruitment and placement services including the collection, storage,

combination and communication of such data to third parties,',

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(iv) after sub-section (3), the following Explanation shall be inserted, namely:—

'Explanation.—For the purposes of this section,—

(a) "recruitment and placement service" means any person,

company, institution, agency or other organisation, in the public or private

sector which is engaged in recruiting seafarers on behalf of employers or

placing seafarers with employers;

(b) "seafarer" means any person who fulfills the conditions to be

employed or engaged in any capacity on board a sea-going ship other

than a government ship used for military or non-commercial purposes.'.

5. For section 97 of the principal Act, the following section shall be substituted,

namely:—

Substitution of

new

section

for section 97

Receipt of

remuneration,

donation,

fees, etc.,

from seamen

tor shipping

them

prohibited

"97. (1) A person or company or organisation including a union purporting to

represent the interests of seamen shall not demand or receive, either directly or

indirectly, from any seaman or person seeking employment as seaman or any person

on his behalf, any remuneration or donation or fees or compulsory subscription ofany

kind attributable from such seaman or person's employment as seaman, other than the

fees authorised by this Act.

(2) It shall be the duty of the company employing or proposing to employ

person as seaman to ensure that no money has been demanded or received by any

person or company ui ui^aniiaLiun in^iuuiiig tuc ufiiufi purporting to represent ili*

interests of seamen by way of any remuneration or donation or fees or compulsory

subscription ofany kind attributable to employment of such person as seaman.".

6. After section 97 of the principal Act, the following section shall be inserted,

namely:—

Insertion

of

new

section

97A.

Prohibition

against

discrimination.

"97A. There shall be no discrimination between seamen,—

(a) on the ground of their membership or lack of membership in any

particular union purporting to represent the interests of seamen and membership

in such union shall not be pre-requisite condition;

(b) on the basis of training institute from where they obtained training or

place of issue of their continuous discharge certificates,

for their reciuilinent and engagement on board any ship.".

7. For the sub-heading "Safety certificates, safety equipment certificates, safety radio

telegraphy certificates, safety radio telephony certificates, exemption certificates, etc."

above section 299 of the principal Act, the following sub-heading shall be substituted,

namely:—

Substitution

uf new sub-

heading for

sub-heading

above section

299

"Safety certificates, safety equipment certificates, safety radio certificates,

exemption certificates, etc ".

8. In section 299 of the principal Act,—

Amendment

of section

299

(a) in sub-section (i), foi the words "radio telegraphy or radio telephony

installation and radio diiection finder'', the woids "tadio installation" shall be

substituted;

(b) in sub-section (3), the words "or a pilgrim ship" shall be omitted;

(c) after sub-section (3), the following sub-section shall be inserted, namely:—

"(4) The Certificates issued under sub-sections (1) and (2), sub-sections

(/) and (2) of section 300 and section 301 shall be supplemented by a record of

equipment in the prescribed form.".

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[PART U—

9. In section 299A of the principal Act,-

Amendmenl

of section

299A.

(a) in sub-section (/),—

(/) for the words "the Central Government", the words "the Central

Government or any person authorised by it in this behalf" shall be substituted;

(/i) for the words "the Central Government", the words "that Government

or the authorised person" shall be substituted;

(b) in sub-section (2),—

(/) for the words "of the Act and the Central Government", the words "and

the Central Government or any person authorised by it in this behalf shall be

substituted;

(//) for the words "the Central Government", the words "that Government

or the authorised person" shall be substituted;

(c) after sub-section (2), the following sub-section shall be inserted, namely:—

"(J) The owner of every ship in respect of which a certificate is issued

under sub-section (J) or sub-section (2), sub-section (]) or sub-section (2) of

section 300 or section 301 shall, so long as the certificate remains in torcc,

cause the ship to be surveyed in the manner as specified in the Safety

Convention or in cases where such specified manner is not applicable, in such

manner «,s tV rules made in this behalf prescribe, as the case may be.".

iu. ror secrhtn ~M>0 of the principal Act, the lullowmg section shall be substituted,

namely:—

cubiinminn

of new

section for

lection 300.

Cargo ship

safety

equipment

and cargo

•ship

oquipment

certificates

for ships

other than

pussenger

(.hips

'300. (7) Where in respect of an Indian cargo ship the Central Government or

any person authorised by it in this behalf is satisfied that the ship complies with the

provisions of this Act and the rules made thereunder relating to life saving and fire

appliances applicable to such ship and is provided with lights and shapes and the

means of making fog and distress signals required by the collision regulations, that

Government or the authorised person may issue in respect of the ship—

(a) if Ihe hhip is of five hundred tons gross or moie and performs

international voyages, a certificate in the prescribed form to be called a cargo

ship safety equipment certificate;

(b) in other cases, a certificate in the prescribed form to be called a cargo

ship equipment certificate,

(2) Where, in respect of a ship referred to in suh-irotinn ( /), the"1 '<; in force an

exemption certificate granted under section 302 and ihe Central Government or-any

person pvthnrised by it in this hehalf is satisfied that the whip complies with <\\\ the

requirements referred to in that sub-section, other than those from which the ship is

exempt under that certificate, that Government or the authorised person may issue a

certificate in the prescribed form to be called a qualified uii&u ship safety equipment

certificate or a qualified cargo ship equipment certificate, as the case may be.".

11. hor section 301 of the principal Act, the following section shall be substituted,

namely.—-

Substitution

nf pp\v

section for

section 101

"301. The owner or master of any Tndian cargo ship, which is required by the

provisions of section 291 to be provided with a radio installation shall, if the Central

Government or any person authorised by it in this behalf is satisfied that the ship

complies with all the provisions of this Act and the rules made thereunder relating to

radio installation applicable to such ship, receive—

Cargo ship

safety radio

certificate and

qualified

carfro ship

infery radio

certificate,

etc

(a) in the case of a ship of three hundred tons gross or more, a certificate

in the prescribed form to be called a cargo ship safety radio certificate;

SEC. 2]

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5

(b) in the case of a ship of three hundred tons gross or more but less than

three thousand tons gross performing voyages only betweeh ports or places in

India, a certificate in the prescribed form to be called a qualified cargo ship

safety radio certificate; and

(c) in other cases, a certificate in the prescribed form to be called a cargo

ship radio certificate.".

12. For section 303 of the principal Act, the following section shall be substituted,

namely:—

Substitution

of new

section for

section 303

Duration of

certificates

"303. (7) A passenger ship safety certificate, a qualified passenger ship safety

certificate, a special trade passenger ship safety certificate and a special trade passenger

ship space certificate issued under this Part shall be in force for a period of twelve

months from the date of its issue or for such shorter period as may be specified in the

certificate.

(2) A cargo ship safety equipment certificate, a qualified cargo ship safety

equipment certificate, a curgo ship equipment certificate, a qualified cargo ship

equipment certificate, a cargo ship safety construction certificate, a qualified cargo

ship safety construction certificate, a cargo ship construction certificate, a qualified

cargo ship construction certificate, a cargo ship safety radio certificate, a qualified

cargo ship safety radio certificate and a cargo ship radio certificate issued under ihis

Part shall be in force for a period of five years from the date of its issue or for such

shorter period as may be specified in the certificate.

(3) An exemption certificate issued under section 302 shall be in force for the

period for which the certificate to which it relates remains in force or for such shorter

period as may be specified in the exemption certificate.

(4) Notwithstanding the requirements of sub-sections (/), (2) and (3) when the

survey is completed within three months before the expiry date of the existing

certificate, the new certificate may be valid from the date of completion of the

survey,—

(a) for a passenger ship, a dale not exceeding twelve months; and

(b) for a cargo ship, a date not exceeding five years,

from the date of expiry cf the existing certificate.

(5) The Central Government or any person authorised by it in this behalf may

grant an extension of any certificate issued under this Ptirt in respect of an Indian

ship—

(n) where the ship is n<">f in a port in which it is to be surveyed on the date

when the certificate would, but for the extension, have expired, for such period

not exceeding three months from the said date as may be sufficient to enable the

ship to complete its voyage to the port in which it is to be surveyed;

(b) where the ship is engaged on a short voyage and whose certificate has

not been extended under clause (a), for a period up to one month from the date

when the certificate would have expired:

Provided that any extension granted under clause (a) shall cease to be

operative upon the ship's arrival at the port referred to in that clause:

Piovidcd further that no extension shall be granted under clause (i>) in

respect of a certificate extended undei clause (a).

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THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(6) Where an existing certificate of a ship has been extended under sub-section

(5) and when survey is completed, the new certificate shall be valid up to,—-

(a) for a passenger ship, a date not exceeding twelve months; or

(b) for a cargo ship, a date not exceeding five years,

from the date of expiry of the existing certificate.

(7) In special circumstances where the Central Government so determines, a new

certificate, need not be dated from the date of expiry of the existing certificate, shall be

valid up to,—

(a) for a passenger ship, a date not exceeding twelve months;

(b) for a cargo ship, a date not exceeding five years,

from the date of completion of the survey.

(8) Where a certificate referred to in sub-section (2) is issued for a period of less

than five years, the Central Government or any person authorised by it in this behalf

may extend llie validity of Ihc L«I Lificate beyond the txpiry date to the maximum period

specified in nub-section (2) if appropriate surveys, applicable when a certificate is

issued for a period of five years, are carried out.

(9) If a survey has been completed and a new certificate cannot be issued or

placed on board me ship before the expiry date ot the existing certilicate, me Central

Government or any person authorised by it in this behalf may endorse the existing

certificate and such certificate shall be in force for a further period which shall not

exceed five months from the expiry date of the existing certificate.

(10)\f annual, intermediate or periodical surveys in the manner as specified in

the Safety Convention or in cases where such specified manner is not applicable, in

such manner as the rules made in this behalf prescribe, as the case may be, arc completed

before the period stipulated therefor, then—

(a) the anniversary date mentioned on the relevant certificate shall be

amended by endorsement to a date which shall not be more than three months

later than the date on which the survey was completed;

(b) the subsequent surveys shall be completed at the stipulated intervals

using the new anniversary date so endorsed;

(c) the expiry date may remain unchanged pmvided one or more annual,

intermediate or periodical surveys, as the case may be, are carried out so that the

maximum stipulated intervals between the surveys are not exceeded.

{11) A certificate issued under section 299A, section 300 or section 301 shall

cease to be valid,—

(a) if the relevant Miiveys specified in the Safety Convention or in cases

where such specified manner is not applicable, in such manner as the rules made

in this behalf prescribe, as the case mav be, are not completed within the stipulated

period;

(b) if the certificate is not endorsed; or

(c) if the ship ceases to be an Indian ship.".

13. In section 307 of the principal Act,—

Amendment

of section

307

(a) in sub-section (2), in clause (fa), for the words " radio telegraphy certificate or

a cargo ship safety radio telephony certificate", the words " radio certificate" shall be

substituted;

SEC. 2]

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(b) for sub-section (2A), the following sub-section shall be substituted,

namely:—

"(2A) No sea-going Indian cargo ship, loss than five hundred tons gross,

shall proceed on a voyage from any port or place in India to any port or place in

India or to any port or place outside India unless there is in force in respect of the

Khip a cargo ship construction certificate issued under section 299A and a cargo

ship equipment certificate issued under section 300 and,—

(/) a cargo ship safety radio certificate if the ship is three hundred

tons gross or more;

(li) a qualified cargo ship safely radio certificate if the ship is

operating within ports or places in India and is of three hundred to five

hundred tons gross; or

(in) a cargo ship radio certificate if the ship is less than three hundred

tons gross,

issued under section 301.",

(c) in sub-section (3),—

(i) in clause (a), for the words and figures "equipment certificate issued

under section 300", the words, figures and letter "safety construction certificate

or cargo ship construction certificate issued UIIJCJ acttiou 299A" shall be

substituted;

(iff in clause (b), in the opening portion, after the word "a", the words

"cargo ship equipment certificate or a" shall be inserted;

(Hi) in clause (c), for the words "radio telegraphy certificate or a cargo

ship radio telephony certificate", the words "safety radio certificate or a qualified

cargo ship safety radio certificate, if the ship operates between ports or places in

Tndia and is between five hundred to three thousand tons gross," shall be

substituted.

14. In section 317 of the principal Act,—

Amendment

of section

317

(i) in sub-section (I), after the existing proviso, the following proviso shall be

inserted, namely:—

"Provided further that when the survey for the purpose of issue of certificate

under sub-section (/) of section 316 is completed wilhin lliiee months before the

expiry date of the existing certificate, the new certificate may be valid from the

date of ocmpletion cf such survey to » date noL exceeding five years from the

date of expiry of the existing certificate.";

(IT) in sub-section (3), for the portion beginning with the words "shall cease"

and ending willi Ihe words "Indian ship", the following shall be svbstituted, namely:—

"shall cease to be valid when—

(a) the ship ceases to be an Indian ship;

(b) material alterations such as would necessitate die assignment of an

increased free board have taken place in the hull or superstructure of the ship;

(c) the fittings and appliances for the protection of openings, the guard

rails, freeing ports, or the means of access to the crew's quarters are not maintained

in an effective condition;

(d) the structural strength ot the ship is lowered to such an extent as to

render the ship unsafe;

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[PART It—

(e) the certificate is not endorsed to prove that the ship has been surveyed

as required under sub-section (5); or

(0 the marking of the deck line and load lines on the ship have not been

properly maintained";

(Hi) sub-section (4) shall be omitted;

(jV) in sub-section (5), for the portion beginning with the words "once at least

in each year" and ending with the words "caused to be so surveyed", the following

shall be substituted, namely:—

"and the certificate endorsed once at least in each year during the period

commencing three months before and ending three months after the anniversary

date of expiry of the certificate for the purpose of ensuring that—

(a) alterations have not been made to the hull or superstructure

which would affect the calculations determining the position of the load

lines;

(b) the fittings and the appliances for the pioteetion of openings,

the guard rails, freeing ports, or the means of access to tlr- rrfw's quartf r*

are maintained in an effective condition;

(c) the free board marks are correctly and permanently marked; and

(d) the stability information required under section 298 is readily

available on board";

(v) for sub-sections (6) and (7), the following sub-sections shall bo substituted,

namely.-—

"(6) If an annual survey is completed before the period specified in sub-

section (5) then,—

(a) the anniversary date mentioned on the certificate shall be

amended by endorsement to a date which shall not be more man three

months later than the date on which the survey was completed;

(b) the subsequent annual survey required by sub-section (5) shall

be completed using the new anniversary date;

(c) the expiry date of the certificate may remain unchanged provided

one or more annual survey is carried out so that the maximum interval

between the surveys specified under sub-section (5) is not exceeded.

(7) If a certificate under ttub-seulion (/) of section 116 is issued for a

period of less than five years, the Central Government or any person authorised

by it in this behalf, may extend die validity of the certified beyond the expiry

date to a maximum period specified in sub-section (1):

proved th:it annual surveys referred to in sub-section (5) are carried out

as may be appropriate.

(7A) If a ship at the time when a certiticatt; expires is not in a port at which

it is to be surveyed, the Central Government oi any person authorised by it in

this behalf may extend the period of validity of the certificate, but this extension

shall be granted only for the purpose of allowing the ship to complete the

voyage to the port in which it is to be surveyed and also only in cases where it

appears proper and reasonable to do so;

Provided that no certificate shall be extended for a period longer than

three months and the ship to which an extension is granted shall not on its

arrival at the port in which it is to be surveyed leave that port without having a

new certificate:

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9

Provided further that when the survey is completed, the new certificate

shall be valid to a date not exceeding five years from the date of expiry of the

existing certificate.

(7B) A certificate, issued to a ship engaged in short voyage which has not

been extended under sub-section (7A), may be extended by the Central

Government or any person authorised by it in this behalf for a period up to one

month from the date of expiry and when the survey is completed, the new

certificate shall be valid up to a date not exceeding five years from the date of

expiry of the existing certificate,

(7C) In special circumstances where the Central Government so determines

a new certificate, need not be cnted from the date of expiry of the existing

certificate, shall be valid up to a date not exceeding five years from the date of

completion of the survey.".

15. In section 344 of the principal Act, in sub-section (2), for clause (a), the following

clauses shall be substituted, namely:—

Amendment

of section

.144

"(a) the form of any certificate and record of equipment issued under this Part;

(aa) the manner of surveys required to bt, made in respect of ships to which the

manner of surveys specified in the Safety Convention is not applicable;".

16. In section 352 of the principal Act,—

Amendment

of section

352

(j) for clause (6), the following cia.'se shall be substituted, namely:--

'ib) ''Convention" means r'- Convention on Limitation of Liability fo<

Maritime Claims, 197b as amene' J from time to time;';

(if) after clause (#), the followu;? clauses shall be inserted, namely:--

'(77) "salvor" means any person rendering services in direct connection

with salvage operations.

Explanation.—For the purpose of (his clause, "salvage operations"

includes—

(/) the raising, removal, destruction or the rendering a ship harmless

which is sunk, wrecked, stranded or abandoned including anything that is

or has been on board such ship;

(if) the removal, destruction or rendering the cargo of a ship

harmless; and

(/;;) the measures taken to avert or minimise loss to a ship or its

cargo or both;

(i) "ship owner" means owner, charterer, manager and operator of a sea-

going ship;

(J) "Special Drawing Rights" means Special Drawing Rights as determined

bv the International Monetary Fund.'.

17. For section 352A of the principal Act, the following section shall be substituted,

namely:—

Substitution

of new

section tor

section 352A

"352A. (/) The ship owner, salvor, any person for whose act, neglect or default

the ship owner or salvor, as the case may be, is responsible, and an insurer of liability

for claims to the same extent as the assured himself, may limit his liability as provided

under section 352B in respect of,—

Limitation of

liability for

damages in

respect of

certain

claims

(a) claims arising from loss of life of or personal injury to, or loss of or

damage to, property (including damage to harbour works, basins and waterways

10

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

and aids to navigation), occurring on board or in direct connection with the

operation of the ship or with salvage operations, and consequential loss resulting

therefrom;

(b) claims arising out of loss resulting from delay in the carriage by sea of

cargo and passengers or their luggage;

(c) claims arising >ut of other loss resulting from infringement of rights

other than contractual rights, occurring in direct connection with the operation

of the ship or salvage operations;

(d) claims of a person other than the person liable in respect of measures

taken in order to avert or minimise loss for which the person liable may limit his

liability in accordance with the provisions of the Convention or the rules made in

this behalf prescribe, as the case may be, and such further loss caused by such

measures;

(c) claims for the loss of life or personal injury to passengers of a ship

brought by or on behalf of any person,—

(/) under the contract of passenger carriage; or

(ii) who, with the consent of the carrier, is accompanying a vehicle

for live animals which are covered by a contract for the carriage of goods,

carried in that ship:

Provided that the limits for passengers claim specified in the rules made under

this Part shall not be applicable to the passengers carried in and around the coast of

Jndia in respect of whom separate limit «hall be presenb-d.

(2) Claims set out in sub-section (1) shall be subject to limitation of liability

even if brought by way of recourse or for indemnity under z :oprract or otherwise:

Provided that claims set out in clause (d) of sub-section (/) shall not be subject

to limitation of liability to the extent that thev relate to remuneration under a contract

wiih the person liable.

(3) Nothing in this section shall apply to—

(a) claims for salvage or contribution in general average;

(b) claims for oil pollution damage within the meaning of the International

Convention on Civil Liability for Oil Pollution Damage, 1992 as amended

from time to time;

(c) claims by servants of the ship owner or salvor whose duties arc

connected with the ship or the salvage operations, including claims of their

heirs, dependents or other persons entitled to make such claims, if under the

law governing the contract of service between the ship owner or salvor and

such servants of the ship owner or salvor is not entitled to limit his liability in

respect of such claims, or if he is by such law only permitted to limit his

liability to an amount greater than that provided for in the provision of the

Convention or the rules made under this Part prescribe;

(d) claims subject to any International Convention or any law for the

time being in force in India governing or prohibiting limitation of liability for

nuclear damage;

(e) claims against the ship owner of a nuclear ship for nuclear damage.

Explanation 1.—For the purpose of this section, the act of involving limitation

of liability shall ncl constitute an admission of liability.

Explanation 2.—For the purpose of this Part, the liability of a ship owner shall

include liability in an action brought against the ship herself.".

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11

18. For section 352B of the principal Act, the following section shall be substituted,

namely:—

Substitution ot

new icction for

section 352B.

Limitation ot

liability

"352B. The amount to which any person referred to in sub-section (1) of section

352A may limit his liability in accordance with the provisions of the Convention and in

cases where the provisions of the Convention are not applicable, the limit shall be in

accordance with the rules made in this behalf prescribe.".

19. In section 352C of the principal Act,—

Amendment

of section

352C

(a) in the marginal heading, the words "against owner shall be omitted;

(b) for sub-section (/), the following sub-section shall be substituted, namely:—

"(/) Where any liability is alleged to have been incurred by a person

referred to in sub-section (7) of section 352A in respect of claims arising out of

an occurrence, and legal proceedings are instituted in respect of claims subject

to limitation, then such person may apply to the High Court for the setting up of

a limitation Fund for the total sum representing the amounts set out in the

Convention or the rules made in this behalf under this Part applicable to claims

for which that person may be liable together with interest thereon from the date

of occurrence giving rise to the liability until the date of the constitution of the

Fund.";

(c) in sub-section (2), for the words beginning with the words "or furnish" and

ending with the words ''or secured", the words "or produce a guarantee acceptable or

produce a bank guarantee in respect of the amount us in the opinion of the High Court

is satisfactory and the amount so deposited or guarantee so given" shall be substituted;

(d) for sub-sections (5) and (6), the following sub-sections shall be substituted,

namely:—

"(5) Where the person referred to in sub-section (/) or his insurer

establishes that he has paid in whole or in part any claims in respect of which he

can limit his liability under this Part, the High Court shall place him in the same

position and to the same extent in relation to the Fund as the claimant whose

claim has been paid and allow to acquire by subrogation the rights which the

person so compensated would have enjoyed under this Part:

Provided that the right of subrogation provided for in tins sub-section

may also be exercised by persons other than those therein mentioned in respect

of any amount of compensation which they might have paid to that extent if

prescribed by the rules made in this behalf under this Part.

(6) Where the person liable or any other person has established that he

may at a later date be required to pay in whole or in part, any of the claims under

this Part, which could be settled from the Hind, the High Court may

notwithstanding the foregoing provisions of this section order that a sufficient

sum may be provisionally set aside for the purpose to enable the person to

enforce his claim against the Fund at a later date in accordance with the provisions

of sub-section (5).".

20. In section 352D of the principal Act,—

Amendment

of NecLion

352D

(i) in sub-section (5), for clause (a), the following clause shall be substituted,

namely:—

'(a) "Convention country" means a country in which the Convention on

Limitation of Liability fui Maritime Claims, 1976 as amended from time to time is

for the time being in force;';

12

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(/i) after sub-section (5), the following sub-sections shall be '•• .serted,

namely:—

"(6) Notwithstanding anythi'g contained in sub-section;, (7) to (4), the

vessels or other property referred to in sub-section (7) sliall be ordered to be

released if the limitation Fund has been constituted,—

(a) in the port where the occurrence took place, or, if it took place

out of port, in the first port of call thereafter;

(b) in the port of disembarkation in respect of claims for loss of life

or personal injury; or

(c) in the port of discharge in respect of damagc.to cargo.

(7) The provision of sub-section (<5) shall apply only if the claimant

brings a claim against the limitation Fund before the High Court administering

the Fund and the Fund is actually available and freely transferable in respect of

that claim

21. For section 352E of the principal Act, the following section shall he substituted,

namely:—

Substitution

of new

section for

section 352E.

Scope of

application.

"352E. (7) The provisions of this Part shall apply whenever any person referred

to in sub-section (7) of section 352A seeks to limit his liability before the Court or

seeks to procure the release of a ship or other property or the discharge of any guarantee

given within the Indian jurisdiction but any person referred to in sub-section (7) of

section 352A who at the time when the provisions under this Part are invoked before

any Court in India does not have his habitual residence in India or does not have his

principal place of business in India or any ship in relation to which the right of limitation

is invoked or whose release is sought and which does not at the time specified above

fly the flag of the State, which is a party to the Convention, is wholly excluded from

the provisions of this Part.

(2) The provisions of this Part shall not be applicable to the following vessels

unless the Central Government, by notification, specify otherwise,—

(a) ships intended for navigation on or around coast of India and registered

as coastal vessels under the provisions of this Act;

(b) ships less than three hundred tons;

(c) air-cushion vehicles;

(d) floating platforms constructed for the purpose of exploring or

exploiting the natural resources of the sea-bed or the subsoil thereof.".

22. After section 352F of the principal Act, the following section shall be inserted,

namely:—

Insertion of

new section

352FA.

Power to

make rules

"352FA. The Central Government may make rules to carry out the purposes of

this Part:

Provided that the rules under this Part shall be made having regard to the

provisions of the Convention.".

23. For section 352H of the principal Act, the following section shall be substituted,

namely:-—

Substitution

of new

section for

section 352H

Definitions.

'352H, In this Part, unless the context otherwise requires,—

(a) "incident" means any occurrence, or series of occurrences having the

same origin, which causes pollution damage or creates a grave and imminent

threat of causing such damage;

SEC. 2]

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13

(b) "Liability Convention means the International Convention on Civil

Liability for Oil Pollution Damage, 1992 as amended from time to time.'.

(e) "oil" means any persistent hydro carbon mineral oil such as crude oil,

fuel oil, heavy diesel oil, lubricating oil whether carried on board a ship as

cargo or in the bunker of such ship:

(d) "owner" means—

(i) the person registered as owner of the ship;

(if) in the absence of registration, the person owning the ship; or

(Hi) in the case of a ship owned by a foreign State, the person

registered in that State as operator of the ship;

(e) "person" means any individual or partnership or any public or private

body, whether corporate or not, including a state or any of its constituent sub-

divisions;

(/) "pollution damage" means—

(i) loss or damage caused outside the ship by contamination

resulting from escape or discharge of oil from the ship, wherever such

escape or discharge occurs, provided that compensation for impairment

of the environment other than losses or profit from such impairment shall

be limited to costs of reasonable measures of reinstatement actually

undertaken or to be undertaken;

(ii) the costs of preventive measures and further loss or damage

caused by such measures;

(g) "preventive measures" means any reasonable measures taken by any

person after the incident to prevent or minimise pollution damage;

(ti) "ship" means any sea-going vessel and sea borne craft of any type

whatsoever constructed or adapted for the carriage of oil in bulk as cargo,

provided that a ship capable of carrying oil and other cargoes shall be regarded

as a ship only when it is actually carrying oil in bulk as cargo and during any

voyage following such carriage unless it is proved that it has no residues of

such carriage of oil in bulk aboard;

(i) "State of the ship's registry", in relation to registered or unregistered

ships, means the State of registration of the ship, or as the case may be, the State

whose flag the ship is flying;

24. In section 352-1 of the principal Act,—

Amendment

of section

352-1

(a) for sub-section (4), the following sub-section shall be substituted,

namely.—

"(4) When any incident involving two or more ships occurs and pollution

damage results therefrom, the owners of all the ships concerned, unless

exonerated under sub-section (3), shall be jointly and severally liable for such

damage which is not reasonably separable.";

(b) for sub-section (6), the following sub-section shall be substituted, namely:—

"(6) Without prejudice to any right of recourse of the owner against third

parties, no claim for compensation for pollution damage may be made against—

(a) the servants or agents of the owner or the members of the crew;

(b) the pilot or any other person who, without being a member of the

crew, renders services for the ship;

14

THE GAZETTE OF INDIA EXTRAORDINARY

[PART l i -

fe) any charterer (howsoever described, including a bare-boat

charterer), manager or operator of the ship;

(cf) any person performing salvage operations with the consent of

the owner or on the instructions of a competent public authority;

(e) any person taking preventive measures;

(f) ali servants or agents of pcR>un;. mentioned iii clauses (c), (d)

and(e),

unless the incident causing such damage occurred as a result of their personal

act or omission committed or made with the intent to cause such damage, or

recklessly and with knowledge that such damage would probably result.".

25. For section 352J of the principal Act, the following section shall be substituted,

namely:—

Substitution

of new

section for

section 352J

Limitation of

liability

"352J. (/) The owner shall be entitled to limit his liability under this Part, in

respect of any one or more incident, as may be prescribed.

(2) The owner shall not be entitled to limit his liability if it is proved that the

incident causing pollution damage occurred as a result of his personal act or omission

committed or made with the intent to cause such damage, or recklessly and with

knowledge that such damage wpuld probably result.".

26. In section 352R of the principal Act, after clause (b), the following clause shall

be inserted, namely:—

Amendment

of section

352R.

"(c) the limits of liability of owner in respect of one or more incident of pollution

damage or other requirements having regard to the provisions of the Liability

Convention.".

27. After Part XB of the principal Act, the following Part shall be inserted, namely:—

Insertion of

new Part XC

'PART XC

INTERNATIONAL OIL POLLUTION COMPENSATION FUND

352S. In this Part, unless the context otherwise requires,—

Definitions.

(a) "contributing oil" means crude oil and fuel oil.

Explanation.—For the purposes of this clause,—

(i) "crude oil" means any liquid hydro carbon mixture occurring

naturally in the earth whether or not treated to render it suitable for

transportation and includes crude oils from which certain distillate fractions

VIHVC been removed or to which certnin distillate fractions have been added;

(if) "fuel oil" means heavy distillates or residues from crude oil or

blends of such materials intended for use as a fuel for the production of

heat or power of a quality equivalent to the 'American Society for Testing

and Materials' Specification for Number Four Fuel Oil (Designation D 396-

69)', or heavier;

(b) "discharge or escape", in relation to pollution damage, means the

discharge or escape of oil earned by the ship;

(c) "Fund" means the International Oil Pollution Compensation Fund

established by the Fund Cnnvention;

(d) "Fund Convention" means the International Convention on the

Establishment of an International Fund for Compensation for Oil Pollution

Damage, 1992 as amended from time to time;

SEC. 2]

7 KB GAZETTE OF INDIA EXTRAORDINARY

15

(e) "Fund Convention country" means a country in which the Fund

Convention is for the time being in force;

(/) "guarantor" means any person providing insurance or other financial

security to cover the owner's liability;

(g) "terminal installation" means any site for the storage of oil in bulk

which is capable of receiving oil from waterbome transportation, including any

facility situated off-shore and linked to such site;

(7i) "ton", in relation to oil, means a metric ton.

352T (7) Contributions to the Fund, in respect of contributing oil carried by sea

to ports or terminal installations in India, shall be payable in accordance with Articles

10 and 12 of the Fund Convention.

Contribution

to the Fund

(2) Sub-section (/) shall apply whether or not the contributing oil is imported,

and notwithstanding that contributions are payable to the Fund m respect of carriage

of the same contributing oil on a previous voyage.

(3) Contributions shall also be payable to the Fund in respect of contributing oil

when first received in any installation in India after having been carried by sea and

discharged in aport or terminal installation in a country which is not a Fund Convention

__ country.

(4) The person liable to pay contributions to the Fund shall be—

(a) in case of contributii'/,1 <<',\ which is being imported into India, the

importer; or

(b) in any other case, the person by whom the oil is received in India.

(5) A person shall nut be liable to pay con*. ibutions to the Fund in respect of the

contributing oil imported or received by him .n aiiy year if the quantity of contributing

oil so imported or received in the year docs not evceed one hundred and fifty thousand

tones or as may be specified from time to time in the Fund Convention.

352U. (/) The contributions payable to the Fund by a person for any year shall

bo,—

Contribution

payable by

persons to the

Fund

(a) such amount as may be determined by the Assembly of the Fund

under Articles 10 and 12 of the Fund Convention;

(b) in such instalments, becoming due at such dates,

as may be notified and if any amount due from such person remains unpaid after the

date on which it became due, it shall from that due date bear interest at a rate determined

by the said Assembly until it is paid.

(2) The Central Government may require persons, who are or may be liable to

pay contributions to the Fund under section 352T, to give financial security for

payment of contributions to that Government or the Fund.

352V. (i) The Central Government may, for the purpose of transmitting to the

Fund the names and addresses of the persons who under section 352T are liable to

make contributions to the Fund every year and the quantity of contributing oil in

respect of which they are so liable, by notice require any such person to furnish such

information as may be specified therein.

Power to call

for

information.

(2) A notice under this section may require a person to give such information as

may be required to ascertain whether he is liable to contribute to the Fund.

16

THE GAZETTE OF INDIA EXTRAORDINARY

[PARFU—

(3) A notice under this section may specify the manner in which, and the time

within which, such notice is to be complied with.

(4) In proceedings by the Fund against any person to recover any amount due

under section 352T, particulars contained in any list transmitted by the Central

Government to the Fund shall, so far as those particulars are based on information

obtained under this section, be admissible as evidence of the facts stated in the list;

and so far as particulars which i"e so admissible are based on information given by the

person against whom the proceedings are brought, those particulars shall be presumed

to be accurate until the contrary is proved.

(5) No person shall disclose any information which has been furnished to or

obtained by him under this section unless the disclosure is made,—

(a) with the consent of the person from whom the information was obtained;

(b) in connection with the compliance of this section;

(c) for the purpose of any legal proceedings arising out of this section or

of any report of such proceedings.

(<5) A person who,—

(a)refuses or wilfully neglects to comply with a notice under this section;

or

(b) makes, while furnishing any information in compliance with a notice

^nder this section, any statement which he knows to be false in a material

particular, or recklessly makes any slxUement which is false in a material particular,

shall be cuilty of an offence punishable under this Act.

352W. Where any person suffering pollution damage has been unable to obtain

full and adequate compensation for the damage under the term:, of the Liability

Convention on any of the grounds specified in Article 4 of the Fund Convention, the

Fund shall be liable for pollution damage in accordance with the provisions of the

Fund Convention.

Liability of

the Fund.

352X. (I) Any action for a claim against the Fund for compensation under

section 352 W shall be brought before the High Court.

Jurisdiction

of Courts.

(2) The Fund shall have the right to intervene as a party to any legal proceedings

instituted in the High Court against the owner or his guarantor.

(3) Where an action for compensation for pollution damage has been brought

against the owner or his guarantor before the High Court each party to the proceedings

may notify the Fund of the proceedings.

(4) Where such notice of proceedings has been given to the Fund, any judgment

given in the proceedings shall, after it has become final and enforceable, become

binding upon the Fund in the sense that the facts and evidence in that judgment may

not be disputed bv the Fund on the ground that it has not intervened in the proceedings.

352 Y. Notwithstanding anything contained in any other law for the time being in

force, no action to enforce a claim against the Fund under this Part shall be entertained

by a High Court unless—

Extinguish-

ment ot

claims.

(a) tho action to enforce is commenced; or

(b) notice of action to enforce a claim against the owner or his guarantor in

respect of the same pollution damage is given to the Fund,

within three years from the date when the damage occurred:

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

17

Provided that in no case an action to enforce a claim shall be brought after six

years from the date of the incident that caused such damage.

352Z. In respect of any sum paid by a public authority in India or the Fund, as

the case may be, as compensation for pollution damage, that authority shall acquire by

subrogation any rights which the person so compensated would have enjoyed under

the Fund Convention.

Subrogation

and right of

recourse.

352ZA. The Central Government may make such rules as may be required tc

carry out the purposes cf the Fund Convention.'.

Power to

nuke ml*;.-.

CHAPTER ffl

AMENDMENT OF THE MAJOR PORT TRUSTS ACT, 196:

28. In section 116 or the Major Port I rusts Act, 1 ybs, tor the portion beginning with

the words "such recovery, by distress and sale," and ending with the words "attributable to

the order, act or improper omission of such employee", the words, letters and figures "such

recovery in accordance with the provisions of Part XA of the Merchant Shipping Act, 1958"

shall be substituted.

44 of 1958.

Amendment

of section

116 of Act 38

of 1963.

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[PART 11—

STATEMENT OF OBJECTS AND REASONS

The Merchant Shipping Act, 1958 governs matters relating to shipping in India. The

main objective of the Act is to ensure devciu[jiuo>it and efficient maintenance of the Indian

mercantile marine. The Act has been amended from time to time in the light of experience

gained in its implementation and also to give effect to the provisions of various International

Conventions to which India has acceded.

2. As an active member of the International Maritime Organisation (IMO), India has

acceded to a number of International Conventions and Protocols adopted by the IMO,

Suitable provisions are required to be made in the Merchant Shipping Act, 195 8 to enable the

Government of India or its agencies to give effect to those Conventions and Protocols,

Besides, amendments of certain provisions of the Act are also required to enable the maritime

administration to meet its operational requirements.

3. The Conventions and protocols for implementation of which provisions are required

to be made in the Merchant Shipping Act, 1958 are outlined as under:—•

The International Maritime Organisation has adopted the International

Convention on Limitation ofLiabilityfor Maritime Claims (LLMQ, 1976 on 19* November,

1976 under which the limitation tonnage is the gross tonnage of the vessel as calcul ated

under the universal measurement system in accordance with the Tonnage Measurement

. of Ships Convention, 1969, The limitation of liability has been extended to any person

for whose neglect or default the shipowner or salvor is responsible. Limitation of

liability will be barred if it is proved that the loss resulted from any personal act or

omission committed by the shipowner or the salvor with the intent to cause such loss

or committed recklessly and with the knowledge that such loss would probably

result. The Safety of Life at Sea (SOLAS) Convention, 1974 was amended in 1988 to

streamline and harmonise the survey of ships and their equipment to ensure safety of

ships proceeding on sea voyages. The Convention on Load Lines, 1966 as amended

in 1988 deals with harmonised system of survey of ships and their certification. The

Civil Liability Convention (CLC), 1992 mainly deals with payment for oil pollution

damages by any ship in the Indian waters up to limits of exclusive economic zone

and by any Indian ship abroad. The Fund Convention, 1992 provides a second tier of

compensation regime where a claimant can proceed against the Fund located in

London that pays for damages.

4. The Bill seeks to amend various provisions of the Act, which, inter alia, include the

following, namely—

(1) sections 76 and 87 are being amended 10 empuwci the Central Government to

prescribe different manning scales for different types of ships and section 95 is being

amended to redefine the role of seamen's employment offices to control and regulate

the manning agents and recruitment and placement service instead of controlling

and regulating the employment of seamen. Section 97 is being amended to bring the

unions within its purview to enable curbing of malpractices by the seamen's unions

and a new section 97 A is being inserted to prohibit any discrimination in recruitment

of seafarers;

(ii) sections 299, 299A, 300, 301, 303 and 307 are being amended to include

the changes made in SOLAS Convention, 1974 as amended in 1988. Section 317 is

being amended to implement the provisions ot the Load Lines Convention, 1966 a.s

amended in 1988 to harmonise the survey and certification procedures with those of

SOLAS Convention, 1974 as amended in 1988;

SEC. 2]

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19

(iii) section 344 is being amended to empower the Central Government to

prescribe the record of equipment and the manner of surveys to be made in respect of

ships;

(iv) sections 352, 352A, 352B, 352C, 352D and 352E are being amended to

enable the Central Government to implement the provisions of the LLMC, 1976. A

new section 352 FA is being added to empower the Central Government to frame

rules;

(v) sections 352H, 352-1, 352J and 352R are being amended to implement the

provisions of CLC, 1992;

(vi) new sections 352S,to 352ZA are being inserted for implementation of the

provisions of the Fund Convention, 1992 ;

(vii) consequent to amendment to section 352A, section 116 of the Major Port

Trusts Act, 1963 is being amended to provide for recovery of damage to the port

properties in accordance with the provisions of Part XA of the Merchant Shipping

Act, 1958;

(viii) the Indian ships which carry country's commercial trade to the outside

world arc subjected to control of the Port State which has the right to inspect such

ships. Hence, the Indian ships are required to carry internationally valid survey

certificates issued in accordance with the procedures established by the International

Maritime Organisation but for which they will be required to undergo surveys at

foreign ports at the time they call at those ports. The proposed amendments of the

Merchant Shipping Act, 1958 will enable the Government of India to take care of these

aspects.

5. The Bill seeks to achieve the above objects.

VEDPRAKASH P. GOYAL.

20

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[PART II—

Notes on clauses

Clause! of the Bill seeks to amend section 76 of the Merchant Shipping Act, 1958 to

empower the Central Government to prescribe different manning scales for different types

of ships and the number of persons and qualifications with which different types of ships

shall engage such persons for maintaining watches.

Clause 3 seeks to amend section 87 to provide the number of persons and the

qualifications they may possess for maintaining watches may be engaged by different

types of ships at sea or in any port or place.

Claused seeks to amend section 95 to re-define the role of the seamen's employmept

offices which will now issue licence, regulate and control the recruitment and placement

service instead of controlling and regulating the employment of seamen.

Clause 5 seeks to substitute section 97 to provide that a person, company or

organisation including a union purporting to represent the interests of the seamen shall not

demand or receive either directly or indirectly, from any seaman or person seeking

employment as a seaman or person' on his behalf, any remuneration or donation or fees or

compulsory subscription of any kind attributable from such seaman or person's employment

as seamen, other than the fees authorised under the Act.

Clause 6 seeks to insert a new section 97A to prohibit any discrimination between

seamen for employment on the grounds of either membership of any particular union or the

training institute from where they obtained training or the place of issue of their continuous

discharge certificates.

Clause 7 seeks to substitute the sub-heading above section 299 because certain

expressions therein have become irrelevant due to installation of radio communication

equipment on board1 ships.

Clause 8 seeks to amend section 299 by substituting certain expressions which have

become irrelevant consequent upon the adoption of Global Maritime Distress and Safety

System. Further, the amendment provides that the certificates issued under sections 299,

300 and 301 shall be supplemented by a record of equipment in the prescribed form as

required by the Safety of Life at Sea Convention, 1974.

Clause 9 seeks to amend section 299A to provide for the Central Government to

authorise any person to issue cargo ship safety construction certificate, cargo ship safety

certificate, qualified cargo ship safety construction certificate or qualified cargo ship

construction certificate in the prescribed form and also to provide that the owner of

every ship in respect of which a certificate is issued under section 299A, section 300 or

section 301 shall, so long as the certificate remains in force, cause the ship to be surveyed

in the manner as specified in the Safety Convention or in cases where the manner specified

is not applicable, in such manner as the rules made in this behalf prescribe, as the case

may be.

. ,

Clause 10 seeks to substitute section 300 to provide for the Central Government or

any person authorised by it may issue a qualified cargo ship safety equipment certificate or

a qualified cargo ship equipment certificate in the prescribed form.

Clause 11 seeks to substitute section 301 to provide that the Central Government or

any person authorised by it may issue cargo ship safety radio certificate and qualified cargo

ship safety radio certificate in the prescribed form.

Clause 12 seeks to substitute section 303 to provide for shorter period of validity for

various safety certificates issued to passenger and cargo ships. It also provides that the

Central Government or any person authorised by it may grant an extension of any certificate

issued in respect of an Indian ship.

SEC. 2]

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21

Clause 13 seeks to amend section 307 to substitute certain irrelevant expressions

with new expressions due to advancement in technology,

Clause 14 seeks to amend section 317 by insertion of a new proviso after the existing

proviso in sub-section (1) to provide that when the survey for the purpose of issue of

certificate under sub-section (1) of section 316 is completed within three months before the

expiry date of the existing certificate, the new certificate may be valid for a period of five

years from the date of expiry of the existing certificates. It also provides grounds where a

certificate shall Cease tu ue valid. Fuiliici, ii empowers the Central Government or any

person authorised by it to extend the period of validity of the certificate for the purpose of

completing the voyage to the port in which it is to be surveyed.

Clause 15 seeks to substitute clause (a) of sub-section (2) of section 344 to provide

that the Central Government may prescribe the form of any certificate, record of equipment

and the manner of surveys in respect of those ships to which the manner of surveys specified

in the Safety Convention is not applicable,

Clause 16 seeks to amend section 352 to define various expressions on the lines of

the Convention on Limitation of Liability for Maritime Claims (LLMC), 1976.

Clause 17 seeks to substitute section 352A to provide for limitation of liability for

damages in respect of certain maritime claims in accordance with the provisions of the

Convention on Limitation of Liability for Maritime Claims (LLMC), 1976.

Clause 18 seeks to substitute section 352B to provide for limitation of liability in

accordance with the provisions of the Convention or the rules made therefor, as the case

may be.

Clause ] 9 seeks to amend section 352C of thcAct to provide for setting of a limitation

Fund and production of a bank guarantee to settle the liability in respect of maritime claims

in accordance with the provision of the Convention on Limitation of Liability of Maritime

Claims (LLMC), 1976 as amended from time to time.

Clause 20 seeks to amend section 352D to redefine the "Convention Country" on

lines of the Convention on Limitation of Liability of Maritime Claims (LLMC), 1976 as

amended from time to time and to insert a new sub-sections (6) and (7) to define the

condition when the vessel or property shall be ordered to be released in case of setting up

of limitation Fund and to specify when the provisions of sub-section (6) shall apply.

Clau$e2\ soeks to substitute section 352E to redefine the scope of application of the

provisions of Part XA of the Act in accordance with the provisions of the convention on

Limitation of Liability of Maritime Claims (LLMC), 1976.

Clause!! seeks to insert a new section 352FA to empower the Central Government to

make rules to carry out the purposes of Part XA of the Act having regard to the provisions of

the Convention on Limitation of Liability of Maritime Claims (LLMC), 1976 as amended

from time to time.

Clause 23 seeks to amend section 352H to define various t;xpie:»&ioii;> OJI the lines uf

the Convention on Civil Liability, 1992.

Clause!^ seeks to amend section 352-1 to provide that in case of an incident involving

two or more ships occur resulting'into pollution damage the owners of all ships, unless

exonerated, shall be jointly and severally liable for such damage which is not reasonably

separable. Sub-section (6) is substituted to specify the parties against whom no claim for

compensation for pollution damage may be made.

Clause 25 seeks to substitute section 352J to provide for limitation of liability in

accordance with the provisions of the Convention on Civil Liability, 1992.

Clause 26 seeks to amend section 352R to insert a new clause (c) to empower the

Central Government to make rules to specify the limits of liability in respect of pollution

damage on the lines of the Convention on Civil Liability, 1992.

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THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

Clause 27 seeks to insert a new Part XC to the Act comprising sections 352S to

352ZA incorporating the provisions of the Fund Convention, 1992. This Pnrt provides as

to who shall or shall not be liable to pay contributions to the Fund and the manner in which

contribution to the Fund shall be payable, the quantum of amount payable to be determined

by the Assembly of the Fund, requirement for giving financial security for payment of

contribution to the Central Government or the Fund, the power of Central Government to call

for information from persons who are liable to make contribution to the Fund for the purpose

of transmitting the same to the Fund, action to enforce a claim against the Fund to be

entertained within three years from the date when the damage occurred provided certain

conditions are fulfilled and the Central Government to make rules that may be required for

carrying out the purposes of the Fund Convention.

Clause 28 seeks to amend section 116 of the Major Port Trusts Act, 1963 to provide

for the recovery of damage to the port properties in accordance with the provisions of Part

XA of the Merchant Shipping Act, 1958.

SEC. 2]

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MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 2 of the Bill empowers the Central Government to prescribe different manning

scales for different types of ships and the number of persons and qualifications with which

ships shall engage such persons for different types of maintaining watches. Clause 4 empowers

the Central Government to specif}' the Wy of fri1 nnd mllertion thereof by the seamen's

employment offices for issue of licences to recruitment and placement services or renewal of

licences, and the services to be rendered by the seamens1 employment offices. It also empowers

the Central Government to issue directions to the seamens' employment office or any

recruitment and placement services with reference to the conditions under which the seafarers

are to be placed abroad by the recruitment and placement service, circumstances and

conditions under which licence to be suspended or withdrawn and the conditions under

which seafarers' personal data to be processed by the recruitment and placement services

including the collection, storage, combination and communication of such data to the third

parties. Clause 8 requires that certificates issued under sub-sections (1) and (2) of section

299, sub-sections (1) and (2) of section 300 and section 301 shall be supplemented by a

record of equipment in the prescribed form. Clause 9 empowers the Central Government to

provide the manner, wherever necessary, for survey of ships for the purpose of issuing of

certificate under sub-section (1) or sub-section (2) of section 299A, sub-section (I) or

sub-section (2) of section 300 or section 301. Clause 12 empowers the Central Government

to frame rules, wherever necessary, to specify the manner of completing surveys for renewal

of certificates or otherwise. Clause 22 empowers the Central Government to frame rules

with regard to the provisions of the Convention on Limitation of Liability of Maritime

Claims (LLMC), 1976 to carry out the purposes of Part XA of the Act, Clause 26 provides

that the owner shall be entitled to limit his liability under Part XB of the Act, in respect of

any one or more incidents, as may be prescribed. Clause 27 empowers the Central

Government to frame rules to carry out the purposes of the International Convention on the

Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992.

2. The matters in respect of which rules may be made are matters of procedure and

administrative detail and jt is not practicable to provide for all the matters in the Bill. The

delegation of legislative power is, therefore, of a normal character.

R.C.TRIPATHI,

Secretary-General

PUBLISHED BY THE SECRET/\RY-GENERAL, RAJYA SABHA UNDFR RUIPS 68 OF THE RULES OF

PROCEDURE AND CONDUCT OF BUSINESS IN THE RAJYA SAUIIA, 2002.

MQIP(PLU)MRND—2770QI—31-8-2002.