LOK SABHA

————

The following Bills were introduced in Lok Sabha on 16th December, 2016:—

BILL NO. 236 OF 2016

A Bill to consolidate and amend the law relating to merchant shipping to ensure compliance

with the country's obligation under the maritime treaties and International

Instruments to which India is a party and also to ensure the efficient maintenance of

Indian mercantile marine in a manner best suited to serve the national interest.

BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as

follows:—

PART I

PRELIMINARY

1. (1) This Act may be called the Merchant Shipping Act, 2016.

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

appoint, and different dates may be appointed for different provisions of this Act.

2. (1) Unless otherwise expressly provided, the provisions of this Act shall apply

to,—

(a) any vessel which is registered in India; or

Short title and

commencement.

Application of

Act.

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REGISTERED NO. DL—(N)04/0007/2003—16

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THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(b) any vessel which is required by this Act to be so registered, wherever it may

be.

(2) Unless otherwise expressly provided, the provisions of this Act which apply to

vessels other than those referred to in sub-section (1) shall so apply only while any such

vessel is within India or in waters within the jurisdiction of India.

(3) Subject to sub-section (2) and unless otherwise expressly provided, the provisions

of this Act shall not apply to Indian controlled tonnage vessels.

3. In this Act, unless the context otherwise requires,—

(1) "1992 Liability Convention" means the International Convention on Civil

Liability for Oil Pollution Damage, 1992;

(2) "Anti-Fouling Systems Convention" means International Convention on

control of harmful antifouling systems on ships, 2001;

(3) "audit" means a systematic and independent examination to determine

whether the Management System as provided in safety convention complies with the

planned arrangements and such arrangements are implemented effectively and are

sufficient to achieve the desired objectives;

(4) "Ballast Water Management Convention" means the International

Convention for the Control and Management of Ships' Ballast Water and Sediments,

2004;

(5) "certificate of competency" or "certificate of proficiency" means the certificate

of competency or certificate of proficiency, as the case may be, granted under

sub-section (1) of section 52;

(6) "coasts" include the coasts of creeks and tidal waters.

Explanation.—For the purposes of this clause, the expression "tidal waters"

means any part of the sea and any part of a river within the ebb and flow of the tide at

ordinary spring tides and not being a harbor;

(7) "Coasting trade of India" means,—

(a) the carriage by sea of goods, passengers from any port or place in

India to any other port or place in India, or

(b) performing any service within waters in the jurisdiction of India,

including the zones as defined under the Territorial Water, Continental Shelf,

Exclusive Economic Zones and other Maritime Zones of India Act, 1976;

(8) "company" means a company as defined in clause (20) of section 2 of the

Companies Act, 2013;

(9) "convention" means any International Convention or Treaty or Agreement

in relation to maritime matters and their Protocols to which India is a party;

(10) "convention certificate" means a certificate issued under the provisions of

any convention;

(11) "court", in relation to any proceedings, includes any court having jurisdiction

in the matter to which the proceedings relate;

(12) "Director-General" means the Director-General of Shipping appointed under

sub-section (1) of section 6;

(13) "distressed seafarer" means a seafarer engaged under this Act, who by

reason of having been discharged or left behind or abandoned from a ship including of

any captivity not in accordance with law, or shipwrecked, is in distress;

80 of 1976.

18 of 2013.

Definitions.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

3

(14) "equipment", in relation to a vessel, includes boats, tackle, machinery,

boilers, cargo handling gear, pumps and any fitting, anchor, propeller, apparels, furniture,

life-saving appliances of every description, spars, masts, rigging and sails, fog signals,

lights, shapes and signals of distress, medicines and medical and surgical stores and

appliances, charts, radio installations, appliances for preventing, detecting or

extinguishing fires, buckets, compasses, axes, lanterns, loading and discharging gears

and appliances of all kinds and all other stores and spares or articles belonging to or to

be used in connection with or necessary for the navigation, propulsion, security,

pollution prevention and safety of the vessel;

(15) “family” means —

(i) in the case of male, his wife, his children whether married or unmarried,

his dependent parents and his deceased son's widow and children:

Provided that if a person proves that his wife has ceased under the personal

law governing him or the customary law of the community to which the spouses

belong, to be entitled to maintenance, she shall no longer be deemed to be a part

of such person's family for the purposes of this Act, unless such person

subsequently intimates by express notice in writing to the Central Government

that she shall continue to be so regarded; and

(ii) in the case of female, her husband, her children, whether married or

unmarried, her dependent parents, her husband's dependent parents and her

deceased son's widow and children:

Provided that if a person by notice in writing to the Central Government

expresses her desire to exclude her husband from the family, the husband and

his dependent parents shall no longer be deemed to be a part of such person's

family for the purpose of this Act, unless such person subsequently cancels in

writing any such notice.

Explanation.— In either of the above two cases, if the child, or, as the

case may be, the child of deceased son of a person has been adopted by another

person and if, under the personal law of the adopter, adoption is legally recognised,

such a child shall be considered as excluded from the family of the first mentioned

person;

(16) "fishing vessel" means a vessel which is exclusively engaged in fishing in

the seas;

(17) "gross tonnage" means the measure of the overall size of a vessel determined

in accordance with the rules made in this behalf;

(18) "High Court", in relation to a vessel, means a High Court within the limits of

whose appellate jurisdiction,—

(a) the port of registry of the vessel is situate, or

(b) the vessel is for the time being, or

(c) the cause of action, wholly or in part, arises;

(19) "Indian consular officer" means the consul-general, consul, vice-consul,

consular agent and pro consul appointed as such by the Central Government and

includes any person authorised by the Central Government to perform the functions of

consul-general, consul, vice-consul, consular agent and pro consul;

(20) "Indian controlled tonnage vessel" means an Indian vessel, other than an

fishing vessel or sailing vessel, registered at a port or place in a country other than

India under sub-section (2) of section 14;

4

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(21) "Indian ship" or "Indian vessel" means a ship or a vessel, as the case may

be, which is substantially owned by the person referred to in sub-section (3) of section 14;

(22) "LLMC Convention" means the convention on Limitation of Liability for

Maritime Claims, 1976;

(23) "Maritime Labour Convention" means the Maritime Labour Convention,

2006;

(24) "MARPOL Convention" means the International Convention for the

Prevention of Pollution from Ships, 1973 and Protocols;

(25) "master" includes any person (except a pilot or a Harbour Master) having

command or charge of a vessel;

(26) "notification" means a notification published in the Official Gazette and the

expression "notified" shall be construed accordingly;

(27) "owner", in relation to a vessel, means the person to whom the vessel or a

share in the vessel belongs;

(28) "passenger" means any person carried on board a vessel, except—

(a) a person employed or engaged in any capacity on board the vessel on

the business of the vessel;

(b) a person on board the vessel either in pursuance of the obligations

laid upon the master to carry shipwrecked, distressed or other persons or by

reason of any circumstances which neither the master nor the charterer, if any,

could have prevented or forestalled; and

(c) a child under one year of age;

(29) "passenger vessel" means a vessel carrying more than twelve passengers;

(30) "Pollution damage" means,—

(a) loss or damage caused outside the vessel resulting from the escape,

emission or discharge of cargo, oil or any other material from the vessel, wherever

such escape, emission or discharge may occur, or

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

by preventive measures;

(31) "Pollution prevention convention" means any convention relating to

prevention of pollution from vessels, to which India is a Party; including MARPOL

Convention, Anti-fouling Systems Convention and Ballast Water Management

Convention;

(32) "port" means the port as defined in clause (4) of section 3 of the Indian

Ports Act, 1908;

(33) "port authority" means,—

(a) in relation to any major port, the Board of Trustees, or, as the case may

be, the Board of Directors, in respect of that port constituted under any law for

the time being in force;

(b) in relation to any other port, the conservator of the Port appointed

under section 7 of the Indian Ports Act, 1908;

(c) in relation to any terminal or place not forming a part of a port, the

person under whose supervision the terminal or place is operated;

(34) "port of registry", in relation to a vessel, sailing vessel, fishing vessel or

any other vessel, means the port at which she is registered or is to be registered;

15 of 1908.

15 of 1908.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

5

(35) "prescribed" means prescribed by rules made under this Act;

(36) "Principal Officer" means an officer referred to in section 9 of this Act;

(37) "proceeding" includes any suit, appeal or application under this Act;

(38) "proper officer" means the officer designated by the Central Government to

be the proper officer at the port or place and in respect of the matter to which the

reference is made in the provision of this Act, in which the expression occurs;

(39) "proper return port" means such port as is agreed upon by the seafarer, and

his employer in the agreement or otherwise, or in the absence of agreement, the port

where the seafarer was employed or joined the vessel;

(40) "property", in relation to a seafarer, includes personal effects;

(41) "reception facilities", in relation to a port, terminal, ship yard, ship repair,

facility or ship recycling facility, means facilities for enabling vessels using the port,

terminal, ship yard, ship repair facility or ship recycling facility to discharge or deposit

any substance subject to control by the Pollution prevention conventions;

(42) "Registrar" means the Registrar referred to in section 15;

(43) "registered owner" means the person or persons registered as the owner of

the vessel;

(44) "removal" means any form of prevention, mitigation or elimination of the

hazard created by a wreck, and the expressions "remove", "removed" and "removing"

shall be construed accordingly;

(45) "rule" means the rule made under this Act;

(46) "Safety Convention" means the International Convention for the Safety of

Life at Sea, 1974 and its Protocols;

(47) "sailing vessel" means any wooden vessel of primitive build provided with

sufficient sail area for navigation under sails alone, whether or not fitted with mechanical

means of propulsion, but does not include a pleasure craft.

Explanation.— For the purposes of this clause "wooden vessel of primitive

build" means a wooden vessel of traditionally built not primarily propelled;

(48) "Salvage" means any act or activity undertaken to assist a vessel or any

other property in danger in navigable waters or in any other waters whatsoever;

(49) "Salvage Convention" means the International Convention on Salvage,

1989;

(50) "salvor" means any person rendering services in direct connection with

salvage operation;

(51) "sea-going", in relation to a vessel, means a vessel proceeding or intending

to proceed beyond waters declared to be inland waters by the Central Government or

State Government by notification;

(52) "seafarer" means any person who is employed or engaged or works in any

capacity on board a sea-going vessel, but does not include,—

(i) a person who is in the employment or engagement or work on board in

any capacity in a warship or any Government vessel used for military or non-

commercial purposes, or

(ii) any other person as the Central Government may, by notification,

specify;

6

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(53) "seafarer's employment office" means the seafarer's employment office

established under sub-section (1) of section 11;

(54) "seafarer's welfare officer" means the seafarer's welfare officer appointed

under sub-section (1) of section 12;

(55) "seaworthy", in respect of a vessel, means, if she is in possession of all

valid certificates required under this Act and is in a fit state as to the material,

construction, condition of hull and equipment, and machinery; management of safety,

security and pollution prevention, the stowage of ballast or cargo, the number, and in

every other respect, fit for the voyage or service including with the living and working

conditions on board the vessel to not pose a threat to the health, safety or welfare of

the vessel's seafarers;

(56) "ship" means any watercraft, used or capable of being used in navigation

by its own propulsion, in, above, or under the water, but does not include fishing

vessels or sailing vessels;

(57) "ship owner" means the owner including the registered owner, bareboat

charterer, manager and operator of the vessel;

(58) "shipping master" means the shipping master appointed under section 10:

Provided that in relation to any seafarer for the purposes of section 89, means a

shipping master referred to in that section,—

(a) for the port at which the seafarer entered into, or is believed to have

entered into, an agreement, or

(b) where the seafarer did not enter into his agreement in India, for the port

to which the seafarer has returned, or is expected to return, on the completion of

his latest voyage;

(59) "shipping office" means the shipping office established under section 10;

(60) "special trade" means the conveyance of large number of passengers by

sea within the areas specified in the STP Agreement.

Explanation.—The expression "STP Agreement" means the Special Trade

Passenger Ship Agreement, 1971 and Protocol on Space Requirement for Special Trade

Passenger Ships, 1973;

(61) "special trade passenger" means a passenger carried in special trade

passenger vessel in spaces on the weather deck or upper deck or between decks

which accommodate more than eight passengers;

(62) "special trade passenger ship" means a mechanically propelled ship carrying

more than thirty special trade passengers;

(63) "STCW Convention" means the International Convention on Standards of

Training, Certification and Watchkeeping for Seafarers, 1978;

(64) "surveyor" means a person appointed under sub-section (1) of section 7;

(65) "tanker" means a vessel constructed or adapted primarily to carry liquid or

gas in bulk in its cargo space and includes combination carriers and any other type of

vessel when it is carrying a cargo or part cargo of liquid or gas in bulk;

(66) "tindal" means the person in command or charge of a sailing vessel;

(67) "Tribunal" means the Tribunal constituted under sub-section (1) of

section 83;

(68) "unseaworthy vessel" is a vessel which is not seaworthy;

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

7

(69) "vessel" includes every description of water craft used or capable of being

used in the marine environment, such as ship, boat, sailing vessel, fishing vessel,

submersible, semi-submersible, hydrofoils, non-displacement crafts, amphibious crafts,

wing-in-ground crafts, pleasure crafts, barges, lighters, Mobile Offshore Drilling Units,

Mobile Offshore Units, or of any other description;

(70) "wages" include emoluments;

(71) "wreck" includes the following on a maritime casualty, namely:—

(a) a sunken or stranded vessel;

(b) any part of a sunken or stranded vessel, including any object or

goods or cargo that is or has been on board such a vessel;

(c) any object or goods or cargo that is lost at sea from a vessel and that

is stranded, sunken or adrift at sea;

(d) a vessel that is in distress or is about, or may reasonably be expected,

to sink or to strand, where effective measures to assist the vessel or any property

in danger are not already being taken; or

(e) a vessel abandoned without hope or intention of recovery.

PART II

ESTABLISHMENT OF BOARD AND

GENERAL ADMINISTRATION

CHAPTER I

ESTABLISHMENT OF NATIONAL SHIPPING BOARD AND SEAFARERS WELFARE BOARD

4. (1) The Central Government may, by notification, establish a National Shipping

Board (hereinafter referred to as the Shipping Board) for the purposes of this Act.

(2) The Shipping Board shall consist of the following members, namely:—

(a) six members of Parliament of whom four shall be elected from amongst

themselves by members of the House of the People and two from among themselves

by the members of the Council of States,

(b) such number of other members, not exceeding sixteen as the Central

Government may think fit to appoint to the Shipping Board, to represent,—

(i) the Central Government,

(ii) ship-owners,

(iii) seafarers, and

(iv)such other interest as in the opinion of the Central Government ought

to be represented on the Shipping Board:

Provided that the Shipping Board shall include an equal number of persons representing

the ship owners and seafarers.

(3) The term of a member elected under clause (a) of sub-section (2) shall come to an

end as soon as he ceases to be a member of the House from which he was elected.

(4) The Central Government shall nominate one of the members of the Shipping Board

to be the Chairperson of the Shipping Board.

(5) The Shipping Board shall advise the Central Government,—

(a) on matters relating to Indian shipping including the development thereof;

and

Establishment

of National

Shipping

Board.

8

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(b) on such other matters arising out of this Act as the Central Government may

refer to it for advice.

(6) The Shipping Board shall have power to regulate its own procedure.

(7) The Central Government may make rules for all or any of the following matters,

namely:—

(a) the term of office of members of the Shipping Board;

(b) the manner of filling vacancies in the Shipping Board;

(c) the travelling allowances and other allowances payable to the members of

the Shipping Board;

(d) the manner of appointment of officers and other employees of the Shipping

Board and the terms and conditions of their service.

5. (1) The Central Government may, by notification, constitute a Seafarers Welfare

Board (hereinafter referred to as the Welfare Board) for the purposes of advising the Central

Government on the measures to be taken for promoting the welfare of the seafarer under this

Act, generally and in particular the following matters, namely:—

(a) the establishment of hostels or boarding and lodging houses for seafarer;

(b) the establishment of clubs, canteens, libraries and other like amenities for the

benefit of seafarer;

(c) the establishment of hospital and provision of medical treatment for seafarer;

(d) the provision of educational and other facilities for seafarer;

(e) the measures to be taken for welfare of distressed seafarer;

(f) the measures to be taken in the case of seafarer who is a foreigner but

abandoned in the waters within the jurisdiction of India;

(g) any other measures to be taken for promoting the welfare of seafarer.

(2) The Central Government may make rules providing for,—

(a) the composition of the Welfare Board and the term of office of members

thereof;

(b) the procedure to be followed in the conduct of business by the Welfare

Board;

(c) the travelling and other allowances payable to the members of the Welfare

Board;

(d) the rate of levy of fee payable by owners of vessels for the purposes of

providing amenities to seafarer and for taking other measures for the welfare of the

seafarer;

(e) the procedure by which any such fee may be collected or recovered and the

manner in which the proceeds of such fees, after deduction of the cost of collection,

shall be utilised for the purpose specified in clause (d).

CHAPTER II

GENERAL ADMINISTRATION

6. (1) The Central Government may, by notification, appoint a person to be the Director-

General of Shipping for the purposes of exercising or discharging the powers, authority or

duties conferred on or imposed by or under this Act.

(2) The Central Government may, by general or special order, direct that any power,

authority or jurisdiction exercisable by it under or in relation to any such provisions of this

Constitution

of

Seafarer

Welfare Board.

Director-

General of

Shipping.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

9

Act as may be specified in the order shall, subject to such conditions and restrictions as may

be so specified, be exercisable also by the Director-General or such other officer as may be

specified in the order.

(3) The Director-General may, with the previous approval of the Central Government,

by general or special order, direct that any power or authority conferred upon or delegated

to, and any duty imposed upon him by or under this Act may, subject to such conditions and

restrictions as he may think fit to impose, be exercisable or dischargeable also by such officer

or other authority as he may specify in this behalf.

(4) Every officer appointed under this Act shall discharge his functions under the

general superintendence and control of the Director- General.

7. (1) The Central Government may, by notification, appoint at such port or place as it

may consider necessary, as many persons as it may think fit to be surveyors for the purposes

of this Act.

(2) Without prejudice to the provisions of sub-section (1), in case of cargo vessel, the

Central Government, may, by notification, authorise any person or body of persons, on such

terms and conditions as may be specified therein, to be surveyor or surveyors for the

purposes of this Act.

Explanation.— For the proposes of this sub-section, "cargo vessel" means a vessel

which is not a passenger vessel.

(3) The surveyor shall be nautical surveyor, ship surveyor, engineer and ship surveyor

or junior ship surveyor and includes Deputy Nautical Advisor, Deputy Chief Surveyor,

Deputy Chief Ship Surveyor, Principal Officer, Chief Ship Surveyor, Chief Surveyor and

Nautical Advisor.

(4) At any port or place at which no surveyor appointed under this section is available,

the Central Government may, by notification, appoint any qualified person to perform the

functions of a surveyor under this Act.

8. The Central Government may, by notification, appoint, as many Radio Inspectors as

it may consider necessary for the purpose of securing that the requirements of this Act and

the rules made thereunder relating to radio communication are complied with.

9. (1) The Central Government may establish and maintain at the ports of Mumbai,

Kolkata, Chennai, Kochi, Kandla and such other ports or places in India, as it may consider

necessary, an office of the Mercantile Marine Department for the administration of this Act

and the rules made thereunder.

(2) The office of the Mercantile Marine Departments at the ports of Mumbai, Kolkata,

Chennai, Kochi, Kandla and any other port or place as notified by the Central Government

shall be in the charge of the Principal Officer, and the office at any other port or place shall be

in the charge of such officer as the Central Government may appoint in this behalf.

10. (1) The Central Government may, by notification, establish a shipping office at

every port in India in which it thinks it necessary so to do, and shall appoint thereto a

shipping master and as many deputy shipping masters and assistant shipping masters as it

may consider necessary.

(2) The Central Government may direct that at any port at which no separate shipping

office is established, the whole or any part of the business of the shipping office shall be

conducted at the Mercantile Marine Department, or at the office of the port officer or at such

other office as the Central Government may specify, and thereupon the same shall be

conducted accordingly.

(3) All acts done by or before a deputy shipping master, an assistant shipping master

and the officer to whom any business of the shipping office is committed under

sub-section (2) shall have the same effect as if done by or before a shipping master for the

purposes of this Act.

Surveyor.

Radio

Inspector.

Mercantile

Marine

Department.

Shipping

Office.

10

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

11. (1) The Central Government may, by notification, establish at every port in India in

which it thinks it necessary so to do, a seafarer's employment office and shall appoint thereto

a director and as many deputy directors and assistant directors as it may consider necessary.

(2) All acts done by or before a deputy director or assistant director shall have the

same effect as if done by or before a director for the purposes of this Act.

(3) The Central Government may, by notification, direct that at any port at which no

separate seafarer's employment office is established, the functions of the seafarer's employment

office in that port shall be discharged by such person or body of persons as it may specify

in the notification, and thereupon the office of the person or body of persons so specified

shall be deemed to be the seafarer's employment office established at that port for the

purposes of this Act.

Explanation.—For the removal of doubts, it is hereby clarified that, on and from the

date of commencement of this Act, all the existing seamen's employment offices shall be

deemed to have been established as the seafarer employment offices under sub-section (1)

of this section.

12. (1) The Central Government may appoint seafarer's welfare officers at such ports

in or outside India as it may consider necessary.

(2) A seafarer's welfare officer appointed under sub-section (1) shall perform,—

(a) in the case of any such officer appointed at any port in India, such functions

in relation to welfare of seafarers as may be assigned to him by the Central Government;

(b) in the case of any such officer appointed at any port outside India, such

functions in relation to welfare of seafarers and such functions of an Indian consular

officer under Part V as may be assigned to him by the Central Government.

(3) If any seafarer's welfare officer appointed at any port outside India performs any

functions assigned to an Indian consular officer under Part V, such functions shall have the

same effect as if they had been performed by an Indian consular officer for the purposes of

that Part.

Explanation.—For the removal of doubts, it is hereby clarified that, on and from the date

of commencement of this Act, all the seamen's employment officers shall be deemed to have

been appointed as seafarer's welfare officers under sub-section (1) of this section.

PART III

REGISTRATION OF VESSELS

13. This Part shall apply to sea-going vessels.

CHAPTER I

REGISTRATION OF INDIAN VESSELS

14. (1) Every Indian vessel, shall be registered under this Part at a port or place in

India, as the Central Government may, by notification, declare to be a port of registry under

this Act:

Provided that the vessels registered under the provisions of the Coasting Vessels

Act, 1838 shall be re-registered under the provisions of this Part within a period of one year

from the date of coming into force of this Part:

Provided further that any vessel registered on the commencement of this Act at any

port in India under any enactment repealed by this Act, except the vessels registered under

the Coasting Vessel Act, 1838, shall be deemed to have been registered under this Part and

shall be recognised as an Indian vessel:

Provided also that, subject to any exemptions or modifications, as the case may be,

made by the Central Government, all vessels belonging to the Government, other than vessels

Seafarer's

Employment

Office.

Seafarer's

welfare

officer.

Application of

Part.

Obligation to

register.

19 of 1838.

19 of 1838.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

11

of the Indian Navy, Indian Coast Guard, Customs Authorities, Central Paramilitary Forces,

Coastal Police and other Police Agencies, shall be registered under this Act.

(2) Nothwithstanding anything contained in sub-section (1), an Indian vessel, may

be, subject to such conditions as may be prescribed, registered in a country other than India.

(3) No vessel shall be an Indian vessel or an Indian controlled tonnage vessel unless

such vessel is substantially owned by any of the following persons, namely:—

(a) a citizen of India; or

(b) a company or a body established by or under any Central Act or State Act

which has its principal place of business in India; or

(c) a co-operative society registered or deemed to be registered under the

Co-operative Societies Act, 1912 or any other law relating to a co-operative society for

the time being in force in any State.

Explanation.—For the purposes of this sub-section, "substantially owned" means

having more than fifty per cent. of the shares of the ownership of the vessel.

(4) If an Indian vessel is proceeding to sea without its valid certificate of registry, such

Indian vessel shall be detained until it produces its valid certificate of registry to the proper

officer.

15. (1) At any port, the Principal Officer of the Mercantile Marine Department, shall be

the Registrar of Indian vessels at that port, and at any other place in India such authority as

the Central Government may, by notification, appoint, shall be the Registrar of Indian vessels

at that place.

(2) Every Registrar shall keep a register book and entries in that book be made, and

maintain the records of vessels registered under the provisions of this Act, in such manner

as may be prescribed.

16. An application for the registry of an Indian vessel shall be made to the Registrar in

such form and manner as may be prescribed.

17. (1) The owner of every Indian vessel in respect of which an application for registry

is made shall cause such vessel to be marked, surveyed and measured by a surveyor and the

tonnage of the vessel ascertained before registry in such manner as may be prescribed.

(2) The surveyor shall grant a certificate specifying the tonnage, build and such other

particulars descriptive of the identity of the vessel as may be prescribed and the certificate of

the surveyor shall be delivered to the Registrar before registry.

18. (1) Where it appears to the Registrar that there is any doubt as to the title of any

Indian vessel to be registered as an Indian vessel, he may require evidence to be given to his

satisfaction that the vessel is entitled to be registered as an Indian vessel.

(2) If no evidence is given to the satisfaction of the Registrar that the vessel is entitled

to be registered as an Indian vessel under sub-section (1), the vessel shall be liable to

forfeiture.

19. (1) On completion of the registry of an Indian vessel, the Registrar shall grant a

certificate of registry containing the particulars respecting her as entered in the register

book.

(2) A tonnage certificate shall be issued to every vessel, the gross tonnage and net

tonnage of which have been determined in accordance with the provisions of this Act.

(3) In the event of the certificate of registry of an Indian vessel being defaced or

mutilated, the Registrar of her port of registry may, on the delivery to him of that certificate or

on submission of a declaration by the owner to the effect that certificate has been lost or

destroyed, grant a new certificate in lieu of her original certificate.

Registrar of

Indian vessels.

2 of 1912.

Application

for registry.

Marking,

survey and

measurement

of vessels

before

registry.

Power of

Registrar to

inquire into

title of Indian

vessel to be

so registered.

Grant of

certificate of

registry.

12

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

Explanation.—For the purposes of this section "net tonnage" means the measure of

the useful capacity of a vessel determined in accordance with the rules made in this behalf.

20. (1) The certificate of registry shall be used only for the lawful navigation of the

vessel, and shall at all times remain in the custody of the person in charge of the vessel, and

shall not be subject to detention by reason of any title, lien, charge or interest whatever, had

or claimed by any owner, mortgagee or other person to, on or in the vessel.

(2) No person, whether interested in a vessel or not who has in his possession, or

under his control the certificate of registry of a vessel, shall refuse or omit without reasonable

cause to deliver such certificate on demand to the person entitled to the custody thereof for

the purposes of the lawful navigation of the vessel, or to any Registrar or other person

entitled by law to require such delivery.

(3) If the master or owner of an Indian vessel uses or attempts to use for her navigation

a certificate of registry not legally granted in respect of the vessel, he shall be guilty of an

offence under this sub-section and the vessel shall be liable to forfeiture.

21. Whenever a change occurs in the registered ownership of an Indian vessel, the

owner of the Indian vessel shall, for the purpose of endorsement of change of ownership,

deliver the certificate of registry to the Registrar who shall make an endorsement for that

purpose in such manner as may be prescribed.

22. In the event of a registered vessel being either actually or constructively lost,

taken by the enemy, burnt or broken up or ceasing for any reason to be an Indian vessel, or

is to be registered under any other law for the time being in force at the relevant time, every

owner of such vessel shall immediately on obtaining knowledge of the event, if no notice

thereof has already been given to the Registrar, give notice thereof to the Registrar at her

port of registry and that Registrar shall make an entry thereof in the register book and its

registry in that book shall be considered as closed except so far as relates to any unsatisfied

mortgages entered therein.

23. (1) If at any port or place a vessel becomes entitled to be registered as an Indian

vessel,—

(a) the Registrar; or

(b) Indian Consular officer; or

(c) a person authorised by the Central Government,

may issue a provisional certificate of registry for a period not exceeding six months in

accordance with such procedure as may be prescribed and such provisional certificate of

registry shall have the effect of a certificate of registry:

Provided that the Registrar may extend the validity of the provisional registry for a

further period not exceeding three months.

(2) The provisional certificate issued under sub-section (1) shall be delivered to the

Registrar for cancellation where a vessel has been permanently registered.

(3) Where a vessel has been provisionally registered and its registry is not completed

within the period specified in sub-section (1), the provisional registry of the vessel shall be

deemed to be closed (except in relation to any unsatisfied mortgages entered therein), and

the Registrar shall make an entry thereof in the register.

24. (1) No person shall transfer or acquire any Indian vessel or any share or interest

therein at any time during which the security of India or any part of the territory thereof is

threatened by war or external aggression and a proclamation of emergency issued under

clause (1) of article 352 of the Constitution is in operation without the previous approval of

the Central Government and any transaction effected in contravention of this provision,

shall be void and unenforceable.

Custody and

use of

certificate.

Endorsement

on certificate of

change of

ownership.

Delivery of

certificate of

vessel lost or

ceasing to be

an Indian

vessel.

Provisional

registration of

Indian vessel.

Transfer of

Indian vessel

or shares.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

13

(2) The Central Government may, if it considers necessary or expedient so to do for the

purpose of conserving the tonnage of Indian shipping, by order, refuse to give its approval

to any such transfer or acquisition.

(3) No transfer or acquisition of any Indian vessel shall be valid unless,—

(a) all mortgage entered in its register, are satisfied or, the mortgagee and the

new owner have given their consent in writing for the transfer of vessel;

(b) all wages and other amounts due to seafarer in connection with their

employment on that vessel have been paid in accordance with the provisions of this

Act;

(c) any subsisting entry has been made of any court order prohibiting transfer

or any dealing with that vessel;

(d) any unpaid statutory fees that may be levied on the vessel and has been

informed in writing to the Registrar.

(4) Subject to the other provisions contained in this section, an Indian vessel or a

share therein shall be transferred only by an instrument in writing.

(5) The instrument shall contain such description of the Indian vessel as is

contained in the surveyor's certificate or some other description sufficient to identify

the vessel to the satisfaction of the Registrar and shall be in such form as may be

prescribed and shall be executed by the transferor in the presence of and be attested by

at least two witnesses.

25. (1) Every instrument for the transfer of an Indian vessel or of a share therein when

duly executed shall be produced to the Registrar of her port of registry, and the Registrar

shall thereupon enter in the register book the name of the transferee as owner of the vessel

or share, as the case may be, and shall endorse on the instrument the fact of that entry having

been made with the day and hour thereof.

(2) Every such instrument shall be entered in the register book in the order of its

production to the Registrar.

26. (1) Where the property in an Indian vessel or share therein is transmitted to a

person on the death or insolvency of any registered owner, or by any lawful means other

than by a transfer under this Act,—

(a) that person shall authenticate the transmission by making and signing a

declaration in such form as may be prescribed (in this Act referred to as a declaration

of transmission) identifying the vessel and also a statement of the manner in which

and the person to whom the property has been transmitted;

(b) if the transmission is consequent on insolvency, the declaration of

transmission shall be accompanied by proper proof of such claim;

(c) if the transmission is consequent on death, the declaration of transmission

shall be accompanied by a succession certificate, probate or letters of administration,

as the case may be, under the Indian Succession Act, 1925 or a duly certified copy

thereof.

(2) The Registrar, on receipt of the declaration of transmission so accompanied, shall

enter in the register book the name of the person entitled under the transmission as owner of

the vessel or share therein which has been transmitted, and, where there are more persons

than one, shall enter the names of all those persons, but those persons however numerous

shall, for the purpose of the provisions of this Act with respect to the number of persons

claiming to be registered as owners, be considered as one person:

Registry of

transfer.

Transmission

of property in

Indian vessel

on death,

insolvency,

etc.

39 of 1925.

14

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

Provided that nothing in this sub-section shall require the Registrar to make an entry

in the register book under this section, if he is of opinion that by reason of the transmission

the vessel has ceased to be an Indian vessel.

27. (1) Where by reason of the transmission of any property in a vessel or a share

therein on death, insolvency or otherwise, a vessel ceases to be an Indian vessel, the

Registrar of the port of registry shall submit a report to the Central Government setting out

the circumstances in which the vessel has ceased to be an Indian vessel.

(2) The Central Government may, within a period of thirty days from the date of receipt

of report, under sub-section (1), make an application to the High Court for a direction for the

sale to any citizen of India or any company or body or co-operative society:

Provided that an application may be admitted after the expiry of the period of thirty

days if the Central Government satisfies the High Court that it had sufficient cause for not

making the application within the said period.

(3) The High Court may require any evidence in support of the application as it thinks

requisite and may make such order thereon and on such terms and conditions as it thinks just

or may reject the application in case it finds that the vessel has not ceased to be an Indian

vessel, and in case the vessel or the share is ordered to be sold, it shall direct that the

proceeds of the sale after deducting the expenses thereof, be paid to the person entitled

under such transmission or otherwise.

28. Where any court, whether under section 27 or otherwise, orders the sale of any

vessel or share therein, the order of the court shall contain a declaration vesting in some

person named by the court the right to transfer that vessel or share, and that person shall

thereupon be entitled to transfer the vessel or share in the same manner and to the same

extent as if he were the registered owner thereof, and every Registrar shall obey the requisition

of the person so named in respect of any such transfer to the same extent as if such person

were the registered owner.

29. (1) A registered vessel or a share therein may be made a security for a loan or other

valuable consideration, and the instrument creating the security (in this Act called a mortgage)

shall be in such form as may be prescribed, and on the production of such instrument, the

Registrar shall record it in the register book.

(2) Except in so far as may be necessary for making a mortgaged vessel or share

available as a security for the mortgage debt, the mortgagee shall not, by reason of his

mortgage, be deemed to be the owner of the vessel or share, nor shall the mortgagor be

deemed to have ceased to be owner thereof.

(3) Where a registered mortgage is discharged, the Registrar shall, on the production

of the mortgage deed with a receipt for the mortgage money endorsed thereon, duly signed

and attested, make an entry in the register book to the effect that the mortgage has been

discharged, and on that entry being made the estate, if any, which passed to the mortgagee

shall vest in the person in whom (having regard to intervening acts and circumstances, if

any) it would have vested, if the mortgage had not been made.

(4) If there are more mortgages than one recorded in respect of the same vessel or

share, the mortgagees shall, notwithstanding any express, implied or constructive notice,

have priority according to the date and time on which each mortgage is recorded in the

register book and not according to the date of each mortgage itself.

30. (1) Where there is only one registered mortgagee of a vessel or share, he shall be

entitled to recover the amount due under the mortgage by selling the mortgaged vessel or

share without approaching the High Court:

Order for sale

where vessel

has ceased to

be an Indian

vessel.

Transfer of

vessel on sale

by order of

court.

Mortgage of

vessel or

share.

Rights of

mortgagee.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

15

Provided that nothing contained in this sub-section shall prevent the mortgagee from

recovering the amount so due in the High Court as provided in sub-section (2).

(2) Where there are two or more registered mortgagees of a vessel or share they shall

be entitled to recover the amount due under the mortgage in the High Court.

(3) Every registered mortgagee of a vessel or share who intends to recover the amount

due under the mortgage by selling the mortgaged vessel or share under sub-section (1) shall

give an advance notice of fifteen days relating to such sale to the Registrar of the vessel's

port of registry.

(4) The notice under sub-section (3) shall be accompanied with the proof of payment

of the wages.

31. A registered mortgage of a vessel or share shall not be affected by any act of

insolvency committed by the mortgagor after the date of the record of such mortgage,

notwithstanding that the mortgagor, at the commencement of his insolvency, had the vessel

or share in his possession, order or disposition, or was the reputed owner thereof, and the

mortgage shall be preferred to any right, claim or interest therein of the other creditors of the

insolvent or any trustee or assignee on their behalf.

32. (1) A registered mortgage of a vessel or share may be transferred to any person

and the instrument effecting the transfer shall be in such form as may be prescribed or as near

thereto as circumstances permit, and on the production of such instrument, the Registrar

shall record it by entering in the register book the name of the transferee as mortgagee of the

vessel or share and shall, by memorandum under his hand, notify on the instrument of

transfer that it has been recorded by him stating the day and hour of the record.

(2)The person to whom any such mortgage has been transferred shall enjoy the same

right of preference as was enjoyed by the transferor.

33. (1) Where the interest of a mortgagee in a vessel or share is transmitted on death,

or insolvency, or by any lawful means other than by a transfer under this Act, the transmission

shall be authenticated by a declaration of the person to whom the interest is transmitted

containing a statement of the manner in which and the person to whom the property has

been transmitted, and shall be accompanied by the like evidence as is by this Act required in

case of a corresponding transmission of the ownership of a vessel or share.

(2) The Registrar, on receipt of the declaration and the production of the evidence

referred to in sub-section (1), shall enter the name of the person entitled under the transmission

in the register book as mortgagee of the vessel or share.

34. Every Indian vessel shall be described by such name, call sign and official number

in such manner as may be prescribed.

35. When a registered vessel is so altered as not to correspond with the particulars

relating to her tonnage or description contained in the register book, then, if the alteration is

made at any port having a Registrar, that Registrar, or if it is made elsewhere, the Registrar of

the first port having a Registrar at which the vessel arrives after the alteration, shall, on an

application being made to him by the owner stating the particulars of the alteration, either

cause the alteration to be registered or direct that the vessel be registered anew.

36. Where any Registrar, not being the Registrar of the vessel's port of registry, on an

application as to an alteration in a vessel directs the vessel to be registered anew, he shall

either grant a provisional certificate describing the vessel as altered, or provisionally endorse

the particulars of the alteration on the existing certificate.

Mortgage not

affected

by

insolvency.

Transfer

of

mortgages.

Transmission

of interest in

mortgage in

certain

circumstances.

Description of

name, call sign

and an official

number

of

Indian vessel.

Registry

of

alterations.

Provisional

certificate and

endorsement

where vessel is

to be registered

anew.

16

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

37. Subject to the other provisions contained in this Act, where the ownership of any

Indian vessel is changed, the Registrar of the port at which the vessel is registered may, on

the application of the owner of the vessel, register the vessel anew in such manner as may be

prescribed, although registry anew is not required under this Act.

38. The registry of any vessel may be transferred from one port of registry to another

on an application to the Registrar of the existing port of registry of the vessel made by

declaration in writing of all persons appearing in the register to be interested therein as

owners or mortgagees, but that transfer shall not in any way affect the rights of those

persons or any of them and those rights shall in all respects continue in the same manner as

if no such transfer had been effected.

39. Where a vessel has ceased to be registered as an Indian vessel by reason of

having been wrecked or abandoned, or for any reason other than capture by the enemy, the

vessel shall not be re-registered until she has, at the expense of the applicant for the registry,

been surveyed by a surveyor and certified by him to be seaworthy.

40. (1) The Central Government may, by notification, declare the proper national

colours for all Indian vessels and for all vessels owned by the Government and different

colours may be declared for different classes of vessels.

(2) Vessels registered under this Part shall hoist the proper national colours,—

(a) on a signal being made to her by any vessel of the Indian Navy or Indian

Coast Guard;

(b) on entering or leaving any port.

(3) Any commissioned officer of the Indian Navy, any officer of the Indian Coast

Guard, a surveyor or any Indian consular officer, as the case may be, may board any vessel

on which any colours are hoisted contrary to this Act and seize and take away the colours

which shall be forfeited to the Government.

(4) No person on board a vessel which is not an Indian vessel shall, for the purpose of

making it appear to be an Indian vessel, use the Indian national colours, unless the assumption

of Indian character has been made for the purpose of escaping capture by the enemy or by

a foreign vessel of war in the exercise of some belligerent right.

41. No owner or master of an Indian vessel shall knowingly do anything or permit

anything to be done, or carry or permit to be carried any papers or documents, with intent to

conceal the Indian character of the vessel from any person entitled by any law for the time

being in force to inquire into the same, or with intent to assume a foreign character for the

vessel, or with intent to deceive any person so entitled.

42. Where it is declared by this Act that an Indian vessel shall not be recognised as

such, that vessel shall not be entitled to any privileges, benefits, advantages or protection

usually enjoyed by Indian vessel or to use the Indian national colours for Indian vessel or

to assume the Indian national character:

Provided that for the payment of dues the liability to fine and forfeiture and the

punishment of offences committed on board such vessel, or by any person belonging to her,

such vessel shall be dealt with in the same manner in all respects as if she were a recognised

Indian vessel.

43. Where any vessel has either wholly or as to any share therein become subject to

forfeiture under this Part, any commissioned officer of the Indian Navy, Indian Coast Guard,

any Indian consular officer or any other officer authorised by the Central Government, may

seize and detain the vessel, and bring her for adjudication before the High Court, and the

High Court may thereupon adjudge the vessel with her equipment to be forfeited to the

Government, and make such order in the case as to the High Court seems just and may award

to the officer bringing in the vessel for adjudication such portion of the proceeds of the sale

of the vessel or any share therein as the High Court thinks fit.

Registry anew

on change of

ownership.

Transfer

of

registry.

Restrictions

on re-registry

of abandoned

vessel.

National

colours for

Indian vessels.

Concealment

of Indian, or

assumption

of foreign,

character.

Liabilities of

vessel

not

recognised as

Indian vessel.

Proceedings

on forfeiture

of vessel.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

17

44. Where any person is beneficially interested otherwise than by way of mortgage in

any vessel or share in a vessel registered in the name of some other person as owner, the

person so interested shall, as well as the registered owner, be subject to all the pecuniary

penalties imposed by this or any other Act on the owners of vessel or shares therein, without

prejudice that proceedings for the enforcement of any such penalties may be taken against

both or either of the said parties jointly or severally.

45. (1) A person may on application to the Registrar and on payment of such fees as

may be prescribed, inspect any register book, and may obtain a certified copy of any entry in

the register book.

(2) A certified copy of an entry in a register book shall be admissible in evidence in any

court and have the same effect to all intents as the original entry in the register book of which

it is a copy.

46. (1) The owner of an Indian vessel may make an application to the Registrar to close

its registry provided that, if there is no,—

(a) unsatisfied mortgage entered in its register; or

(b) outstanding claims of the master or seafarer of the vessel in respect of wages

which have been intimated.

(2) The owner of an Indian vessel shall, for the purposes of sub-section (1), specify

the name of the vessel, the intended port and country of registry (if applicable) or otherwise

the reason for the closure in the application and shall be submitted to the Registrar along

with the certificate of registry of the vessel.

(3) On receipt of the application under sub-section (1) and the certificate of registry

under sub-section (2), the Registrar shall, if he is satisfied, by an order, close the registry of

the vessel and make an entry thereof in the register.

Explanation.—For the purposes of this section, "owner" includes any transferee of,

or any person entitled under a transmission to the property in, an Indian vessel.

CHAPTER II

REGISTRATION OF VESSELS ON BAREBOAT CHARTER-CUM-DEMISE BY INDIAN CHARTERER

47. This Chapter shall apply to any vessel registered under the law of any country

other than India and chartered by an Indian charterer on bareboat charter-cum-demise contract.

48. In this Chapter unless the context otherwise requires,—

(a) "bareboat charter-cum-demise contract" means a written contract for

chartering a vessel on bareboat charter-cum-demise;

(b) "charter period" means the period during which the vessel is chartered on

bareboat charter-cum-demise contract;

(c) "Indian charterer" means a person referred to in clause (a) or clause (b) or

clause (c) of sub-section (3) of section 14 who has chartered a vessel on bareboat

charter-cum- demise contract.

49. (1) The vessel chartered on bareboat charter-cum -demise by an Indian charterer

may be registered under this Chapter.

(2) The procedure for registration of the vessel chartered on bareboat charter-cum-

demise shall be such as may be prescribed.

(3) The bareboat charter-cum-demise contract shall include the following provisions,

namely:—

(a) the period for hiring the vessel chartered on bareboat charter-cum-demise

shall be for not less than three years;

Liability

of

owners.

Evidence of

register book,

certificate of

registry and

other

documents.

Closure

of

registry.

Application of

this Chapter.

Definitions.

Registration

of vessel

chartered on

bareboat

charter-cum-

demise.

18

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(b) the possession and control of the vessel chartered on bareboat charter-cum-

demise, including the right to appoint its master and other seafarers, shall vest with the

Indian charterer; and

(c) the ownership of the vessel chartered on bareboat charter-cum-demise, after

the charter period shall stand transferred to the Indian charterer.

(4)The registration of a vessel chartered on bareboat charter-cum-demise shall remain

in force till the end of the charter period:

Provided that if any provision of this Act is violated, the registration of such vessel

may be closed before the chartered period.

(5) The Registrar shall, after registration or closure of registration of a vessel chartered

on bareboat charter-cum-demise contract, send the information of such registration or closure,

as the case may be, to the authority of registration of the country where such vessel is

registered.

(6) The vessel chartered on bareboat charter-cum-demise registered under this Chapter

shall be an Indian vessel entitled to fly the Indian flag.

(7) If the bareboat charter-cum-demise contract is terminated before the charter period

due to breach of the agreement or any other reason, the Indian charterer shall inform the

Registrar and, on receipt of such information, the Registrar shall close the registry and

forward the information to the authority of registration of the country where such vessel is

registered.

(8) Notwithstanding anything contained in this Act, the provisions relating to the

owner of an Indian vessel under this Act shall, subject to such modification as the Central

Government may consider necessary, apply to the Indian charterer for the vessels registered

under this Chapter.

50. (1) The Central Government may make rules to carry out the purposes of this Part.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the conditions for registration of an Indian vessel, under sub-section (2) of

section 14;

(b) the manner of keeping the register book and making entries therein and

maintenance of the records of vessels registered under this Act under sub-section (2)

of section 15;

(c) the form and manner of making application for registry of an Indian vessel

under section 16;

(d) the manner of marking, survey, measurement and ascertainment of tonnage

of an Indian vessel under sub-section (1) of section 17;

(e) the other particulars descriptive of the identity of vessel under

sub-section (2) of section 17;

(f) the manner of making endorsement under section 21;

(g) the procedure for issuing a provisional certificate of registry under

sub-section (1) of section 23;

(h) the form of instrument for description of vessel under sub-section (5) of

section 24;

(i) the form for making and signing a declaration under clause (a) of

sub-section (1) of section 26;

(j) the form of mortgage under sub-section (1) of section 29;

Power

to

make rules in

respect

of

matters in this

Part.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

19

(k) the form of instrument effecting the transfer under sub-section (1) of

section 32;

(l) the manner of description of the name, call sign and official number of Indian

vessel under section 34;

(m) the manner of registration of vessel anew under section 37;

(n) the fee for inspection of register book and a certified copy of any entry of the

register book under sub-section (1) of section 45;

(o) the procedure for registration of vessel chartered on bareboat charter -cum-

demise under sub-section (2) of section 49;

(p) any other matter which is required to be or may be prescribed.

PART IV

CERTIFICATE OF COMPETENCY AND CERTIFICATE OF PROFICIENCY

51. (1) Every Indian vessel shall be provided the seafarers with such manning scale as

may be prescribed.

(2) The seafarer shall hold such certificate of a grade appropriate to his station in the

vessel or of a higher grade as may be prescribed:

Provided that in relation to different categories of vessel, areas and types of operations

there shall be provided such different manning scales as may be prescribed:

Provided further that subject to such conditions and restrictions as may be prescribed,

the Indian national with foreign certificates of competency or foreign national with certificate

of competency issued under this Act or foreign certificate of competency, may serve on

Indian vessels.

(3) Every vessel, whether at sea or in any port or place, shall be manned by such

number of persons with such qualifications as may be prescribed.

52. (1) The Central Government shall, subject to the provisions of STCW Convention,

grant a certificate of competency or certificate of proficiency, as the case may be, for such

different grades of seafarers with such requirements and such procedures as may be

prescribed.

(2) No certificate of competency or certificate of proficiency shall be granted, under

sub-section (1) unless the seafarer fulfils the requirements in respect of service, age limit,

medical fitness, training, qualifications and examination in accordance with the STCW

Convention.

(3) Notwithstanding anything contained in sub-sections (1) and (2), the Central

Government may grant such other certificate of competency or certificate of proficiency with

such requirements and procedures as may be prescribed.

(4) A certificate of competency or certificate of proficiency, as the case may be, granted

under sub- sections (1), (2) and (3) shall be in such form and on payment of such fee and

valid for such period as may be prescribed, and record of such certificate shall be kept in

such manner as may be prescribed.

53. (1) The Director-General shall administer, supervise and monitor all activities relating

to training and assessment for grant of certificate of competency or certificate of proficiency.

(2) The Director-General shall approve the training institute, training courses and

method of conduct of such training course for grant of certificate of competency or certificate

of proficiency under section 52:

Provided that no certificate of competency or certificate of proficiency shall be granted,

unless the training required for such certificate has been imparted in accordance with the

provisions of this section.

Certificates to

be held by

seafarers.

Certificate of

c o m p e t e n c y

and certificate

of proficiency.

Training for

grant

of

certificate of

competency

and certificate

of proficiency

20

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(3) The Director-General may, for the purposes of this Part authorise any person to

inspect any maritime training institute and the person so authorised in this behalf shall

submit the report to the Director-General.

(4) The Director-General may, after receipt of the inspection report under

sub-section (3), if he is satisfied that the maritime training institute has contravened any

provisions of this Part, after giving an opportunity of being heard, suspend or withdraw the

approval granted to such maritime training institutes under sub-section (2).

54. (1) The Central Government shall appoint a person for the purposes of examining

the qualifications of persons desirous of obtaining certificates under section 52.

(2) The manner of conducting examination for certificate of competency or certificate

of proficiency, the fee to be charged and the payment to be made to the examiners appointed

under sub-section (1) shall be such as may be prescribed.

(3) The Central Government shall grant a certificate of competency or certificate of

proficiency, as the case may be, to every applicant, who is duly reported by the examiners

appointed under sub-section (1) to have passed the examination satisfactorily and to have

given satisfactory evidence of his sobriety, experience and ability and general good conduct

on board vessel:

Provided that the Central Government may, if it has reason to believe that the report

has been unduly made, before granting a certificate, require a re-examination of the applicant

including the inquiry into the applicant's testimonials and character.

(4) If it appears to the Central Government that a person holding a certificate granted

under sub-section (1) or sub-section (3) of section 52 has obtained it on the basis of false or

erroneous information, or is guilty of misconduct or on receipt by the Central Government of

any report of incompetency, or any act of omission or commission or compromise to safety,

security or prevention of pollution by the person holding a certificate which may pose a

threat to life or property or environment, it may, after due investigation, by order, withdraw,

suspend or cancel such certificate:

Provided that no order shall be passed under this sub-section without giving the

person holding the certificate an opportunity of being heard.

(5) A note of all orders made under sub-section (4) affecting any certificate of

competency or certificate of proficiency, in pursuance of the powers contained in this Act,

shall be entered on the copy of the certificate kept under section 52.

(6) Whenever a person holding a certificate granted under this Act proves to the

satisfaction of the issuing authority that he has, lost or been deprived of such certificate, the

issuing authority shall, on payment of such fee as may be prescribed, shall grant a copy of

the certificate and such copy shall have all the effect of the original.

55. (1) The master of every vessel shall, on demand, produce to the proper officer the

certificates of competency of the seafarers of the vessel along with a list of crew with the

particulars of grades of certificates of master, mates, engineers and ratings.

(2) A surveyor may, at any reasonable time, go on board a vessel to which any of the

provisions of this Part applies for the purpose of ensuring that the seafarers holding certificates

issued in accordance with the STCW Convention are actually appointed and are present,

and satisfy himself about the adequacy of such seafarers for the watch-keeping duties in

ports and at sea.

56. (1) Where in a country other than India, the certificate of competency is granted

under any law for the time being in force in that country which is similar to those referred to

in this Act, then if the Central Government is satisfied that,—

(a) the conditions under which any certificate of competency is granted in that

country meets the standards of competency not lower than those required for the

grant under this Act for corresponding certificates; and

Examinations

for grant of

certificates.

Production of

certificate of

competency.

Recognition

of certificates

of

competency

granted in

other

countries.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

21

(b) the certificate granted under this Act is accepted in that country in lieu of the

corresponding certificate granted under the laws of that country,

the Central Government may, by notification, declare that any certificate of competency

granted under the law in force in that country shall be recognised as equivalent to the

corresponding certificate of competency granted under this Act.

(2) The certificate recognised under sub-section (1) as equivalent may be issued with

a certificate of endorsement as may be prescribed.

(3) A person holding a certificate of endorsement under sub-section (2) shall be

considered as duly certificated under this Act.

57. (1) Every master of a foreign vessel shall, before proceeding to sea from any port

or place in India, ensure that the vessel has the requisite numbers of seafarer of appropriate

grades as specified in the Safety Convention and STCW Convention.

(2) A surveyor or any person authorised in this behalf by the Central Government may,

at any reasonable time, go on board a vessel for the purpose of ensuring that the seafarers

holding certificates issued in accordance with the Safety Convention and STCW Convention

are actually appointed and are present, and satisfy himself about the adequacy of such

seafarers for the watch keeping duties in ports and at sea.

(3) If any report made under sub-section (2) by a surveyor or any person authorised

in this behalf by the Central Government, reveals any deficiency in a foreign vessel in

relation to the requirements of the Safety Convention and STCW Convention and the Central

Government is satisfied that it shall be unsafe for such vessel to proceed to sea, that vessel

may be detained by the proper officer till such requirements are fulfilled.

58. At any time during which the security of India is threatened or during a proclamation

of emergency issued under clause (1) of article 352 of the Constitution, every Indian citizen

holding an Indian certificate of competency, certificate of proficiency or certificate of

recognition granted under this Act shall be liable to serve on Indian vessel for such period

on such terms and conditions as the Central Government may, by general or special order,

specify.

59. (1) The Central Government may make rules to carry out the provisions of this Part.

(2) In particular and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the manning scales of the seafarers under sub-section (1) of section 51;

(b) the certificate of grade appropriate under sub-section (2) of section 51;

(c) the different manning scales in relation to different categories of vessel,

areas and types of operations under proviso to sub-section (2) of section 51;

(d) the conditions and restrictions under the second proviso to sub-section (2)

of section 51;

(e) the number of persons to be manned and their qualifications under

sub-section (3) of section 51;

(f) the requirement and procedure for grant of certificate of competency or

certificate of proficiency to the different grades of seafarer under sub-section (1) of

section 52;

(g) the requirement and procedure for grant of certificate of competency or

certificate of proficiency under sub-section (3) of section 52;

(h) the form of certificate, fees and the valid period of such certificate and the

manner in which the copies of certificate to be kept and recorded under sub-section (4)

of section 52;

Foreign vessel

not to sail

without

certificated

seafarers.

Obligations

of certain

certificate

holders to

serve the

Government or

in Indian

vessels.

Power

to

make rules.

22

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(i) the manner of conducting examination for certificate of competency or

certificate of proficiency, the fee to be charged and the payment to be made to the

examiners under sub-section (2) of section 54;

( j) the fee for grant of certificate if lost or deprived, under sub-section (6) of

section 54;

(k) the endorsement under sub- section (2) of section 56;

(l) any other matter which is required to be or may be prescribed.

PART V

SEAFARERS

60. Save as otherwise provided, this Part shall apply to,—

(a) every seafarer;

(b) recruitment and placement service;

(c) ship owners.

61. In this Part, unless the context otherwise requires,—

(a) "Maritime Labour Certificate" means a Certificate issued by the Central

Government or any officer, authority or organisation authorised by it in this behalf, in

accordance with the provisions of the Maritime Labour Convention;

(b) "recruitment and placement service" means any person, company, institution,

agency or other organisation, in public or private sector which is engaged in recruiting

seafarers on behalf of employers or placing seafarers with the employers.

62. (1) The Central Government may make rules for the classification of seafarers into

different categories, the minimum manning scale of seafarers of such categories, and the

different scales for different classes of ships.

(2) Notwithstanding anything contained in any other law for the time being in force,

the provisions of this Act shall apply to the seafarer employed or engaged as a member of the

crew of a ship.

63. (1) The provisions relating to maritime labour standards as contained in the

Maritime Labour Convention, shall apply to all seafarers and ships registered under this Act,

but does not include,—

(a) ships which navigate exclusively in inland waters or waters within, or closely

adjacent to, sheltered waters or areas where any law for the time being in force relating

to ports apply;

(b) ships engaged in fishing activities;

(c) traditionally built ships such as dhows and junks;

(d) ships of war or naval auxiliaries.

(2) Subject to the provisions of sub-section (1), the Central Government may, on the

recommendation of the Director-General, by order, extend the provisions of the said

sub-section to any category of ship with such exceptions and modifications as it may consider

necessary.

(3) Every Indian ship referred to in sub-section (1), wherever it is, and every ship

other than an Indian ship while within the jurisdiction of India shall, subject to such conditions

as may be prescribed, be in possession of a certificate issued in accordance with the provisions

of the Maritime Labour Convention.

(4) No ship shall proceed to sea unless it is in possession of certificate issued under

sub-section (3).

Application of

this Part.

Definitions.

Classification

of seafarer,

maritime

labour

standards and

prescription

of minimum

scale.

Application

of maritime

labour

standards to

seafarers and

ships.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

23

64. It shall be the duty of shipping masters,—

(a) to monitor the engagement and discharge of seafarer in the manner provided

under this Act;

(b) to issue such continuous discharge certificate and seafarer's identity

document as may be prescribed;

(c) to hear and decide disputes between a master, owner or agent of ship and

any of the crew of the ship including those under section 77;

(d) to transmit the complaint of any dispute of a foreign seafarer of a ship,

registered in a country other than India, in Indian territorial waters, with the master,

owner or agent to the competent authority of the country of registration and to forward

a copy of such complaint to the Director-General of International Labour Organisation;

(e) to perform such other duties relating to seafarers and merchant ships under

this Act as the Central Government may, by general or special order, specify.

65. It shall be the business of the seafarer's employment office,—

(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 and placement of

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

(ii) ensure that adequate machinery and procedures exists for the

investigation, if necessary, of complaints concerning the activities of recruitment

and placement services;

(b) to perform such other functions and duties as may be prescribed.

66. (1) The seafarer shall be engaged only by,—

(a) recruitment and placement service possessing the licence issued under the

provisions of section 65; or

(b) owners in the case of Indian vessel for the vessel owned by them.

(2) No person, other than an owner of Indian vessel in respect of the vessel owned by

him, shall carry on the business of recruitment and placement service unless he is in

possession of a valid licence issued under section 65.

(3) No person shall engage any seafarer under this Act in any ship, unless the seafarer

is in possession of a continuous discharge certificate and seafarer’s identity documents

issued under sub-section (4) except as otherwise exempted.

(4) The continuous discharge certificate and seafarer’s identity document referred to

in sub-section (3) shall be issued in such form and manner and on payment of such fees as

may be prescribed.

(5) No person under the age of sixteen years shall be engaged or carried to sea to work

in any capacity in any ship.

(6) The Central Government may, by order, direct that the seafarers generally or any

category of seafarers in particular shall not be engaged or carried to sea to work in any

capacity in any ship or in any class of ships so specified, unless each one of them possesses

such qualifications as may be prescribed.

(7) Except as otherwise provided under the rules made under sub-section (6), no

person shall engage or carry to sea any seafarer to work in any capacity in any ship or in any

class of ships specified in this behalf by the Central Government, unless the seafarer is in

possession of a certificate to the effect that he is medically fit to be employed in that capacity

granted in such form by such authority as may be prescribed.

Duties of

shipping

master.

Business of

seafarer's

employment

office.

Supply or

recruitment or

engagement of

seafarer.

24

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(8) Any person who claims to represent the interests of seafarers shall not demand or

receive, either directly or indirectly, from any seafarer or person seeking employment as

seafarer or any person on his behalf, any remuneration or donation or fees or compulsory

subscription of any kind attributable from such seafarer or person's employment as seafarer,

other than the fees authorised by this Act.

(9) There shall be no discrimination between seafarers,—

(a) on the ground of their membership in any particular union claiming to represent

the interests of seafarers and membership in such union shall not be a pre-condition,

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

of issue of their continuous discharge certificates,

for their recruitment and engagement on board any ship.

(10) The Central Government or any officer authorised by it in this behalf, if satisfied

that in the national interest or in the interest of seafarer it is necessary so to do, may, by order

in writing, prohibit the master or owner or his agent of any ship other than an Indian ship

specified in the order from engaging any person to serve as a seafarer on such ship.

(11) The Central Government may, by notification, fix the fees which shall be payable

upon all engagements and discharges of the seafarer.

(12) The services of the seafarer engaged in contravention of sub-section (1) shall not

be recognised for the purposes of certification under Part IV.

67. (1) The master of an Indian ship, or owner of every Indian ship or his agent shall

enter into an articles of agreement in such form and manner as may be prescribed with every

seafarer whom he engages and shall submit a copy thereof to the shipping master.

(2) Notwithstanding anything contained in any other provisions of this Act, the

master of an Indian ship registered at a port outside India, or owner of such ship or his agent

who has an agreement with the seafarer made in due form according to the law of that port or

of the port in which her seafarer were engaged, may engage in any port in India—

(a) a seafarer who is not a citizen of India and who holds a continuous discharge

certificate or any other similar document of identity issued by the competent authority

of the country in which the ship is registered or, as the case may be, of the country in

which the said agreement was made, or

(b) a seafarer who is a citizen of India and who holds a continuous discharge

certificate issued under this Act,

and any seafarer so engaged under clause (a) or clause (b) may sign the agreement aforesaid

and it shall not be necessary for him to sign an agreement under this Act.

(3) A seafarer's right,—

(a) to wages and provisions shall be taken to begin either at the time at which he

commences work or at the time specified in the agreement for his commencement of

work or presence on board whichever first happens;

(b) of wages shall not depend on the earning of the freight and seafarers are

entitled to demand and recover the same notwithstanding that freight has not been

earned.

(4) A seafarer shall not by any agreement forfeit his lien on the ship or be deprived of

any remedy for the recovery of his wages to which, in the absence of the agreement, he shall

be entitled, and shall not by any agreement abandon his right to wages in case of the loss of

the ship or abandon any right that he may have or obtain in the nature of salvage, and every

stipulation in any agreement inconsistent with any provisions of this Act shall be void.

Agreements

with seafarers.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

25

68. The Central Government may, having regard to the provisions of the Maritime

Labour Convention, make rules in the matters relating to seafarer's employment officer for all

or any of the following matters, namely:—

(a)

payment of wages;

(b)

hours of work and hours of rest;

(c)

entitlement to leave;

(d)

repatriation;

(e)

compensation, if ship loss or foundering;

(f)

manning levels;

(g)

service conditions including skill development and opportunities;

(h)

accommodation, recreational facilities, food and catering;

(i)

health protection, medical facilities, welfare and social security protection;

(j)

any other matter which is to be or may be required for compliance and

enforcement of Maritime Labour Convention.

69. (1) Where the service of any seafarer engaged under this Act terminates before the

date specified in the agreement by reason of the wreck, loss or abandonment of the ship or

by reason of his being left on shore at any place outside India under a certificate granted

under this Act of his unfitness or inability to proceed on the voyage, the seafarer shall be

entitled to receive,—

(a) in the case of wreck, loss or abandonment of the ship,—

(i) wages at the rate to which he was entitled at the date of termination of

his service for the period from the date his service is so terminated until he is

returned to and arrives at a proper return port:

Provided that the period for which he shall be entitled to receive wages

shall be not less than one month, and

(ii) compensation for the loss of his effect,—

(A) in the case of a seafarer employed on a ship engaged for coasting

trade, of not more than one month's wages; and

(B) in the case of a seafarer employed on a foreign-going ship, of

not more than three month's wages;

(b) in the case of unfitness or inability to proceed on the voyage,

wages for the period from the date his service is terminated until he is returned to and arrives

at a proper return port.

(2) A seafarer shall not be entitled to receive wages under sub-clause (i) of clause (a)

of sub-section (1) in respect of any period during which,—

(a) he was, or could have been, suitably employed; or

(b) through negligence he failed to apply to proper authority for relief as a

distressed or destitute seafarer.

(3) Any amount payable by way of compensation under sub-clause (ii) of clause (a)

of sub-section (1) shall be deposited with the shipping master at the port of engagement in

India for payment to the seafarer, or, in the case of deceased seafarer, to the person nominated

by him in this behalf under section 85 or if he has not made any such nomination or the

nomination made by him is or has become void, to his legal heirs.

Power to

make rules

for

enforcement

of Maritime

Labour

Convention.

Wages on

termination of

service

for

wreck, illness,

etc.

26

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(4) A seafarer shall be entitled to continue receiving the wages at the same rate till

such time he returns home, if such seafarer is held in the captivity including in case of piracy

in the course of his employment.

Explanation.—For the purposes of item (B) of sub-clause (ii) of clause (a) of

sub-section (1) of this section, "foreign-going ship" means a ship employed in trading

between any port or place in India and any other port or place outside India, or between ports

and places outside India.

70. (1) A seafarer shall not be entitled to wages,—

(a) for any period during which he is absent from duty without leave; or

(b) for any period during which he unlawfully refuses or neglects to work when

required; or

(c) unless the court hearing the case otherwise directs, for any period during

which he is lawfully imprisoned.

(2) A seafarer shall not be disentitled to claim wages for any period during which he

has not performed his duty if he proves that he was incapable of doing so by reason of

illness, hurt or injury, unless it is proved that,—

(a) his illness, hurt or injury was caused by his own wilful act or default or his

own misbehaviour; or

(b) his illness was contracted or his hurt or injury was sustained at a proper

return port and was not attributable to his employment; or

(c) he has unreasonably refused to undergo medical or surgical treatment for his

illness, hurt or injury involving no appreciable risk to his life.

71.(1) If a seafarer having signed an agreement is discharged, otherwise than in

accordance with the terms thereof, without fault on his part justifying the discharge and

without his consent, he shall be entitled to receive from the master of the ship, owner of the

ship or his agent, in addition to any wages he may have earned, as due compensation for the

damage caused to him by the discharge, such sum as the shipping master may fix having

regard to the circumstances relating to the discharge:

Provided that the compensation so payable shall not exceed—

(a) in the case of a seafarer who has been discharged before the commencement

of a voyage, one months’ wages; and

(b) in the case of a seafarer who has been discharged after the commencement

of a voyage, three months' wages.

(2) Any compensation payable under this section may be recovered as wages.

72. (1) As respects wages due or accruing to a seafarer,—

(a) they shall not be subject to attachment by order of any court;

(b) an assignment thereof made prior to the accruing thereof shall not bind the

person making the same;

(c) the power-of-attorney or authority for the receipt thereof shall not be

irrevocable;

(d) the payment of wages to a seafarer shall be valid in law notwithstanding any

previous assignment of those wages or any attachment thereof or encumbrance thereon.

(2) The provisions of clauses (b) and (c) of sub-section (1) shall not apply to so much

of the wages of a seafarer as have been or are hereafter assigned by way of contribution to

any fund or scheme approved in this behalf by the Central Government, the main purpose of

Wages not to

accrue during

absence

without leave,

refusal to

work or

imprisonment.

Compensation

to seafarers

on premature

discharge.

Restrictions

on sale of and

charge upon

wages.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

27

which is the provision for seafarer of health or social insurance benefits and the provisions

of clauses (a) and (d) of sub-section (1) shall not apply to anything done or to be done for

giving effect to such an assignment.

(3) Nothing in this section shall affect the provisions of this Act or any other law for

the time being in force with respect to allotment notes.

73. (1) A seafarer serving in an Indian ship shall, on termination of his engagement, be

discharged in such manner as may be prescribed.

(2) If an Indian ship is transferred or disposed of while she is at or on a voyage to any

port outside India, every seafarer belonging to that ship shall be discharged at that port,

unless he consents in writing to complete the voyage in the ship if continued.

(3) If a seafarer is discharged from an Indian ship in terms of sub-section (1), the

provisions of section 75 shall apply as if the service of the seafarer had terminated without

his consent and before the expiration of the period for which the seafarer was engaged.

(4) Every seafarer discharged in terms of sub-section (2) shall, if the voyage for which

he was engaged is not continued, be entitled to the wages to which he would have been

entitled if his service had been wrongfully terminated by the owner before the expiration of

the period for which the seafarer was engaged.

(5) The master of an Indian ship shall not,—

(a) discharge a seafarer before the expiration of the period for which he was

engaged, unless the seafarer consents to his discharge; or

(b) except in circumstances beyond his control, leave a seafarer behind,

without the authority of the officer specified in this behalf by the Central Government and

the officer aforesaid shall certify on the agreement with seafarer that he has granted such

authority, and also the reason for the seafarer being discharged or the seafarer being left

behind.

(6) The officer aforesaid to whom application is made for authority in terms of

sub-section (5), shall investigate the grounds on which the seafarer is to be discharged or

the seafarer left behind and may in his discretion grant or refuse to grant such authority:

Provided that he shall not refuse to grant his authority if he is satisfied that the

seafarer, without reasonable cause,—

(a) has failed or refused to join his ship or to proceed to sea therein; or

(b) has been absent from his ship without leave, either at the commencement or

during the progress of a voyage for a period of more than forty-eight hours.

(7) The officer aforesaid shall keep a record of all seafarers discharged or left behind

with his authority and whenever any charge is made against a seafarer under section 94, the

fact that no such authority is so recorded shall be prima facie evidence that it was not granted.

74. If any seafarer is left behind or lost overboard or is deceased, the master shall enter

in the official log book a statement of the amount due to the seafarer in respect of wages at

the time when he was left behind or lost overboard or is deceased of all property left on board

by him, and shall take such property into his charge and discharge the property in such

manner as may be prescribed.

75. (1) When the service of a seafarer terminates without the consent of the said

seafarer at a port outside India, and before the expiration of the period for which the seafarer

was engaged, the master, owner of a ship or his agent shall, in addition to any other related

obligation imposed on either of them by this Act, make adequate provision for the maintenance

of the seafarer according to his rank or rating, and for the return of that seafarer to a proper

return port.

Discharge of

seafarers.

Wages and

property of

deceased

seafarers and

seafarers left

behind.

Repatriation

of seafarer on

termination of

service at

foreign port.

28

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(2) If the master, owner of a ship or his agent fails without reasonable cause to comply

with the provisions of sub-section (1), the expenses of maintenance and of the journey to

the proper return port shall, if defrayed by the seafarer, be recoverable as wages due to him,

and if defrayed by an Indian consular officer, be regarded as expenses falling within the

provisions of sub-sections (3) and (4) of section 86.

Explanation.—For the purposes of sub-section (2), inability to provide the said

expenses shall not, be regarded as reasonable cause.

76. Subject to such restrictions and conditions as may be prescribed, any amount

deposited with or recovered by the shipping master as wages or for making payment in

accordance with the allotment note made by a seafarer or for being paid to a seafarer or his

nominee may, if such amount remains unclaimed with the shipping master for a period of not

less than six years, be utilised for the welfare of seafarer in such manner as the Central

Government may direct.

77. (1) Where under the agreement with the seafarer any dispute arises at any port in

India between the master, owner or agent of a ship and any of the seafarer of the ship, it shall

be submitted to the shipping master.

(2) Any dispute of an Indian seafarer, on a vessel registered in a country other than

India, in Indian territorial waters, with the master, owner of the ship or his agent may be

submitted to the shipping master.

(3) The shipping master shall hear and decide the dispute submitted under

sub-sections (1) and (2) and make an award which shall be conclusive as to the rights of

parties and any document relating to such dispute or award itself shall be prima facie

evidence thereof.

(4) Any person aggrieved by the award made by the shipping master under this

section may, within a period of thirty days from the date of receipt of such award, prefer an

appeal before the Principal Officer having jurisdiction over the matter and the Principal

Officer may, after giving the parties to the appeal an opportunity of being heard, pass an

order within a period of forty-five days from the date of receipt of such appeal.

(5) Any person aggrieved by the order passed by the Principal Officer under this

section may, within a period of thirty days from the date of receipt of order, prefer second

appeal to the Director-General who may, after giving the parties to the appeal an opportunity

of being heard, pass an order within a period of forty-five days.

(6) An award made under this section may be enforced by a Judicial Magistrate of the

first class or a Metropolitan Magistrate, as the case may be, in the same manner as an order

of payment of wages made by such Magistrate under this Act.

(7) Nothing in the Arbitration and Conciliation Act, 1996 shall apply to any matter

submitted to a shipping master for decision under this section.

78. In any proceedings under this Act before a shipping master relating to the wages,

claims or discharge of a seafarer, the shipping master may require the owner, master his agent

or seafarer to produce any logbooks, papers, or other documents in his possession or power

relating to any matter in question in the proceedings, and may require the attendance of and

examine any of those persons being then at or near the place on the matter.

79. (1) A seafarer or a person duly authorised by him may, as soon as any wages due

to him become payable but not paid, apply to any Judicial Magistrate of the first class or any

Metropolitan Magistrate, as the case may be, exercising jurisdiction in or near the place at

which his service has terminated or at which he has been discharged, or at which any person

upon whom the claim is made is or resides, and such magistrate shall try the case in a

summary way and the order made by such magistrate in the matter shall be final.

Certain

undisbursed

amounts to be

utilised for

welfare of

seafarers.

Decision of

questions by

Shipping

Masters.

26 of 1996.

Power of

shipping

master to

require

production of

ship's papers.

Summary

proceedings

for wages.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

29

(2) An application under sub-section (1) may also be made by any officer authorised

by the Central Government in this behalf by general or special order.

80. A proceeding for the recovery of wages due to a seafarer shall not be instituted by

or on behalf of any seafarer in any civil court except where,—

(a) the owner of the ship has been declared insolvent;

(b) the ship is under arrest or sold by the authority of any court;

(c) a Judicial Magistrate of the first class or a Metropolitan Magistrate, as the

case may be, refers a claim to the court.

81. Where a seafarer is engaged for a voyage which is to terminate in India, he shall

not be entitled to sue in any court outside India for wages unless he is discharged with such

sanction as is required by this Act, and with the written consent of the master, or proves such

ill-usage on the part, or by the authority, of the master, as to warrant a reasonable apprehension

of danger to his life if he were to remain onboard.

82. (1) The master of a ship shall, so far as the case permits, have the same rights, liens

and remedies for the recovery of his wages as a seafarer has under this Act or by any law or custom.

(2) The master of a ship or every person lawfully acting as master of a ship by reason

of the disease or incapacity from illness of the master of the ship shall, so far as the case

permits, have the same rights, liens and remedies for the recovery of disbursements or

liabilities properly made or incurred by him on account of the ship as a master has for the

recovery of his wages.

(3) If in any proceeding in any court touching the claim of a master in respect of such

wages, disbursements or liabilities any set-off is claimed or any counterclaim is made, the

court may enter into, and adjudicate upon, all questions and settle all accounts then arising

or outstanding and unsettled between the parties to the proceeding and may direct payment

of any balance found to be due.

83. (1) Where the Central Government is of the opinion that any dispute between

seafarer or any class of seafarers or of any union of seafarers and the owners of ships in

which such seafarers are employed or are likely to be employed exists or is apprehended and

such dispute relates to any matter connected with or incidental to the employment of the

seafarers, the Central Government may, by notification, constitute a Tribunal consisting of

one or more persons, having knowledge of maritime matter, and refer the dispute for

adjudication.

(2) The Tribunal shall not be bound by the procedure laid down by the Code of Civil

Procedure, 1908 but shall be guided by the principles of natural justice.

(3) The Tribunal shall also not be bound by the rules of evidence contained in the

Indian Evidence Act, 1872.

(4) The Tribunal shall, for the purposes of discharging its functions under this Act,

have power to regulate its own procedure and shall have the same powers as are vested in a

civil court under the Code of Civil Procedure, 1908, while trying a suit in respect of the

following matters, namely:—

(a) summoning and enforcing the attendance of any person and examining him

on oath;

(b) compelling the production of documents;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of witnesses;

(e) any other matter which may be prescribed.

Restrictions

on suits for

wages.

Wages not

recoverable

outside India

in certain

cases.

Remedies of

master for

wages,

disbursements,

etc.

Power to

refer disputes

between

seafarers and

their

employers to

Tribunal.

10 of 1872.

5 of 1908.

5 of 1908.

30

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(5) Any proceeding before the Tribunal shall be deemed to be a judicial proceeding

within the meaning of sections 193 and 228 of the Indian Penal Code.

(6) No party to a dispute shall be entitled to be represented by a legal practitioner in

any proceeding before the Tribunal except with the consent of the other party or parties to

the proceeding and with the leave of the Tribunal.

(7) The Tribunal shall dispose of the reference within a period as may be specified in

the notification under sub-section (1) and submit its award to the Central Government.

(8) On receipt of the award, the Central Government shall cause it to be published and

the award shall become enforceable on the expiry of thirty days from the date of such

publication:

Provided that where the Central Government is of the opinion that it shall be inexpedient

on public grounds to give effect to the award or any part of it, it may before the expiry of the

said period of thirty days by order in the Official Gazette either reject the award or modify it,

and where the Central Government does so, the award shall not become enforceable or shall

become enforceable subject to the modifications, as the case may be.

(9) An award which has become enforceable under this section shall be binding on—

(a) all parties to the dispute;

(b) where any party to the dispute is the owner of the ship, his heirs, successors,

or assigns.

(10) Save as otherwise provided in the award, an award shall remain in operation for a

period of one year from the date on which it becomes enforceable and shall thereafter

continue to remain in operation until a period of two months has elapsed from the date on

which notice is given by any party bound by the award to the other party or parties intimating

its intention to terminate the award.

(11) Unless otherwise directed by the Central Government, the Tribunal shall cease to

exist on the expiry of a period of thirty days after publication of the award.

(12) Any money due to a seafarer from the owner of a ship under an award may be

recovered as wages.

(13) Nothing contained in the Industrial Disputes Act, 1947, shall apply to any dispute

between seafarers or any class of seafarers or any union of seafarers and the owners of ships

in which such seafarers are employed or are likely to be employed.

(14) During the pendency of proceedings under this section,—

(a) no seafarer or class of seafarers or union of seafarers shall go or remain on

strike or otherwise act in a manner prejudicial to the normal operation of the ships in

which the seafarer is employed or are likely to be employed; and

(b) no owner of a ship shall,—

(i) alter to the prejudice of the seafarer concerned in the dispute, the

conditions of service applicable to them immediately before the commencement

of such proceedings; or

(ii) discharge or punish any seafarer in respect of any matter connected

with the dispute.

84. (1) Where a seafarer is lost with the ship to which he belongs, the Central

Government or such officer as the Central Government may appoint in this behalf may

recover the wages and the compensation due to him from the master or owner of a ship or his

agent in the same court and in the same manner in which the seafarer's wages are recoverable,

and shall deal with those wages in the same manner as with the wages and compensation due

to other deceased seafarers under this Act.

Recovery of

wages, etc., of

seafarers lost

with their ship.

14 of 1947.

45 of 1860.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

31

(2) In any proceeding for the recovery of the wages and compensation, if it is shown

by some official records or by other evidence that the ship has, twelve months or upwards

before the institution of the proceeding, left any port, she shall, unless it is shown that she

has been heard of within twelve months after the departure, be deemed to have been lost

with all hands on board either immediately after the time she was last heard of or at such later

time as the court hearing the case may think probable.

85. (1) A seafarer may, for the purposes of sub-section (3) of section 69, nominate any

person or persons:

Provided that if the seafarer has a family, he may nominate for the purposes aforesaid

anyone or more members of his family only and if a seafarer acquires a family after he has

made any such nomination, the nomination shall become void.

(2) The form in which any nomination may be made under sub-section (1), the

cancellation or variation of any such nomination (including the making of a fresh nomination)

and all other matters connected with such nominations shall be such as may be prescribed.

86. (1) The Indian consular officer at or near the place where a seafarer is in distress

shall, on application being made to him by the distressed seafarer, provide in accordance

with the rules made under this Act for the return of that seafarer to a proper return port, and

also for the said seafarer's necessary clothing and maintenance until his arrival at such port.

(2) A distressed seafarer shall not have any right to be maintained or sent to a proper

return port except to the extent and on the conditions provided for in the rules.

(3) All repatriation expenses, other than excepted expenses, incurred by or on behalf

of the Central Government in accordance with the provisions of this Act shall constitute a

debt due to the Central Government for which the owner or agent of the ship to which the

seafarer in respect of whom they were incurred belonged at the time of his discharge or other

event which resulted in his becoming a distressed seafarer shall be liable, and the owner or

agent shall not be entitled to recover from the seafarer any amount paid by him to the Central

Government in settlement or part settlement of such debt.

(4) All excepted expenses incurred by or on behalf of the Central Government in

accordance with the provisions of this Act shall constitute a debt due to the Central Government

for which the seafarer in respect of whom they were incurred and the owner or the agent of

the ship to which that seafarer belonged at the time of his discharge or other event which

resulted in his becoming a distressed seafarer shall be jointly and severally liable, and the

owner or agent shall be entitled to recover from the seafarer any amount paid by him to the

Central Government in settlement or part settlement of such debt, and may apply to the

satisfaction of his claim so much as may be necessary of any wages due to the seafarer.

(5) All excepted expenses incurred in accordance with the provisions of this Act in

respect of any distressed seafarer by the owner or agent of the ship to which he belonged at

the time of his discharge or other event which resulted in his becoming a distressed seafarer

shall constitute a debt due to the owner or agent for which the seafarer shall be liable; and the

owner or agent may apply to the satisfaction of his claim so much as may be necessary of any

wages due to the seafarer; but he shall not be entitled to recover from the seafarer any

repatriation expenses other than excepted expenses.

(6) In any proceedings for the recovery of any expenses which in terms of sub-section (3)

or sub-section (4) are a debt due to the Central Government, the production of an account of

the expenses and proof of payment thereof by or on behalf of or under the direction of the

Central Government shall be prima facie evidence that the expenses were incurred in

accordance with the provisions of this Act by or on behalf of the Central Government.

(7) Any debt, which may be due to the Central Government under this section, may be

recovered by any officer authorised by it in writing in this behalf from the person concerned

in the same manner, as the wages are recoverable under section 79.

Nomination.

Relief and

maintenance

of distressed

seafarers.

32

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(8) The Central Government may, make rules with respect to relief, maintenance and

return to the proper port of a seafarer found in distress in any place out of India and with

respect to the circumstances in which and the conditions subject to which the seafarer may

be relieved and provided with passages under this Part and generally to carry out the

provisions of this Part relating to distressed seafarer.

Explanation.—For the purposes of this section,—

(a) "excepted expenses" means repatriation expenses incurred in cases where

the cause of the seafarer being left behind is desertion or absence without leave or

imprisonment for misconduct or discharge from his vessel on the grounds of misconduct;

(b) "repatriation expenses" means expenses incurred in returning a distressed

seafarer to a proper return port and in providing him with necessary clothing and

maintenance until his arrival at such a port, and includes in the case of a shipwrecked

seafarer the repayment of expenses incurred in conveying him to a port after shipwreck

and maintaining him while being so conveyed.

87. In any proceeding under this Part, a certificate of the Central Government or of

such officer as the Central Government may specify in this behalf, to the effect that any

seafarer named therein is distressed shall be conclusive evidence that such seafarer is

distressed within the meaning of this Act.

88. (1) A shipping master, surveyor, seafarer's welfare officer, Indian consular officer or

any other officer at any port duly authorised in this behalf by the Central Government shall,—

(a) in the case of any ship upon which the seafarer has been shipped at that

port, at any time, and

(b) in the case of any Indian ship, at any time, and if the master or three or more

of the crew so request,

enter onboard the ship and inspect,—

(i) the provisions and water;

(ii) the weights and measures;

(iii) the accommodation for seafarers, with which the ship is required to

be provided by or under this Act and also the space and equipment used for the

storage and handling of food and water and the galley and other equipment

used for the preparation and service of meals;

(iv) Maritime Labour Certificate and Declaration of Maritime Labour

Compliance.

(2) All Indian ships engaged in international voyage or operating from a port, or

between ports, in another country, shall possess a Maritime Labour Certificate and a

Declaration of Maritime Labour Compliance.

(3) Ships not covered under sub-section (2) shall, unless exempted by the Central

Government, possess such certificate in such manner and form as may be prescribed.

(4) For the purpose of preventing seafarer from being taken onboard any ship at any

port in India contrary to the provisions of this Act, any shipping master or deputy or assistant

shipping master or any director, deputy director or assistant director of the seafarer's

employment office, may enter at any time onboard any such ship upon which he has reasons

to believe that seafarers have been shipped, and may muster and examine the several seafarers

employed therein.

Explanation.—For the purposes of this section,—

(a) "Declaration of Maritime Labour Compliance" means a declaration

issued by the Central Government or by any officer, authority or organisation

Evidence of

distress.

Inspection by

shipping

master, etc.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

33

authorised by it in this behalf, in respect of a ship that it meets with the

requirements and standards set out in the provisions of the Maritime Labour

Convention;

(b) "International voyage" means a voyage from or to a port or place in

India to or from a port or place outside India or between any ports outside India.

89. (1) A seafarer shall, for the purposes of this Part, be deemed to be a serving seafarer

during any period commencing on the date of the agreement with the crew and ending thirty

days after the date on which the seafarer is finally discharged from such agreement.

(2) If any person presenting any plaints, applications or appeal to any court has

reason to believe that any adverse party is serving seafarer, he shall make a statement

accordingly in such plaint, application or appeal.

(3) If any collector has reason to believe that any seafarers who ordinarily resides or

has property in his district and who is a party to any proceeding pending before any court is

unable to appear therein or is a serving seafarer, the collector may certify the facts to the court.

(4) If a collector has certified under sub-section (3) or if a court has reason to believe

that a seafarer who is a party to any proceeding before the court, is unable to appear therein

or is a serving seafarer, the court shall suspend the proceeding and shall give notice thereof

to the shipping master:

Provided that the court may refrain from suspending the proceeding and giving the

notice if,—

(a) the proceeding is one instituted or made by the seafarer, alone or conjointly

with others, with the object of enforcing a right of pre-emption; or

(b) the interests of the seafarer in the proceeding are, in the opinion of the court,

either identical with those of any other party thereto and adequately represented by

such other party, or merely of a formal nature.

(5) If it appears to the court before which any proceeding is pending that a seafarer

though not a party to the proceeding is materially concerned in the outcome of the proceeding

and that his interests are likely to be prejudiced by his inability to attend, the court may

suspend the proceeding and shall give notice thereof to the shipping master.

(6) If on receipt of a notice under sub-section (4) or sub-section (5), the shipping

master certifies to the court, that the seafarer is a serving seafarer, the court shall thereupon

postpone the proceeding in respect of the seafarer for such period as it thinks fit:

Provided that if by reason of the continued absence of the seafarer the question of any

further postponement of the proceeding in respect of the seafarer arises, the court shall in

deciding the question have regard to the purposes of the provisions of this Act conferring

special protection on seafarer in respect of litigation.

(7) If the shipping master either certifies that the seafarer is not for the time being a

serving seafarer or fails within two months from the date of the receipt of the notice under

sub-section (4) or sub-section (5), as the case may be, to certify that the seafarer is a serving

seafarer, the court may, if it thinks fit, continue with the proceeding.

(8) Where in any proceeding before a court, a decree or order has been passed against

any seafarer while he was a serving seafarer, the seafarer, or if he dies while he is a serving

seafarer, his legal representative, may apply to the said court to have the decree or order to

be set aside, and if the court, after giving an opportunity to the opposite party of being

heard, is satisfied that the interests of justice requires that the decree or order to be set aside

as against the seafarer, the court shall subject to such conditions, if any, as it thinks fit to

impose, make an order accordingly, and may, if it appears that any opposite party in the

proceeding has failed to comply with the provisions of sub-section (2), award, subject to

such conditions as it thinks fit to impose, damages against such opposite party.

Special

provisions

for the

protection of

seafarers in

respect of

litigation.

34

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(9) The period of limitation for an application under sub-section (8) shall be sixty days

from the date on which the seafarer first ceases to be a serving seafarer after the passing of

the decree or order, or where the summons or notice was not duly served on the seafarer in

the proceeding in which the decree or order was passed, from the date on which the applicant

had knowledge of the decree or order, whichever is later; and the provisions of section 5 of

the Indian Limitation Act, 1963, shall apply to such applications.

(10) Where the decree or order in respect of which an application under sub-section (8) is

made is of such a nature that it cannot be set aside as against the seafarer only, it may be set

aside as against all or any of the parties against whom it was made.

(11) Where a court sets aside a decree or order under this section, it shall appoint a day

for proceeding with the suit, appeal or application, as the case may be, in respect of which the

decree or order was passed.

(12) In computing the period of limitation provided in the foregoing provisions or in

the Indian Limitation Act, 1963, or in any other law for the time being in force, for any suit,

appeal or application to a court to which a seafarer is a party, the period or periods during

which the seafarer has been a serving seafarer, and if the seafarer has died while he was a

serving seafarer, the period from the date of his death to the date on which his next-of-kin

was first informed, by the shipping master or otherwise, of his death, shall be excluded:

Provided that this section shall not apply in the case of any suit, appeal or application

instituted or made with the object of enforcing a right of presumption except in such areas

and in such circumstances as the Central Government may, by notification, specify in this behalf.

(13) If any court is in doubt whether, for the purposes of this section, a seafarer is or

was at any particular time or during any particular period a serving seafarer, it may refer the

question to the shipping master, and the certificate of the shipping master shall be conclusive

evidence on the question.

90. If a seafarer states to the master that he desires to make a complaint to a Judicial

Magistrate of the first class or a Metropolitan Magistrate, as the case may be, or other proper

officer against the master or any of the crew, the person authorised by the Central Government

in this behalf shall,—

(a) if the ship is then at a place where there is a Judicial Magistrate of the first

class or a Metropolitan Magistrate, as the case may be, or other proper officer, as soon

after such statement as the service of the ship shall permit, and

(b) if the ship is not then at such place, as soon after her first arrival at such place

as the service of the ship shall permit,

allow the complainant to go ashore or send him ashore under proper protection so that he

may be enabled to make the complaint.

91. Subject to the provisions of this Act, an assignment of salvage payable to a

seafarer made prior to the accruing thereof shall not bind the person making the same, and a

power-of-attorney or authority for the receipt of any such salvage shall not be irrevocable.

92. Where a ship has arrived at a port or place in India at the end of a voyage and any

person, not being in the service of the Government or not being duly authorised by law for

the purpose, goes onboard the ship without the permission of the master, the master of the

ship may take such person into custody and deliver him up forthwith to a police officer to be

taken before a Judicial Magistrate of the first class or a Metropolitan Magistrate, as the case

may be, to be dealt with according to the provisions of this Act.

93. No seafarer belonging to an Indian ship wherever it may be, or to any other ship,

while in India, shall knowingly,—

(a) do anything tending to the immediate loss or destruction of, or serious

damage to, the ship, or tending immediately to endanger the life of, or to cause injury

to any person belonging to or onboard the ship; or

Facilities for

making

complaint.

Assignment or

sale of salvage

invalid.

Ship not to be

boarded

without

permission.

Misconduct

endangering

life or ship.

36 of 1963.

36 of 1963.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

35

(b) refuse or omit to do any lawful act proper and requisite to be done by him for

preserving the ship from immediate loss, destruction or serious damage, or for preserving

any person belonging to or onboard the ship from danger to life or from injury.

94. (1) No seafarer lawfully engaged shall,—

(a) desert his ship; or

(b) neglect or refuse, without reasonable cause, to join the ship or to proceed to

sea in his ship or be absent without leave at any time within twenty-four hours of the

ship's sailing from a port either at the commencement or during the progress of a

voyage, or be absent at any time without leave and without sufficient reason from his

ship or from his duty.

(2) For the purposes of sub-section (1), the fact that the ship on which the seafarer is

engaged or to which he belongs is unseaworthy shall be deemed to be a reasonable cause:

Provided that the seafarer has, before failing or refusing to join his ship or to proceed

to sea in his ship or before absenting himself or being absent from the ship, as the case may

be, complained to the master or a shipping master, surveyor, seafarer's welfare officer, port

health officer, Indian consular officer or any other officer at any port duly authorised in this

behalf by the Central Government, that the ship is unseaworthy.

(3) If it is shown to the satisfaction of a shipping master that a seafarer has deserted

his ship or has absented himself without leave and without sufficient reason from his ship or

from his duty, the shipping master shall forthwith make a report to that effect to the Director-

General who may thereupon direct that the seafarer's continuous discharge certificate and

seafarer identity document shall be withheld for such period as may be specified in the direction.

(4) If a seafarer deserts his ship or is absent without leave and without sufficient

reason from his ship or from his duty, the master, any seafarer, the owner or agent of the

owner of the ship may, without prejudice to any other action that may be taken against the

seafarer under this Act, convey him onboard his ship and may for that purpose cause to be

used such force as may be reasonable in the circumstances of the case.

(5) If, either at the commencement or during the progress of any voyage, a seafarer

engaged in an Indian ship commits outside India, the offence of desertion or absence without

leave or any offence against discipline, the master, any mate, the owner or agent of the owner

of the ship may, if and so far as the laws in force in the place shall permit, arrest him without

first procuring warrant.

(6) No person shall convey onboard or arrest a seafarer on improper or insufficient

grounds.

(7) Where a seafarer is brought before a court on the ground of desertion or of

absence without leave or of any offence against discipline, and the master or the owner, or

his agent, so requires, the court, may, in lieu of committing and sentencing him for the

offence, cause him to be conveyed onboard his ship for the purpose of proceeding on the

voyage, or deliver him to the master or any mate of the ship or the owner or his agent, to be

by them so conveyed, and may in such case order any costs and expenses properly incurred

by or on behalf of the master or owner by reason of the conveyance to be paid by the

offender and, if necessary, to be deducted from any wages which he has then earned or by

virtue of his then existing engagements may afterwards be earned.

95. A seafarer lawfully engaged shall be guilty of an offence against discipline if he

commits any of the following acts, namely:—

(a) if he quits the ship without leave after her arrival at her port of delivery and

before she is placed in security;

(b) if he wilfully disobeys any lawful command or neglects the duty;

(c) if he continues to wilfully disobey any lawful commands or continues with

wilful neglect of duty;

Desertion

and absence

without

leave.

General

offences

against

discipline.

36

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(d) if he assaults the master or any other officer of, or a seafarer belonging to the

ship;

(e) if he combines with any of the crew to disobey lawful commands or to neglect

duty or to impede the navigation of the ship or retard the progress of the voyage;

(f) if he wilfully damages his ship or commits criminal misappropriation or breach

of trust in respect of, or wilfully damages any of, her stores or cargo;

(g) if he has received an advance payment on the basis of his agreement and

wilfully or through misconduct fails to attend his ship or desert therefrom before the

payment becomes due to him.

96. (1) If a seafarer engaged is convicted of an offence of smuggling any goods,

whereby loss or damage is occasioned to the master or owner of the ship, he shall be liable

to pay to that master or owner a sum sufficient to reimburse the loss or damage and the whole

or a part of his wages may be retained in satisfaction on account of that liability without

prejudice to any other remedy.

(2) If a seafarer engaged is convicted of an offence of smuggling any goods, the

Director-General may direct that the seafarer's continuous discharge certificate and seafarer's

identity document shall be cancelled or shall be suspended for such period as may be

specified in the direction.

97. (1) If any offence within the meaning of this Act of desertion or absence without

leave or against discipline is committed, or if any act of misconduct is committed for which

the offender's agreement imposes a fine and it is intended to enforce the fine—

(a) an entry of the offence or act shall be made in the official logbook and signed

by the master, the officer on watch;

(b) the offender, if still in the ship, shall, before the next subsequent arrival of the

ship at any port, or, if she is at the time in port, before her departure therefrom, be

furnished with a copy of the entry and have the same read over distinctly and audibly

to him and may thereupon make such reply thereto as he thinks fit;

(c) a statement of a copy of the entry having been so furnished and the entry

having been so read over and the reply, if any, made by the offender shall likewise be

entered and signed in the manner aforesaid; and

(d) in any subsequent legal proceedings the entries by this section required

shall, if practicable, be produced or proved, and, in default of such production or

proof, the court hearing the case may in its discretion, refuse to receive evidence of the

offence or act of misconduct.

98. Whenever any seafarer engaged outside India on an Indian ship deserts or otherwise

absents himself in India without leave, the master of the ship shall, within forty-eight hours

of discovering such desertion or absence, report the same to the shipping master or to such

other officer as the Central Government specifies in this behalf, unless in the meantime, the

deserter or absentee returns.

99. (1) In every case of desertion from an Indian ship whilst such ship is at any place

out of India, the master shall produce the entry of desertion in the official logbook to the

Indian consular officer at the place, and that officer shall thereupon make and certify a copy

of the entry.

(2) The master shall forthwith transmit such copy of entry certified under

sub-section (1) to the shipping master at the port at which the seafarer was shipped, and the

shipping master shall, if required, cause the same to be produced in any legal proceeding.

(3) Such copy of the entry, if purporting to be so made and certified as provided under

sub-section (1), shall, in any legal proceeding relating to such desertion, be admissible in

evidence.

Smuggling of

goods by

seafarer.

Entry of

offences in

official log-

book.

Report of

desertions and

absences

without leave.

Entries and

certificates of

desertion

abroad.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

37

100. (1) Whenever a question arises whether the wages of any seafarer are forfeited

for desertion from a ship, it shall be sufficient for the person insisting on the forfeiture to

show that the seafarer was duly engaged in or belonged to the ship, and either that he left the

ship before the completion of the voyage or engagement or, if the voyage was to terminate in

India and the ship has not returned, that he is absent from her and that an entry of his

desertion has been duly made in the official logbook.

(2) The desertion shall thereupon, so far as relates to any forfeiture of wages under

this Part, be deemed to be proved, unless the seafarer can produce a proper certificate of

discharge or can otherwise show to the satisfaction of the court that he had sufficient

reasons for leaving his ship.

101. (1) Where any wages or other property are under this Act forfeited for desertion

from a ship, they shall be applied towards reimbursing the expenses caused by the desertion

to the master or the owner of the ship or his agent of the ship, and subject to that

reimbursement, shall be paid to the Central Government.

(2) For the purposes of such reimbursement, the master, or the owner or his agent may,

if the wages are earned subsequent to the desertion, recover them in the same manner as the

deserter could have recovered them if not forfeited, and the court in any legal proceeding

relating to such wages may order them to be paid accordingly.

102. Any question concerning the forfeiture of or deductions from the wages of a

seafarer may be determined in any proceeding lawfully instituted with respect to those

wages, notwithstanding that the offence in respect of which the question arises, though by

this Act made punishable by imprisonment as well as forfeiture has not been made the

subject of any criminal proceeding.

103. (1) Every fine imposed on a seafarer for any act of misconduct under his agreement

shall be deducted and paid as follows, namely:—

(a) if the offender is discharged at any port or place in India and the offence and

such entries in respect thereof as aforesaid are proved to the satisfaction of the shipping

master, the master or owner or agent shall deduct such fine from the wages of the

offender and pay the same to such shipping master; and

(b) if the seafarer is discharged at any port or place outside India and the offence

and such entries as aforesaid are proved to the satisfaction of the Indian consular

officer, by whose sanction he is so discharged, the fine shall thereupon be deducted as

aforesaid, and an entry of such deduction shall then be made in the official logbook, if

any, and signed by such officer and on the return of the ship to India, the master or

owner shall pay such fine to the shipping master.

(2) An act of misconduct for which any such fine has been inflicted and paid shall not

be otherwise punishable under the provisions of this Act.

(3) The proceeds of all fines received by a shipping master under this section shall be

utilised for the welfare of seafarers in such manner as the Central Government may direct.

104. (1) No person shall by any means whatever persuade or attempt to persuade a

seafarer to neglect or refuse to join or proceed to sea in or desert from his ship, or otherwise

to absent himself from his duty.

(2) No person shall harbour or secrete a seafarer who has wilfully neglected or refused

to join or has deserted from his ship, knowing or having reason to believe the seafarer to

have so done:

Provided that the provisions of this sub-section shall not extend to the case in which

the harbour or secreting is by the spouse of the seafarer.

105. (1) No person shall secrete himself and go to sea in a ship without the consent of

either the owner, agent or master, or of a mate, or of the person in charge of the ship or of any

other person entitled to give that consent.

Facilities for

proving

desertion in

proceedings

for forfeiture

of wages.

Application of

forfeitures.

Decision of

questions of

forfeiture and

deduction in

suits for

wages.

Payment of

fines imposed

under agree-

ment to

shipping

master.

Seafarer not to

be enticed to

desert.

Stowaways

and seafarers

carried under

compulsion.

38

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(2) Every seafaring person whom the master of a ship is under the authority of this Act

or any other law compelled to take onboard and convey and every person who goes to sea

in a ship without such consent as aforesaid, shall, so long as he remains in the ship, be

subject to the same laws for preserving discipline and to the same fines, and punishments for

offences constituting or tending to a breach of discipline as if he were a member of, and has

signed the agreement with the crew.

(3) The master of any Indian ship arriving at any port or place in or outside India and

the master of any ship other than an Indian ship arriving at any port or place in India shall, if

any person has gone to sea on that ship without the consent referred to in sub-section (1),

report the fact in writing to the proper officer as soon as may be after arrival of the ship.

106. (1) If during the progress of a voyage the master of any Indian ship is removed or

superseded or for any other reason quits the ship and is succeeded in the command by some

other person, he shall, deliver to his successor the various documents relating to the

navigation of the ship and the crew thereof which are in his custody and a handing over note

enlisting such documents.

(2) On receipt of such documents and the handing over note, the successor shall make

an entry in the official logbook to that effect which shall also be endorsed by the predecessor.

107. (1) Where it appears to the Central Government that due facilities are or shall be

given by the Government of any country outside India for recovering and apprehending

seafarers who desert from Indian ships in that country, the Central Government may, by

notification, stating that such facilities are or shall be given, declare that this section shall

apply to seafarers belonging to ships of such country, subject to such limitations or conditions

as may be specified in the notification.

(2) Where this section applies to seafarers belonging to ships of any country and a

seafarer deserts from any such ship, when within India, any court that would have taken

cognizance of the matter if the seafarer had deserted from an Indian ship shall, on the

application of a consular officer of that country, aid in apprehending the deserter and for that

purpose may, on information given on oath, issue a warrant for his apprehension and on

proof of the desertion order him to be conveyed onboard his ship or delivered to the master

or mate of his ship or to the owner of the ship or his agent to be so conveyed and any such

warrant or order may be executed accordingly.

108. (1) Except a ship of less than two hundred tons gross, there shall be kept an

official logbook in such form and such manner as may be prescribed.

(2) The master, owner or agent of every ship for which an official logbook is required

to be kept under this Act shall, deliver the official logbook to the shipping master as and

when required by the shipping master.

(3) No person shall make or procure to be made or assist in making any entry in any

official logbook in respect of any occurrence happening previously to the arrival of the ship

at her final port of discharge more than twenty-four hours after such arrival.

109. (1) The Central Government may make rules to carry out the provisions of this

Part.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the conditions under sub-section (3) of section 63;

(b) the continuous discharge certificate and seafarer's identity documents under

clause (b) of section 64;

(c) the other functions and duties of the seafarer's employment offices under

clause (b) of section 65;

(d) the form, the manner of the issue of continuous discharge certificate and

On change of

master,

documents to

be handed

over to

successor.

Deserters from

foreign ships.

Official

logbook.

Power to

make rules for

this Part.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

39

seafarer's identity documents and fees for such discharge certificate and identity

documents under sub-section (4) of section 66;

(e) the qualifications of the seafarer engaged or carried to sea to in any capacity

in any ship under sub-section (6) of section 66;

(f) the form of certificate to be possessed by seafarer and the authority who

grants that certificate to the effect that the seafarer is medically fit under

sub-section (7) of section 66;

(g) the form of agreement and manner of making agreement under

sub-section (1) of section 67;

(h) the manner of discharge from service of seafarer under sub-section (1) of

section 73;

(i) the manner of discharge of property under section 74;

(j) the restrictions and conditions for utilisation of any amount deposited with

or recovered by shipping master under section 76;

(k) any other matter relating to functions of the Tribunal under clause (e) of

sub-section (4) of section 83;

(l) the form of nomination, cancellation or variation of such nomination and all

other matters connected with the nominations under sub-section (2) of section 85;

(m) the form of certificate and the manner of possession of such certificate

under sub-section (3) of section 88;

(n) the form and manner of keeping logbook under sub-section (1) of

section 108;

(o) any other matter which is required to be or may be prescribed.

PART VI

SAFETY AND SECUIRITY

110. This Part shall, unless otherwise exempted, apply to,—

(a) Indian vessel, except vessel covered under Part XIII, on matters relating to

safety and security;

(b) vessel other than Indian vessel when such vessel is within India, including

waters within the jurisdiction of India on matters relating to safety and security;

(c) port facility, on matters relating to security; and

(d) company, on matters relating to safety and security of the vessel.

111. In this Part, unless the context otherwise requires,—

(a) "company" means the owner of the vessel or any other organisation or

person such as the manager, or the bareboat charterer, who has assumed the

responsibility for operation of the vessel from the owner of the vessel and who on

assuming such responsibility has agreed to take over all the duties and responsibilities

imposed by the international safety management code under the safety convention;

(b) "port facility" means any location or area including anchorages or awaiting

berths or approaches from seaward as determined by the Central Government where

interface between vessel or a vessel and a port takes place;

(c) "voyage" means the whole time and distance between the vessels port or

place of departure and her final port or place arrival;

(d) words and expressions used in this Part but not defined, shall have the same

meanings as assigned to them in the Conventions as referred to in section 112.

Definitions.

Application

of this Part.

40

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

112. (1) Every vessel shall, subject to such conditions as may be prescribed, comply

with the provisions of the following convention or agreement, as applicable, namely:—

(a) the Safety Convention;

(b) the Load Lines Convention;

(c) the Special Trade Passenger Ships Agreement,1971;

(d) the Convention on the International Regulations for Preventing Collisions at

Sea, 1972;

(e) the International Convention on Maritime Search and Rescue, 1979;

(f) the Tonnage Measurement Convention, 1969;

(g) the International Convention for Safe Containers, 1972;

(h) any other convention or agreement or any treaty relating to safety or security

to which India is a Party:

Provided that vessels, to which the provisions of the above conventions are not

applicable, shall comply with such safety and security requirements as may be prescribed.

(2) The safety and security requirements for different classes of vessels and certificates

to be held by such vessels shall be such as may be prescribed.

113. (1) When an incident relating to the safety and security takes place on a vessel,

the master of vessel shall report the particulars of such incident to such authority in such

manner as may be prescribed.

(2) When an incident takes place relating to the loss or likely loss overboard of

dangerous goods in packaged form into the sea, or dangerous goods in solid form in bulk

into the sea, or any incident impeding safe navigation, the master of every vessel shall report

the particulars of such incident to such authority in such manner as may be prescribed.

(3) The vessel referred to in sub-section (1) or sub-section (2) being abandoned, or a

report from such vessel being incomplete, the Central Government shall fix the responsibility

on the master of the vessel.

114. (1) The master of an Indian vessel, on receiving at sea a signal of distress or

information from any source that a vessel or aircraft is in distress, shall proceed with all

speed to the assistance of the persons in distress (informing them if possible that he is doing

so) unless he is unable or in the special circumstances of the case considers it unreasonable

or unnecessary to do so or unless he is released from such obligation under the provisions

of sub-section (3) or sub-section (4).

(2) Where the master of any vessel in distress has requisitioned any Indian vessel that

has answered his call, it shall be the duty of the master of the requisitioned vessel to comply

with the requisition by continuing to proceed with all speed to the assistance of the persons

in distress unless he is released from the obligation under the provisions of sub-section (4).

(3) The master shall be released from the obligation imposed by sub-section (1) as

soon as he is informed of the requisition of one or more vessels, other than his own and that

the requisition is being complied with by the vessel or vessels requisitioned.

(4) The master shall be released from the obligation imposed by sub-section (1), and

if his vessel has been requisitioned, from the obligation imposed by sub-section (2), if he is

informed by the persons in distress or by the master of any vessel that has reached the

persons in distress that assistance is no longer required.

(5) If the master of an Indian vessel on receiving at sea a signal of distress or information

from any source that a vessel or aircraft is in distress is unable or in the special circumstances

of the case considers it unreasonable or unnecessary to go to the assistance of the persons

Safety and

security

requirements.

Reporting of

incidents.

Obligation to

render

assistance on

receiving

signal of

distress and to

persons in

danger.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

41

in distress, he shall forthwith cause a statement to be entered in the official log book or if

there is no official log book, cause other record to be kept of his reasons for not going to the

assistance of those persons.

(6) The master of every Indian vessel for which an official logbook is required shall

enter or cause to be entered in the official logbook every signal of distress or message that

a vessel, aircraft or person is in distress at sea.

(7) The master of every Indian vessel shall render assistance to every persons found

at sea in danger of being lost, unless he is unable or, in the special circumstance of the case,

considers that such assistance cannot be rendered without serious danger to his vessel, or

the persons thereon.

(8) If the master of an Indian vessel is unable or consider it unreasonable to go to the

assistance of a person found at sea in danger of being lost, the master shall forthwith cause

a statement to be entered in the official logbook or, if there is no official logbook, cause other

record to be kept of his reasons for not going to the assistance of that person.

115. The Central Government may make arrangements for search and rescue services

for dealing with distress situation at sea, including territorial waters of India or any marine

areas adjacent thereto over which India has, or may have jurisdiction under the Territorial

Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 or

any other law for the time being in force or such territory under International Convention on

Maritime Search and Rescue, 1979 and agreement related thereto and such services shall

include the establishment of rescue co-ordination centers and sub-centers.

116. Every Indian vessel shall be equipped and maintained with such communication

equipment, distress and safety equipment and shall be provided with such certified operators

as may be prescribed.

117. Every Indian vessel shall carry on board such information relating to the stability

of the vessel, and the effects of any damage, control and general precautions necessary to

maintain watertight integrity of the vessels, duly approved, as required under the provisions

of Safety Convention, and the Load Line Convention, or the safety and security requirements

in accordance with the provisions of section 112.

Explanation.—For the proposes of this section, "Load Line Convention" means the

International Convention on Load Lines, 1966 and its Protocols.

118. (1) No vessel, other than a vessel exempted from the provisions of this Part

relating to load lines, shall be so loaded as to submerge in salt water, when the vessel has no

list, the appropriate load line on each side of the vessel, that is to say, the load line indicating

or purporting to indicate the maximum depth to which the vessel is for the time being entitled

under the load line rules to be loaded.

(2) Without prejudice to any other proceedings under this Act, any vessel which is

loaded in contravention of this section may be detained until she ceases to be so loaded.

119. (1) No vessel shall carry passengers between ports or places in India, or to or

from any port or place in India from or to any port or place outside India, unless she has all

certificates required under this Part in force.

(2) The Central Government may, by general or special order, specify the conditions

relating to,—

(a) passenger accommodation;

(b) scale of passenger and crew amenities to be provided;

(c) space or disallowance of any space on a vessel;

(d) scale of provisions and water to be provided;

Search and

rescue

services.

Radio

communication

requirements.

Information

about vessel

stability.

Submersion of

load lines.

No vessel to

carry passenger

without a

certificate.

80 of 1976.

42

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(e) hospital accommodation and medical facilities;

(f) the conditions for carriage of cargo and livestock; and

(g) any other matter to carry out the purposes of this Part.

(3) Subject to the conditions specified in sub-section (2), the master of a passenger

vessel departing or proceeding on a voyage shall make a statement about the passengers on

board the vessel in such form as may be specified by the Central Government in this behalf.

120. No vessel shall proceed to sea unless there is in force in respect of such vessel

the certificates required under the convention or agreement referred to in section 112.

121. (1) If any person who,—

(a) being drunk or disorderly attempts to enter a vessel; or

(b) on board molest or continues to molest any person on board; or

(c) travels or attempts to travel without payment of fare; or

(d) wilfully refuses or neglects to quit the vessel on arrival at destination; or

(e) fails to exhibit his ticket when requested by the master or other officer; or

(f) misconducts himself in such a manner as to cause annoyance or injury to

persons on board; or

(g) carries any substance that could jeopardize the safety or security of the

vessel, lives onboard or the environment in general,

he shall be guilty of an offence under this sub-section.

(2) The master may refuse to receive on board any person referred to in

sub-section (1), and if any such person is on board, may put him on shore, and the person

so refused admittance or put on shore shall not be entitled to return of any fare he has paid.

(3) The master or other officer of any such vessel and all persons called by him or

other officer to his assistance, without warrant, may detain any person who commits any

offence under sub-section (1) and convey the offender with all convenient dispatch before

the nearest police station to be dealt with in accordance with the law.

122. (1) No vessel shall carry or attempt to carry cargo in contravention of section 120

or shall have on board or in any part thereof a cargo which is not in accordance with the

certificate held by the vessel.

(2) No vessel shall carry or attempt to carry passengers in contravention of

section 120 or shall have on board or in any part thereof a number of passengers, which is

greater than the number set forth in the certificate held by the vessel.

(3) If the master of any vessel which carries or attempts to carry cargo or passengers in

contravention of this section he shall be liable to have his certificate of competency cancelled

or suspended for such a period as the Central Government may, by order, specify in this behalf.

123. (1) Every person who sends or attempts to send a vessel which is not in a

seaworthy condition to sea so that the life of any person is likely to be thereby endangered

shall, unless he proves that he used all reasonable means to ensure her being sent to sea in

a seaworthy state or that her going to sea in such unseaworthy state was under the

circumstances reasonable and justifiable, be guilty of an offence under this sub-section.

(2) Every master of a vessel who knowingly takes a vessel which is not in seaworthy

condition that the life of any person is likely to be thereby endangered shall, unless he

proves that her going to sea in such unseaworthy state was, under the circumstances,

reasonable and justifiable, be guilty of an offence under this sub-section.

Vessel not to

proceed to sea

without valid

safety and security

certificates.

Offences.

Vessel not to

carry cargo or

passengers in

contravention

of Act.

Unseaworthy

vessel not to

be sent to sea.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

43

(3) For the purpose of giving such proof, every person charged under this section

may give evidence in the same manner as any other witness.

(4) No prosecution for an offence under sub-section (2) shall be instituted except by,

or with the written consent of the Central Government.

124. (1) In every contract of service, express or implied between the owner of a vessel

and the master or any seafarer thereof, there shall be implied, notwithstanding any agreement

to the contrary, an obligation on the owner that such owner and the master, and every agent

charged with the loading of such vessel or the preparing thereof for sea, or the sending

thereof to sea, shall use all reasonable means to ensure the seaworthiness of such vessel for

the voyage at the time when such voyage commences, and to keep her in a seaworthy state

during the voyage.

(2) For the purpose of verifying that the provisions of this section have been complied

with, the Central Government may, either at the request of the owner or otherwise, arrange for

a survey of the hull, equipment or machinery of any sea-going vessel by a surveyor or any

person so authorised.

125. (1) Every vessel, company or port facility, as the case may be, shall comply with

such requirements as may be prescribed for safety management and security management.

(2) The Central Government or a person authorised by it shall arrange for the audit of

the vessel, company or port facility for the purpose of sub-section (1).

(3) The Central Government or a person authorised by it, may set different levels of

security and provide such information thereof to all the port facilities, and all vessels entering

into any port facility.

126. (1) No vessel shall enter into or sail out of or operate within the port, terminal,

anchorages, port facilities, Indian offshore facilities or Indian territorial waters without

complying with such provisions with regard to insurance, classification and condition of

vessel or any other relevant requirements for the purposes of this Part as may be prescribed.

(2) The surveyor may inspect any Indian vessel or any vessel other than an Indian

vessel, whilst at a port or place in India for the purpose of this Part and if it is found on any

inspection that the vessel is not complying the provisions of this Part or any International

Convention to which India is a party, the surveyor shall report it to the Principal Officer.

(3) On receipt of report under sub-section (2), the Principal Officer may take such

action as may be necessary, including detention of such vessel, till such time the vessel is in

compliance with the provisions of this Part or provisions applicable under the International

Conventions, and may allow such vessel to proceed to sea, if it does not pose an unreasonable

threat to safety or security or environment.

127. (1) If it appears that there was no reasonable or probable cause, by reason of the

condition of the vessel or the act or default of the owner or master, for detention of the

vessel, the Central Government shall be liable to pay to the owner of the vessel his costs of

and incidental to the detention of the vessel and also compensation for any loss or damage

sustained by him by reason of detention.

(2) If a vessel is detained under this Part by reason of the condition of the vessel or

due to the act or default of the owner or master, the owner of a vessel shall be liable to pay to

the Central Government its costs of and incidental to the detention and survey of the vessel

and the vessel shall not be released until such costs are paid and faults are rectified.

128. (1) The Central Government may make rules for safety and security requirements

applicable to vessel, company or port facility under this Part.

(2) In particular, and without prejudice to the generality of the foregoing powers, such

rules may provide for all or any of the following matters, namely:—

(a) the conditions under sub-section (1) of section 112 and the safety and

security requirements under proviso to sub-section (1) of that section;

Obligation of

owner to

seafarer with

respect to

sea-

worthiness

Safety and

security

management.

Control

measures and

detention of

vessels.

Liability for

costs and

damage when

vessels

detained.

Power to

make rules.

44

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(b) the safety and security requirements for different classes of vessels and the

certificates under sub-section (2) of section 112;

(c) the manner of reporting the particulars of incidents and the authority to

whom such particulars to be reported under sub-section (1) of section 113;

(d) the manner of reporting the particulars of incidents and the authority to

whom such particulars to be reported under sub-section (2) of section 113;

(e) the communication equipment, distress and safety equipment to be equipped

and maintained, and the certified operators to be provided under section 116;

(f) the requirements for safety management or security management under

sub-section (1) of section 125;

(g) the provisions with regard to insurance, classification and condition of

vessel or any other relevant requirements under sub-section (1) of section 126; and

(h) any other matter which is required to be or may be prescribed.

PART VII

PREVENTION, CONTAINMENT OF POLLUTION FROM VESSEL AND RESPONSE

129. Save as otherwise provided, this Part shall apply to,—

(a) every Indian vessel;

(b) every vessel other than an Indian vessel;

(c) vessel not entitled to fly the flag of India but which operate under the

authority of India;

(d) any vessel that enters a port, shipyard, or offshore terminal or place in India

or within the territorial waters of India or any marine areas adjacent thereto over which

India has, or may hereafter have, exclusive jurisdiction in regard to control of pollution

under the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other

Maritime Zones Act, 1976 or any other law for the time being in force;

(e) any incident of marine casualty or any act relating to such casualty occurring

with grave and imminent danger to Indian coast line or maritime zones of India or

related interests from pollution or threat of pollution in the sea or air either by deliberate,

negligent or accidental release of oil, ballast water, noxious liquid substance, garbage,

sewage, waste, harmful anti-fouling substances, harmful emissions or any other harmful

substance including such incidents occurring on the high seas; and

(f) port, shipyard or offshore terminal for the purpose of providing reception

facilities.

130. In this Part, unless the context otherwise requires,—

(a) "coastal waters" means any part of territorial waters of India, or any marine

area adjacent thereto over which India has, or, may hereafter have, exclusive jurisdiction

in regard to control of marine pollution under the Territorial Waters, Continental Shelf,

Exclusive Economic Zone and Other Maritime Zones Act, 1976, or any other law for the

time being in force;

(b) "harmful substance" means any substance, or form of energy, which, if

introduced into the sea or air, is liable to create hazards to human health, harm living

resources and marine life, damage amenities or interfere with other legitimate uses of

the sea, air and includes any substance subject to control by any of the conventions

to which India is a party;

(c) "vessel" means a vessel of any type whatsoever operating in the marine or

aquatic environment and includes hydrofoil boats, air-cushion vehicles, submersibles,

Application of

this Part.

Definitions.

80 of 1976.

80 of 1976.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

45

floating craft, fixed or floating platforms, floating storage units and floating production

storage and off-loading units.

131. (1) Unless otherwise expressly provided, all vessels shall be under an obligation

to prevent discharge or emission of harmful substances or mixtures containing such

substances and for that purpose, the Central Government may make rules requiring Indian

vessel to be fitted with such equipment and to comply with such requirements relating to

construction, survey of equipment and structure of such vessel and specifying conditions,

prior to issuing a certificate under this Part.

(2) For the purpose of ensuring that the provisions of this section have been complied

with, the Central Government may, either at the request of the owner or otherwise, arrange for

the survey of the hull, equipment or machinery of any vessel by a surveyor and, if found fit,

shall issue a certificates in accordance with the provisions of this Act and rules made there under

in such form and for such duration subject to such conditions as may be prescribed.

(3) The Central Government may take all steps to prevent the pollution of the sea by

the dumping of waste and other matter by vessels that is liable to create hazards to human

health, to harm living resources and marine life, to damage amenities or to interfere with other

legitimate uses of the sea.

132. Every vessel shall, subject to such conditions as may be prescribed, comply with

the provisions of the following convention, as applicable, namely:—

(a) the MARPOL Convention;

(b) the Anti-Fouling Systems Convention;

(c) the Ballast Water Management Convention;

(d) any other Pollution Prevention Convention or agreement or treaty to which

India is a party:

Provided that the vessel, to which the provisions of the above conventions are not

applicable, shall comply with such pollution prevention requirements as may be prescribed:

Provided further that the vessel shall possess such different types of certificates and

documents depending on the type, size, nature and area of operation of the vessel as may be

prescribed.

133. No vessel shall proceed to sea unless there is in force in respect of such vessel the

certificates required under the convention or agreement or treaty referred to in section 132.

134. (1) Every Indian vessel shall maintain such books of record in such form and

manner as may be prescribed.

(2) The manner in which record books shall be maintained, the nature of entries to be

made therein, the custody and disposal thereof, and all other matters relating thereto shall be

such as may be prescribed.

135. (1) The port, shipyard, ship breaking yards, ship repair unit, offshore facilities

and terminals taking into account the international standards, shall provide such reception

facilities and surveillance, supervision and guidance thereof as may be prescribed.

(2) The Central Government may give directions to be compiled with by the port

authorities, shipyard, ship breaking yards, ship repair unit, offshore facilities and terminals

to take appropriate measures in its territory to require that wastes generated during operation,

repair and re-cycling of vessel are collected, handled, treated and disposed of in a safe and

environmentally sound manner, to protect human health and the environment.

(3) Notwithstanding anything contained in any other law for the time being in force, in

respect of every port or place in India, the powers of the port authority or such persons

under whose supervision such place is operated shall include the power to provide reception

facilities in accordance with the requirements of the convention.

Control of

discharge or

emission of

harmful

substances or

dumping at

sea.

Requirements

of

prevention

and

containment

of pollution

and response.

Vessel not to

proceed to sea

without valid

pollution

prevention

certificates.

Record books.

Reception

facilities.

46

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(4) A port authority providing reception facilities or a person providing such facilities

by arrangement with the port authority, may impose charges for the use of the facilities at

such rates and may impose such conditions in respect of the use thereof as may be notified

by the Central Government in respect of the port.

(5) Where the Central Government is satisfied that there are no reception facilities at

any port, shipyard, ship breaking yards, ship repair unit, offshore facilities and terminals in

India or that the facilities available at such port or place are not adequate for enabling vessel

calling at such port or place to comply with the requirements of the convention, the Central

Government, may direct, by order in writing, such authority to provide or arrange for the

provision of such reception facilities as may be specified in the order.

136. (1) When an incident in which the cargo or harmful substances, as covered under

this Part or the Pollution prevention convention is escaping or likely to escape from a vessel

and may cause or threaten to cause pollution of air, any part of coasts or coastal waters of

India, the master of every vessel shall report the particulars of such incident to such authority

in such manner as may be prescribed.

(2) The vessel referred to in sub-section (1) being abandoned, or a report from such

vessel being incomplete, the Central Government shall fix the responsibility on the master of

that vessel.

(3) Where the Central Government is satisfied that the cargo or harmful substances as

covered under this Part or the Pollution prevention convention is escaping or likely to

escape and may cause or threaten to cause pollution of air, any part of coasts or coastal

waters of India, it may direct the owner, agent, master, charterer, operator, lessee or licensee

of the vessel by notice served on him, to take following action, namely:—

(a) to prevent the escape of harmful substances from the vessel, as may be

specified in such notice;

(b) to remove the cargo or oil or noxious liquid substance or harmful substance

from the vessel, in such manner and to such place, if any, as may be specified in the

notice;

(c) to remove the vessel to a place, if any, as may be specified in the notice;

(d) to remove the cargo or oil or noxious liquid substance or harmful substance

slicks on the surface of the sea in such manner, if any, as may be specified in the notice; and

(e) to prohibit the removal of the vessel including any cargo or stores therein,

from a place specified in the notice.

(4) Notwithstanding anything contained in sub-section (3), the Central Government

may, if it is of the opinion that the pollution caused or likely to be caused by release of

harmful substances has or may present a grave and imminent danger to the coastline or

related interest from pollution or threat of pollution, proceed to take such measures as may

be deemed necessary to prevent, mitigate or eliminate such threat or danger and any measures

so taken shall be deemed to have been taken under this section.

(5) Where any person fails to comply, or fails to comply in part, with any notice served

on him under sub-section (3), the Central Government may, whether or not such person is

convicted of an offence under this Part by reason of his having so failed to comply, cause

such action to be taken as it may deem necessary for,—

(a) carrying out the directives given in the notice issued under sub-section (1);

and

(b) containing the pollution already caused or preventing the pollution threatened

to be caused, of any part of the coast of India by any harmful substance escaped or

threatening to escape from the vessel.

Powers to take

measures for

prevention or

containment

of

pollution

and reporting

of incidents.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

47

(6) Subject to the provisions of this Part any expenditure or liability incurred by the

Central Government in, or by reason of, the exercise of powers under sub-section (4) in

relation to any vessel in respect of which a notice had been issued under sub-section (3),

shall be a debt due to the Central Government by the person or persons on whom the notice

was served and may be recovered from that person, or as the case may be, from all or any of

those persons and shall be a charge upon all or any vessel owned by that person or persons

which may be detained by the Central Government until the amount is paid.

(7) Notwithstanding anything contained in sub-sections (3) to (6), to prevent,

mitigate or eliminate grave and imminent danger to the coastline or related interests from

pollution or threat of pollution following upon a maritime casualty or acts relating to such

casualty on the high seas which may reasonably be expected to result in major harmful

consequences to the Indian coastal water, the Central Government shall take such measures

as may be necessary.

(8) The Central Government may make national or regional arrangement system for

responding promptly and effectively to pollution incidents occurring within the zones under

the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones

Act, 1976 or any other law for the time being in force.

137. (1) Where for the purposes of taking any measures under sub-section (1) of

section 136, the Central Government or any other officer authorised by it in this behalf may,

if deems necessary so to do, direct, by an order in writing, the owner of any Indian vessel,

tug, barge or any other equipment, to provide such services or assistance as may be

specified in that order.

(2) The owner of any vessel, tug, barge or any other equipment with respect to which

an order under sub-section (1) has been made shall be entitled to tariff rates of freight and

charter hire, at reasonable rates having regard to current market conditions:

Provided that where tariff rates of freight are not fixed or where there is any dispute

about reasonable rate of charter hire, the freight or, as the case may be, charter hire, shall be

paid at such rates as may be fixed by the Central Government by an order in writing, subject

to determination of reasonability of such rates of freight or charter hire by examining such

witnesses, documents and accounts as it may deem necessary.

138. (1) The Central Government may, having regard to the provisions of the Pollution

prevention convention, make rules to carry out the purposes of this Part.

(2) In particular, and without prejudice to the generality of the provisions of

sub-section (1), such rules may provide for all or any of the following matter, namely:—

(a) the form and period of the certificate and conditions on which a certificate

may be issued under sub-section (2) of section 131;

(b) the conditions to comply the provisions of the conventions under

section 132;

(c) the pollution prevention requirements under first proviso to section 132;

(d) the different types of certificates and documents under second proviso to

section 132;

(e) the form and manner of maintenance of record book under sub-section (1) of

section 134;

(f) the other matter relating to maintenance of record book under sub-section (2)

of section 134;

(g) the reception facilities, surveillance, supervisions and guidance under

sub-section (1) of section 135;

80 of 1976.

Power of the

Central

Government

to give

directions to

certain vessels

or persons to

render certain

service.

Power to make

rules.

48

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(h) the manner of reporting the incident to the authority under sub-section (1)

of section 136; and

(i) any other matter which is required to be or may be prescribed.

PART VIII

SURVEY, AUDIT AND CERTIFICATION

139. (1) Every Indian vessel, company, port facility, shipyard, ship breaking yard,

ship repair unit, offshore facilities or terminals shall unless otherwise exempted be surveyed

or audited for verification of compliance with such requirements as may be prescribed.

(2) The Central Government, surveyor or any person authorised by it in this behalf

may, if satisfied that any vessel, company, port facility, shipyard, ship breaking yard, ship

repair unit, offshore facilities or terminal has been surveyed or audited as per the requirements

under the rules made under this Act or as required by convention to the extent of applicability,

issue the appropriate certificate or, as the case may be, documents in respect of such vessel,

company, port facility, shipyard, ship breaking yard, ship repair unit, offshore facilities or

terminal.

(3) Notwithstanding anything contained in this Act, where any survey, or, as the case

may be, audit of a vessel, company, port shipyard, ship breaking yard, ship repair unit,

offshore facilities or terminal facility under this Part has been completed, the owner, agent or

master of such vessel, company, port facility, shipyard, ship breaking yard, ship repair unit,

offshore facilities or terminal shall not make or cause to be made any alteration in the

structure, equipment, fittings, arrangements, material, systems or scantlings covered by the

survey or audit without the prior written permission of the Central Government or any person

authorised by it in this behalf.

(4) If the Central Government or any person authorised by it has reason to believe that

since the completion of last survey or audit, changes have been made to the structure,

equipment, fittings, arrangements, material, systems or scantlings, or they have sustained

any damage or are otherwise found insufficient, then the Central Government or any person

authorised by it in this behalf may require that the vessel, company, port facility, shipyard,

ship breaking yard, ship repair unit, offshore facilities or terminal to be re-surveyed or audited

to such extent as it may deem fit or may modify or revoke or suspend or cancel or surrender

the certificates and documents in such manner as may be prescribed.

(5) Subject to any exemption granted by the Central Government, no vessel shall

proceed to sea unless the owner, or master, of the vessel holds onboard all the applicable

certificates or documents as required under this Act and the rules made thereunder.

Explanation.— For the purposes of this Part, the word “company” or “port facility”

shall have the same meaning as assigned to it under clause (a) or (b) of section 111,

respectively.

140. Every vessel, company, port facility, shipyard, ship breaking yard, ship repair

unit, offshore facilities or terminal shall, unless exempted, be in possession of such certificates

as may be prescribed.

141. (1) Except otherwise provided, for the purposes of this Act, a surveyor may, at

any reasonable time, go on board a vessel, and may inspect or audit the vessel, and any part

thereof, the structure, equipment, fittings, arrangements, materials, systems, scantlings, cargo,

provisions, stores, her certificates, and certificates of the seafarers on board:

Provided that he does not unreasonably hinder the operation of the vessel, or

unreasonably detain or delay her from proceeding on any voyage.

(2) The owner, agent, master or every officer of the vessel shall afford to the surveyor

all reasonable facilities for a survey, and provide all such information in respect of the vessel

and her structure, equipment, fittings, arrangements, materials, scantlings, systems, cargo,

Survey, audit

and

certification.

Certificates.

Power of

surveyor.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

49

provisions, stores, her certificates, and certificates of the seafarers, as the surveyor

reasonably requires.

142. Notwithstanding anything contained in sub-section (1) of section 139, every

vessel, company, port facility, shipyard, ship breaking yard, ship repair unit, offshore

facilities or terminal shall be surveyed, audited and certified to confirm the compliance of

requirements as specified in the following conventions, namely:—

(a) the Safety Convention;

(b) the MARPOL Convention;

(c) the Anti-Fouling Systems Convention;

(d) the Ballast Water Management Convention;

(e) the Load Lines Conventions;

(f) the Tonnage Measurement Convention, 1969;

(g) the Special Trade Passenger Ships Agreement, 1971 and its Protocol;

(h) the Convention on the International Regulations for Preventing Collisions at

Sea, 1972;

(i) the International Convention on Maritime Search and Rescue, 1979

(SAR 1979);

(j) the Maritime Labour Convention, 2006; or

(k) any other convention relating to survey, audit or certification:

Provided that if every such vessel, company, port facility, shipyard, ship breaking

yard, ship repair unit, offshore facilities or terminal, as the case may be, is not covered under

the provisions of the above conventions, such vessel, company, port facility, shipyard, ship

breaking yard, ship repair unit, offshore facilities or terminal, as the case may be, shall, for

survey, audit and certification, comply with such requirements and in such manner as may be

prescribed:

Provided further that different classes of vessel, company, port facility, shipyard, ship

breaking yard, ship repair unit, offshore facilities or terminal shall be surveyed, audited or

certified with such requirements in such manner as may be prescribed.

143. A valid certificate issued under a convention in respect of a vessel other than an

Indian vessel by the government of the country to which the vessel belongs shall subject to

such rules as the Central Government may make in this behalf, have the same effect in India

as the corresponding certificates issued in respect of an Indian vessel.

144. (1) The Central Government may at the request of the government of a country to

which convention applies cause an appropriate convention certificate to be issued in respect

of a vessel registered or to be registered in that country, if it is satisfied in like manner as in

the case of an Indian vessel that such certificate can properly be issued and where a certificate

is issued at such a request it shall contain a statement that it has been so issued.

(2) The Central Government may request the Government of a country to which the

convention applies to issue an appropriate convention certificate in respect of a vessel

registered or to be registered in India and a certificate issued in pursuance of such a request

and containing a statement that it has been so issued shall have effect for the purpose of this

Act as if it had been issued by the Central Government.

145. (1) The Central Government may make rules to carry out the purposes of this Part.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the requirements for verification of vessel, company, port facility,

Compliance of

provisions of

convention.

Recognition

of certificates

issued outside

India.

Issue

of

certificate to

foreign vessels

in India and

Indian vessels

in

foreign

countries.

Power to make

rules for this

Part.

50

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

shipyard, ship breaking yard, ship repair unit, offshore facilities or terminal under

sub-section (1) of section 139;

(b) the manner of requirements and the manner of survey, audit and certification

of vessel, company, port facility, shipyard, ship breaking yard, ship repair unit,

offshore facilities or terminal and modification, revocation, suspension, cancellation

or surrender of the certificates and documents under sub-section (4) of section 139;

(c) the certificates to be possessed by a vessel, company, port facility, ship-

yard, ship breaking yard, ship repair unit, offshore facilities or terminal under

section 140;

(d) the manner of compliance for survey, audit and certification under first proviso

to section 142;

(e) the requirement and manner of survey, audit and certification of different

classes of vessel, company, port facility, shipyard, ship breaking yard, ship repair

unit, offshore facilities or terminal under second proviso to section 142;

(f) any other matter which is to be required or may be prescribed.

PART IX

MARITIME LIABILITY AND COMPENSATION

CHAPTER I

COLLISION, ACCIDENT AT SEA AND LIABILITY

146. This Chapter shall apply to,—

(a) Indian vessel; and

(b) any vessel other than an Indian vessel while it is at a port or place in India

including, the territorial waters of India or any marine areas adjacent thereto over

which India has, or may hereafter have, jurisdiction under the Territorial Waters,

Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 or

any other law for the time being in force.

147. (1) If the collision, damage, or loss is caused by the fault of one of the vessels, the

liability to make good the damages attaches to the one who has committed the fault.

(2) Whenever by the fault of two or more vessels damage or loss is caused to one or

more of them or to the cargo of one or more of them or to any property on board one or more

of them, the liability to make good the damage or loss shall be in proportion to the degree in

which each vessel was at fault:

Provided that—

(a) if, having regard to all the circumstances of the case, it is not possible to

establish different degrees of fault, the liability shall be apportioned equally;

(b) nothing in this section shall operate so as to render any vessel liable for any

loss or damage to which her fault has not contributed;

(c) nothing in this section shall affect the liability of any person under any

contract, or shall be construed as imposing any liability upon any person from which

he is exempted by any contract or by any provision of law, or as affecting the right of

any person to limit his liability in the manner provided by law.

(3) For the purposes of this Chapter, references to damage or loss caused by the fault

of a vessel shall be construed as including references to any salvage or other expenses,

consequent upon that fault, recoverable in any law for the time being in force by way of

damages.

Application of

this Chapter.

Apportionment

of liability.

80 0f 1976.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

51

148. (1) Whenever loss of life or personal injuries are suffered by any person on board

a vessel owing to the fault of that vessel or any other vessel or vessels, the liability of the

owners of the vessels concerned shall be joint and several.

(2) Nothing in this section shall be construed as depriving any person of any right of

defence on which, he might have relied in an action brought against him by the person

injured, or any person entitled to sue in respect of such loss of life, or shall affect the right of

any person to limit his liability in cases to which this section relates.

149. (1) Whenever loss of life or personal injuries are suffered by a person on board

a vessel owing to the fault of that vessel and of any other vessel, and a proportion of the

damages is recovered from the owner of one of the vessels which exceeds the proportion in

which she was in fault, the said owner may recover by way of contribution the amount of the

excess from the owners of the other vessel or vessels to the extent to which those vessels

were respectively in fault:

Provided that no amount shall be so recovered which shall not, by reason of any

statutory or contractual limitation of, or exemption from, liability, or which shall not for any

other reason, have been recovered in the first instance as damages by the persons entitled to

sue therefor.

(2) In addition to any other remedy provided by law for the time being in force, the

person entitled to any contribution under sub-section (1) shall, for the purpose of recovering

the contribution, have subject to the provisions of this Act, the same rights, and powers as

the persons entitled to sue for damages in the first instance.

150. In every case of collision between two vessels it shall be the duty of the master or

person in-charge of each vessel, in and so far as he can do so without danger to his own

vessel, crew and passengers, if any,—

(a) to render to the other vessel, her master, crew and passengers, if any, such

assistance as may be practicable and may be necessary to save them from any danger

caused by the collision and to stay by the other vessel until he has ascertained that

she has no need of further assistance; and

(b) to give to the masters or persons in-charge of the other vessels the name of

his own vessel and of the port to which she belongs and also the names of the ports

from which she comes and to which she is bound.

151. In every case of collision in which it is practicable so to do, the master of every

vessel shall, immediately after the occurrence, cause a statement thereof and of the

circumstances under which the same occurred to be entered in the official logbook, if any,

and the entry shall be signed by the master and also by the officer on watch or one of the

seafarer.

152. When an Indian vessel has sustained or caused any accident occasioning loss of

life or any serious injury to any person or has received any material damage affecting her

seaworthiness or her efficiency either in her hull or is so altered in any part of her machinery

as not to correspond with the particulars contained in any of the certificates issued under

this Act in respect of the vessel, the owner or master or agent shall, within twenty-four hours

after the happening of the accident or damage or as soon thereafter as possible, transmit to

the Central Government or the nearest Principal Officer a report of the accident or damage

and of the probable cause thereof stating the name of the vessel, her official number, if any,

her port of registry and the place where she is.

153. If the owner or agent of any Indian vessel has reason, owing to the non-appearance

of the vessel or to any other circumstance, to apprehend that the vessel has been wholly

lost, he shall, as soon as conveniently may be, send notice, in writing, to the Central

Government relating to the loss and the cause of such loss stating the name of the vessel, her

official number, if any, and her port of registry.

Right of

contribution.

Duty of master

of vessel to

assist in case

of collision.

Collision to be

entered in

official

log-

book.

Report to

Central

Government

of accidents to

vessels.

Notice of loss

of Indian

vessel to be

given to

Central

Government.

Damages for

personal

injury.

52

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

CHAPTER II

LIMITATION OF LIABILITY FOR MARITIME CLAIMS

154. This Chapter shall apply to,—

(a) Indian ship; and

(b) any ship other than an Indian ship while it is at a port or place in India

including, the territorial waters of India or any marine areas adjacent thereto over

which India has, or may hereafter have, jurisdiction under the Territorial Waters,

Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 or

any other law for the time being in force.

155. (1) The shipowner or salvor or any person for whose act, neglect or default, the

shipowner or salvor, or any such person, as the case may be, is responsible, and the insurer

of liability for such claims, may limit his liability as provided,—

(a) claims of loss of life or personal injury or loss of or damage to property

including damage to harbour works, basins and waterways and aids to navigation,

occurring on board or in direct connection with the operation of the vessels or with

salvage operations, and consequential loss resulting therefrom;

(b) claims of loss resulting from delay in the carriage by sea of cargo, passengers

or their luggage;

(c) claims of other loss resulting from infringement of rights other than contractual

rights, occurring in direct connection with the operation of the vessel or salvage

operations;

(d) claims of the raising, removal, destruction or the rendering harmless of a

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

has been on board such vessel;

(e) claims in respect of the removal, destruction or the rendering harmless of the

cargo of the vessel;

(f) 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 convention, and further loss caused by such measures.

(2) The claims set out under sub-section (1) shall be subject to limitation of liability

even if brought by way of recourse or for indemnity under a contract or otherwise:

Provided that claims set out under clauses (d), (e) and (f) of sub-section (1) shall not

be subject to limitation of liability to the extent that they relate to remuneration under a

contract with the person liable.

(3) Nothing in this section apply to,—

(a) claims for salvage, including, if applicable, any claim for special compensation

under article 14 of the Salvage Convention, or contribution in general average;

(b) claims for oil pollution damage under Chapter III of this Part relating to civil

liability for oil pollution damage;

(c) claims subject to any international convention or national legislation

governing or prohibiting limitation of liability, for nuclear damage;

(d) claims against the shipowner of a nuclear ship, for nuclear damage;

(e) claims by servant of the shipowner or salvor whose duties are connected

with the ship or the salvage operations, including claims of their heirs, dependants or

Application of

this Chapter.

80 of 1976.

Limitation of

liability for

damages in

respect of

certain

claims.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

53

other persons entitled to make such claims, if under the law governing the contract of

service between the shipowner or salvor and such servants, the shipowner 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 in the provisions

of LLMC Convention or the rules made under this Chapter.

Explanation 1.— For the purposes of this section, the act of invoking limitation of

liability shall not be an admission of liability.

Explanation 2.— For the purposes of this Chapter,—

(a) the liability of a shipowner shall include the liability in an action brought

against the ship herself;

(b) "shipowner" means the owner, charter, manager or operator of a sea-going

vessel.

156. A person liable under section 155 shall not be entitled to limit his liability if it is

proved that the loss resulted from his personal act or omission, committed with the intent to

cause such loss, or recklessly and with knowledge that such loss may probably result.

157. Where a person entitled to limitation of liability under this Chapter has a claim

against the claimant arising out of the same occurrence, their respective claims shall be set

off against each other and the provisions of this Chapter shall only apply to the balance, if

any.

158. (1) The limits of liability for claims other than those mentioned in section 159

arising on any distinct occasion, shall be calculated in accordance with the provisions of

LLMC Convention:

Provided that in cases where the provisions of the LLMC Convention are not applicable,

the limit of liability shall be such as may be prescribed.

(2) Where the amount calculated in respect of claims for loss of life or personal injury

is insufficient to pay such claims in full, the amount calculated in respect of other claims shall

be made available for payment of the unpaid balance of claims in respect of claims for loss of

life or personal injury and such unpaid balance shall rank rateably with claims in respect of

other claims.

(3) Without prejudice to the right of claims for loss of life or personal injury according

to the provision of sub-section (2), the claims in respect of damage to harbour works, basins,

waterways and aids to navigation shall have priority over other claims.

(4) The limits of liability for any salvor not operating from any vessel or for any salvor

operating solely on the vessel to, or in respect of which he is rendering salvage services,

shall be calculated according to a gross tonnage of 1,500.

159. In respect of claims arising on any distinct occasion for loss of life or personal

injury to passengers of a ship the limit of liability of the shipowner thereof shall be such

amount, as may be prescribed.

Explanation.— For the purposes of this section, "claims arising in any distinct occasion

for loss of life or personal injury to passengers of a ship " means any claim brought by or

on behalf of any person carried in that ship,—

(a) under a contract of passenger carriage; or

(b) who, with the consent of the carrier, is accompanying a vehicle or live animals

which are covered by a contract for the carriage of goods.

160. (1) The limits of liability determined in accordance with the provisions of section

158 shall apply to the aggregate of all claims which arise on any distinct occasion,—

(a) against the person or persons or any person for whose act, neglect or

default he or they are responsible; or

Conduct

barring

limitation.

Counter

claims.

Limits of

liability.

Limit for

passenger

claims.

Aggregation

of claims.

54

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(b) against a shipowner rendering salvage services from that ship and the salvor

or salvors operating from such ship and any person for whose act, neglect or default

he or they are responsible; or

(c) against the salvor or salvors who are not operating from a ship or who are

operating solely on the ship to, or in respect of which, the salvage services are rendered

and any person for whose act, neglect or default he or they are responsible.

(2) The limits of liability determined in accordance with the provisions of section 159

shall apply to the aggregate of all claims subject thereto which may arise on any distinct

occasion against the shipowner in respect of the ship referred to in that section and any

person for whose act, neglect or default he or they are responsible.

161. (1) Limitation of liability may be invoked notwithstanding that a limitation fund

as mentioned in section 162 has not been constituted.

(2) Where an action is brought to enforce a claim subject to limitation, a person liable

may only invoke the right to limit liability if a limitation fund is or has been constituted in

accordance with the provisions of this Chapter when the right to limit liability is invoked.

162. (1) Any person alleged to be liable may constitute a fund with the High Court in

which legal proceedings are instituted in respect of claims subject to limitation.

(2) The fund shall be constituted in the sum of such of the amounts in accordance with

the provisions of section 158 or section 159 as are 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.

(3) The fund constituted under sub-section (1) shall be,—

(a) by depositing the amount calculated under section 158 or section 159 with

the High Court; or

(b) by producing a guarantee acceptable under any law for the time being in

force and considered to be adequate by the court.

(4) The fund so constituted shall be available only for the payment of claims in respect

of which limitation of liability may be invoked.

(5) The fund constituted by one of the persons referred to in section 161 or his insurer

shall be deemed to be constituted by all persons mentioned in that section.

163. (1) Subject to the provisions of sections 158 and 159, the fund shall be distributed

among the claimants in proportion to their established claims against the fund.

(2) If before the fund is distributed, the person liable or his insurer has settled a claim

against the fund, such person shall, up to the amount he has paid, acquire by subrogation

the rights which the person so compensated would have enjoyed under this Chapter.

(3) The right of subrogation provided for in sub-section (2) may also be exercised by

persons other than those mentioned therein in respect of any amount of compensation

which they may have paid, but only to the extent that such subrogation is permitted under

any law for the time being in force.

(4) Where the person liable or any other person establishes that he may be compelled

to pay, at a later date, in whole or in part any such amount of compensation with regard to

which such person would have enjoyed a right of subrogation pursuant to sub-sections (2)

and (3) had the compensation been paid before the fund was distributed, the High Court

where the fund has been constituted may order that a sufficient sum shall be provisionally

set aside to enable such person at such later date to enforce his claim against the fund.

164. (1) Where a fund has been constituted under section 162, any person having

made a claim against the fund shall be barred from exercising any right in respect of such

Limitation of

liability.

Constitution

of limitation

fund.

Distribution

of the fund.

Bar to other

actions.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

55

claim against any other assets of a person by or on behalf of whom the fund has been

constituted.

(2) After a fund has been constituted under section 162, any ship or other property,

belonging to a person on behalf of whom the fund has been constituted, which has been

arrested or attached for a claim which may be raised against the fund, or any security given,

may be released by an order of the High Court and such release shall always be ordered if the

fund has been constituted with the High Court administering the fund.

(3) The provisions of sub-sections (1) and (2) shall apply only if the claimant may

claim against the fund before the High Court administering that fund and the fund is actually

available and freely transferable in respect of that claim.

165. (1) The provisions of this Chapter shall apply whenever any person referred to in

section 155 seeks to limit his liability before the High Court or seeks to procure the release of

a ship or other property or the discharge of any security given within the Indian jurisdiction:

Provided that the person who at the time when the provisions under this Chapter are

invoked before any High Court 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 a country, which is a party to the LLMC Convention, shall be excluded

from invoking the provisions of this Chapter.

(2) The provisions of this Chapter shall not apply to air-cushion vehicles or floating

platforms constructed for the purpose of exploring or exploiting the natural resources of the

sea-bed or the subsoil thereof.

166. (1) The Central Government may, having regard to the provisions of LLMC

Convention, make rules to carry out the purposes of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the limits of liability in cases where the provisions of LLMC Convention are

not applicable under proviso to sub-section (1) of section 158;

(b) the amount of limit of liability of the owner for loss of life or personal injury

to passengers of a ship under section 159;

(c) any other matter which is required to be or may be prescribed.

CHAPTER III

CIVIL LIABILITY FOR OIL POLLUTION DAMAGE

167. This Chapter shall apply to,—

(a) pollution damage caused by,—

(i) Indian ship wherever it is; and

(ii) any ship other than an Indian ship while it is at a port or place in India

including, the territorial waters of India or any marine areas adjacent thereto over

which India has, or may hereafter have, jurisdiction under the Territorial Waters,

Continental Shelf, Exclusive Economic Zone and other Maritime Zones

Act, 1976 or any other law for the time being in force;

(b) preventive measures, wherever taken, to prevent or minimise such pollution

damage.

168. In this Chapter, unless the context otherwise requires,—

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

Scope of

application.

Power to make

rules.

Application of

this Chapter.

Definitions.

80 of 1976.

56

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

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

causing such damage;

(b) "oil" means any persistent hydrocarbon mineral oil such as crude oil, fuel

oil, heavy diesel oil and lubricating oil whether carried on board a ship as cargo or in

the bunkers of such a ship;

(c)"owner" means,—

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

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

(iii) in the case of a ship owned by a country and operated by a company

of that country, the persons registered in that country as the operator of such

ship;

(d) "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;

(e) "pollution damage" means,—

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

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

discharge may occur:

Provided that compensation for impairment of the environment other than

loss of profit from such impairment shall be limited to costs of reasonable measures

of reinstatement actually undertaken or to be undertaken; and

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

by preventive measures;

(f)

"preventive measures" means any reasonable measures taken by any

person after an incident has occurred to prevent or minimie pollution damage;

(g) "ship" means any sea-going vessel and seaborne 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;

(h) "State of the ship's registry" means in relation to registered ships the State

of registration of the ship, and in relation to unregistered ships the State whose flag

the ship is flying.

169. (1) Save as otherwise provided in sub-sections (2) and (3) of this section, the

owner of a ship at the time of an incident or where the incident consists of a series of

occurrences, at the time of first of such occurrence, shall be liable for any pollution damage

caused by the ship as a result of the incident.

(2) No liability for pollution damage shall attach to the owner, if he proves that the

pollution damage,—

(a) resulted from an act of war, hostilities, civil war, insurrection or a natural

phenomenon of an exceptional, inevitable and irresistible character; or

(b) was wholly caused by an act or omission done with intent to cause damage

by a third party.

(3) Where the owner proves that the pollution damage resulted wholly or partially

either from an act or omission done with intent to cause damage by the person who suffered

the damage or from the negligence of that person, the owner may be exonerated wholly or

partially from his liability to such person.

Liability of

owner.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

57

(4) No claim for compensation for pollution damage may be made against the owner

otherwise than in accordance with the provisions of this Chapter.

(5) Subject to sub-section (6), no claim for compensation for pollution damage under

this Chapter or otherwise 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,

performs services for the ship;

(c) any charterer (by whatever name called including a bareboat charterer),

manager or operator of the ship;

(d) 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) all servants or agents of persons mentioned in clauses (c), (d) and (e),

unless the damage resulted from their personal act or omission, committed with the intent to

cause such damage, or recklessly and with knowledge that such damage may probably

result.

(6) Nothing in this Chapter shall prejudice any right of recourse of the owner against

third parties.

170. When an 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) of section 169, shall be jointly and severally liable for all such damage which

is not reasonably separable.

171. (1) The owner may limit his liability under this Chapter in respect of any incident,

to an aggregate amount in accordance with the provisions of the 1992 Liability Convention.

(2) The owner shall not be entitled to limit his liability under this Chapter, if it is proved

that the pollution damage resulted from his personal act or omission, committed or made with

the intent to cause such damage, or recklessly and with knowledge that such damage may

probably result.

172. (1)(a) Any owner, desiring to avail of the benefit of limitation of his liability under

section 171, shall constitute a limitation fund (hereafter in this Chapter referred to as fund) for

the total sum representing his limits of liability in the High Court.

(b) Such fund may be constituted either by depositing the sum with the High Court or

by furnishing bank guarantee or such other security as, in the opinion of the High Court, is

satisfactory.

(2) (a) The insurer or any other person providing financial security to the owner may

apply to the High Court for constitution of the fund under sub-section (1) and any fund so

constituted shall have the same effect as if it were constituted by the owner.

(b) Such fund may be constituted even in cases where sub-section (2) of section 171

applies but in any such event constitution of the fund shall not prejudice the rights of any

claimant against the owner for full compensation exceeding the amount deposited or secured

in the fund.

(3) The amount in Special Drawing Rights to be deposited or secured in the fund

under sub-section (1) shall be converted in rupees on the basis of official value in rupees of

the Special Drawing Rights as determined by the Reserve Bank of India on the date of

constitution of the fund.

Joint and

several

liability for

ships.

Limitation of

liability.

Constitution

of limitation

fund.

58

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

173. (1) Where, before the fund is distributed, the owner or any of his servants or

agents or any person providing him insurance or other financial security has as a result of an

incident paid compensation for pollution damage, such person shall upto the amount he has

paid, acquire by subrogation the rights which the person so compensated may have enjoyed

under this Chapter.

(2) Where the owner or any other person establishes that he may be compelled to pay

at a later date in whole or in part any such amount of compensation, with regard to which

such person shall have enjoyed a right of subrogation under sub-section (1), had the

compensation been paid before the fund was distributed, the High Court where the fund has

been constituted, may order that a sufficient sum shall be provisionally set aside to enable

such person at such later date to enforce his claim against the fund.

174. (1) The High Court shall consolidate all claims against the fund including those

arising under section 173.

(2) Any claim in respect of expenses reasonably incurred or sacrifices reasonably

made by the owner voluntarily to prevent or minimise pollution damage shall rank equally

with other claims against the fund.

(3) Subject to the provisions of sub-section (2) of section 173, the High Court shall

distribute the amount in the fund among all claimants in proportion to their established

claims.

175. (1) The owner of every ship carrying more than 2000 tons of oil in bulk as cargo

shall, in respect of such ship, maintain an insurance or other financial security to cover his

liability for pollution damage under this Chapter for the amount specified under the provisions

of the 1992 Liability Convention.

(2) In respect of every Indian ship which maintains insurance or other financial security

under sub-section (1), there shall be issued by the Central Government a certificate in such

form and giving such particulars as may be prescribed.

(3) On an application by the owner or agent of any foreign ship, the Central Government

may issue a certificate under sub-section (2) in respect of such foreign ship on production

of satisfactory evidence relating to maintenance of insurance or other financial security in

accordance with the provisions of the 1992 Liability Convention.

(4) For every certificate issued under sub-sections (2) and (3) there shall be charged

such fee as may be prescribed.

176. Any certificate issued by a competent authority in any country outside India to

a ship registered in that country or any certificate issued by a competent authority of any

country which is a contracting party to the 1992 Liability Convention to any ship wherever

it is registered, shall be accepted at any port or place in India as if it were issued under this

Act.

177. (1) No Indian ship, which has on board more than 2000 tons of oil in bulk as cargo

shall enter or leave or attempt to enter or leave any port or place in India, unless it carries on

board a certificate issued under sub-section (2) of section 175 or a certificate accepted under

section 176.

(2) No ship other than an Indian ship carrying more than 2000 tons of oil in bulk as

cargo, wherever registered, shall enter or leave or attempt to enter or leave any port or place

in India, unless it carries on board a certificate issued under sub-section (3) of section 175 or

a certificate accepted under section 176.

(3) No proper officer shall grant inward entry or outward clearance to any ship to

which sub-section (1) or, as the case may be, sub-section (2) applies, unless its master

produces a certificate required under the respective sub-section.

Consolidation

of claim and

distribution of

fund.

Compulsory

insurance or

other financial

guarantee.

Acceptance of

certificate

issued outside

India.

Ban on

entering or

leaving an

Indian Port

without

certificate.

Acquisition of

right for

compensation

by

subrogation.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

59

178. (1) The insurer or other person providing financial security for the owner's

liability for pollution damage may be directly liable for any claim for compensation for such

damage.

(2) The insurer or other person referred to in sub-section (1) may, if the owner is not

entitled to limit his liability in accordance with the provisions of section 171, avail himself

such limits of liability as specified in that section.

(3) Any claim for compensation for pollution damage may be brought directly against

the insurer or other person providing financial security for the owner's liability for pollution

damage and in such cases the insurer or other person providing financial security may, even

if the owner is not entitled to limit his liability in accordance with the provisions of

section 171, avail himself such limits of liability as specified in that section.

(4) The insurer or other person providing financial security may further avail himself

of the defences (other than the bankruptcy or winding up of the owner) which the owner

himself would have been entitled to invoke and the defendant may avail himself of the

defence that the pollution damage resulted from the wilful misconduct of the owner himself,

but the defendant shall not avail himself of any other defence which he might have been

entitled to invoke in proceedings brought by the owner against him.

(5) The insurer or other person providing financial security shall in any case have the

right to require the owner to be joined in the proceedings.

(6) Any sum provided by insurance or by other financial security maintained in

accordance with sub-section (1) of section 175 shall be available exclusively for the satisfaction

of claims under this Chapter.

179. (1) The rights of compensation under this Chapter shall be extinguished unless

an action is brought within a period of three years from the date when the damage occurred:

Provided that, no action shall be made for compensation after six years from the date of

the incident which caused the damage.

(2) If incident consists of a series of occurrences, the period of six years shall start

from the date of the first occurrence.

180. Nothing in this Chapter shall apply to any ship of war or any ship for the time

being used by the Government of any country for purposes other than commercial purposes.

181. (1) The Central Government may make rules to carry out the provisions of this

Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the form of certificate and particulars to be given thereto under sub-section (2)

of section 175;

(b) the fees to be charged for issue of certificates under sub-section (4) of

section 175;

(c) any other matter which required to be or may be prescribed.

CHAPTER IV

CIVIL LIABILITY FOR BUNKER OIL POLLUTION DAMAGE

182. This Chapter applies to, —

(a) pollution damage caused due to escape or discharge of bunker oil from

every Indian ship and from every ship other than an Indian ship while it is,—

(i) within the territory including territorial sea of India; or

Limitation

period.

Government

ships.

Power to

make rules.

Application

of this

Chapter.

Direct action

against insurer

or other

person

providing

financial

security.

60

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(ii) at a port or a place in India or within the territorial waters of India or

any marine areas adjacent thereto over which India has, or may hereafter have,

jurisdiction under the Territorial Waters, Continental Shelf, Exclusive Economic

Zone and other Maritime Zones Act, 1976 or any other law for the time being in

force;

(b) preventive measures, wherever taken, to prevent or minimise the pollution

damage:

Provided that this Chapter shall not apply to warships, naval auxiliary or other

vessels owned or operated by the Government and used, for the time being, only on

Government non-commercial service:

Provided further that this Chapter shall not apply to pollution damage specified

in Chapter III of this Part.

183. In this Chapter, unless the context otherwise requires,—

(a) "Bunker Convention" means the International Convention on Civil Liability

for Bunker Oil Pollution Damage, 2004;

(b) "bunker oil" means any hydrocarbon mineral oil, including lubricating oil,

used or intended to be used for the operation or propulsion of the ship, and any

residues of such oil;

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

Liability for Oil Pollution Damage, 1992;

(d) "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;

(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;

(f) "pollution damage" means,—

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

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

or discharge may occur:

Provided that compensation for impairment of the environment other than

loss of profit from such impairment shall be limited to costs of reasonable measures

of reinstatement undertaken or to be undertaken; and

(ii) the costs of preventive measure and further loss or damage caused by

preventive measures;

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

after an incident has occurred to prevent or minimise pollution damage;

(h) "registered owner" means the person or persons registered as the owner of

the ship or, in the absence of registration, the person or persons owning the ship, and,

in the case of a ship owned by a State and operated by a company which in that State

is registered as the ship's operator, "registered owner" shall mean such company;

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

whatsoever;

(j) "shipowner" means the owner, including the registered owner, bareboat

charterer, manager or operator of the ship;

(k) "state of the ship's registry" means, in relation to a registered ship, the state

of registration of the ship and, in relation to an unregistered ship, the State flag the

ship is entitled to fly.

Definitions.

80 of 1976.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

61

184. (1) Save as otherwise provided in section 186,—

(a) where pollution damage is caused due to discharge or escape of bunker oil

on board or originating from the ship, the shipowner shall be liable for,—

(i) any pollution damage;

(ii) the cost of any reasonable measures taken for the purpose of preventing

or minimising any pollution damage so caused or likely to be caused; and

(iii) any damage caused by any such preventive measure so taken:

Provided that where an incident consists of a series of occurrences having

the same origin, the liability shall attach to the shipowner at the time of the first

of such occurrences and where more than one person is liable, their liability shall

be joint and several;

(b) where there arises a grave and imminent threat of damage being caused

outside a ship, the shipowner shall be liable for the cost of any measures reasonably

taken to prevent or minimise any such damage.

(2) Where any incident involving two or more ships occurs resulting in pollution

damage, the shipowners of all ships involved in such incident shall, unless the damage is

reasonably separable, be jointly and severally liable for such damage.

(3) With respect to ships owned by the Government or the Government of any country

and used for commercial purposes, the Government or the Government of each of such

country shall be liable for pollution damage under this Chapter.

185. (1) No liability for pollution damage shall be incurred by the shipowner under this

Chapter, if he proves that such damage,—

(a) resulted from an act of war, hostilities, civil war, insurrection or a natural

phenomenon of an exceptional, inevitable and irresistible character; or

(b) was wholly caused by any act or omission done with an intent to cause such

damage by any person other than an employee or agent of the owner.

(2) If the shipowner proves that the pollution damage resulted wholly or partially

either from an act or omission done with intent to cause damage by the person who suffered

the damage or from the negligence of that person, then, he shall be wholly or partially

exonerated from his liability to such person.

186. (1) The shipowner and the person providing insurance or other financial security

shall be entitled to limit his liability under this Chapter, in respect of any one or more incident,

in accordance with the provisions of Chapter II of this Part.

(2) The shipowner 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 intent to cause such damage, or recklessly and with knowledge that

such damage may probably result.

187. (1) Where the shipowner is alleged to have incurred a liability under section 184,

or his insurer, may make an application to the High Court for determination of limitation of his

liability.

(2) After receiving the application under sub-section (1), the High Court may determine

the amount of liability of shipowners and direct the shipowner or his insurer, as the case may

be, to deposit such amount with the High Court.

188. The High Court may consolidate all claims against the shipowner or his insurer

who has deposited the amount under section 187 and may distribute the amount amongst

the claimants.

Exemption

from liability.

Right of

owner to

limitation of

liability.

Determination

of limitation

of liability.

Consolidation

of claims and

distribution of

amount.

Liability for

bunker oil

pollution.

62

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

189. (1) The right to claim compensation under this Chapter shall be extinguished if

such claim is not made within a period of three years from the date of occurrence of damage:

Provided that in no case, such claim may be made after six years from the date of

incident which caused such damage.

(2) Where the incident consists of a series of occurrences, the period of six years shall

run from the date of the first of such occurrence.

190. Every registered owner of a ship having gross tonnage of more than one thousand

shall, for the purpose of his liability for pollution damage under this Chapter, maintain

compulsory insurance coverage or such other financial security, to the limits specified under

the provisions of the LLMC Convention.

191. (1) The insurer or other person providing financial security for the owner's

liability for pollution damage may be liable for any claim for compensation for such damage.

(2) The insurer or other person referred to in sub-section (1) may, if the owner is not

entitled to limit his liability in accordance with the provisions of section 184 may avail himself

such limits of liability as may be prescribed.

(3) Any claim for compensation for pollution damage may be brought directly against

the insurer or other person providing financial security for the registered owner's liability for

pollution damage and in such a case, the insurer or such person may invoke defences (other

than bankruptcy or winding up of the owner) which the shipowner would have been entitled

to invoke, including limitation of liability pursuant to section 187:

Provided that where the shipowner is not entitled to limitation of liability under section

187, the insurer or such person may limit the liability to an amount equal to the amount of the

insurance or other financial security required to be maintained under sub-section (1):

Provided further that the insurer or such person may invoke the defence that the

pollution damage resulted from the wilful misconduct of the shipowner but shall not invoke

any other defence which such insurer or person might have been entitled to invoke in

proceedings brought by the shipowner against such insurer or person:

Provided also that the insurer or such person may make the shipowner as a party to

such proceedings.

192. (1) The Central Government shall issue a certificate in respect of every ship

which maintains insurance or other financial security under section 190, in such form,

containing such particulars and subject to such conditions and on payment of such fee, as

may be prescribed.

(2) Every certificate issued under sub-section (1) shall be renewed after its expiry in

such manner and on payment of such fee as may be prescribed.

193. (1) No ship shall enter or leave or attempt to enter or leave any port or place to

which this Chapter applies, unless it carries on board a certificate issued under section 192.

(2) Any certificate issued by a competent authority in any country outside India to a

ship registered in that country or any certificate issued by a competent authority of any

country which is a contracting party to the Bunker Convention to any ship wherever registered,

shall be accepted at any port or place in India as if it were issued under this Act.

(3) No Proper Officer shall permit inward entry or outward clearance to any ship to

which sub-section (1) or sub-section (2) applies unless the master of the ship produces the

certificate referred to in that sub-section.

194. Nothing contained in this Chapter shall prejudice the right of recourse that the

shipowner may have against any other person in respect of his liability.

Maintenance

of compulsory

insurance or

other financial

security.

Direct action

against insurer

or other

person

providing

financial

security.

Issue of

certificate.

Ban on

entering or

leaving port

without

certificate.

Right of

recourse.

Extinguishment

of right to

claim.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

63

195. (1) Any judgment passed by a Court shall be recognised in India except where, —

(a) the judgment was obtained by fraud; or

(b) the shipowner or the insurer or the person providing financial security who

is a party to the proceedings was not given reasonable notice and a fair opportunity to

present his case.

(2) Any judgment passed by a court in accordance with the provision of the Bunker

Convention under sub-section (1) shall be enforceable in India as soon as the procedures

required have been complied with:

Provided that such procedure shall not permit the merits of the case to be re-opened.

196. (1) The Central Government may make rules to carry out the provisions of this

Part.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the limits of liability of the insurer or other person providing financial security

under sub-section (2) of section 191;

(b) the form of certificate, the particulars containing therein with the conditions

and fee for issue of certificate under sub-section (1) of section 192;

(c) the manner of renewal of certificate and fees therefor under sub-section (2)

of section 192;

(d) any other matter which is required to be or may be prescribed.

CHAPTER V

INTERNATIONAL OIL POLLUTION COMPENSATION FUND

197. This Chapter shall apply to pollution damage caused in the territory, including the

territorial waters of India or any marine areas adjacent thereto over which India has, or may

hereafter have, exclusive jurisdiction in regard to control of marine pollution under the

Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones

Act, 1976 or any other law for the time being in force and to preventive measures, wherever

taken, to prevent or minimize such damage.

198. In this Chapter unless the context otherwise requires,—

(a) "Contributing Oil" means crude oil and fuel oil;

Explanation.—For the purposes of this clause,—

(i) ‘‘crude oil’’ means any liquid hydrocarbon 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 have been removed

(sometimes referred to as "topped crudes") or to which certain distillate fractions

have been added (sometimes referred to as "spiked" or "reconstituted" crudes),

(ii) ‘‘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) ‘‘Fund’’ means the International Oil Pollution Compensation Fund,1992

established by Article 2 of the Fund Convention;

(c) ‘‘Fund Convention’’ means the International Convention on the establishment

of an International Fund for Compensation for Oil Pollution Damage, 1992;

Power

to

make rules.

Application.

Definitions.

Recognition

and

enforcements

of decision of

the court.

80 of 1976.

64

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(d) ‘‘Guarantor’’ means any person providing insurance or other financial secu-

rity to cover an owner's liability in pursuance of paragraph 1 of Article VII of the 1992

Liability Convention;

(e) ‘‘Incident’’, ‘‘Oil’’, ‘‘Organisation’’, ‘‘Owner’’, ‘‘Person’’, ‘‘Pollution Damage’’,

‘‘Preventive Measures” or “ship” shall have same meaning as assigned to it in the

1992 Liability Convention;

(f) ‘‘Ship's tonnage’’ shall have the same meaning as assigned to in paragraph

10 of Article V of the 1992 Liability Convention;

(g) ‘‘Terminal installation’’ means any site for the storage of oil in bulk which is

capable of receiving oil from waterborne transportation, including any facility situated

off-shore and linked to such site;

(h) ‘‘Ton’’, in relation to oil, means a metric ton.

199. (1) Contribution 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.

(2) The provisions of sub-section (1) shall apply whether or not the contributing oil is

imported, and notwithstanding that contributions are payable to the Fund, in respect of

carriage of the same contributing oil on a previous voyage.

(3) The 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 a port 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 contributing oil 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 not be liable to pay contributions to the Fund, in respect of the

contributing oil imported or received by him in any year if the quantity of contributing oil so

imported or received in the year does not exceed one hundred and fifty thousand tons or as

may be specified from time to time in the Fund Convention.

Explanation.—For the purposes of sub-section (3) of this section, ‘‘Fund Convention

country’’ means a country in which the Fund Convention is for the time being in force.

200. (1) The contributions payable to the Fund by a person for any year shall be,—

(a) such amounts 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 be 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 199, to give financial security for payment of

contributions to the Central Government or the Fund.

201. (1) Where any person suffering pollution damage has been unable to obtain full

and adequate compensation for the damage under the provisions of 1992 Liability Conven-

tion, the Fund shall be liable to pay compensation for pollution damage to such person if,—

(a) no liability for the damage arises in accordance with the provisions of the

1992 Liability Convention;

(b) the owner liable for the damage under the provisions of 1992 Liability

Contribution

to Fund.

Contribution

payable

by

persons to the

Fund.

Liability of

Fund.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

65

Convention is financially incapable of meeting his obligations in full and any financial

security that may be provided under the Convention does not cover or is insufficient

to satisfy the claims for compensation for the damage;

(c) the damage exceeds the owner's liability under the provisions of 1992 Liability

Convention as limited pursuant therein.

(2) Expenses incurred or sacrifices made by the owner voluntarily to prevent or minimize

pollution damage shall be treated as pollution damage for the purposes of this section.

(3) The Fund shall incur no obligation under sub-section (1) if,—

(a) it proves that the pollution damage resulted from an act of war, hostilities,

civil war or insurrection or was caused by oil which has escaped or been discharged

from a warship or other ship owned or operated by a State and used, at the time of the

incident, only on Government non-commercial service; or

(b) the claimant cannot prove that the damage resulted from an incident involving

one or more vessel.

(4) If the Fund proves that the pollution damage resulted wholly or partly either from

an act or omission done with the intent to cause damage by the person who suffered the

damage or from the negligence of that person, the Fund may be exonerated wholly or partly

from its obligation to pay compensation to such person.

(5) The Fund shall in any event be exonerated to the extent that the vessel owner may

have been exonerated under the provisions of 1992 Liability Convention:

Provided that there shall be no such exoneration of the Fund with regard to preventive

measures.

202. (1) The Central Government may, for the purposes of transmitting to the Fund,

the names and addresses of the persons who under the provisions of section 197 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 to any such person to furnish such information

as may be specified therein.

(2) A notice under sub-section (1) may specify the manner in which, and the time

within which, such notice shall be complied with.

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

section 197, 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 are 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.

(4) 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 under

this section, any statement which he knows to be false in a material particular, or

recklessly makes any statement which is false in a material particular,

shall be guilty of an offence punishable under this Act.

Power to call

for

information.

66

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[PART II—

203. (1) Any claim against the Fund for compensation under this Chapter shall be

brought directly before the Fund.

(2) Any action for a claim against the Fund shall be brought before the High Court.

(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) 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.

(5) 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 to the effect that the facts and evidence in that judgment may not be disputed

by the Fund on the ground that it has not intervened in the proceedings.

204. Notwithstanding anything contained in any other law for the time being in force,

no action to enforce a claim against the Fund under this Chapter shall be entertained by a

High Court, unless,—

(a) the 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:

Provided that no action to enforce a claim shall be brought after six years from the date

of the incident that caused such damage.

205. 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 or the Fund shall acquire by

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

Fund Convention.

206. The Central Government may make rules to carry out the provisions of the Fund

Convention.

PART X

INVESTIGATION AND INQUIRIES

207. (1) For the purposes of investigations and inquiries under this Part, a marine

casualty shall be deemed to be an event, or sequences of events that has resulted in any of

the following and has occurred directly by, or in connection with the operations of Indian

vessels and vessels other than Indian vessels, when,—

(a) on or near the coast of India, any vessel is lost, abandoned, stranded or

materially damaged;

(b) on or near the coast of India, any vessel causes loss or material damage to

any other vessel;

(c) any loss of life or presumed loss of life, ensues by reason of any casualty

happening, or otherwise, to or on board any vessel, on or near the coast of India;

(d) any loss of life or presumed loss of life, ensues by reason of any casualty

happening, or otherwise, to an Indian national on board any vessel, anywhere in the

world;

(e) in any place, any such loss, abandonment, stranding, material damage or

casualty as mentioned above occurs to or on board any Indian vessel, and any

competent witness thereof is found in India;

Extinguishment

of claims.

Subrogation

and right of

recourse.

Power to

make rules.

Marine

casualties and

report

thereof.

Claims against

fund

and

Jurisdiction of

Courts.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

67

(f) any Indian vessel is lost or is supposed to have been lost, and any evidence

is obtainable in India as to the circumstances under which she proceeded to sea or was

last heard of;

(g) in any place within the zones under the Territorial Waters, Continental Shelf,

Exclusive Economic Zone and other Maritime Zones Act, 1976, pollution, or the potential

threat of such pollution to the environment, or severe damage to the environment, or

the potential to severe damage to the environment is caused of a vessel;

(h) a fire or explosion takes place on any Indian vessel anywhere in the world, or

a fire or explosion takes place on a vessel other than an Indian vessel, while such

vessel is on, or near, the coast of India.

(2) In the cases mentioned in sub-section (1), the owner, manager, operator, company,

pilot, harbour-master, master, or other person in charge of the vessel, or, where two vessels

are concerned, in charge of each vessel at the time of the marine casualty, as the case may be,

shall, within twenty-four hours of the occurrence, give notice of the marine casualty to the

officer appointed in this behalf by the Central Government.

(3) Wherever any such officer receives the notice of the marine casualty under

sub-section (2), he shall forthwith report in writing the information to the Central Government

and may proceed to make preliminary inquiry into the marine causalty and shall furnish the

report on completion of independent inquiry into the incident.

(4) The Central Government may, for the purposes of the investigation, appoint a

body to conduct a marine safety investigation in accordance with the Safety Convention.

(5) The body appointed under sub-section (4) shall, make preliminary assessment of

the marine casualty and conduct a marine safety investigation for ascertaining its causes

and circumstances and submit its report to the Central Government.

Explanation.— For the purposes of this Part, the word ‘‘company’’ has the same

meaning as assigned to it in clause (a) of section 111.

208. On receipt of report under sub-section (5) of section 207 or otherwise, if the

Central Government is of the opinion that prima facie, there exists, incompetency, miscon-

duct or violation of any law for the time being in force on part of any person, it may,—

(a) initiate administrative action; and

(b) direct such officer or other authority having jurisdiction over the area to

initiate any proceedings, as may be required in accordance with the provision of any

law for the time being in force.

209. The Central Government may, by order, cancel or suspend any certificate granted

under this Act to any seafarer for any specified period,—

(a) if the inquiry report or investigation report reveals that the seafarer is

incompetent or has been guilty of misconduct;

(b) in a case of collision, the seafarer has failed to render assistance;

(c) if the seafarer has been convicted of any offence under this Act or any non-

bailable offence committed under any other law for the time being in force in India or

outside India;

(d) the casualty, if any, has been caused by wrongful act or default of the

seafarer; or

(e) if the seafarer to whom the certificate has been granted contravenes any

provisions of this Act:

Provided that no order under this section shall be passed unless the person concerned

has been given an opportunity of making a representation against such order.

Power of

Central

Government

to initiate

proceedings.

Power to

cancel,

suspend, etc.,

certificate of

seafarers.

80 of 1976.

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[PART II—

210. Whenever an investigation or inquiry has been made under this Act, the

Central Government may order the case to be re-heard either generally or as to any part

thereof, and shall so order,—

(a) if new and important evidence which could not be produced at the time of

investigation has been discovered; or

(b) if for any other reason there has, in its opinion, been a miscarriage of justice.

PART XI

WRECK AND SALVAGE

CHAPTER I

WRECK

211. This Chapter shall apply to the wrecks located within the territory of India

including the territorial sea or any marine areas adjacent thereto over which India has, or may

hereafter have, exclusive jurisdiction under the Territorial Waters, Continental Shelf,

Exclusive Economic Zone and other Maritime Zones Act, 1976:

Provided that this Chapter shall not apply to,—

(a) any measures taken under the International Convention relating to the

Intervention on the High Seas in Cases of Oil Pollution Casualties,1969;

(b) any warship or other vessel owned or operated by the Government for

non-commercial service.

212. In this Chapter, unless the context otherwise requires,—

(a) ‘‘authority’’ means the Central Government or any person authorised by it;

(b) ‘‘affected country’’ means the country in whose Convention area the wreck

is located;

(c) ‘‘Convention’’ means the Nairobi Convention on the Removal of Wrecks,

2007;

(d) ‘‘Convention area’’ means the exclusive economic zone of a State Party,

established in accordance with international law or, if a State Party has not established

such a zone, an area beyond and adjacent to the territorial sea of that State determined

by that State in accordance with international law and extending not more than two

hundred nautical miles from the baselines from which the breadth of its territorial sea is

measured;

(e) ‘‘hazard’’ means any condition or threat, that,—

(i) poses a danger or impediment to navigation; or

(ii) may reasonably be expected to result in major harmful consequences

to the marine environment, or damage to the coastline or related interests of

India or any other Country;

(f) ‘‘maritime casualty’’ means a collision of ships, stranding or other incident of

navigation, or other occurrence on board a ship or external to it, resulting in material

damage or imminent threat of material damage to a ship or its cargo;

(g) ‘‘operator of the ship’’ means the owner of the ship or any other organisation

or person such as the manager, or the bareboat charterer, who has assumed the

responsibility for operation of the ship from the owner of the ship and who, on assuming

such responsibility, has agreed to take over all duties and responsibilities established

under the International Safety Management Code;

Application of

this Chapter to

wrecks.

Definitions.

Re-hearing.

80 of 1976.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

69

(h) ‘‘receiver of wreck’’ means a person appointed as such under sub-section (1)

of section 213;

(i) ‘‘registered owner’’ means the person registered as the owner of the ship or, in

the absence of registration, the person owning the ship at the time of the maritime casualty:

Provided that in the case of a ship owned by a State and operated by a company

which in that State is registered as the operator of the ship, "registered owner" shall

mean such company;

(j) ‘‘related interests’’, in relation to the interest of India directly affected or

threatened by a wreck, means—

(i) maritime coastal, port and estuarine activities, including fisheries

activities, constituting an essential means of livelihood of the persons concerned;

(ii) tourist attractions and other economic interests of the areas concerned;

(iii) the health of the coastal population and the well being of the area

concerned, including conservation of marine living resources and of wild life; and

(iv) offshore and underwater infrastructure.

(k) ‘‘removal’’ means any form of prevention, mitigation or elimination of the

hazard created by a wreck, and the expressions "remove", "removed" and "removing"

shall be construed accordingly;

(l) ‘‘ship’’ means a sea-going vessel of any type whatsoever and includes hy-

drofoil boats, air-cushion vehicles, submersibles, floating craft and floating platforms,

except when such platforms are on location engaged in the exploration, exploitation or

production of seabed mineral resources;

(m) ‘‘state of the ship's registry’’ means,—

(i) in relation to a registered ship, the country of registration of the ship; and

(ii) in relation to an unregistered ship, the country, under whose flag the

ship is entitled to fly.

(n) ‘‘wreck’’, in relation to maritime casualty, means, —

(i) a sunken or stranded ship;

(ii) any part of a sunken or stranded ship, including any object or goods

or cargo that is or has been on board such a ship;

(iii) any object or goods or cargo that is lost at sea from a ship and that is

stranded, sunken or adrift at sea;

(iv) a ship that is in distress or is about, or may reasonably be expected, to

sink or to strand, where effective measures to assist the ship or any property in

danger are not already being taken; or

(v) a ship abandoned without hope or intention of recovery.

Explanation.—For the purposes of this sub-clause, any question as to whether the

measures adopted to assist the ship or any property in danger are effectively being taken or

not shall be decided by the Director-General.

213. (1) The Central Government, may by notification, appoint any person to be the

receiver of wreck to receive and take possession of wreck and to perform such duties connected

therewith as are hereinafter mentioned, within such limits as may be specified in that notification.

(2) The receiver of wreck shall receive and take possession of wreck with all powers in

respect thereof, including powers for disposal or sale of the wreck, power to give notices,

power to enforce performance of obligations by owner, operator, insurer of the vessel, as

Receivers of

wreck.

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[PART II—

provided in this Chapter, and take such action as require to remove the wreck by the most

practical and expeditious means available, consistent with considerations of safety and

protection of maritime environment.

214. (1) When any Indian ship has been involved in a maritime casualty resulting in a

wreck in any area to which this Chapter applies, the master or owner or the operator of the

ship shall, without any delay, report such incident to the receiver of wreck and the

Central Government.

(2) When any Indian ship has been involved in a maritime casualty resulting in a

wreck in a Convention area of any country, the master and the operator of that ship shall,

without any delay, report such incident to the affected country in such manner as may be

required by that country and shall also report such incident to the Central Government.

(3) When any ship other than Indian ship has been involved in a maritime casualty

resulting in a wreck in any area to which this Chapter applies, the master and the operator of

the ship shall, without any delay, report such incident to the receiver of wreck and the

Central Government.

215. For determining as to whether a wreck poses a hazard or not, the following criteria

shall be taken into account, namely:—

(a) the type, size and construction of the wreck;

(b) depth of the water in the area;

(c) tidal range and currents in the area;

(d) proximity to protected areas including coral reefs and other areas as notified

by the Government;

(e) particularly sensitive sea areas identified and, as appropriate, designated in

accordance with guidelines adopted by the International Maritime Organisation, or a

clearly defined area of the exclusive economic zone where special mandatory measures

have been adopted in accordance with requirements of the United Nations Convention

on the Law of the Sea, 1982;

(f) proximity of shipping routes or established traffic lanes;

(g) traffic density and frequency;

(h) type of traffic;

(i) nature and quantity of the wreck's cargo, the amount and types of oil (such as

bunker oil and lubricating oil) on board the wreck and, in particular, the damage likely

to result if the cargo or oil is released into the marine environment;

(j) vulnerability of port and port facilities;

(k) prevailing meteorological and hydrographical conditions;

(l) submarine topography of the area;

(m) height of the wreck above or below the surface of the water at lowest

astronomical tide;

(n) acoustic and magnetic profiles of the wreck;

(o) proximity of offshore installations, pipelines, telecommunication cables and

similar structures;

(p) proximity of tourist spots and heritage locations; and

(q) any other circumstances that might necessitate the removal of the wreck.

Duty to report

wrecks.

Determination

of hazard.

SEC. 2]

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71

216. (1) The Central Government may, if considers necessary, give directions to a

receiver of wreck or any other person or authority including the Director-General of Light

House or the Port Authority or a Maritime Board or Indian Coast Guard, as the case may

be, within their respective jurisdiction to locate or mark the wreck, or both.

(2) When a wreck has been determined to be a hazard, it shall be the duty of the owner

or the operator of such a vessel,—

(a) to immediately mark the wreck at his or its own cost in such manner as may

be prescribed; and

(b) to maintain the marking until the wreck is removed.

(3) The cost for locating and marking the vessel shall be borne by or recovered from

the owner or the operator of such a vessel.

217. (1) Whenever a vessel is wrecked, stranded or in distress, all persons may, for

the purpose of rendering assistance to the ship or of saving the lives of the shipwrecked

persons, or of saving the cargo or equipment of the vessel, unless there is some public

road equally convenient, pass and repass, either with or without vehicles or animals, over

any adjoining lands without being subject to interruption by the owner or occupier, so that

they do as little damage as possible and may also on the like condition, deposit on these

lands any cargo or other article recovered from the vessel.

(2) Any damage sustained by an owner or occupier in consequence of the exercise of

the rights under this section shall be a charge on the vessel, cargo or articles in respect of or

by which the damage is sustained and in case of dispute, the amount payable in respect of

such damage shall be determined by a Magistrate on an application made to him in this

behalf.

218. No person shall,—

(a) without the leave of the master, board or attempt to board any vessel which

is wrecked, stranded or in distress, unless the person is, or acts by command of, the

receiver of wreck; or

(b) impede or hinder or attempt in any way to impede or hinder the saving of

any vessel stranded or in danger of being stranded or otherwise in distress in any

area to which this Chapter applies or of any part of the cargo or equipment of the

vessel, or of any wreck; or

(c) secrete any wreck or deface or obliterate any marks thereon; or

(d) wrongfully carry away or remove any part of a vessel stranded or in danger

of being stranded or otherwise in distress, in any area to which this Chapter applies,

or any part of the cargo or equipment of the vessel or any wreck.

219. Where a receiver of wreck suspects or receives information that any wreck is

secreted or is in the possession of some person who is not the owner thereof or that any

wreck is otherwise improperly dealt with, he may apply to the nearest Judicial Magistrate

of the first class or Metropolitan Magistrate, as the case may be, for a search warrant, and

that Judicial Magistrate of the first class or Metropolitan Magistrate, as the case may be,

shall have power to grant such warrant and the receiver of wreck by virtue thereof may

enter any house or other place wherever situate and also any vessel and search for, seize

and detain any such wreck found thereof.

220. (1) When it is determined that the wreck constitutes a hazard, the receiver of

wreck shall give the detail information to the Central Government.

(2) The Central Government, on receipt of information under sub-section (1), shall—

(a) inform the government of the country of the vessel registry and the

registered owner of the vessel; and

(b) consult the government of the country of the vessel registry and other

countries affected by the wreck regarding measures to be taken in relation to such wreck.

Power to pass

over adjoining

lands.

Prohibition of

certain acts in

respect of

wreck.

Search

warrants

where wreck

is involved.

Measures to

facilitate the

removal

of

wrecks.

Locating and

marking

of

wrecks.

72

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[PART II—

(3) The registered owner of the vessel or, as the case may be, the operator of the vessel

shall remove such wreck which has been determined to constitute a hazard:

Provided that where any dispute arises as to whether the wreck constitutes a hazard or

not, the decision of the Central Government shall be final and binding on all parties.

(4) When a wreck has been determined to constitute a hazard, the registered owner of

the vessel or, as the case may be, any interested person shall provide to the Central Government

or the receiver of wreck with the evidence of insurance or other financial security maintained

by him in accordance with the provisions of this Act.

(5) The receiver of wreck shall, having regard to the nature of the hazard, set such time

limit as may be prescribed for the owner of the vessel or its operator to remove the wreck.

(6) If the owner of the vessel or its operator does not remove the wreck within the time

under sub-section (5), the receiver of wreck may, at the expense of such owner or operator,

remove the wreck by the most practical and expeditious means available, consistent with

considerations of safety and protection of the marine environment and the wreck or any sale

proceeds derived from such wreck shall become the property of the Central Government.

(7) Where immediate action is required and the receiver of wreck has informed the

owner of the vessel or the operator accordingly, he may, at the expense of such owner or

operator, remove the wreck by the most practical and expeditious means available, consistent

with considerations of safety and protection of the marine environment.

221.(1) The registered owner shall be liable for the costs of locating, marking and

removing the wreck under this Chapter unless he proves that the maritime casualty which

caused the wreck,—

(a) resulted from an act of war, hostilities, civil war, insurrection, or a natural

phenomenon of an exceptional, inevitable and irresistible character; or

(b) was wholly caused by act or omission done with an intent to cause damage

by a third party; or

(c) was wholly caused by the negligence or other wrongful act of any

Government or other authority responsible for the maintenance of lights or other

navigational aids in the exercise of that function.

(2) Nothing contained in this Chapter shall affect the right of the registered owner

to limit his liability in accordance with the provisions of section 155.

(3) Nothing contained in this Part shall prejudice any right of recourse available to

the registered owner against third parties.

222. (1) Every registered owner of an Indian ship of gross tonnage three hundred

and above shall, for the purpose of covering his liability under this Chapter, be required to

maintain compulsory insurance coverage or such other financial security, as may be

prescribed.

(2) Every owner of a vessel or operator of a vessel other than an Indian vessel of

gross tonnage of three hundred and above, while it is in the area to which this Chapter

applies, shall maintain insurance coverage or other financial security to cover his liability

under the Convention and shall carry on board a certificate attesting that such insurance or

other financial security is in force in accordance with the provisions of the Convention.

(3) The certificate referred to in sub-section (2) shall, in case the vessel is,—

(a) an Indian vessel, be issued by the Authority;

(b) registered in a Convention country other than India, be issued by or under

the authority of the Government of that country; and

(c) registered in a country which is not a Convention country, be issued or

Liability

of

owner.

Maintenance

of insurance

or other

financial

security.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

73

certified by the appropriate authority authorised by any Convention country.

(4) Any vessel found contravening the provisions of sub-section (2) shall be liable to

be detained by the Authority.

(5) Any claim for costs arising under this Chapter may be brought directly against the

insurer or other person providing financial security for the registered owner's liability and in

such a case, the insurer or such person may invoke defences (other than bankruptcy or

winding up of the registered owner) which the registered owner would have been entitled to

invoke, including limitation of liability as provided under the provisions of this Act:

Provided that where the registered owner is not entitled to limitation of liability under the

provisions of this Act, the insurer or such person may limit liability to an amount equal to the

amount of the insurance or other financial security required to be maintained under

sub-section (1):

Provided further that the insurer or such person may invoke the defence that the

maritime casualty resulted from the wilful misconduct of the registered owner but shall not

invoke any other defence which such insurer or person might have been entitled to invoke in

proceedings brought by the registered owner against such insurer or person:

Provided also that the insurer or such person shall have the right to require the registered

owner to be joined in such proceedings.

223. (1) The registered owner shall not be liable under this Chapter for meeting the

costs referred to in sub-section (5) of section 222 if, and to the extent that, liability for such

costs is in conflict with,—

(a) any other Chapter or provisions of this Act;

(b) the provisions of the Civil Liability for Nuclear Damage Act, 2010; or

(c) any other applicable or binding international legal instrument which India

adopts.

(2) Where measures are taken under this Chapter to the extent such measures are

construed to be salvage under the provisions of section 229, the provisions of said section 229

shall apply for the purposes of remuneration or compensation payable to salvors.

Explanation.—For the removal of doubts, it is hereby clarified that the provisions of

this section shall be construed harmoniously with the provisions of the Indian Ports

Act, 1908 and in case of any ambiguity or conflict thereof, the provisions of the Indian Ports

Act, 1908 shall prevail.

224. (1) The owner of any wreck in the possession of the receiver upon establishing

his claim to the same to the satisfaction of the receiver within one year from the time at which

the wreck came into the possession of the receiver shall, upon paying the salvage and other

charges, be entitled to have the wreck or the proceeds thereof delivered to him.

(2) Where any articles belonging to or forming part of a vessel other than an Indian

vessel which has been wrecked or belonging to and forming part of the cargo of such vessel,

are found in any area to which this Chapter applies or are brought into any port in India, the

consular officer of the country in which the vessel is registered or, in the case of cargo, the

country to which the owners of the cargo may have belonged shall, in the absence of the

owner and of the master or other agent of the owner, be deemed to be the agent of the owner,

with respect to the custody and disposal of the articles.

(3) Where the owner of the wreck does not appear and claim the balance of the

proceeds of sale within one year from the date of sale, the said balance shall become the

property of the Central Government.

225. Any claim for recovery of costs for locating and marking of the vessel under

Exception to

liability.

Claims of

owners to

wreck.

38 of 2010.

15 of 1908.

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[PART II—

sub-section (3) of section 216 shall be made within a period of three years from the date of

determination of the hazard:

Provided that no claim shall be made after six years from the date of the maritime

casualty that resulted in the wreck:

Provided further that where the maritime casualty consists of a series of occurrences,

the six years period shall run from the date of the first occurrence.

CHAPTER II

SALVAGE

226. (1) This Chapter applies to judicial or arbitral proceedings relating to salvage

operations in respect of a vessel or any other property, which are instituted in India:

Provided that this Chapter shall not apply to the fixed or floating platforms or to mobile

offshore drilling units when such platforms or units are on location engaged in the exploration,

exploitation or production of sea-bed mineral resources:

Provided further that this Chapter shall not apply to warships or other non-commercial

vessels owned or operated by the Government which are entitled, at the time of salvage

operations, to sovereign immunity.

(2) This Chapter shall apply, notwithstanding that the vessel undertaking the salvage

operations belong to the same owner of the vessel.

227. In this Chapter, unless the context otherwise requires,—

(a) ‘‘damage to the environment’’ means substantial physical damage to human

health or to marine life of resources in coastal or inland waters or areas adjacent

thereto, caused by pollution, contamination, fire, explosion or similar major incidents;

(b) ‘‘payment’’ means any reward, remuneration or compensation due under the

Salvage Convention;

(c) ‘‘property’’ means any property not permanently and intentionally attached

to the shoreline and includes freight at risk;

(d) ‘‘Salvage Convention’’ means International Convention on Salvage, 1989;

(e) ‘‘salvage operation’’ means any act or activity undertaken to assist a vessel

or any other property in danger in navigable waters or any other waters to which this

Chapter applies and includes,—

(i) the raising, removal, destruction or rendering a vessel harmless which

is sunk, wrecked, stranded or abandoned including anything that is or has been

on board such vessel;

(ii) the removal, destruction or rendering the cargo of a vessel harmless;

(iii) the measures taken to avert or minimise loss to a vessel or its cargo or

both; and

(iv) any other salvage services.

(f) ‘‘salvor’’ means any person rendering services in direct connection with

salvage operation;

(g) ‘‘vessel’’ means any ship or craft, or any structure capable of navigation.

228. Every master who, renders assistance to any person in danger of being lost at

sea, or to property, shall be paid a salvage award for such assistance.

229. (1) Where services are rendered,—

(a) wholly or in part within the territorial waters of India in saving life from any

vessel, or elsewhere in saving life from a vessel registered in India;

Extinguishment

of

right

to

claim recovery

of costs.

Application of

this Chapter to

salvage.

Definitions.

Salvage award.

Salvage

payable for

saving life,

cargo or

wreck.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

75

(b) in assisting a vessel or saving the cargo or equipment of a vessel which is

wrecked, stranded or in distress at any place to which this Chapter applies as specified

in section 226; or

(c) by any person other than the receiver of wreck in saving any wreck, there

shall be payable to the salvor by the owner of the vessel, cargo, equipment, a reasonable

sum for salvage having regard to all the circumstances of the case.

(2) Salvage in respect of the preservation of life when payable by the owner of the

vessel shall be payable in priority to all other claims for salvage.

230. Where salvage operation are rendered by or on behalf of the Government or by a

vessel of the Indian Navy or of the Coast Guard or the commander or crew of any such vessel

or the port authorities or any public authority, as the case may be, it shall be entitled to

salvage and payment for such services as provided under this Chapter and shall have the

same rights and remedies in respect of those services as any other salvor.

231. (1) Subject to the provisions contained in section 232, this Chapter shall apply to

any salvage operation save to the extent that a contract otherwise provides expressly or by

implication.

(2) The master shall have the authority to conclude contracts for salvage operations

on behalf of the owner of the vessel.

(3) The master or the owner of the vessel shall have the authority to conclude such

contracts on behalf of the owner of the property on board the vessel.

232. (1) The salvor shall have the following duties towards the owner of the vessel or

other property in danger, namely:—

(a) to carry out the salvage operations with due care;

(b) to exercise due care to prevent or minimise damage to the environment

during salvage operations;

(c) to seek assistance from other salvors including port authorities or public

authorities when circumstances so require; and

(d) to accept the intervention of other salvors when reasonably requested to do

so by the owner or master of the vessel or other property in danger:

Provided that if it is found that such a request was unreasonable, it shall not prejudice

the amount of reward of such salvor.

(2) The owner, master of the vessel or the owner of other property who is in danger

shall have the following duties towards the salvor, namely:—

(a) to co-operate fully with the salvor during the course of the salvage

operations;

(b) to exercise due care to prevent or minimize damage to the environment

during the salvage operations;

(c) when the vessel or other property has been brought to a place of safety, to

accept redelivery when reasonably requested by the salvor to do so; and

(d) to provide satisfactory security for the claim, including interest and costs of

the salvor for salvage operations, at the request of the salvor.

233. (1) The Central Government shall take such measures as may be prescribed to

protect its coastline or related interests from pollution or threat of pollution arising out of a

maritime casualty or acts relating to such casualty which may result in major harmful

consequences.

Salvage

operations

controlled by

Government

or port and

public

authorities.

Salvage

Contracts.

Duties of

salvor, owner

and master.

Rights and

duties of

Central

Government

in relation to

salvage

operations.

76

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(2) The Central Government shall give such directions as it deems fit to the concerned

vessel owner or the master or the salvor or a port authority or a public authority or any other

person in relation to salvage operations.

(3) The Central Government shall, for the purposes of efficient and effective salvage

operations, saving life or property in danger and preventing damage to the environment,

seek cooperation from the concerned vessel owner or the master or the salvor or a port

authority or a public authority or any other person, to give assistance to vessel in need, to

admit to ports of vessel in distress or in need of assistance and to give facilities to salvors.

234.(1) A salvor shall have a right to payment for the services rendered by him relating

to salvage operations:

Provided that no such payment shall be made where there is express and reasonable

prohibition from the owner or master of vessel or owner of any other property in danger.

(2) The criteria for claiming rewards, the manner of fixing rewards, the payment of

special compensation, the apportionment of payment amongst salvors, the salvage of persons,

the payment under the contract, the payment for additional services not covered under the

contract and the effect of misconduct of salvors on reward or payment under this Chapter

shall be such as may be prescribed.

(3) The salvor shall have right to enforce his maritime lien against the owner or master

of vessel or owner of any other property in danger when satisfactory security for his claim,

including interest and costs, has not been provided by such person.

235. (1) A dispute relating to claims under this Part shall be determined upon application

made by either of the disputing parties to the concerned High Court.

(2) Where there is any dispute as to the persons who are entitled to the salvage

amount under this section, the High Court shall decide the dispute and if there are more

persons than one entitled to such amount, the High Court shall apportion the amount thereof,

among such persons.

(3) The cost of and incidental to all proceedings before the High Court under this

section shall be in the discretion of the High Court and the High Court shall have full power

to determine by whom or out of what property and to what extent such costs are to be paid

and to give all necessary directions for the purpose aforesaid.

(4) The High Court may, by interim order, direct that the salvor shall be paid such

amount as may appear to it to be fair and just, upon such terms, including terms as to

security, as may appear to it to be necessary, fair and just, according to the circumstances of

each case.

236. Any action relating to payment under this Chapter shall extinguish if no action for

such claim is made within a period of two years from the date of completion of salvage

operations.

237. Nothing in this Chapter shall affect,—

(a) any treaty or arrangement with any foreign country to which India is a party

with reference to the disposal of the proceeds of wrecks on their respective coasts; or

(b) the provisions of section 29 of the Indian Ports Act, 1908, or any person to

salvage in respect of any property recovered by creeping or sweeping in contravention

of that section.

238. (1) The Central Government may make rules to carry out the provisions of this

Part.

Rights of

salvors.

Adjudication

of disputes.

Extinguishment

of claims.

Savings.

15 of 1908.

Power to make

rules respecting

wreck and

salvage.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

77

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the manner of marking wreck under clause (a) of sub-section (2) of section 216;

(b) the time-limit to remove the wreck under sub-section (5) of section 220;

(c) the other financial security under sub-section (1) of section 222;

(d) the measures to be taken to protect the coastline or related interests from

pollution or threat of pollution under sub-section (1) of section 233;

(e) the criteria for claiming rewards, the manner of fixing rewards, the payment of

special compensation, the apportionment of payment amongst salvors, the salvage of

persons, the payment under the contract, the payment for additional services not

covered under the contract and the effect of misconduct of salvors on reward or

payment under sub-section (2) of section 234;

(f) any other matter which is required to be or may be prescribed.

PART XII

CONTROL OF INDIAN VESSELS AND FOREIGN VESSELS ENGAGED IN

COASTING TRADE

239. This Part shall apply to all vessels including vessels other than Indian vessel.

240. (1) No vessel, other than a vessel registered under this Act shall engage in the

coasting trade of India or exploration, exploitation or research in the coastal waters of India

except under a licence granted by the Director-General under sub-section (4).

(2) No other vessel chartered by a citizen of India or a company or a co-operative

society other than vessel registered under this Act shall be taken to sea from a port or place

within or outside India except under a licence granted by the Director-General under this

section.

(3) An Indian controlled tonnage vessel may be granted a licence under this section

subject to such conditions as may be specified by the Director-General.

(4) A licence granted under this section may be—

(a) a general licence;

(b) a licence for the whole or any part of the coasting trade of India; or

(c) a licence for a specified period or voyage.

(5) A licence granted under sub-section (4), shall be in such form and shall be valid for

such period as may be prescribed, and shall be subject to such conditions as may be specified

by the Director-General:

Provided that the Central Government, if it is of the opinion that it is necessary or

expedient in the public interest so to do, it may, by a general or special order, exempt any class

of vessels from the provisions of this section.

241. (1) The Director-General may, at any time if the circumstances of the case so

require, revoke or modify a licence granted under section 240.

(2) No licence shall be revoked or modified under this section unless the person

concerned has been given a reasonable opportunity of making a representation against such

revocation or modification, as the case may be.

(3) When a licence granted under section 240 ceases to be valid, the person to whom

it was granted shall, without unreasonable delay, return it or causes it to be returned to the

Director-General.

Application of

this Part.

Licensing of

vessels.

Revocation,

modification

or surrender

of licence.

78

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

242. No proper officer shall grant a port clearance to a vessel not registered under this

Act in respect of which a licence is required under this Part, until after the production of such

a licence by the owner, master or agent of such vessel.

243. (1) The Director-General may, if he is satisfied that in the public interest or in the

interests of Indian shipping it is necessary so to do, give, by order in writing, such directions

as he thinks fit,—

(a) in the case of a vessel which has been granted a licence under section 240,

with respect to all or any of the following matters, namely:—

(i) the ports or places, whether in or outside India, to which, and the

routes by which, the vessel shall proceed for any particular purpose;

(ii) the diversion of any vessel from one route to another for any particular

purpose;

(iii) the classes of passengers or cargo which may be carried in the vessel;

(iv) the order of priority in which passengers or cargo may be taken on or

put off the vessel at any port or place, whether in or outside India;

(b) in the case of a vessel which has been granted a licence under section 240

with respect to the order of priority in which passengers or cargo may be taken on the

vessel at any port or place in India from which she is about to proceed for any port or

place in India at which she is to call in the course of her voyage.

(2) The Director-General may, by notice, require,—

(a) the owner, master or agent of any vessel in respect of which a licence granted

under section 240; or

(b) the owner, master or agent of any vessel in respect of which any directions

have been or may be given under clause (b) of sub-section (1), to furnish within the

period specified in the notice the information as to—

(i) the classes of passengers and cargo which the vessel is about to carry

or is capable of carrying or has carried during any specified period;

(ii) any other matter which may be prescribed.

(3) Notwithstanding anything contained in any other law for the time being in force,

the Central Government may, in public interest, by an order in writing, give such directions as

it may deem appropriate to ban any vessel from entering any port, anchorage or offshore

facility in India.

244. (1) If it appears to the Central Government,—

(a) that measures have been taken by or under the law of any foreign country for

regulating or controlling the terms or conditions upon which goods or passengers

may be carried by sea, or the terms or conditions of contracts or arrangements relating

to such carriage; and

(b) that such measures, in so far as they apply to things done or, to be done

outside the territorial jurisdiction of that country by persons carrying on lawful business

in India, constitute an infringement of the jurisdiction which belongs to India, it may,

by an order in writing, direct that this section shall apply to those measures either in

whole or to such extent as may be specified in the order.

(2) Where an order issued under sub-section (1) is in force in relation to any measures,

it shall be the duty of every person in India who carries on business consisting or comprising

of the carriage of goods or passengers by sea to give notice to the Central Government of

any requirement or prohibition imposed or threatened to be imposed on him pursuant to

such measures so far as this section applies to him, including any requirement to submit any

contract or other document for approval thereunder.

No port

clearance

until licence

is produced.

Power to give

direction.

Powers of

Central

Government

to protect

interests of

Indian

shipping from

undue foreign

intervention.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

79

(3) Where a notice under sub-section (2) is received from any person or there are

grounds to believe that a notice is likely to be received, the Central Government may, by an

order in writing, give to such person directions prohibiting compliance with any such

requirement or prohibition as it considers proper for maintaining the jurisdiction of India.

(4) If it appears to the Central Government that any person in India has been or may be

required to produce or furnish to any court, or authority of a foreign country any commercial

document which is not within the territorial jurisdiction of that country or any commercial

information to be compiled from documents not within the territorial jurisdiction of that

country and that the requirement constitutes or may constitute an infringement of the

jurisdiction which belongs to India, the Central Government may, by an order in writing, give

directions to that person, prohibiting him from complying with the requirement except to

such extent or subject to such conditions as may be specified in that order.

245. (1) The Central Government may make rules to carry out the provisions of

this Part.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the form of licence and the valid period of such licence under

sub-section (5) of section 240;

(b) any other matters under sub-clause (ii) of clause (b) of sub-section (2) of

section 243;

(c) any other matter which is required to be or may be prescribed.

PART XIII

SAILING, FISHING AND OTHER VESSELS

246. (1) Save as otherwise provided, this Part shall apply to vessels of the following

description, namely:—

(a) sailing vessel;

(b) fishing vessel;

(c) vessel without mechanical means of propulsion;

(d) vessel whose net tonnage is less than fifteen and is engaged solely in

coasting trade of India.

Explanation.—For the purposes of this section, the words "net tonnage" means the

measure of the useful capacity of a vessel determined in accordance with the rules made in

this behalf.

(2) The provisions of this Act, other than those contained in Part I, Part II, Part III,

Part X, Part XIV and this Part, shall not apply to vessels under sub-section (1):

Provided that the Central Government may, by notification direct that any other

provisions of this Act shall also apply to such vessels subject to such conditions, exceptions

and modifications as may be specified in the notification.

247. If any question arises whether a vessel falls under this Part, it shall be decided by

the Director-General and his decision thereon shall be final.

248. (1) Every vessel covered under this Part shall be manned and carry on board

such fittings, material, appliances and apparatus, for safety, security and prevention of

pollution as may be prescribed.

(2) Every owner of the vessel covered under this Part shall provide a policy of

insurance for all persons employed as members of the crew of such vessel against death or

Power to make

rules.

Application of

Part.

Decision on

whether a vessel

falls under this

Part.

Requirements

for safety,

security,

prevention of

pollution and

insurance.

80

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

personal injury caused by accident arising in the course of their employment, for an amount

which shall not be less than the amount as may be notified.

(3) No vessel shall ply or proceed to sea unless it complies with the provisions under

sub-sections (1) and (2).

249. (1) No vessel shall ply or proceed to sea unless there is in force in respect of that

vessel prescribed certificates granted under this Part, the same being applicable to the

voyage on which she is about to ply or proceed.

(2) Every certificate shall be granted in such manner and shall be in force for such

period as may be prescribed:

Provided that where a vessel is not at a port at the time of expiry of the certificate, the

owner, master, tindal or skipper of that vessel shall inform to the Central Government and the

certificate shall continue to be valid until her first arrival at the next port after the expiry of

such period.

250. (1) Every owner, master or tindal or skipper of a vessel shall maintain or cause to

be maintained a statement of the crew of the vessel containing with respect to each member

thereof in such form as may be prescribed, namely:—

(a) his name;

(b) the wages payable to him;

(c) the names and addresses of his next-of-kin;

(d) the date of commencement of his employment; and

(e) such other particulars as may be prescribed.

(2) Every change in the crew of the vessel shall be entered in the statement under

sub-section (1).

(3) A copy of such statement and of every change entered therein shall be communicated

as soon as possible to the shipping master.

251. (1) If any owner, master or tindal or skipper of a vessel in the course of her

voyage, has jettisoned or claims to have jettisoned the whole or any part of the cargo of the

vessel on account of abnormal weather conditions or for any other reason, he shall immediately

after arrival of the vessel at any port or place in India give notice of such jettisoning to the

proper officer, and such notice shall contain full particulars of the cargo jettisoned and the

circumstances under which such jettisoning took place.

(2) Where the proper officer receives the notice under sub-section (1), he shall forth-

with report in writing to the Central Government and may proceed to make an inquiry into the

matter.

252. (1) Any vessel attempting to ply or proceed to sea without free board markings or

any vessel which has been so loaded as to submerge such markings or carrying persons in

excess of the certified capacity, may be detained by a proper officer until the vessel complies

with the rules made in this behalf.

(2) Except otherwise provided, for the purposes of this Part, a proper officer may, at

any reasonable time, go on board a vessel, and may inspect or audit the vessel, and any part

thereof, the structure, equipment, fittings, arrangements, materials, systems, scantlings, cargo,

provisions, stores, her certificates, and certificates of the crew on board:

Provided that the proper officer shall not unreasonably hinder the operation of the

vessel, or unreasonably detain or delay her from proceeding on any voyage.

(3) The owner, agent, master or every officer of the vessel shall afford to the proper

officer all reasonable facilities for a survey or audit, and provide all such information in

Vessel not to

proceed

without valid

certificates.

Statement

relating to

crew of

vessels to be

maintained.

Inquiry to

jettisoning of

cargo.

Detention of

vessel by proper

officer.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

81

respect of the vessel and her structure, equipment, fittings, arrangements, materials, scantlings,

systems, cargo, provisions, stores, her certificates, and certificates of the crew, as the proper

officer reasonably requires.

253. (1) If any vessel under this Part, arrives in or proceeds from a port or place in India

in an unseaworthy condition or which is likely to pose a threat to the security on Indian

coasts or offshore installations, the vessel may be detained until the owner, master or tindal

or skipper takes all reasonable measures to ensure the seaworthiness of the vessel.

(2) Nothing contained in sub-section (1) shall affect the liability of the person in

charge of the vessel in respect of such unseaworthiness or threat to the security on Indian

coasts or offshore installations under any other provisions of this Act.

254. (1) Notwithstanding anything contained in this Part, the Central Government

may, by order in writing and upon such conditions, if any, as it may think fit to impose, exempt

any vessel or tindal, skipper or member of crew of such vessel or any class thereof, from any

specified requirement contained in or prescribed in pursuance of this Act or dispense with

the observance of any such requirement in the case of any vessel or tindal, skipper or

member of crew of such vessel or any class thereof if it is satisfied that the requirement has

been substantially complied with or that compliance with the requirement is or ought to be

dispensed with in the circumstances of the case.

(2) Where an exemption is granted under sub-section (1) subject to any conditions, a

breach of any of those conditions shall, without prejudice to any other remedy, be deemed to

be an offence under this sub-section.

255. (1) The Central Government may make rules to carry out the provisions of this

Part.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the scale of manning and fittings, material, appliances and apparatus to be

carried on board by Indian vessel under sub-section (1) of section 248;

(b) the certificates required to ply or proceed to sea by a vessel under

sub-section (1) of section 249;

(c) the manner of granting of certificate and the period of said certificate under

sub-section (2) of section 249;

(d) the form for maintaining a statement of the crew of the vessel under

sub-section (1) of section 250;

(e) any other matter which is required to be or may be prescribed.

PART XIV

PENALTIES AND PROCEDURES

256. (1) Any person who contravenes any provision of this Act or fails to comply with

any provision thereof, which it was his duty to comply with, shall be guilty of an offence

committed under this Act.

(2) The offences mentioned in column (2) of the Table below shall be punishable to the

extent mentioned in column (4) of the said Table with reference to such offence respectively.

(3) Any person who contravenes any provision of this Act or fails to comply with any

provision thereof, which it was his duty to comply with, shall be guilty of an offence, and if

in respect of any such offence, no penalty is specially provided in sub-section (2), he shall

be punishable with fine which may extend to fifty thousand rupees.

Detention of

unseaworthy

vessels.

Power to

exempt.

Power to

make rules.

Penalties.

82

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(4) The Principal Officer may, after giving the parties an opportunity of being heard, by

order in writing, impose penalties as specified in column (4) of the said Table.

(5) Any person aggrieved by the order under sub-section (4), may, within a period of

thirty days from the date of receipt of such order, prefer an appeal before the Director-General

in such form and manner as the Central Government may specify in this behalf.

(6) The Director-General may, after giving the parties an opportunity of being heard,

within a period of thirty days from the date of receipt of the order under sub-section (5), pass

appropriate order which shall be final and binding on all parties.

TABLE

Serial

Offences

Section

Penalties

By whom

No.

of this

the offence

Act to

triable and

which

penalties

offence

imposed

has

referred

(1)

(2)

(3)

(4)

(5)

1.

If any person causes

14(1)

Imprisonment which

Court

a vessel to proceed to

may extend to six

sea in contravention

months or fine which

of sub-section (1) of

may extend to two

section 14.

lakh rupees, or both.

2.

If the owner of an

17(1)

Fine which may

Principal

Indian vessel fails to

extend to fifty

Officer

comply with, or

thousand rupees.

contravenes,

sub-section (1) of

section 17.

3.

If any person contravenes

20(2)

Fine which may

Principal

sub-section (2) of

extend to fifty

Officer

section 20.

thousand rupees.

4.

If the owner fails to deliver

22

Fine which may

Principal

the certificate of registry

extend to fifty

Officer

to the Registrar as required

thousand rupees.

under section 22.

5.

If any person contravenes

24(1)

Fine which may extend

Principal

sub-section (1) of section 24.

to one lakh

Officer

rupees.

6.

If an owner fails to make

35

Fine which may extend

Principal

an application for

to fifty thousand rupees; Officer

registering a new vessel

and in addition, a fine

or for registering an

which may extend to

alteration of a vessel

two thousand rupees

under section 35.

for everyday during

which the offence

continues after

conviction.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

83

7.

If any distinctive national

40(1)

Fine which may extend

Principal

colours except those

to two lakh rupees.

Officer

declared under

sub-section (1) of section 40

are hoisted on board by

Indian vessel.

8.

If any person acts in

40(2)

Fine which may extend

Principal

contravention of

to fifty thousand rupees. Officer

sub-section (2) of section 40.

9.

If any person contravenes

40(4)

Imprisonment which

Court

sub-section (4) of

may extend to two

section 40.

years, or fine which

may extend to two lakh

rupees, or both.

10.

If an owner or a master

41

Imprisonment which

Court

of an Indian vessel

may extend to two

contravenes section 41.

years, or fine which

may extend to two lakh

rupees, or both.

11.

If any person in the case

General

Imprisonment which

Court

of any declaration made

may extend to six

in the presence of, or

months, or fine which

produced to, Registrar

may extend to two

under Part IV or in any

lakh rupees, or both.

document or other evidence

produced to such Registrar—

(i) wilfully makes or

assists in making or

procures to be made, any

false statement concerning

the title to or owner vessel

of or the interest existing in

any vessel or any share

in a vessel; or

(ii) utters, produces or

makes

use

of

any

declaration or document

containing any such false

statement knowing the same

to be false.

12.

If the Indian charterer fails to 49(7)

Fine which may extend

Principal

inform the Registrar under

to two lakh rupees.

Officer

sub-section (7) of section 49.

13.

If any person having

51(2)

Imprisonment which

Court

been engaged as one of

may extend to six

the officers referred to

months or fine which

in sub-section (2) of

may extend to two

section 51 goes to sea

lakh rupees, or both.

as such officer without

holding a certificate

referred to in sub-section (2)

of that section.

(1)

(2)

(3)

(4)

(5)

84

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

14.

If any person conducts

53(2)

Imprisonment which

Court

training course in

may extend to two

contravention of

years, or fine which

sub-section (2) of section 53.

may extend to twenty

lakhs rupees, or both.

15.

If any person obstructs

53(3)

Fine which may

Principal

authorised person under

extend to two lakh

Officer

sub-section (3) of

rupees.

section 53.

16.

If any person causes a

General

Imprisonment which

Court

vessel or fishing vessel

may extend to six

to proceed to sea without

months or fine which

the required certificate

may extend to two

personnel.

lakh rupees, or both.

17.

If a master fails to comply

55(1)

Fine which may extend

Principal

with the requirement under

to fifty thousand rupees

Officer

sub-section (1) of

and in addition, a fine

section 55.

which may extend to

five thousand rupees

for everyday during

which the offence

continues after

conviction.

18.

If any person contravenes

63(4)

Fine which may extend

Principal

sub-section (4) of section 63.

to two lakh rupees.

Officer

19.

If any person contravenes

66(2)

Imprisonment which

Court

sub-section (2) of section 66.

may extend to one year

.

or fine which may

extend to five lakh

rupees, or both.

20.

If any person contravenes

66(3)

Fine which may extend

Principal

sub-section (3) of section 66.

to two lakh rupees, for

Officer

every seafarer engaged

in contravention to

section 66 (3).

21.

If any person,—

(i) is carried sea to work in

66(5)

Fine which may extend

Principal

contravention of

to two lakh rupees for

Officer

sub-section (5) of section 66, or

every seafarer engaged in

contravention to

section 66 (5).

(ii) is engaged to work in any

Fine which may extend

Principal

capacity in a vessel in

to fifty thousand rupees

Officer

contravention of

for every seafarer engaged

sub-section (5) of section 66 on

in contravention to

a false representation by his

section 66 (5).

parent or guardian that the

young person is of an age

at which such engagement

is not in contravention of

that section.

(1)

(2)

(3)

(4)

(5)

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

85

22.

If any person contravenes

66(6)

Fine which may extend

Principal

sub-section (6) of section 66.

to two lakh rupees for

Officer

every seafarer engaged

in contravention to

section 66 (6).

23.

If any person contravenes

66(7)

Fine which may extend

Principal

sub-section (7) of section 66.

to two lakh rupees for

Officer

every seafarer engaged

in contravention to

section 66 (7).

24.

If any person contravenes

66(8)

Fine which may extend to

Principal

sub-section (8) of

two lakh rupees for every

Officer

section 66.

seafarer in respect of whom

the offence is committed.

25.

If any person contravenes

66(9)

Fine which may extend

Principal

of sub-section (9) of

to two lakh rupees for

Officer

section 66.

every offence.

26.

If a master, owner or his

67(1)

Fine which may extend to

Principal

agent carries any seafarer to

fifty thousand rupees for

Officer

sea in contravention of

every seafarer in respect

sub-section (1) of section 67.

of whom the offence is

committed.

27.

If any person,—

(a) forges or fraudulently

General

Imprisonment which may

Court

alters any certificate of

extend to six months or

discharge or a certificate as

fine which may extend

to the work of a seafarer or

to two lakh rupees, or

a continuous discharge

both.

certificate or a copy of

any such certificate; or

(b) fraudulently uses any

certificate of discharge or a

certificate as to the work of

a seafarer or a continuous

discharge certificate or a

copy of any such certificate

which is forged or altered or

does not belong to him.

28.

If a master or owner acts in

73(2)

Fine which may extend

Principal

contravention of

to one lakh rupees.

Officer

sub-section (2) of section 73.

29.

If any master acts in

73(5)

Fine which may extend

Principal

contravention of

to fifty thousand rupees.

Officer

sub-section (5) of section 73.

(1)

(2)

(3)

(4)

(5)

86

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

30.

If a master fails to comply

74

Fine which may extend

Principal

with the provisions of this

to three times the value

Officer

Act with respect to taking

of the property not

charge of the property or

accounted for or if such

to making in the official

value is not ascertained,

logbook the proper entries

to twenty thousand

relating thereto or to the

rupees.

payment or delivery of

such property as required

under section 74.

31.

If any person fails, without

78

Fine which may extend

Principal

reasonable cause, to comply

to twenty five thousand

Officer

with any requisition under

rupees.

section 78.

32.

If any person commits a

83(9)

Imprisonment which may

Court

breach of any term of any

extend to one month, or

award which is binding

fine which may extend

on him under

to two lakh rupees, or

sub-section (9) of section 83.

both.

33.

If a seafarer contravenes

83(14)(a);

Imprisonment which may

Court

clause (a),

83(14)(b)

extend to one month, or

or an owner contravenes

fine which may extend to

clause (b),

fifty thousand rupees,

of sub-section (14) of

or both.

section 83.

34.

(a) If any requirement

88

Fine which may extend to Principal

under section 88 is not

fifty thousand rupees

Officer

complied within the

unless he can prove that

case of any vessel; or

the non-compliance was

not caused by his

in attention, neglect or

wilful default;

(b) if any person obstruct the 88

Fine which may extend

Principal

shipping master, survey

to fifty thousand rupees

Officer

or seafarer welfare officer,

unless he can prove

Indian consular officer or any

that the obstruction was

other officer at any port in

caused without his

the discharge of his duty

knowledge or connivance.

under section 88.

35.

If a master fails, without

90

Fine which may extend to Principal

reasonable cause, to

fifty thousand rupees.

Officer

comply with section 90.

36.

If any person goes on

92

Fine which may extend to Principal

board a vessel contrary

fifty thousand rupees.

Officer

to section 92.

37.

If a master or seafarer

93

Imprisonment which may

Court

contravenes section 93.

extend to two years or

fine which may extend

(1)

(2)

(3)

(4)

(5)

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

87

to five lakh rupees.

38.

If a seafarer,—

94(1)(a)

He shall be liable to

Principal

(a) deserts his vessel

forfeit all or any part

Officer

under clause (a) of

of the property leaves

sub-section (1) of

on board and of the

section 94;

wages has then earned

and also if the desertion

takes place at any place

not in India, to forfeit

all or any part of the

wages which earn in

any other vessel in

which employed until

next return to India,

and to satisfy any

excess of wages paid

by the master or owner

of the vessel from which

deserts to any substitute

engaged in his place at a

higher rate of wages

than the rate stipulated

to be paid to him.

(b) contravenes clause (b)

94 (1) (b) He shall, if the

Principal

of sub-section (1) of

contravention does not

Officer

section 94 .

amount to desertion, be

liable to forfeit out of his

wages a sum not

exceeding two days pay

and in addition for every

twenty-four hours of

absence either a sum not

exceeding six days' pay or

any expenses properly

incurred in hiring a

substitute.

39.

If a seafarer is guilty

of the offence specified

in,—

(i) clause (a) of section 95;

95(a)

Forfeiture out of his

Principal

wages of a sum not

Officer

exceeding one month's

pay;

(ii) clause (b) of section 95;

95(b)

Forfeiture out of his

Principal

wages of a sum not

Officer

(1)

(2)

(3)

(4)

(5)

88

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

exceeding two days'

pay;

(iii) clause (c) of section 95; 95(c)

Imprisonment which

Court

may extend to one month

and also for every

twenty-four hours of

continuance of such

disobedience or neglect,

forfeiture out of his wages

of a sum not exceeding

six days' pay or any

expenses which may have

been properly incurred in

hiring a substitute;

(iv) clauses (d) and (e) of

95(d)

Imprisonment which may

Court

section 95;

and 95(e) extend to three months,

or fine of fifty thousand

rupees which may

extend to one month's

pay or both;

(v) clause (f) of section 95;

95(f)

Forfeiture out of his

Court

wages of a sum equal

to the loss sustained

and also imprisonment

which may extend to

three months;

(vi) clause (g) of section 95.

95(g)

Fine which may extend

Principal

to one lakh rupees but

Officer

nothing herein shall take

away or limit any other

remedy which any person

would otherwise have for

breach of contract or

refund

of

money

advanced or otherwise.

40.

If any master fails to comply

98

Fine which may extend

Principal

with section 98.

to one lakh rupees, or

Officer

both.

41.

If a seafarer on or before

General

Fine which may extend

Principal

being engaged wilfully

to fifty thousand

Officer

and fraudulently makes

rupees.

a false statement of the

name of his last vessel

or alleged last vessel or

wilfully and fraudulently

makes a false statement

of his own name.

42.

If any person contravenes,—

(1)

(2)

(3)

(4)

(5)

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

89

(a) sub-section (1) of

104 (1)

Fine which may extend

Principal

section 104;

to two lakh rupees.

Officer

(b) sub-section (2) of

104(2)

Fine which may extend

Principal

section 104.

to two lakh rupees.

Officer

43.

If any person goes to

105(1)

Imprisonment which

Court

sea in a vessel contrary

may extend to one

to sub-section (1) of

month, or fine which

section 105.

may extend to one lakh

rupees, or both.

44.

If a master fails to deliver

106

Fine which may extend

Principal

the documents referred

to fifty thousand rupees.

Officer

to in sub-section (1) of

section 106.

45.

If any person harbours

General

Fine which may extend

Principal

or secretes any deserter

to fifty thousand rupees.

Officer

knowing or having reason

to believe that he has

deserted.

46.

If any person wilfully

General

Imprisonment which may

Court

destroys or mutilates or

extend to one year.

renders illegible any entry

in any official logbook

or wilfully makes

or procures to be made

or assists in making a

false or fraudulent entry

in or omission from an

official logbook.

47.

If the vessel contravenes

112

The owner or master of

Principal

section 112.

the vessel shall be liable

Officer

to fine which may extend

to fifteen lakh rupees

and the vessel may also

be detained.

48.

If the master fails, without

reasonable cause,—

(a) to comply with sub-

113(1)

Fine which may extend to

Principal

section (1) of section 113;

fifty thousand rupees.

Officer

(b) to comply with

113(2)

Fine which may extend

Principal

sub-section (2) of section 113.

to two lakh rupees.

Officer

49.

If any person contravenes

116

Fine which may extend

Principal

section 116.

to fifteen lakh rupees

Officer

and the vessel may also

be detained.

50.

If any vessel proceeds or

117

The master of the vessel

Principal

(1)

(2)

(3)

(4)

(5)

90

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

attempts to proceed to sea

shall be liable to fine

Officer

without carrying on board

which may extend to

the information required

one lakh rupees.

by section 117.

51.

If an vessel other than a

118(1)

The master or owner of

Principal

vessel exempted under

the vessel shall be liable

Officer

Part VI is loaded in

to fine which may extend

contravention of

to four lakh rupees and

sub-section (1) of section 118.

to such additional fine

not exceeding twenty-five

thousand rupees for

every inch or fraction of

an inch by which the

appropriate load lines on

each side of the vessel

are submerged or would

have been submerged if

the vessel had been in salt

waters and had no list, as

the principal officer

thinks fit to impose,

having regard to the

extent to which the

earning capacity of the

vessel is or would have

been increased by reason

of the submersion:

Provided that it shall be

a good defence for the

master or owner to prove

that a contravention was

due solely to deviation or

delay caused solely by

stress of whether or other

circumstance

which

neither the master nor the

owner nor the charterer, if

any, could have prevented

or forestalled.

52.

If a vessel carries passengers 119

The owner or master shall

Principal

in contravention of

be liable to fine which may

Officer

section 119.

extend to two lakh rupees.

53.

If the master owner or

General

Imprisonment for a term

Court

agent of a special general

which may extend to six

trade passenger vessel,

months, or fine which

after having obtained

may extend to fifty

any of the certificates

thousand rupees, or both.

referred to in Part VI,

fraudulently does or

suffers to be done anything

whereby the certificate

(1)

(2)

(3)

(4)

(5)

50

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

91

becomes inapplicable to

the altered state of the

vessel, or special trade

passengers other matters

to which the certificate

relates.

54.

If any person contravenes

120

Fine which may extend

Principal

section 120.

to fifteen lakh rupees

Officer

and the vessel may

also be detained.

55.

If any person is guilty of

121(1)

Fine which may extend

Court

an offence under sub-

fifty thousand rupees.

section (1) of section 121.

56.

If any person is guilty of

122(1) or

Imprisonment which may

Court

an offence under sub-

122(2)

extend to six months, or

section (1) or sub-section

fine which may extend

(2) of section 122.

to two lakhs rupees, or

both.

57.

If a person sends or

123

Imprisonment which may

Court

attempts to send a

extend to one year, or

vessel in contravention

fine which may extend

of section 123.

to two lakhs rupees,

or both.

58.

If any owner causes a

124

Imprisonment which may

Court

vessel to proceed to sea

extend to one year, or fine

in unseaworthy condition

which may extend to two

in contravention of

lakhs rupees, or both.

section 124.

59.

If oil or oily mixture or

131

any other polluting

substance is discharged

in contravention of

section 131,—

(a) where such discharge

131

Imprisonment which may

Court

is made from an Indian

extend to six months and

tanker anywhere into the

the owner or master of the

sea;

tanker shall be liable to

fine which may extend to

twenty-five lakh rupees.

(b) where such discharge

131

Fine which may extend

Principal

is made from foreign tanker

to twenty-five lakh

Officer

anywhere within the coastal

rupees.

waters of India.

60.

If any person contravenes

133

Fine which may extend to

Principal

section 133.

fifteen lakh rupees and

Officer

the vessel may also be

(1)

(2)

(3)

(4)

(5)

92

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

detained.

61.

If the master of a vessel

134

Fine which may extend to

Principal

fails to maintain records

fifty thousand rupees.

Officer

as required by section 134

or contravenes any rule

made under that section.

62.

If the master of an Indian

136

Fine which may extend

Principal

vessel or any person fails

to one lakh and fifty

Officer

to comply with the rules

thousand rupees.

made or measure taken

under section 136.

63.

If owner of any Indian

137

The offender shall be

Court

vessel, fails to comply

liable to penalty of

with any order issued

imprisonment which

under section 137.

may extend to six months

or fine which may extend

to five lakh rupees, or

both and if the offence is

a continuing one, the

offender shall be liable to

a further fine which may

extend to fifty thousand

rupees per day for every

day during which the

offence continues after

conviction.

64.

If any person fails to

140

Fine which may extend to

Principal

posses the certificates

fifteen lakh rupees and the

Officer

as required under

vessel may also be

section 140.

detained.

65.

If the master of a ship

193

Fine which may extend to

Principal

contravenes sub-

fifteen lakh rupees and

Officer

section (1) of section 193.

the vessel may also be

detained.

66.

If any person fails to

207(2)

Fine which may extend

Court

give notice under sub-

to fifty thousand rupees

section (2) of section 207.

and in default of

payments, simple

imprisonment which

may extend to three

months.

67.

If any person fails to

214(1);

Fine which may extend to

Court

report under sub-section

214(2);

fifty thousand rupees and

(1) or sub-section (2)

214(3).

in default of payments,

or sub-section (3) of

simple imprisonment which

section 214.

may extend to three months.

68.

If any person contravenes

216(2)

Fine which may extend to

Court

sub-section (2) of section

two lakh rupees and in

216.

default of payment, simple

(1)

(2)

(3)

(4)

(5)

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

93

imprisonment which may

extend to six months.

69.

If any person contravenes

240(1) or

Imprisonment which may

Court

sub-section (1) or sub-

240(2)

extend to six months, or fine

section (2) of section 240.

which may extend to ten

lakh rupees, or both and the

vessel may also be detained.

70.

If any person to whom

240(5)

Fine which may extend to

Principal

a licence under sub-section

five lakh rupees and the

Officer

(1) or sub-section (2) of

vessel may also be

section 240 has been

detained.

granted fails to comply

with the conditions under

sub-section (5) of section

240.

71.

(a) If any directions given

243(1)

Imprisonment which may

Court

under sub-section (1) of

extend to six months, or

section 243 are not

fine which may extend to

complied with;

fifty thousand rupees, or

or

both.

(b) if the owner, master or

243(2)

Imprisonment which may

Court

agent on whom a notice

extend to six months, or

has been served under

fine which may extend to

sub-section (2) of section

fifty thousand rupees, or

243 fails to furnish the

both.

information required within

the time specified or

furnishing the information

makes any statement

which he knows to be

false on any material

particular.

72.

If any person contravenes

244(3)

Imprisonment which may

Court

sub-section (3) of section

extend to six months, or fine

244.

which may extend to fifty

thousand rupees, or both.

73.

If an owner contravenes

248(2)

Fine which may extend to

Principal

sub-section (2) of section

one lakh rupees and the

Officer

248.

vessel may also be

detained.

74.

If any person contravenes

249(1)

Fine which may extend to

Principal

sub-section (1) of section

one lakh rupees and the

Officer

249.

vessel may also be

detained.

75.

If the owner, master, tindal

250(1)

Fine which may extend to

Principal

or skipper fails to comply

fifty thousand rupees.

Officer

with sub-section (1) of

section 250.

76.

If the owner, master, tindal

251(1)

Imprisonment which may

Court

(1)

(2)

(3)

(4)

(5)

94

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

or skipper fails to comply

extend to three months, or

with sub-section (1) of

fine which may extend to

section 251.

fifty thousand rupees,

or both.

77.

(a) If any person is guilty

263(2)

Imprisonment which may

Court

of an offence under sub-

extend to six months, or fine

section (2) of section 263.

which may extend to two

lakh rupees, or both.

(b) If the owner, master or

263(3)

Fine which may extend

Court

his agent of vessel is guilty

to two lakh rupees.

of an offence under sub-

section (3) of section 263.

78.

If any person acts in

270(2)

Fine which may extend to

Principal

contravention of sub-

fifty thousand rupees.

Officer

section (2) of section 270.

79.

If any person contravenes

272(2)

Fine which may extend

Principal

security measures under

to five lakh rupees and

Officer

sub-section (2) of section

the vessel may also be

272.

detained.

80.

If any person is guilty of

274(2)

Fine which may extend

Principal

an offence under sub-

to one lakh rupees.

Officer

section (2) of section 274.

81.

If any vessel is detained

General

Fine which may extend

Principal

under the provisions of

to fifteen lakh rupees.

Officer

this Act for which no fine

is provided.

257. Any person committing any offence under this Act or any rules made thereunder,

may be tried for such offence before any place in which he may be found, or in any Court

which the Central Government may, by notification, direct in this behalf, or in any Court in

which he might be tried in any other law for time being in force.

258. Notwithstanding anything contained in section 29 of the Code of Criminal

Procedure, 1973, it shall be lawful for a Metropolitan Magistrate or a Judicial Magistrate of

the first class to pass any sentence authorised by or under this Act on any person convicted

of an offence under this Act or any rules made thereunder.

259. The penalties to which the masters or owners of special trade passenger vessels

are made liable by section 256 shall be enforced only on a report made by the proper officer

in this behalf.

260. (1) If the person committing an offence under this Act is a company, every person

who, at the time the offence was committed, was in charge of, and was responsible to, the

company for the conduct of its business, as well as the company, shall be deemed to be

guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing in this sub-section shall render any such person liable to any

punishment provided in this Act, if he proves that the offence was committed without his

knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under

this Act has been committed by a company, and it is proved that the offence was committed

with the consent or connivance of, or is attributable to any neglect on the part of any

(1)

(2)

(3)

(4)

(5)

Place of trial

and

jurisdiction of

Court.

Special

provision

regarding

punishment.

Cognizance of

offence.

Offences by

companies.

2 of 1974.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

95

director, manager, secretary, or any other officer of the company, such director, manager,

secretary, or other officer shall also be guilty of that offence and shall be liable to be proceeded

against and punished accordingly.

Explanation.— For the purposes of this section,—

(a) "company" includes a co-operative society, a firm or other association of

individuals; and

(b) "director" in relation to a firm means a partner in the firm.

261. (1) Whenever, in the course of any legal proceeding under this Act instituted at

any place in India before any court or Metropolitan Magistrate or a Judicial Magistrate of

the first class or before any person authorised by law or by consent of parties to receive

evidence, the testimony of any witness is required in relation to the subject-matter, and the

defendant or the person accused, as the case may be, after being allowed a reasonable

opportunity for so doing, does not produce the witness before any court or Metropolitan

Magistrate or a Judicial Magistrate of the first class or person so authorised, any deposition

previously made by the witness in relation to the same subject-matter before any court or

Metropolitan Magistrate or a Judicial Magistrate of the first class in any other place in India

or, if elsewhere, before any Indian consular officer, shall be admissible in evidence,—

(a) if the deposition is authenticated by the signature of the presiding officer of

any court or Metropolitan Magistrate or a Judicial Magistrate of the first class or

consular officer, before whom it is made;

(b) if the defendant or the person accused had an opportunity by himself or has

agent of cross-examining the witness;

(c) if the proceeding is criminal, on proof that the deposition was made in the

presence of the person accused.

(2) It shall not be necessary in any case to prove the signature or official character of

the person appearing to have signed such deposition, and a certificate by such person that

the defendant or person accused had an opportunity of cross-examining the witness, and

that the deposition, if made in a criminal proceeding, was made in the presence of the person

accused, shall, unless the contrary is approved, be sufficient evidence that he had that

opportunity and that it was so made.

262. (1) Whenever any damage has in any part of the world been caused to property

belonging to the Government or to any citizen of India or a company by a vessel other than

an Indian vessel and at any time thereafter that vessel is found within Indian jurisdiction, the

High Court may, upon the application of any person who alleges that the damage was caused

by the misconduct or want of skill of the master or any member of the crew of the vessel,

issue an order directed to any proper officer or other officer named in the order requiring him

to detain the vessel until such time as the owner, master or coassignee thereof has satisfied

any claim in respect of the damage or has given security to the satisfaction of the High Court

to pay all costs and damages that may be awarded in any legal proceeding that may be

instituted in rest of the damage, and any officer to whom the order is directed shall detain the

vessel accordingly.

(2) Whenever it appears that before an application can be made under this section, the

vessel in respect of which the applications to be made will have departed from India or the

territorial waters of India, any proper officer may detain the vessel for such time as to allow

the application to be made and the result thereof to be communicated to the officer detaining

the vessel, and that officer shall not be liable for any cost or damages in respect of the

detention unless the same is proved to have been made without reasonable grounds.

(3) In any legal proceedings in relation to any such damage aforesaid, the person

giving security shall be made a defendant and shall for the purposes of such proceeding be

Depositions

to be received

in evidence

when witness

cannot be

produced.

Power to

detain foreign

vessel that

has

occasioned

damage.

Power to

enforce

detention of

vessel.

96

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[PART II—

deemed to be the owner of the vessel that has occasioned the damage.

263. (1) Where under this Act a vessel is authorised or ordered to be detained, any

commissioned officer of the Indian Navy or Indian Coast Guard or any port officer, pilot,

harbour master, conservator of port or customs collector may detain the vessel under

instruction of the proper officer.

(2) If any vessel after detention or after service on the master for any notice of, or order

for, such detention proceeds to sea before she is released by any competent authority, the

master of the vessel shall be guilty of an offence under this sub-section.

(3) When a vessel so proceeding to sea takes to sea, when on board thereof in the

execution of his duty any person authorised under this Act to detain or survey the vessel,

the owner, master or agent of such vessel shall each be liable to pay all expenses of, and

incidental to, such person being so taken to sea and shall also be guilty of an offence under

this sub-section.

(4) When any owner, or master or agent is convicted of an offence under sub-section (3),

the convicting court or Metropolitan Magistrate or a Judicial Magistrate of the first class, as

the case may be, may inquire it and determine the amount payable on account of expenses by

such owner, master or agent under that sub-section and may direct that the same shall be

recovered from him in the manner provided for the recovery of fines.

264. (1) When an order under this Act for the payment of any wages or other sums of

money is made by any court or Metropolitan Magistrate or a Judicial Magistrate of the first

class or other officer or authority, and the money is not paid at the time or in the manner

directed, the sum mentioned in the order with such further sum as may be thereby awarded

for costs, may be levied by distress and sale of the movable property of the person directed

to pay the same under a warrant to be issued for that purpose by such a court or Metropolitan

Magistrate or a Judicial Magistrate of the first class.

(2) Where any court or Metropolitan Magistrate or a Judicial Magistrate of the first

class or other officer or authority has power under this Act to make an order directing

payment to be made of any seafarer's wages, fines or other sums of money, then if the person

so directed to pay the same is the master, owner or agent of a vessel and the same is not paid

at the time or in the manner directed by the order of the court or Metropolitan Magistrate or

a Judicial Magistrate of the first class, or other officer or authority may, in addition to any

other power it may have for the purpose of compelling payment by warrant, direct the

amount remaining unpaid to be levied by distress and sale of the vessel and her equipment.

265. If any vessel other than an Indian vessel is detained under this Act, or if any

proceeding is taken under this Act against the master, owner or agent of any such vessel,

notice shall forthwith be served on the consular officer of the country in which the vessel is

registered, at or nearest to the port where the vessel is for the time being, and such notice

shall specify the grounds on which the vessel has been detained or the proceedings have

been taken.

266. Where, for the purpose of this Act, any document is to be served on any person,

that document may be served,—

(a) in any case by delivering a copy thereof personally to the person to be

served, or by leaving the same at his last place of abode, or by post;

(b) if the document is to be served on the master of a vessel, where there is one,

or a person belonging to a vessel, by leaving the same for him on board that vessel,

with the person being or appearing to be in command or charge of the vessel; and

(c) if the document is to be served on the master of a vessel where there is no

master and the vessel is in India, on the owner of the vessel, or, if such owner is not in

Levy of wages,

etc., by distress

of

movable

property

or

vessel.

Notice to be

given to

consular

representative

of

proceedings

taken in

respect of

foreign vessel.

Service

of

documents.

Birth and

death of

persons on

board vessel

during a

voyage.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

97

India, in some agent of the owner residing in India, or, where no such agent is known

or can be found, by serving a copy thereof to the master of the vessel or by affixing at

a suitable place on the bridge.

PART XV

MISCELLANEOUS

267. The master of any vessel performing a voyage shall, on arrival, at the next port or

place of call, intimate the proper officer, the date of any birth or death of any person occurring

during the voyage and the cause of death or any other relevant details, as the Central

Government may, by order, specify in this behalf.

268. (1) If any person dies on board or is missing from an Indian vessel, the master

shall forthwith inform to the Director-General, and the proper officer of the port or the next

port of call.

(2) On receipt of information under sub-section (1), the proper officer shall enquire

into the cause of death and make in the official logbook an endorsement to that effect, either

that the statement of the cause of death in the book is in his opinion true, or the contrary

according to the result of inquiry.

(3) If, in the course of any such inquiry, it appears to the proper officer that a death has

been caused on board the vessel by violence or other improper means, he shall either report

the matter to the Director-General or, if the emergency of the case so requires, shall take

immediate steps for bringing the offender to trial.

269. The following persons shall be deemed to be public servants within the meaning

of section 21 of the Indian Penal Code, namely:—

(a) every surveyor;

(b) every person appointed under this Act to report information as to shipping

casualties under Part X;

(c) every person authorised under this Act to make any investigation or inquiry

and all persons whom he calls to his aid;

(d) every person directed to make an investigation into an explosion or fire on a

vessel; and

(e) every other officer or person appointed under this Act to perform any functions

thereunder.

270. (1) Every person who is empowered by this Act to make an investigation or

inquiry or to board, survey, inspect or detain a vessel,—

(a) may go on board any vessel and inspect the same or any part thereof, or any

of the machinery, equipment or articles on board thereof, or any certificate of the

master or other officer to which the provisions of this Act or any of the rules made

thereunder apply, not unnecessarily detaining or delaying the vessel from proceeding

on any voyage, and if in consequence of any incident to the vessel or for any other

reason it is considered necessary so to do, may require the vessel to be taken into dock

for the purpose of inspection or survey;

(b) may enter and inspect any premises, the entry and inspection of which

appears to be requisite for the purpose aforesaid;

(c) may, by summons under his hand, require the attendance of all such persons

as he thinks fit to call before him and examine them for the purpose aforesaid, and may

require answers or returns to any enquiries he thinks fit to make;

Inquiry into

cause of

death on

board or

person

missing from

Indian vessel.

Certain

persons

deemed to be

public

servants.

Power of

persons

authorised to

investigate,

inquire, etc.

45 of 1860.

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[PART II—

(d) may require and enforce the production of all relevant books, papers, or

documents;

(e) may administer oaths or may in lieu of requiring or administering an oath,

require every person examined by him to make and subscribe a declaration of the truth

of the statements made by him in his examination; and

(f) may muster the crew of any such vessel.

(2) No person shall hinder or obstruct any officer or person referred to in sub-section (1)

from going on board any vessel or otherwise impede him in the execution of his duties or the

exercise of his powers under this Act.

271. Where this Act requires that provisions or arrangements for a vessel shall meet

the obligations under the convention the Central Government may, after satisfying itself

based on the convention or its protocol or its amendments or by trials or otherwise, as

effective as that so required, by an order, permit such other provisions or arrangements to be

used or provided.

272. (1) No vessel provided with a nuclear power plant shall proceed to any port or

place in India including territorial waters thereof without permission of the Central Government.

(2) The Central Government may, by general or special order, issue such direction, as

it deems fit, to the registered owners of the vessels, for taking such security measure as may

be necessary.

273. The Central Government may, by notification, direct that the provisions of this

Act or any of them shall not apply to vessels belonging to the Government or to any class of

such vessels.

274. (1) Notwithstanding anything contained in this Act, the Central Government

may, by order in writing and upon such conditions, if any, as it may think fit to impose, exempt

any vessel or tindal or seafarer or any class thereof, from any specified requirement contained

in or prescribed in pursuance of this Act or dispense with the observance of any such

requirement in the case of any vessel or tindal or seafarer, or any class thereof if it is satisfied

that the requirement has been substantially complied with or that compliance with the

requirement is or ought to be dispensed with in the circumstances of the case:

Provided that no exemption which is prohibited by the Safety Convention or Pollution

Prevention Convention shall be granted under this sub-section.

(2) Where an exemption is granted under sub-section (1) subject to any conditions, a

breach of any of those conditions shall, without prejudice to any other remedy, be deemed to

be an offence under this sub-section.

275. Without prejudice to any other power to make rules contained elsewhere in this

Act, the Central Government may make rules generally to carry out the provisions of this Act.

276. (1) All rules made under this Act shall be published in the Official Gazette and

shall be subject to the condition of previous publication.

(2) In making a rule under this Act, the Central Government may direct that a breach

thereof shall be punishable with fine which may extend to fifty thousand rupees, and if the

breach is a continuing one, with further fine which may extend to five thousand rupees for

every day after the first day during which the breach continues.

(3) Every rule made or notification issued under this Act shall be laid as soon as may

be after it is made before each House of Parliament while it is in session for a total period of

thirty days which may be comprised in one session or in two or more successive sessions,

and if, before the expiry of the session immediately following the session or the successive

sessions aforesaid, both Houses agree in making any modification in the rule or notification

or both Houses agree that the rule or notification should not be made, the rule or notification

shall, thereafter, have effect only in such modified form or be of no effect, as the case may be;

so, however, that any such modification or annulment shall be without prejudice to the

Power to

permit

alternative

provisions

and

arrangement.

Control of

Nuclear

vessels and

security

measures.

Exemption of

public vessels,

foreign and

Indian.

Power to

exempt.

General power

to make rules.

Provisions

with respect

to rules.

Protection of

persons acting

under the Act.

Agreement

with other

countries.

Removal

of

difficulties.

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validity of anything previously done under that rule or notification.

277. No suit or other legal proceeding shall lie against any person for anything which

is in good faith done or intended to be done under this Act.

278. The Central Government may enter into agreement with other countries or

organisations for effective implementation of the provisions of this Act.

279. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central

Government may, by order, published in the Official Gazette, make such provisions not

inconsistent with the provisions of this Act, as appear it to be necessary for removing the

difficulty:

Provided that no such order shall be made under this section after the expiry of a

period of three years from the commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is

made, before each House of Parliament.

PART XVI

REPEALS AND SAVINGS

280. (1) The Merchant Shipping Act, 1958 and the Coasting Vessels Act, 1838 are

hereby repealed.

(2) Notwithstanding the repeal of any enactment by sub-section (1),—

(a) any notification, rule, regulation, bye-law, order or exemption issued, made

or granted under any enactment hereby repealed shall, until revoked, have effect as if

it had been issued, made or granted under the provisions of this Act;

(b) any office established or created, officer appointed and anybody elected or

constituted under any enactment hereby repealed shall continue and shall be deemed

to have been established, created, appointed, elected, or constituted, as the case may

be, under this Act;

(c) any document referring to any enactment hereby repealed shall be construed

as referring to this Act or to the provision of this Act;

(d) any fine levied under any enactment hereby repealed may be recovered as if

it had been levied under this Act;

(e) any offence committed under any enactment hereby repealed may be

prosecuted and punished as if it had been committed under this Act;

(f) any vessel registered under the Merchant Shipping Act, 1958 hereby repealed

shall be deemed to have been registered under this Act;

(g) any mortgage of vessels recorded in any register book maintained at any

port in India under the Merchant Shipping Act, 1958 any enactment hereby repealed

shall be deemed to have been recorded in the register book under the corresponding

provision of this Act;

(h) any licence, certificate of competency or service, certificate of survey, A or B

certificate, safety certificate, qualified safety certificate, safety equipment certificate,

exemption certificate, international or Indian loadline certificate or any other certificate

or document issued, made or granted under any enactment hereby repealed and in

force at the commencement of this Act shall be deemed to have been issued, made or

Repeal

and

savings.

44 of 1958.

19 of 1838.

44 of 1958.

44 of 1958.

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granted under this Act and shall, unless cancelled under this Act, continue in force

until the date shown in the certificate or document, as the case may be;

(i) any proceeding pending before any court under any enactment hereby

repealed may be tried or disposed of under the corresponding provisions of this Act;

(j) the officers existing under the commencement of this Act shall continue as if

they have been established under this Act;

10 of 1897.

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STATEMENT OF OBJECTS AND REASONS

The Merchant Shipping Act, 1958 has been enacted 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. The said Act has been

amended several times and now contains more than 560 sections.

2. Internationally, merchant shipping industry has undergone various changes in recent

years. In order to meet the new challenges and promote ‘Ease of Doing Business’, reforms

are required to increase tonnage under Indian flag and share of Indian seafarers, safeguard

the rights and privileges of seafarers, enhance the safety and security of vessels and life at

sea, prevent marine pollution, provide for maritime liabilities and compensations, and to

develop Indian coastal shipping and trade, etc.

3.The Coasting Vessels Act, 1838 is a legislation of British era which provides for

registration of non-mechanically propelled vessels for a limited jurisdiction of Saurashtra

and Kutch. As it has been decided to bring the registration of all seagoing vessels under the

law of Merchant Shipping, the Coasting Vessels Act, 1838 will become redundant.

4. In order to ensure that old and redundant provisions of the laws are replaced with

contemporaneous provisions, it has been decided to consolidate and amend the laws relating

to merchant shipping to ensure compliance with the country’s obligation under the

International Conventions and maritime treaties to which India is a party and also to ensure

the efficient maintenance of Indian mercantile marine in a manner best suited to serve the

national interest.

5. In view of the above, it has become imperative to repeal the Merchant Shipping

Act, 1958 and the Coasting Vessels Act, 1838 and to provide for contemporaneous, futuristic

and dynamic legislation, namely, the Merchant Shipping Bill, 2016 to meet the requirements

of India as an emerging economy.

6. The Merchant Shipping Bill, 2016, inter alia, seeks to provide for the following,

namely:––

(a) to register all seagoing vessels, whether propelled or not, including certain

residuary category of vessels not covered under any statute;

(b) to allow substantially-owned vessels and vessels chartered on Bareboat

Charter-cum-Demise (BBCD) contract by Indian entities to be registered as Indian flag

vessels, to recognise Indian controlled tonnage as a separate category, and dispense

with the requirement for issuing licences to Indian flag vessels for coastal operation,

so as to facilitate augmentation of Indian tonnage and promotion of coastal shipping;

(c) to simplify and consolidate the regime for survey, inspection and certification

of vessels which are scattered in various Parts of the Merchant Shipping Act, 1958 by

placing them together, for convenience of the Indian shipping industry;

(d) to monitor the maritime education leading to grant of certificate of competency

or certificate of proficiency in accordance with either the provisions of International

Convention or otherwise to impart quality education to prospective seafarers, and to

facilitate Indian seafarers to work onboard vessels with respective certificate and

qualification;

(e) to entitle the seafarers held in captivity of pirates to receive wages till they

are released from captivity and reach home safely so as to ensure welfare of seafarers;

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(f) to make insurance compulsory for the crew engaged on vessels including

fishing, sailing, non-propelled vessels and vessels whose net tonnage is less than

fifteen and solely engaged in coasting trade of India, by the owner of the vessel;

(g) to dispense with the requirement of signing of articles of agreement by

the crew before the Shipping Master so as to facilitate early employment of seafarers;

(h) to make provisions for security-related aspects with respect to vessels,

which will enable identification and ensure coastal security;

(i) to make provisions so as to give effect to seven Conventions of International

Maritime Organisation, namely, (i) the Intervention Convention, 1969, (ii) the Search

and Rescue Convention, 1979, (iii) the Annex VI to the International Convention on

Prevention of Pollution from Ships, (iv) the Convention for Control and Management

of Ships Ballast Water and Sediments, 2004, (v) the Nairobi Wreck Removal

Convention, 2007, (vi) the Salvage Convention,1989 and (vii) the International

Convention for Bunker Oil Pollution Damage, 2001;

(j) to repeal the Coasting Vessels Act,1838 and the Merchant Shipping

Act, 1958.

7. The Bill seeks to achieve the above objectives.

NEW DELHI;

NITIN GADKARI

The 5th December, 2016.

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Notes on clauses

Clause 1.–– This clause seeks to provide for short title and commencement of the Bill.

Clause 2.––This clause seeks to provide for application of the Bill. It specifies the

application of the Bill to the vessels registered, vessels required to be registered and vessels

other than preceding two categories. It also specifies the extent of application of the Bill to

Indian controlled tonnage vessels.

Clause 3.–– This clause contains definitions of various expressions used in the Bill.

It defines the expressions, inter alia, “costs”, “coasting trade of India”, “convention”,

“distressed seafarer”, “family”, “Indian controlled tonnage vessel”, “port of registry”, “sailing

vessel”, “ship”, “special trade”, “vessel”.

Clause 4.––This clause seeks to provide for establishment of the National Shipping

Board. It provides for the composition of the Board, consisting of six members of Parliament;

sixteen members to be appointed by the Central Government and equal number to be included

in the Board representing the ship owners and seafarers; and the term of its members, its

power to advise the Central Government.

Clause 5.––This clause seeks to provide for the constitution of the Seafarer Welfare

Board to advise the Central Government on the measures for promoting the welfare of the

seafarers.

Clause 6.–– This clause empowers the Central Government to appoint a person to be

the Director-General of Shipping for the purposes of exercising or discharging the powers,

authority or duties conferred on or imposed by under the provisions of the Bill. This clause

also empower the Central Government to delegate its power to Director-General and he may

with the approval of the Central Government delegate his powers to other officer or authority

and the officers appointed under the Bill shall discharge their functions under the general

superintendence and control of the Director-General.

Clause 7.–– This clause empowers the Central Government to appoint Surveyors at

such port or place as it may consider necessary. It further empowers the Central Government

to authorise any person or body of persons, as surveyor in case of cargo vessel.

Clause 8.–– This clause seeks to empower the Central Government to appoint Radio

Inspectors relating to radio communication.

Clause 9.–– This clause seeks to empower the Central Government to establish and

maintain office of the Mercantile Marine Department at the ports of Mumbai, Kolkata,

Chennai, Kochi, Kandla and such other ports or places in India for the administration of the

provisions of the Bill and the rules made thereunder. It further provides that the office of the

Mercantile Marine Departments at the ports of Mumbai, Kolkata, Chennai, Kochi, Kandla

and any other port or place as notified by the Central Government shall be in the charge of

the Principal Officer, and the office at any other port or place shall be in the charge of such

officer as the Central Government may appoint in this behalf.

Clause 10.––This clause empowers the Central Government to establish Shipping

office and appoint shipping master and other officers as it may consider necessary. It provides

that if at any place such shipping office is not established then either the Mercantile Marine

Department, or port officer or any other office may conduct the business of shipping office.

It further provides that any act done by Deputy Shipping Master, Assistnat Shipping Master

or any other officer in shipping office shall have the same effect as if done by the Shipping

Master.

Clause 11.–– This clause seeks to empower the Central Government to establish at

every port a seafarer’s employment office and shall appoint thereto a director and as many

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Deputy Directors and Assistant Directors as it may consider necessary. It provides that all

acts done by Deputy Director or Assistant Director shall have the same effect as if done by

the Director himself. It also provides that if at some port, seafarers employment office is not

available then at such place the Central Government has power to appoint a person or body

of persons to carry out the functions of the Seafarer’s Employment Office and such person

or body of persons shall be deemed to be Seafarers Employment Office.

Clause 12.––This clause seeks to empower the Central Government to appoint

Seafarers Welfare Officer in any port or place outside India. It specifies the duties which the

Seafarers Welfare Officer needs to perform. It further provides that if any seafarer’s welfare

officer appointed at any port outside India performs any functions assigned to an Indian

consular officer, such functions shall have the same effect as if they had been performed by

an Indian consular officer.

Clause 13.–– This clause seeks to provide for application of Part III of the Bill. It

provides for the application of the provisions of Part III to all sea-going vessels for the

purposes of registration of vessels.

Clause 14.–– This clause seeks to impose obligation for registration of every vessel.

It provides that every Indian vessel shall be registered under Part III at such port or place of

registry as may be notified by the Central Government. It further provides that the vessels

registered under the Coasting Vessels Act, 1838, which has been proposed for repeal by this

Bill, shall be re-registered under the provisions of this Bill within one year of coming into

force of the Bill and the vessels registered under the existing Act shall be deemed to be

registered under this Bill. It also provides that all vessels belonging to the Government,

other than vessels of the Indian Navy, Indian Coast Guard, Customs Authorities, Central

Paramilitary Forces, Coastal Police and other Police Agencies, shall be registered under this

Bill.

Sub-clause (2) of this clause enables the registration of an Indian vessel out of India

with such conditions as may be made by rules. Sub-clause (3) provides that no vessel shall

be an Indian vessel or an Indian controlled tonnage vessel unless such vessel is substantially

owned by any of the person specified therein. Sub-clause (4) mandates that Indian vessel

proceeding to sea without a valid certificate of registration shall be detained unless it produces

such certificate.

Clause 15.––This clause seeks to appoint the Registrar of Indian vessels. It provides

that at any port, the Principal Officer of the Mercantile Marine Department, shall be the

Registrar of Indian vessels at that port, and at any other place in India such authority as the

Central Government may, appoint, shall be the Registrar of Indian vessels at that place. It

further provides that every Registrar shall keep a register book and shall make entries in that

book be made, and maintain the records of vessels registered under this Bill, in such manner

as may be provided by rules.

Clause 16.–– This clause seeks to provide of application of registry. It provides that

an application for the registry of an Indian vessel shall be made to the Registrar in such form

and manner as may be provided by rules.

Clause 17.–– This clause seeks to provide for marking, survey and measurement of

vessels before registry. It provides that the owner of every Indian vessel in respect of which

an application for registry is made shall cause such vessel to be marked, surveyed and

measured by a surveyor and the tonnage of the vessel ascertained before the registry in

such manner as may be made by rules and the surveyor shall grant a certificate specifying

the tonnage and build and such other particulars descriptive of the identity of the vessel as

may be provided by rules and the certificate of the surveyor shall be delivered to the Registrar

before registry.

Clause 18.––This clause seeks to empower the Registrar to inquire into title of an

Indian vessel to be registered. It provides that where it appears to the Registrar that there is

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any doubt as to the title of any Indian vessel to be registered as an Indian vessel, he may

require evidence to be given to his satisfaction that the vessel is entitled to be registered as

an Indian vessel and if no evidence is given to the satisfaction of the Registrar, such vessel

shall be liable for forfeiture.

Clause 19.–– This clause seeks to provide for grant of certificate of registry. It

provides that on completion of registry, the certificate of registry shall be granted to Indian

vessel. It also provides for issuance of tonnage certificate and granting of new certificate of

registry in case it is defaced or mutilated or lost or destroyed.

Clause 20.–– This clause seeks to provide for custody and use of certificate. It

provides that the certificate of registry shall be used only for the lawful navigation of the

vessel, and shall at all times remain in the custody of the person in charge of the vessel; and

shall not be subject to detention by reason of any title, lien, charge or interest whatever had

or claimed by any owner, mortgagee or other person to, on or in the vessel and such certificate

may be delivered to person entitle to demand the certificate. It further provides the possession

of illegal certificate of registry as an offence.

Clause 21.–– This clause seeks to provide for endorsement on certificate of change

of ownership. It provides that whenever a change occurs in the registered ownership of an

Indian vessel, the owner of the Indian vessel shall, for the purposes of endorsement of

change of ownership, deliver the certificate of registry to the Registrar who shall make an

endorsement for that purpose in such manner as may be provided by rules.

Clause 22.–– This clause seeks to provide for delivery of certificate of vessel lost or

ceasing to be an Indian vessel. It provides that in case the vessel is actually or constructively

lost, taken by the enemy, burnt or broken up or ceasing for any reason to be an Indian vessel,

or is to be registered under any other law, every owner of such vessel shall immediately on

obtaining knowledge of the event, if no notice thereof has already been given to the Registrar,

give notice thereof to the Registrar so that Registrar can make entries in his records accordingly.

Clause 23.–– This clause seeks to provide for provisional registration of Indian

vessel. It provides that the Registrar, Indian consular officer or any person authorised by the

Central Government may issue the certificate of provisional registration for a period of six

months, which may further be extended by three more months to complete the formalities of

permanent registration and such provisional certificate is required to be delivered to the

Registrar for cancellation where a vessel has been permanently registered.

Clause 24.––This clause seeks to provide for the conditions when share of an Indian

vessel may not be transferred like during emergency without the previous approval of the

Central Government. It further provides conditions of transfer or acquision of an Indian

vessel like satisfaction of mortgages, statutory fee, wages, etc. It also provides that the

instrument of transfer shall be in writing with requisite particulars.

Clause 25.–– This clause seeks to provide for registry of transfer. It provides that

every instrument for the transfer of an Indian vessel or of a share therein when duly executed

shall be produced to the Registrar of her port of registry, and the Registrar shall thereupon

enter in the register book the name of the transferee as owner of the vessel or share, as the

case may be, and shall endorse on the instrument the fact of that entry having been made

with the day and hour thereof and every such instrument shall be entered in the register book

in the order of its production to the Registrar.

Clause 26.––This clause seeks to provide for the transmission of property in Indian

vessel on death, insolvency, etc. It provides for certain action to be completed by the person

to whom the property in a vessel has been transferred on the death or insolvency of any

registered owner, or by any lawful means other than by a transfer under this Bill. Registrar

shall make an entry in the register book and if by such transmission the vessel ceases to be

an Indian vessel, the Registrar need not make any entry in the register book.

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Clause 27.–– This clause seeks to provide, inter alia, to make an application to the

High Court for a direction for the sale of a vessel to any citizen of India or any company or

body or co-operative society if where the vessel has ceased to be an Indian vessel and the

Registrar of the port of registry to submit report to the Central Government setting out the

circumstances in which the vessel has ceased to be an Indian vessel.

Clause 28.––This clause seeks to provide for transfer of vessel on sale by order of

court. It provides that any court may order the sale of vessel or share therein with a declaration

vesting in person named by the court the right to transfer that vessel or share, and that

person shall thereupon be entitled to transfer the vessel or share in the same manner and to

the same extent as if he were the registered owner thereof.

Clause 29.–– This clause seeks to provide for mortgage of vessel or share therein

which may be made for security for a loan or other valuable consideration.

Clause 30.–– This clause seeks to provide the rights of mortgagee. It provides that

where there is only one registered mortgagee of a vessel or share, he shall be entitled to

recover the amount due under the mortgage by selling the mortgaged vessel or share without

approaching the High Court. It further provides that where there are two or more registered

mortgagees of a vessel or share they shall be entitled to recover the amount due under the

mortgage in the High Court.

Clause 31.–– This clause seeks to provide that a registered mortgage of a vessel or

share shall not be affected by any act of insolvency committed by the mortgagor after the

date of the record of such mortgage.

Clause 32.–– This clause seeks to provide for transfer of mortgage or shares to any

person by the instrument and after production of such instrument, the Registrar shall record

the details in a register book.

Clause 33.–– This clause seeks to provide for transmission of interests in mortgage

in certain circumstances. It provides that the interest of a mortgagee in a vessel or share if

transmitted on death, or insolvency, or by any lawful means other than by a transfer under

this Bill, the transmission shall be authenticated by a declaration of the person to whom the

interest is transmitted and it shall be containing a statement of the manner in which and the

person to whom the property has been transmitted and shall be accompanied by like evidence.

Clause 34.–– This clause seeks to provide that the Indian vessel shall be described

by name, call sign and an official number for the purpose of proper identification of the

vessel.

Clause 35.–– This clause seeks to provide that when the vessel is so altered as not to

correspond with the particulars relating to her tonnage or description contained in the

register book, then the Registrar at the first port at which the vessel arrives after the alteration,

shall, on an application being made to him by the owner stating the particulars of the alteration,

either cause the alteration to be registered or direct that the vessel be registered anew.

Clause 36.–– This clause seeks to provide for provisional certificate and endorsement

where vessel is to be registered anew. It provides that where any Registrar, not being the

Registrar of the vessel’s port of registry, on an application as to an alteration in a vessel

directs the vessel to be registered anew, he shall either grant a provisional certificate describing

the vessel as altered, or provisionally endorse the particulars of the alteration on the existing

certificate.

Clause 37.––This clause seeks to provide that where the ownership of any Indian

vessel is changed, the Registrar of the port at which the vessel is registered may on the

application of the owner of the vessel, register the vessel anew.

Clause 38.––This clause seeks to provide for transfer of registry. It provides that the

registry of any vessel may be transferred from one port of registry to another on an application

to the Registrar of the existing port of registry of the vessel made by declaration made in

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writing of all persons appearing in the register to be interested therein as owners or mortgagees,

but that transfer shall not in any way affect the rights of those persons or any of them and

those rights shall in all respects continue in the same manner as if no such transfer had been

effected.

Clause 39.–– This clause seeks to put restrictions on re-registry of abandoned vessel.

It provides that where a vessel has ceased to be registered as an Indian vessel by reason of

having been wrecked or abandoned, or for any reason other than capture by the enemy, the

vessel shall not be re-registered until she has, at the expense of the applicant for the registry,

been surveyed by a surveyor and certified by him to be seaworthy.

Clause 40.–– This clause seeks to empower the Central Government to declare the

proper national colours for all Indian vessles and for vessles owned by the Government with

power to declare different colours for different class of vessels. It also empowers the

commissioned officer of the Indian Navy, any officers of the Indian Coast Guard, a surveyor

to board and seize and take away the colours which are hoisted contrary to the provisions of

Bill. It also imposes ban on Indian national colours on vessels for the purpose of making it

appear to be a vessel which is not an Indian vessel.

Clause 41.––This clause seeks to provide that no owner or master of an Indian vessel

shall knowingly do anything or permit anything to be done, or carry or permit to be carried

any papers or documents, with intent to conceal the Indian character of the vessel from any

person entitled by any law for the time being in force to inquire into the same with intent to

assume a foreign character for the vessel, or with intent to deceive any person so entitled.

Clause 42.–– This clause seeks to provide that an Indian vessel shall not be entitled

to any privileges, benefits, advantages or protection usually enjoyed by Indian vessel or to

use the Indian national colours for Indian vessel or to assume the Indian national character

of such vessel has not been recognised as Indian vessel and for the purpose of payment of

dues, the liability of fine and forfeiture and the punishment for the offences committed on

board such vessles may be dealt with in the same manner as if the vessel is a recognised

Indian vessel.

Clause 43.––This clause seeks to provide that any vessel that is either wholly or any

share therein become subject to forfeiture under Part III, then, any commissioned officer of

the Indian Navy, Indian Coast Guard, any Indian consular officer or any other officer

authorised by the Central Government, may seize and detain the vessel, and bring her for

adjudication before the High Court.

Clause 44.–– This clause seeks to provide for liability of owners. It provides that

where any person is beneficially interested otherwise than by way of mortgage in any vessel

or share in a vessel registered in the name of some other person as owner, the person so

interested shall, as well as the registered owner, be subject to all the pecuniary penalties

imposed by this Bill or any other Act on the owners of vessel or shares therein, without

prejudice that proceedings for the enforcement of any such penalties may be taken against

both or either of the said parties jointly or severally.

Clause 45.–– This clause seeks to provide that any person may inspect any register

book, and may obtain a certified copy of any entry in the register book, by making an

application to the Registrar and the evidentiary value of a certified copy of an entry in the

registered book.

Clause 46.––This clause seeks to enable the owner of an Indian vessel to may make

an application to the Registrar to close its registry subject to that there is no unsatisfied

mortgage and outstanding claims of the master or seafarer of the vessel in respect of wages

have been intimated.

Clause 47.––This clause seeks to provide the application of Chapter II of Part III of

the Bill. It provides that this Chapter shall be applicable to any vessel registered under the

law of any country other than India and chartered by an Indian charterer on bareboat charter-

cum-demise contract.

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Clause 48.––This clause contains definitions of various expressions specified in

Chapter II of Part III of this Bill.

Clause 49.––This clause seeks to provide for registration of vessel chartered on

bareboat charter-cum-demise contract and the procedure to be followed and the provisions

of the validity of registration period, its closure with power to hoist Indian flag, etc.

Clause 50.––This clause seeks to empower the Central Government to make rules to

carry out the purposes covered under Part III of the Bill.

Clause 51.––This clause seeks to mandate that every Indian vessel to be provided

with the seafarers as per manning scale provided by rules and requirement that the seafarer

shall hold such certificate as per grade and the number of persons with such qualifications

for manning different types of vessels. It also provides that Indian national with foreign

certificate and foreign national with foreign certificate or Indian certificate of competence

may be allowed to work on board Indian vessel subject to the conditions to be specified in

the rules.

Clause 52.––This clause empowers the Central Government to grant certificate of

competency or certificate of proficiency subject to fulfilment of requirements in respect of

service, age limit, medical fitness, training, qualifications and examination in accordance with

the STCW Convention subject to payment of such fee.

Clause 53.–– This clause seeks to empower the Director-General to administer,

supervise and monitor all activities related to training and assessment for grant of certificate

of competency or certificate of proficiency and to approve training institute, courses and the

method of conducting training for granting such certificates and also with power to authorise

any person to conduct inspection and submit report to him.

Clause 54.–– This clause seeks to provide for examination for grant of certificates. It

empowers the Central Government to appoint a person to examine the qualification for

persons desirous of such certificates. It further provides the manner of conducting

examination and fee to be charged and payment to the examiner. It also provides to grant

certificates to applicants who have passed examination. It also empowers the Central

Government to withdraw, suspend and cancel such certificate in case it is obtained through

false and erroneous information or if the person is guilty of misconduct. It also provides for

re-issue of certificate in case of loss, etc., on payment of such fee as per rules.

Clause 55.–– This clause cast a duty on the master of the vessel to produce the list of

seafarers along with the certificate of competency of the seafarer along with the list of crew,

etc., to the proper officer. It also empowers the surveyor to go on board a vessel for the

purpose of ensuring that the seafarers on board possess the certificates as per the STCW

convention.

Clause 56.–– This clause seeks to provide that India may recognise foreign certificate

of competency and certificate of proficiency as equivalent if they meet essential conditions

like standards not being less than that of Indian certificate holders and recognitions of

Indian certificates under Part IV in their countries and the certificate recognised as equivalent

may be issued with a certificate of endorsement and a person holding the certificate of

endorsement shall be considered duly certificated.

Clause 57.––This clause seeks to provide that foreign vessel shall not proceed to sea

from any port or place of India without the requisite number of seafarers of appropriate

grades and empowers the surveyor to board the vessel for the purpose of ensuring that the

seafarers holding certificates are actually appointed and are actually present and are adequate

in number for the watch keeping duty in ports and at sea. It also empowers the Central

Government to detain a foreign vessel in case of deficiency on the report of the surveyor.

Clause 58.–– This clause seeks to provide for obligations of certain certificate holders

to serve the Government or in Indian vessels during a proclamation of emergency or when

security of India is threatened according to the provisions of the Constitution.

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Clause 59.–– This clause seeks to provide for the rule making power of the Central

Government for the provisions of Part IV.

Clause 60.––This clause seeks to provide for the applicability of Part V. It applies to

every seafarer, recruitment and placement service and ship owners.

Clause 61.––This clause seeks to define certain expressions which are specified

Part V.

Clause 62.–– This clause seeks to empower the Central Government to make rules for

the classification of seafarers into different categories, minimum scale and the different scale

for different classes of ships and application of the provisions to the seafarer employed or

engaged as a member of the crew of a ship.

Clause 63.–– This clause seeks to provide for application of maritime labour standards

to seafarers and ships registered under this Bill, except ships which navigate exclusively in

inland waters or waters within, or closely adjacent to, sheltered waters or areas where any

law for the time being in force relating to ports apply; ships engaged in fishing activities;

traditionally built ships such as dhows and junks and ships of war or naval auxiliaries. It

further provides that the Central Government shall have power on recommendation of the

Director-General to extend the provision of this clause to any category of ships and the ships

to possess certificate in accordance with the provisions of the Maritime Labour Convention

and also prohibits the ships to proceed to sea without possessing the certificate.

Clause 64.–– This clause seeks to enumerate the duties of the shipping master.

Clause 65.–– This clause seeks to enumerate the business of the seafarer’s

employment office, such as issuance to licence of recruitment and placement services and to

perform any other functions provided by rules made by the Central Government.

Clause 66.––This clause seeks to provide for the engagement of seafarer by licensed

recruitment and placement service and the owners of Indian vessels. It prohibits a person

other than the owner of the vessel to carry on the business of recruitment and placement of

service without license; to engage the seafarers without possession of continuous discharge

certificate and identity documents; and the person under sixteen years for engagement or

carried to sea to work in any capacity without such qualifications specified by the Central

Government. It also prohibits the engagement of seafarer in a ship without possessing a

medical fitness certificate and any person who claims to represent the interests of seafarers

shall not demand or receive, either directly or indirectly, from any seafarer or person seeking

employment as seafarer or any person on his behalf, any remuneration or donation or fees or

compulsory subscription of any kind attributable from such seafarer or person’s employment

as seafarer, other than the fees authorised by the provisions of this Bill.

Clause 66 also provides that the Central Government may, by notification, fix the fees

which shall be payable upon all engagements and discharges of the seafarer and the services

of the seafarer engaged in contravention thereof shall not be recognised for the purposes of

certification under Part IV.

Clause 67.––This clause seeks to provide that every master or owner or his agent

shall for the purpose of engagement of seafarer enter into an articles of agreement with the

seafarer and submit a copy of such agreement to the shipping master. It specifies certain

provisions therein for engagement of a seafarer who is not a citizen of India. It further

specifies the time when the wages and provisions shall be taken to begin, and provides that

no agreement shall forfeit the lien on the ship or deprive of any remedy for recovery of wages

of the seafarer and every stipulation inconsistent with the provisions of this Bill will be void.

Clause 68.––This clause seeks to empower the Central Government to make rules for

the matters relating to seafarer’s employment and condition of services including skill

development and opportunity or any other requirements under the Maritime Labour

Convention.

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Clause 69.––This clause seeks to entitle the seafarer to receive wages or compensation

for loss of effects in case or wreck, loss or abandonment of the ship or by reason of his being

left on shore at any place outside India under a certificate granted under this Bill for his

unfitness or inability to proceed on the voyage however he shall not be entitled to receive

wages if through negligence he failed to apply to proper authority for relief as a distressed or

destitute seafarer. It further provides the amount of compensation shall be deposited with

the shipping master at the port of engagement in India for payment to a seafarer or in the case

of a deceased seafarer with the person nominated by him or in case he has not made any

nomination or nomination has become void, to his legal heirs. The seafarer is entitled to

receive wages during captivity including incidence of piracy in the course of his employment.

Clause 70.––This clause seeks to provide that seafarer shall not be entitled to wages

like absence without leave, etc.

Clause 71.––This clause seeks to provide for compensation to the seafarer by the

master, owner or his agent for the damage caused due to premature discharge apart from the

wages due and also prescribe the limit of such compensation.

Clause 72.––This clause seeks to provide certain restrictions in respect of wages due

to a seafarer such as from attachment by order of any court and any assignment prior to the

accruing thereof shall not bind the person making the same subject to that it shall not apply

if such assignment is under the scheme approved by the Government.

Clause 73.––This clause seeks to provide the manner of discharge of seafarer. It

provides that if any Indian ship is transferred or disposed of, then the seafarer belonging to

that ship shall be discharged at that port unless he consents in writing to complete the

voyage in the ship if continued. It further provides certain conditions for discharge of

seafarer, entitlement of wages, etc.

Clause 74.––This clause seeks to mandate the master to enter into the logbook a

statement of the amount due to the seafarer in respect of wages and his property, at the time

when such seafarer was left behind or lost overboard or is deceased.

Clause 75.–– This clause seeks to provide that if the service of the seafarer is terminated

without consent at a foreign Port and before the expiration of the contract, the master or

owner of the ship or his agent shall make adequate provisions for the maintenance of the

seafarer according to his rank and rating and for the return of that seafarer to the proper port.

It further provides that if the master, owner or agent fails without reasonable cause to

provide expenses of maintenance and for the journey of proper return port, if defrayed by the

seafarer, shall be recoverable as wages due to him and if defrayed by the Indian consular

officer be regarded as expenses failing within the provisions of clause 86.

Clause 76.–– This clause seeks to provide that in case the amount deposited with or

recovered by the shipping master is unclaimed as wages for making payment then shipping

master after a period not less than six years can utilise that money for the welfare of the

seafarer as the Central Government may direct.

Clause 77.––This clause seeks to provide that any dispute between the master, owner,

or his agent and the seafarer under the agreement shall be submitted to the shipping master

and he shall decide upon the dispute submitted and make an award which shall be conclusive.

It further provides that any person aggrieved by the award shall approach the principle

officer for the appeal and if a person is aggrieved by the award of the principle officer shall go

for second appeal to the Director-General. It also provides that an award made under this

clause shall be enforced by a Judicial Magistrate of the first class or a Metropolitan Magistrate

and the provisions of the Arbitration and Conciliation Act, 1996 shall not apply to any matter

submitted for decision to the shipping master.

Clause 78.––This clause seeks to provide that the shipping master may require the

owner, master or any mate or other member of the crew to produce the logbook, papers or

other documents in his possession and also requires their attendance for the purpose of

examination.

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Clause 79.––This clause seeks to provide that the proceedings for wages of seafarer

shall be conducted by summary procedure by the Judicial Magistrate of the first class or any

Metropolitan Magistrate.

Clause 80.––This clause bars for institution of suits for wages in any civil court

except where the owner of the ship is declared insolvent, ship is under arrest or sold by the

authority of the court and a judicial magistrate of the first class or the metropolitan magistrate

refers claims to the court.

Clause 81.––This clause seeks to provide that if the seafarer’s voyage terminates in

India, he shall not be entitled to sue in any court outside India for wages unless he is

discharged with such sanction as required under the provisions of the Bill and with the

written consent of the master or proves ill-usage on the part, authority or by the authority of

the master as to warrant a reasonable apprehension of danger to his life if he remains onboard.

Clause 82.–– his clause seeks to provide for the rights, liens and remedies of a master

of a ship for the recovery of wages same as a seafarer and the same rights of a acting master

due to disease or incapacity from illness of the master. It empowers the court dealing with the

claim of a master in respect of such wages, disbursements to settle all accounts then arsing

for outstanding.

Clause 83.––This clause seeks to empower the Central Government to refer the dispute

between seafarer and their employer to the Tribunal for adjudication.

Clause 84.––This clause empowers the Central Government or such officer as

appointed by it to recover the wages and compensation due to a seafarer who is lost with the

ship to which he belongs, from the master or owner of a ship or his agent.

Clause 85.––This clause seeks to provide that the seafarer can make a nomination of

his family member on his behalf subject to that if a seafarer acquires a family after he has

made any such nomination, the nomination shall become void and the form for nomination

and matters connected with nomination shall be provided by rules by the Central Government.

Clause 86.––This clause seeks to provide that in case a seafarer is in distressed

condition, the Indian consular officer at or near the place where a seafarer is in distress shall,

on application being made to him by the distressed seafarer, provide in accordance with the

rules made under this Bill for the return of that seafarer to a proper return port, and also for

the said seafarer’s necessary clothing and maintenance until his arrival at such port and

expenses incurred in such repatriation shall be a debt due to the Central Government by the

owner or agent of the ship.

Clause 87.–– his clause seeks to provide that a certificate of the Central Government

or of such officer as the Central Government may specify in this behalf, to be provided to any

seafarer in distress and that shall be a conclusive evidence that such seafarer is distressed

within the meaning of this Bill.

Clause 88.––This clause seeks to provide that any shipping master, surveyor, seaman

welfare officer, Indian consular officer under the circumstances mentioned therein enter

on-board the ship and inspect such ship. It further provides that Indian ships in international

voyage shall possess a Maritime Labour Certificate and a Declaration of Maritime Labour

Compliance and for the purpose of preventing seafarer from being taken onboard any ship at

any port in India contrary to the provisions of this Bill, the shipping master and other officers

may enter at any time onboard any such ship he has reason to believe that the seafarer is

being shipped.

Clause 89.––This clause seeks to provide certain special protection to seafarers in

case of litigation. It, interalia, provides that a seafarer shall, for the purposes of this Part, be

deemed to be a serving seafarer during any period commencing on the date of the agreement

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with the crew and ending thirty days after the date on which the seafarer is finally discharged

from such agreement and provided that the Collector may certify that a person is serving

seafarer for the purpose of conducting legal proceedings.

Clause 90.––This clause seeks to enable seafarer to make a complaint against the

master or any member of the crew if the ship is at a place where there is a Judicial Magistrate

of the first class or a Metropolitan Magistrate or when the ship reaches a place where such

Magistrate is available.

Clause 91.––This clause seeks to provide that assignment of salvage payable to a

seafarer made prior to the accruing thereof shall not bind the person making the same, and a

power of attorney or authority for the receipt of any such salvage shall not be irrevocable.

Clause 92.––This clause seeks to provide that any person at any port or place other

than a person in the service of the Government or duly authorised by law if goes to board a

ship without permission, the master of the ship may take such person into custody and

deliver him up forthwith to a police officer to be taken before a Judicial Magistrate of the first

class or a Metropolitan Magistrate.

Clause 93.––This clause seeks to provide that no Indian seafarer shall knowingly do

anything tending to the immediate loss or destruction of, or serious damage to, the ship, or

tending immediately to endanger the life of, or to cause injury to any person belonging to or

onboard the ship and refuse or omit to do any lawful act proper and requisite to be done by

him for preserving the ship from immediate loss, destruction or serious damage, or for

preserving any person belonging to or onboard the ship from danger to life or from injury.

Clause 94.––This clause seeks to provide that no seafarer shall dessert his ship or

neglect or be absent from ship without leave or without reasonable ground and that refusal,

absent, etc., of a seafarer engaged on the ground of a ship as unseaworthy shall be a

reasonable cause. Provided, if the seafarer before failing or refusing to join a ship informed

the master or a shipping master, surveyor, seafarer’s welfare officer, port health officer, Indian

consular officer or any other officer at any port duly authorised in this behalf by the Central

Government, that the ship is unseaworthy. It further provides that if the seafarer without

sufficient reasons absents himself from his ship or desserts his ship and on being satisfied

the shipping master may report it to the Director-General who may thereupon direct that the

seamen identity document and continuous discharge certificate may be held for such period

as may be specified and if any seafarer desserts or absents himself from the ship then the

master, mate, owner or agent without prejudice to any other action that may be taken against

the seafarer under this Bill may use such force as may be reasonable in the circumstances of

the case. It also provides that if a seafarer commits offence of desertion or is absent without

leave or any other offence against discipline outside India then, master, mate, owner or agent

shall be permitted to arrest him without warrant and the seafarer should not be arrested on

improper or insufficient grounds and also provides that if any costs and expenses properly

incurred by or on behalf of the master or owner by reason of the conveyance to be paid by

the offender then it can be deducted from his wages.

Clause 95.––This clause seeks to enlist all the actions of discipline in violation of

which the seafarer shall be guilty of an offence.

Clause 96.––This clause seeks to provide that if the seafarer is convicted of an

offence of smuggling any goods whereby loss or damage is occasioned to the master or the

owner, then, a sum sufficient to reimburse the loss or damage could be recovered in lieu of

whole or part of his wages and the Director-General can cancel or suspend the seafarer

identity document or continuous discharge certificate of such seafarer convicted of offence

of smuggling.

Clause 97.––This clause seeks to provide that if any offence of desertion, absence

without leave, against discipline or any other misconduct is committed by seafarer for which

offender’s agreement imposes a fine, then entry of such offence or act shall be made in the

official by book, and if the offender is still on ship and it is yet to arrive, he shall be furnished

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with a copy of the entry and the same be read out to him and then he has to make a reply as

he thinks fit and after which, a statement of a copy of the entry having been so furnished

and the entry having been so read over and the reply, if any, made by the offender shall

likewise be entered and signed.

Clause 98.––This clause seeks to provide that if any seafarer engaged outside India

on an Indian ship desserts himself in India without leave, the master of a ship within

forty- eight hours of discovering such desertion or absence report to the shipping master

or to such officer as the Central Government may specify.

Clause 99.––This clause seeks to provide that in case of desertion from Indian

ship, the master shall produce the official logbook to the Indian consular officer and the

officer shall thereupon make and certify a copy of the entry and shall transmit such a copy

of entry certified to the shipping master to be produced before a legal proceedings and

such a certified copy can be admissible in evidence in a legal proceedings for desertion.

Clause 100.––This clause seeks to provide that for proving desertion from ship it

has to be shown that the seafarer was duly engaged in or belonged to the ship and he left the

ship without completion of the voyage or engagement and entry of desertion of the seafarer’s

shall be duly made in the official logbook. It further provides that the desertion leading to

forfeiture of wages shall be deemed to be proved unless the seafarer produces proper certificate

of discharge or show to the court that he had sufficient reason for leaving the ship.

Clause 101.––This clause seeks to provide that wages or other property fortified for

desertion from the ship shall be applied for reimbursing the expenses caused by the desertion

to the master or the owner or agent subject to that the reimbursement shall be paid to the

Central Government. It further provides that the wages earned subsequent to desertion may

be recovered.

Clause 102.––This clause seeks to provide that any question concerning the forfeiture

or deductions from the wages of a seafarer may be determined in any proceeding lawfully

instituted with respect to those wages.

Clause 103.––This clause seeks to provide the procedure of deduction of a fine

imposed on seafarer for any act of misconduct under the agreement and such proceeds of all

fines received by the shipping master shall be used for the welfare of seafarers in a manner as

the Central Government may direct.

Clause 104.––This clause prohibits any person to persuade or attempt to persuade a

seafarer to neglect or refuse to join or proceed to sea or desert from ship or absent himself

from his duty or harbour or secrete a seafarer from doing the same.

Clause 105.––This clause seeks to provide that no person shall secrete himself and

go to sea in a ship without the consent of the owner, agent or master, or of a mate, or of the

person in charge of the ship or of any other person entitled to give that consent. It further

provides that if the master is compelled to take onboard any seafaring person as long as he

remains on ship shall be subject to laws of discipline as if the member has signed the

agreement with the crew and the master shall report in writing about any person gone to sea

on a ship without consent to the proper officer as soon as the arrival of the ship.

Clause 106.––This clause seeks to provide that if during the voyage, the master of

Indian ship is removed or superseded or quits the ship and is succeeded by the command by

some other person, then, he shall deliver to his successor the various documents relating to

the navigation of the ship and the crew thereof which are in his custody and a handing over

note enlisting such documents and on receipt of such documents and the handing over

note, the successor shall make an entry in the official logbook to that effect which shall also

be endorsed by the predecessor.

Clause 107.––This clause seeks to provide that if due facilities shall be given by the

Government of any Country outside India for recovering or apprehending seafarers who

desert from Indian ship in that country, the Central Government may by notification declare

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that this clause shall apply to seafarers belonging to ships of such country, subject to such

limitations or conditions as may be specified in the notification and if the seafarer belonging

to ship of any country deserts then, on the application of a consular officer of that country

shall aid in apprehending the deserter and for that purpose may on information given on

oath, issue a warrant for his apprehension and on proof of the desertion order him to be

conveyed onboard his ship or delivered to the master or mate of his ship or to the owner of

the ship or his agent to be so conveyed and any such warrant or order may be executed

accordingly.

Clause 108.––This clause seeks to provide for keeping of official logbook for a ship

exceeding two hundred tonsgross and cast a duty on the master, owner or his agent of every

ship for which an official logbook is required to be kept, to deliver the official logbook to the

shipping master as and when required by him. It further provides that no entry in the official-

log book shall be made in repsect of any occurrence prior to arrival of the ship at her final

port.

Clause 109.––This clause empowers the Central Government to make rules to carry

out the provisions of Part V of the Bill.

Clause 110.––This clause seeks to provide for application of Part VI to Indian vessels,

and foreign vessels on matters related to safety and security and the port facilities on

security aspects and company on matters relating to safety and security.

Clause 111.––This clause seeks to define various expressions specific to Chapter VI.

Clause 112.––This clause seeks to provide for compliance of various obligations

under the international treaties to which India is a Party. Each of these treaties specified

therein contains certain obligations for the State, to enact suitable national legislation to

implement and enforce the treaties fully and effectively.

Clause 113.––This clause seeks to impose obligation on the master of a vessel to

report any incident relating to safety of vessel, safety of persons onboard, loss of dangerous

cargo to the sea, matters affecting safe navigation, abandonment of vessels, etc., to an

authority designated for this purpose by the Central Government.

Clause 114.––This clause seeks to impose obligation on the master of an Indian

vessel to provide assistance to any distress situation at sea, when he receives such a

message seeking assistance. It further provides that the master is duty bound to provide

assistance until he is relieved of this duty and also provides for the mandatory maintenance

of records and the circumstances in which the master is unable to provide assistance.

Clause 115.––This clause seeks to empower the Central Government for making

arrangements for search and rescue at sea and establishment of rescue coordination centres

and sub-centres by India as required under International Convention on Maritime Search

and Rescue, 1979 and agreement related thereto.

Clause 116.––This clause seeks to provide for requirements of radio communication,

distress and safety equipment and the certified operators required on ships.

Clause 117.––This clause seeks to mandate that every vessel should possess the

information relating to its stability and the effects of any damages to the vessel and the

precautions for maintaining water tight integrity of the vessel.

Clause 118.––This clause seeks to provide loading of vessel as per load line rules

and contain provisions to detain a vessel from proceeding to sea if it is loaded in contravention

of such rules.

Clause 119.––This clause seeks to obligate every vessel to have appropriate

certificates while carrying passengers between ports or places in India, or to or from any port

or place in India from or to any port or place out side India. It further provides for the

Central Government to specify the conditions for passenger accommodation, passenger and

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crew amenities, and other facilities while carrying passengers and the master of every

passenger vessel to oblige to make a statement about the passengers onboard as provided

by the rules by the Central Government.

Clause 120.––This clause seeks to provide that every vessel should be in possession

of valid safety and security certificates whenever she proceeds to sea as required under the

convention or agreement referred to in clause 112.

Clause 121.––This clause seeks to provide various acts which constitute offences.

Clause 122.––This clause seeks to provide that no vessel shall carry or attempt to

carry cargo in contravention of clause 120 or shall have onboard or in any Part thereof a

cargo which is not in accordance with the certificate held by the vessel. It further provides

that for violations, the master shall be held liable and his certificate of competency shall be

cancelled or suspended for such period as the Central Government may specify in an order

made in this behalf.

Clause 123.––This clause seeks to provide that every person (owner or company or

master) who sends an unseaworthy vessel to sea is guilty of an offence and it mandates the

prior consent of the Central Government for prosecution of such person.

Clause 124.––This clause seeks to cast obligation on the ship owner, master or his

agent to ensure the seaworthiness of the vessel for the voyage and to keep her in a seaworthy

state during the voyage.

Clause 125.––This clause seeks to provide for implementation of safety and security

management of the vessels and the port facilities where the vessels have an interface. It

further provides for maintaining different levels of security by vessels and ports depending

on the security situation in the country.

Clause 126.––This clause seeks to provide for the inspection and boarding of vessels,

to verify compliance with requirements specified in Part VI and to enforce the provisions

under the Bill and foreign flag vessels can be inspected under port state control being an

obligation under the treaties. It further provides for intervention such as detention as a Part

of the enforcement measure and also for entering into agreements with other countries or

organisations for effective implementation of the provisions of this Bill.

Clause 127.––This clause seeks to make the Central Government liable to pay to the

owner or master the costs for an unreasonable detention or undue delay. It further provides

that the owner of a vessel shall be liable to pay to the Central Government its costs of and

incidental to the detention and survey of the vessel if the vessel is detained by reason of its

condition or due to act of default of owner or master and the vessel shall not be released until

such costs are paid and faults are rectified.

Clause 128.––This clause seeks to empower the Central Government to make the

rules under Part VI relating to safety and security aspects.

Clause 129.––This clause seeks to specify the application of Part VII. It applies,

inter alia, to Indian vessels, ports and foreign vessels on matters related to prevention of pollution.

Clause 130.––This clause seeks to define certain expressions which are specific to

Part VII.

Clause 131.––This clause seeks to prevent the ship-generated pollution such as the

discharges or emissions of harmful substances or mixtures containing such substances. It

empowers the Central Government to make necessary rules for the construction, survey or

equipment to be fitted onboard ships for this purpose, and to specify the conditions for

issuance of the certificates. It further provides for the survey of the hull, equipment or

machinery of vessel by surveyors and the manner in which certificates are issued to verify

and demonstrate the compliance with the applicable pollution prevention requirements,

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under this Part. It also provides for controlling the deliberate dumping of wastes and other

matter into the sea by ships.

Clause 132.––This clause seeks to provide for meeting various obligations towards

prevention of marine pollution under the international maritime treaties specified therein. It

further provides that the vessel, to which the provisions of the conventions mentioned

therein are applicable, to comply with such pollution prevention requirements as may be

provided by the rules. It also empowers the Central Government to prescribe different rules

for pollution prevention for different classes of vessels.

Clause 133.––This clause seeks to provide that every vessel (cargo vessel as well as

passenger vessel) shall be in possession of valid pollution prevention certificates as per

conventions specified under clause 132, whenever she proceeds to sea.

Clause 134.––This clause seeks to ensure that records of ship-generated wastes and

disposal are mandatorily maintained, as per the rules made by the Central Government and

also empowers the Central Government to make rules for the details of records, its custody,

the manner in which these are to be maintained and such other related matters.

Clause 135.––This clause seeks to provide that in order to prevent and control the

discharges into the sea from ships, every port is required to have necessary facilities to

receive the various kinds of wastes generated on ships. It further provides that every port or

place where the ship has an interface is obliged to provide necessary reception facilities

under the applicable international conventions. It also provides that the wastes generated

during operation, repair and recycling of vessel are collected, handled, treated and disposed

of in a safe and environmentally sound manner, to protect human health and the environment

and empowers the port authority to impose suitable charges for providing such facilities for

receiving wastes from ships. It also empowers the Central Government to give directions in

case there are no reception facilities at any port or place in India or that the facilities available

at such port or place are not adequate for enabling vessel calling at such port or place to

comply with the requirements of pollution prevention.

Clause 136.––This clause seeks to obligate the master of a vessel to make a report to

the authority designated by the Central Government, whenever an incident in which the

cargo or harmful substances as covered under Part VII or the pollution prevention convention

is escaping or likely to escape and may cause or threaten to cause pollution of air, any Part of

coasts or coastal waters of India and the responsibility of the master for failure in making

such reports. It empowers the Central Government to direct the owner, agent, master, charterer,

operator, lessee or licensee of the vessel through a notice, to take immediate necessary

action to prevent or control pollution, in case an incident of pollution occurs or likely to

occur and also empowers the Central Government to take any suitable and appropriate

measures, as deemed necessary, to prevent, mitigate or eliminate the threat or danger from

pollution, whenever a pollution is caused or likely to be caused by release of harmful

substances, or whenever a grave and imminent danger to the coastline or related interest is

likely from an incident of pollution or threat of pollution.

Clause 137.––This clause empowers the Central Government to give directions to

Indian ships to provide assistance in combating pollution, subject to payment of reasonable

fees for the services provided.

Clause 138.––This clause seeks to empower the Central Government to make rules

under Part VII of the Bill relating to pollution prevention aspects covered thereunder.

Clause 139.––This clause seeks to put an obligation that every vessel, port facility,

shipyard, ship breaking and ship repairing units, offshore facilities or terminal shall be

surveyed or audited towards verification of the requirements under the Bill. It further provides

for the issuance of certificates after satisfactory completion of the survey or audit and once

an audit or survey is done, no material change shall be effected without the permission of the

Central Government and in case such modifications are made without informing the

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Central Government, such certificates are liable to be cancelled and prevents a vessel

from proceeding to sea without the necessary certificates or documents, except when an

exemption is granted by the Central Government.

Clause 140.––This clause seeks to provide that every vessel shall possess the

prescribed certificates, as may be specified under the rules.

Clause 141.––This clause seeks to empowers the surveyor for the inspection of the

vessel as necessary and to board the vessel for implementation and enforcement purposes.

Clause 142.––This clause seeks to ensure that every vessel, Company, port facility,

shipyard, etc., shall be surveyed, audited and certified to confirm the compliance of

requirements of various international conventions as specified therein. It also provides for

survey and certification of non-convention vessels.

Clause 143.––This clause seeks to provide for the recognition of the certificates

issued to ships outside India by the flag authority of the vessel.

Clause 144.––This clause seeks to enable Indian vessels to be issued with certificates

in other countries, as well as issuance of certificates to foreign vessels in India.

Clause 145.––This clause seeks to empower the Central Government to make the

rules for the matters covered under Part VIII.

Clause 146.––This clause seeks to specify the application of Chapter I of Part IX of

the Bill. It applies to Indian vessel; and any foreign vessel while it is in a port or place in India

including the maritime zones under its jurisdiction as per the Territorial Waters, Continental

Shelf, Exclusive Economic and other Maritime Zones Act, 1976 or any other law for the time

being in force.

Clause 147.––This clause seeks to provide the methodology for the division of liability

when collision, damage, or loss occurs on a vessel or vessels and full liability falls upon the

vessel whose fault it lies upon and the total liability is shared depending upon proportion to

the degree in which each vessel was to blame and the liability is applicable subject to either

of the three criteria’s specified therein do not get affected. It also provides that references to

damage or loss caused by the fault of a vessel shall also include cost due to any salvage or

other expenses, after a damage or loss, which is recoverable by way of damages through any

law in force.

Clause 148.––This clause seeks to apply when compensation is to be paid in case of

loss of life or personal injury; the joint liability of owners of vessels or liability of the owner

of the vessel whose fault has been determined; whenever a loss of life or personal injuries are

suffered by any person onboard a vessel and it prevents depriving any person of any right

of defence in court in an action brought against him by the person injured, or any person

entitled to sue in respect of such loss of life or affect the right of any person to limit his

liability in that particular case.

Clause 149.––This clause seeks to provide for sharing of the contribution, in case

excess payment of contribution is made by one of the vessel which exceeds the proportion

in which vessel was in fault, then, the owner can recover by way of contribution the amount

of the excess from the owners of the other vessel or vessels to the extent to which those

vessels were respectively in fault and the recovery is to be carried out provided that no

amount is recovered again, that is, if it has been recovered in the first instance as damages by

the person entitled to sue due to a statutory or contractual limitation or exemption. It also

provides that for the purpose of recovering the contribution referred to therein, the same

rights, and powers of the persons entitled to sue for damages in the first instance is available

to the person entitled to any contribution and this recovery is in addition to any other

remedy provided by law for the time being in force.

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Clause 150.––This clause seeks to impose a duty on the master of a vessel to assist

the other vessel in case of collision between two vessels without endangering his vessel,

crew and passengers. It requires the master to save the other vessel from any danger caused

by the collision and to standby near the other vessel until the other vessel needs no further

assistance and also requires the master to exchange information such as name of its ship,

port of registry, last port and next port of call.

Clause 151.––This clause seeks to provide for the requirement of recording of statement

and circumstances leading to the collision in the logbook by the master of every vessel and

such entry is required to be signed by the master and also by the officer on watch or one of

the seafarer.

Clause 152.––This clause seeks to mandate that, report has to be made to the

Central Government or nearest principal officer in case an Indian vessel has sustained or

caused any accident which results in loss of life or any serious injury to any person or vessel

has a material damage affecting her seaworthiness or her efficiency either in her hull or is so

altered in any Part of her machinery as not to correspond with the particulars contained in

any of the certificates issued under this Bill in respect of the vessel and such report is to be

made by either the owner or master or agent, within twenty-four hours after the happening of

the accident or damage or as soon as possible.

Clause 153.––This clause seeks to provide that if the owner or agent of an Indian

vessel feels the vessel has been wholly lost due to non-appearance of the vessel or any

other circumstances, they shall send notice to The Central Government relating to the loss

and cause of the loss along with the vessel particulars such as the name, official number and

port of registry, etc.

Clause 154.––This clause seeks to specify the application of Chapter II of Part IX

relating to Limitation of Liability for Maritime Claims. It applies to Indian ships, and any ship

other than an Indian ship while it is in a port or place in India including the maritime zones

under its jurisdiction as per the Territorial Waters, Continental Shelf, Exclusive Economic and

other Maritime Zones Act, 1976 or any other law for the time being in force.

Clause 155.––This clause seeks to provide for the limitation of liability to shipowner

or salvor or person for damages in respect of claims, which are enlisted therein, due to their

act, neglect or defaulting. It further provides that the limitation of liability shall be applicable

even if brought by way of recourse or for indemnity under a contract or otherwise. It also

specifies various other claims where the limitation of liability shall not apply.

Clause 156.––This clause seeks to provide that provisions of clause 155 cannot be

applied to limit the liability if, the loss is resulted from a personal act or omission committed

with the intent to cause the loss, or recklessly and with the knowledge that such loss would

probably result.

Clause 157.––This clause seeks to provide that when limitation of liability is set-to

apply for multiple claims of the same occurrence, then the claims shall be set-off against each

other and the provisions of Chapter II of Part IX shall apply to the balance, if any.

Clause 158.––This clause seeks to stipulate the limits of liability which will be calculated

under the provisions of LLMC Convention and as per the rules where provisions of LLMC

Convention are not applicable. It further details the hierarchy in which the claims are to be

paid, that is, this order shall be determined first by claims in respect of loss of life or personal

injury followed by claims in respect of damage to harbour works, basins, waterways and aids

to navigation. It also provides that the limit of liability in case of salvor not operating from

any vessel or for any salvor operating solely on the vessel to, or in respect of which he is

rendering salvage services, shall be calculated according to gross tonnage of 1500.

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Clause 159.––This clause seeks to provide that in respect of claims arising on any

distinct occasion for loss of life or personal injury to passengers of a ship the amount limit of

liability of the shipowner thereof shall be such as may be provided by rules.

Clause 160.––This clause seeks to provide that the limits of liability as determined in

clause 158 shall apply collectively in total to the claims which arise on any distinct occasion

as specified therein. It further provides that the limits of liability as determined in relation to

limit for passenger claims shall apply in total to the claims which arise against the shipowner

and any person for whose act, neglect or default he or they are responsible.

Clause 161.––This clause seeks to provide that limitation of liability can be invoked

even if the limitation fund as mentioned in clause 162 has not been constituted. It further

provides that the person can only invoke the right to limit liability if the limitation fund has

been constituted as per the provisions of this Chapter.

Clause 162.––This clause seeks to provide for the constitution of limitation fund

with the High Court by any person alleged to be liable and against whom legal proceedings

are being initiated for claims which are subjected to limitation and the fund shall be constituted

in the sum of such of the amounts in accordance with the provisions of clause 158 or 159 as

are applicable to claims for which that person may be liable together with interest thereon

from the date of occurrence giving rise to the liablity until the date of the constitution of the

fund. It also provides that the fund amount so constituted shall either to be deposited or

guarantee to be produced at the High Court and the fund so constituted shall be available

only for the payment of claims in respect of which limitation of liability may be invoked and

also provide that the fund so constituted by one of the persons or his insurer shall be

deemed to be constituted by all persons mentioned in clause 161.

Clause 163.––This clause seeks to provide that fund to be distributed among the

claimants in proportion to their established claims against the fund based on the limitation of

liability as stated in section 158 or 159 as applicable and if the person who is liable or his

insurer settles a claim before the fund is distributed, then the right of the claimant maximum

to the amount paid, is transferred to that person or insurer. It further provides for allowing

application with respect of transfer of rights by persons other than those mentioned in the

said clause to the level provided by the law. It also provides that the High Court may order a

sufficient sum to be provisionally set aside to enable a person liable or any other person to

enforce his claim against the fund at a later date when this person liable or any other person

proves that he needs to pay at a later date wholly or partly part any such amount of

compensation with regard to which such person would have enjoyed a right of subrogation

as provided therein.

Clause 164.––This clause seeks to provide that once claim has been made against the

fund by any person that person cannot exercise any right in respect of such claim against

any other assets of a person by or on behalf of whom the fund has been constituted and if

any ship or property which has been attached or arrested for a claim, belonging to a person

on behalf of whom fund has been constituted, then, such ship or property may be released

by an order of the High Court. It further provides that the provisions of this clause shall

apply if the claimant claims the fund before High Court administering that fund and if the

fund is available and transferable with respect to that claim.

Clause 165.––This clause seeks to mandate the scope of application of the provisions

of limitation of liability. It provides that provisions of this clause does not apply to air-

cushion vehicles or floating platforms and when the person 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 a country, which is a party to the LLMC

Convention.

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Clause 166.––This clause seeks to empower the Central Government to make rules

for the matters specified under Chapter II of Part IX.

Clause 167.––This clause seeks to specify the application of Chapter III of Part IX.

This Chapter applies to oil pollution damage caused by Indian ship and any ship other than

an Indian ship while it is in a port or place in India including the maritime zones under its

jurisdiction as per the Territorial Waters, Continental Shelf, Exclusive Economic Zone and

other Maritime Zones Act, 1976 or any other law for the time being in force. This section also

applies to the preventive measure taken to minimise the oil pollution damage.

Clause 168.––This clause seeks to define certain expressions which are specific to

this Chapter.

Clause 169.––This clause seeks to provide for the liability of owner for any pollution

damage caused by the ship. It further provides for exemption of the owner from liability if he

proves that the pollution damage is the result of an act of war, hostility, civil war, etc., and was

wholly caused by an act or omission done with intent to cause damage by a third party and

also the damage caused intentionally by a person who suffered the damage or from negligence

of that person and specifies the persons against whom the claim for compensation for

pollution damage under this Chapter or otherwise cannot be made.

Clause 170.––This clause seeks to provide that the owners of all the ships shall be

jointly and severally liable for pollution damages in case an incident involves two or more

ships.

Clause 171.––This clause seeks to provide that owner may limit his liability under

this Chapter in respect of any incident, to an aggregate amount by the provisions of the 1992

Liability Convention unless it is proved that the pollution damage resulted from his personal

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

with knowledge that such damage may probably result.

Clause 172.––This clause seeks to provide for the constitution of a limitation fund by

the owner, the insurer or any other person providing financial security to the owner either by

depositing the sum with the High Court or by furnishing bank guarantee or such other

security as, in the opinion of the High Court, is satisfactory. It further provides that the

constitution of the fund shall not prejudice to the rights of any claimant against the owner for

full compensation exceeding the amount deposited or secured in the fund.

Clause 173.––This clause seeks to provide that before the fund is distributed, the

owner or any of his servants or agents or any person providing him insurance or other

financial security has as a result of an incident paid compensation for pollution damage,

such person shall upto the amount he has paid, acquire by subrogation the rights which the

person so compensated may have enjoyed under this Chapter and such owner or insurer can

also enforce his claim at a later date after the fund is constituted, in case the compensation

has been paid before distribution of the fund.

Clause 174.––This clause seeks to provide for the power of High Court to consolidate

all the claims against the fund and to distribute the amount in the fund among all claimants in

proportion to their established claims. It further provides any claim in respect of expenses

reasonably incurred or sacrifices reasonably made by the owner voluntarily to prevent or

minimise pollution damage shall, rank equally with other claims against the fund.

Clause 175.––This clause seeks to provide that ship carrying more than 2000 ton of

oil in bulk as cargo to maintain an insurance or other financial security to cover his liability

for pollution damage under Chapter III of Part IX for the amount specified under the provisions

of the 1992 Liability Convention and a certificate to that effect shall be issued by the

Central Government to every Indian ship and owner or agent of any foreign ship on payment

of a fee as may be specified by rules.

Clause 176.––This clause seeks to provide that the certificate issued by a competent

authority in any country outside India which is a contracting party to the 1992 Liability

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Convention to any ship wherever it is registered shall be accepted at any port or place in

India as if it were issued under the provisions of this Bill.

Clause 177.––This clause seeks to mandate that ships which has on board 2000

tonnes of oil in bulk as cargo shall not enter or leave any port or place in India unless it carries

the certificate as per the requirements of clause 175 or clause 176. It further provides that the

proper officer shall grant inward entry or outward clearance to any ship only when its master

produces a certificate as aforementioned.

Clause 178.––This clause seeks to provide for the direct liability of the insurer or

other person providing financial security for payment of compensation. It further provides

that the insurer or other person may limit his liability in accordance with the provisions of

clause 171 provided that the owner has not exercised this option or avail himself of the

defenses which the owner himself would have been entitled to invoke and the defendant

may avail himself of the defence that the pollution damage resulted from the wilful misconduct

of the owner himself, but the defendant shall not avail himself of any other defence which he

might have been entitled to invoke in proceedings brought by the owner against him.

Clause 179.––This clause seeks to provide for the limitation period of three years for

claiming compensation from the date of oil pollution damage or six years, if the incident

consists of a series of occurrences.

Clause 180.––This clause seeks to exempt the war ships or any ship used by the

Government from the application of Chapter III of Part IX.

Clause 181.–– This clause seeks to empower the Central Government to make rules

for the matters covered under Chapter III of Part IX.

Clause 182.–– This clause seeks to provide for the application of Chapter IV of

Part IX relating to civil liability for bunker oil pollution damage.

Clause 183.–– This clause seeks to define certain expressions specific to this Chapter.

Clause 184.–– This clause seeks to provide the types of liabilities with respect to

pollution caused due to bunker oil discharge or escape which the ship owner shall be liable

for.

Clause 185.–– This clause seeks to exempt from liability for the ship owner, in certain

situations such as, if the pollution damage is caused due to act of war, hostilities, civil war,

insurrection or a natural phenomenon of an exceptional, inevitable and irresistible character;

or was wholly caused by any act or omission done with an intent to cause such damage by

any person other than an employee or agent of the owner. It further provides to exonerate the

liability of the ship owner when it is proved that the person suffered the damage has

intentionally done the damage or due to negligence an oil pollution damage was caused.

Clause 186.–– This clause seeks to provide for the ship owner or insurer to limit his

liability for one or more incidents specified therein in accordance with Chapter II of Part IX.

Clause 187.–– This clause seeks to provide for determination of limitation of liability

by the High Court and the amount once determined has to be deposited with the High Court.

Clause 188.–– This clause empowers the High Court to consolidate all claims and

distribute the amount amongst the claimants.

Clause 189.–– This clause seeks to stipulate the limitation period of three years for

claiming compensation from the date of bunker oil pollution damage or six years if the

incident consists of a series of occurrences.

Clause 190.–– This clause seeks to provide that the owner of ship of more than gross

tonnage of thousand has to maintain compulsory insurance coverage or financial security to

the limits specified under the provisions of the LLMC Convention.

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Clause 191.––This clause seeks to provide for authority for direct action against the

insurer or other person providing financial security. It provides that the insurer or other

person may limit his liability in accordance with the provisions of clause 183 provided that

the owner has not exercised this option or avail himself of the defenses which the owner

himself would have been entitled to invoke. It further provides that the defendant may avail

himself of the defence that the pollution damage resulted from the wilful misconduct of the

owner himself, but the defendant shall not avail himself of any other defence which he might

have been entitled to invoke in proceedings brought by the owner against him.

Clause 192.––This clause seeks to provide that the Central Government shall issue a

certificate which complies with the provisions of clause 190 on payment of fee as may be

specified by rules and makes provisions for renewal on its expiry.

Clause 193.––This clause seeks to provide that no ship can enter or leave any port or

place in India unless it has the certificate as per the requirements of clause 192 of this Chapter

and the proper officer shall grant inward entry or outward clearance to any ship only when

its master produces a certificate as mentioned.

Clause 194.––This clause seeks to provide that the right of the ship owner to demand

compensation against any other person for his liability.

Clause 195.––This clause seeks to confer authority of the enforcement of the

judgement of the court.

Clause 196.––This clause seeks to empower the Central Government to make rules

for the matters covered under Chapter IV of Part IX.

Clause 197.––This clause seeks to provide for application of Chapter V of Part IX to

oil pollution damage caused within the territorial waters and specifically the maritime zones

under its jurisdiction in accordance with the provisions of the Territorial Waters, Continental

Shelf, Exclusive Economic Zones and other Maritime Zones Act, 1976 or any other law for the

time being in force and also to the preventive measures taken to prevent or minimise the oil

pollution damage.

Clause 198.––This clause seeks to define certain expressions specific to Chapter V of

Part IX.

Clause 199.––This clause seeks to provide for the contribution to the fund by the

importer or the receiver in respect of contributing oil carried by sea to ports or terminal

installations in India as per Articles 10 and 12 of the Fund Convention and also stipulates

minimum quantity of 1,50,000 tons per year of oil import as specified in Fund Convention,

above which the fund has to be paid.

Clause 200.––This clause seeks to provide for the requirements of the minimum

contribution payable by persons to the fund which is determined by the Assembly of the

Fund under Articles 10 and 12 of the Fund Convention and the power of the

Central Government to require the persons to give financial security for payment of

contributions to the Central Government or the Fund.

Clause 201.––This clause seeks to provide for situations where the fund can be

invoked and liable to pay compensation as specified therein. It further provides the situations

where fund does not have an obligation to pay the compensation.

Clause 202.––This clause seeks to empower the Central Government, to call for

information, in particular, the name and addresses of the persons to whom the provisions of

clause 197 shall apply and the person making disclosure needs to follow certain conditions

specified therein and the liability of person for punishment in case of refusal to comply with

the conditions of notice.

Clause 203.––This clause seeks to provide for the claims against the Fund and state

that any claim against the Fund for compensation under this Chapter shall be brought

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directly before the Fund and provides that the jurisdiction of High Court shall be applicable

for any action for the claim against the fund. It further provides that the Fund’s right to

intervene as a party to any legal proceedings instituted in the High Court against the owner

or his guarantor and makes judgment of the High Court as final even if the fund has not

intervened in its proceedings.

Clause 204.––This clause seeks to stipulate the limitation period for claim against the

Fund within a time-frame of minimum three years and that no action to enforce a claim shall

be brought after six years from the date of the incident that caused such damage.

Clause 205.––This clause seeks to provide for the subrogation of right of which the

person so compensated would have enjoyed under the Fund Convention when any sum is

paid by the fund or any public authority.

Clause 206.––This clause seeks to empower the Central Government to make rules to

carry out the provisions of the Fund Convention.

Clause 207.––This clause seeks to define the marine casualty and mandate on the

owner, manager, operator, company, pilot, harbour-master, master, or other person in charge

of the vessel, to give notice of the occurrence of casualty within twenty-four hours of such

occurrence to the office appointed by the Central Government for the purpose and such

officer shall forthwith report in writing the information to the Central Government and may

proceed to make preliminary inquiry into the marine casualty and shall furnish the report on

completion of independent inquiry into the incident. It further empowers the

Central Government to appoint a body to make preliminary assessment of the marine casualty

and conduct a marine safety investigation for ascertaining its causes and circumstances and

submit its report to the Central Government.

Clause 208.––This clause seeks to empower the Central Government to initiate

administrative action or to pass direction for proceeding in accordance with the law, if on

receipt of report under sub-clause (5) of clause 207 or otherwise, it is of the opinion that

prima facie, there exists, incompetency, misconduct or violation of any law for the time being

in force on the part of any person.

Clause 209.––This clause seeks to empower the Central Government to cancel or

suspend any certificate granted under this Bill to any seafarer for any specified period, by

way of an order, based on inquiry report or for any other default of seafarer listed under that

clause.

Clause 210.––This clause seeks to empower the Central Government to order

re-hearing either generally or for a part thereof of an investigation or inquiry under Part X and

in case of new and important evidence which could not be produced at the time of investigation

has been discovered, or if for any other reason there has, in its opinion, been a miscarriage of

justice, the Central Government is duty bound to order such re-hearing.

Clause 211.––This clause seeks to specify the application of Part XI to wrecks located

within territory of India including the territorial sea or any marine area adjacent thereto over

which India has exclusive jurisdiction under the Territorial Waters, Continental Shelf, Exclusive

Economic and other Maritime Zones Act, 1976. It further specifies units or ships of Government

for non-commercial use and casualties involving oil pollution in accordance with Intervention

on the High Seas in cases of Oil Pollution Casualties,1969 for which this Part is not applicable.

Clause 212.––This clause seeks to define certain expressions specific to Part IX.

Clause 213.––This clause seeks to empower the Central Government to appoint person

to receive wreck and aurhorise him to take possession of wreck and take action for disposal

or removal by available means for safety and protection of marine environment, as prescribed

under the Bill.

Clause 214.––This clause seeks to mandate the reporting of incident resulting in

wreck. It provides that every master or owner or operator of Indian and foreign vessel

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involved in a maritime casualty resulting in a wreck in Indian waters or waters of other

country which is a party to the convention to report such incident to the receiver of country

appointed by the Central Government and to the authorities of affected country without any

delay.

Clause 215.––This clause seeks to provide for the criteria for determination of possible

hazards and enlists therein various parameters that determine such hazards.

Clause 216.–– This clause seeks to empower the Central Government to give direction

to receiver of wreck and others specified therein to locate and mark the wreck as applicable

and also obligates the owner or operator of vessel to mark the wreck at its own cost until the

wreck is removed and ensures that the cost towards locating and marking of wrecks is borne

by owner or operator of wreck.

Clause 217.––This clause seeks to give power to pass over adjoining lands to all

persons for rendering assistance to ship for saving shipwrecked persons, its cargo and

equipment and obligates concerned persons to minimise damage to cargo or any article

recovered from shipwrecked which may be deposited on land and the disputes relating to

damage expected by owner or occupier shall be decided by a Magistrate when application

made to him.

Clause 218.––This clause seeks to specify the prohibition of acts such as attempt to

board or leave wreck ship without permission of master or receiver of wreck or an attempt to

bring obstruction in action of saving ship, cargo and equipment, removing marks or any part

of vessel as stipulated under the provisions of the Bill.

Clause 219.––This clause seeks to give power to receiver to make application to

Judicial Magistrate of the first class or Metropolitan Magistrate for search warrant, if

receiver suspects that wreck is secreted and possessed by person who is not owner and

empowers the Judicial Magistrate to grant warrant authorsing receiver to search for wreck

possessed by person who is not the owner of wreck.

Clause 220.––This clause seeks to provides for measures that facilitates the removal

of wrecks and mandates the receiver to forward detailed informations to Central Government

on determination of possible hazards as stipulated in clause 215. It empowers the

Central Government to inform concerned government, affected country and registered owner

of the vessel regarding the hazards, measures to be taken to wreck and removal of wreck and

the decision of Central Government thereof shall be final. It also mandates the owner of

wreck vessel to provide financial security or evidence of insurance to Central Government or

receiver of wreck appointed by the Central Government and gives power to the receiver to

set period for removal of wreck and empower him to remove wreck by realistic means with

due regard to safety and protection of marine environment at the expense of owner or

operator.

Clause 221.––This clause seeks to provide the liability of owner in respect of cost to

be borne by registered owner for locating, marking and removing the wreck. It further

provides that the owner may provide evidence of occurrence of marine casualty resulting in

wreck such as war, hostilities or any act of non-maintainance of lights or navigational aids by

concerned authorities and such liability covers the limit as specified under the provisions of

clause 155 of the Bill.

Clause 222.––This clause seeks to mandate that every registered owner of Indian

ship of gross tonnage of three hundred tons and above should be in possession of valid

insurance coverage or financial security and the owner of vessel whether Indian or from

other country, which do not carry certificate, is liable for detention by authorities and the

cost or claims arising under the Part should be directly against the insurer or person that

provides financial security as per circumstances listed which may invoke defence by insurer.

Clause 223.–– This clause seeks to specify the circumstances where registered owner

may not be liable to bear the cost as prescribed in Part XI and specifies the extent of cost

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borne by the registered owner and its exception in accordance with other applicable treaties,

instruments, as the case may be.

Clause 224.––This clause seeks to specify the claims of the owner to wreck and time

limit of his entitlement to possess wreck back which is in possession of receiver of wreck and

empowers the consular officer to act as agent of owner for custody and disposal of the

articles from wreck vessel on behalf of the country where the vessel is registered or, cargo

owners belongs to that country within a period of one year for said claim.

Clause 225.––This clause seeks to set limit for recovery of cost and stipulates the

time period of three years from the date of determination of marine casualty for locating and

marking of the vessels and provides that no claim shall be made after the period of six years

from the date of such casualty.

Clause 226.––This clause seeks to provide for the application of Chapter II of Part XI

which includes judicial or arbitral proceedings relating to salvage operations instituted in

India and specifies therein the units, ships and other non-commercial vessels for which this

clause shall not be applicable.

Clause 227.––This clause seeks to define certain expressions specific to Chapter II

of Part XI.

Clause 228.––This clause seeks to provide for the salvage award for the assistance

rendered by the master of a vessel.

Clause 229.––This clause seeks to specify the conditions, circumstances and

location when salvage is payable to the salvor for saving life, cargo or wreck.

Clause 230.––This clause seeks to provide for the entitlements of salvage payments

when services are provided by the Government vessels such as Indian Navy or of the Coast

Guard and port authorities.

Clause 231.––This clause seeks to provide that the master have the authority to

conclude contracts for salvage operations on behalf of the owner of the property on board

the vessel.

Clause 232.––This clause seeks to provide for the duties of salvor towards owner of

the vessel or other property in danger and specifies the duties of the owner, master of the

vessel or the owner of other property who is in danger towards salvor.

Clause 233.––This clause seeks to provide for the measures to be taken by the

Central Government to protect its coastline from threat of pollution consequential to

occurrence of maritime casualty and empowers the Central Government to issue directions to

the owner or the master or salvor and other public authorities associated with salvage

operations and seek their cooperation to initiate salvage services for vessel in distress.

Clause 234.––This clause seeks to provide for the rights of salvors to payment for

the services rendered by him to salvage operations in the event of refusal of payments by the

owner or master of vessel or owner of any other property in danger and enlists the criteria,

circumstances and conditions for claiming rewards and maritime lien by the salvor.

Clause 235.––This clause seeks to provide for settlement of disputes relating to

claims under the provisions of Part XI and empowers the High Court to determine the costs

to be paid and to issue necessary directions for such payments if deemed fit and fair, after

receipt of application from either of disputing party.

Clause 236.––This clause seeks to specify the time limit of two years from the date of

completion of salvage operations for raising claims and action thereof by all concerned.

Clause 237.––This clause seeks to provide that nothing in Chapter II of Part XI shall

affect any treaty or arrangement with any foreign country to which Indian is a party with

reference to the disposal of wrecks on their respective coasts or the provisions of section 29

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of the Indian Ports Act, 1908 or any person to salvage in respect of any property recovered

by creeping or sweeping in contravention of that section.

Clause 238.––This clause seeks to empower the Central Government to make rules to

carryout the provisions contained in Part XI.

Clause 239.––This clause seeks to provide for the application of Part XII to all vessels

including vessels other than Indian vessels.

Clause 240.––This clause seeks to direct that any vessel engaged in coastal trade or

exploration or exploitation or research in coastal waters of India shall require a licence and

stipulates that no vessel chartered by an Indian citizen, company or cooperative society to

be taken to a port or place within India or outside India without licence granted by the

Director-General and the Indian controlled tonnage may also be granted licence subject to

certain conditions. It further provides that the Central Government shall have the power to

exempt any class of vessel by general or special order from the provision of this clause.

Clause 241.––This clause seeks to empower the Director-General to revoke and modify

the licence after giving reasonable hearing to the person and provides that in case the

licence ceases to be valid, the person to whom it was granted shall return it back to the

Director-General without any delay.

Clause 242.––This clause seeks to direct that no port clearance shall be given by the

proper officer to the owner, master or agent of a foreign vessel unless such a licence is

produced which is issued under this Part.

Clause 243.––This clause seeks to empower the Director-General, in public interest

or in the interest of Indian shipping if it is necessary, to give order in writing or notice for

matters stipulated therein and also empowers the Central Government in public interest to

ban any vessel from entering into India, anchorage or offshore facility in India.

Clause 244.––This clause seeks to empower the Central Government to protect the

interest of Indian shipping from undue foreign intervention and stipulates certain measures

by a foreign country which infringes the jurisdiction of India and which can be brought to

notice of the Central Government by the Indian citizen carrying business in that country and

the Central Government may in turn give order in writing prohibiting Indian citizens from

complying with such measure. It further provides that the Central Government may by order

in writing refuse to give commercial information to any court or authority of a foreign country

and prohibits any person from complying with such an order by foreign authority or court

subject to the conditions as specified in the said order.

Clause 245.––This clause seeks to empower to the Central Government to make rules

for carrying out the provisions contained in Part XII.

Clause 246.––This clause seeks to provide for application of Part XIII. It applies to

sailing vessel, fishing vessel, vessel without mechanical of propulsion and vessel whose net

tonnage is less than fifteen and engaged solely in coasting trade of India and the extent to

which other provisions in the Bill to apply to such vessel.

Clause 247.––This clause seeks to empower the Director-General to take a decision

on whether the vessel falls under Part XIII or not and makes his decision thereon as final.

Clause 248.––This clause seeks to provide by rules the safety, security and pollution

prevention requirements and ensure that these requirements are met and to prohibit the

vessels from proceeding to sea, unless they comply with the provisions.

Clause 249.––This clause seeks to put an obligation on the vessels to have all

certificates specified in Part XII, before proceeding to sea and the manner in which safety

certificates are to be issued and the power of Government to provide of by rules for this

purpose and the period validity of certificates.

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Clause 250.––This clause seeks to impose an obligation on the maintenance of the

statement or cause to be maintained a statement about the crew of the vessel and to keep the

record of the changes in crew and its communication to the shipping master.

Clause 251.––This clause seeks to mandate that whenever cargo is jettisoned from

vessel, notice shall be given to proper officer appointed for this purpose, and empower the

proper officer to conduct an enquiry.

Clause 252.––This clause seeks to provide for detaining a vessel while attempting to

proceed to sea in overloaded condition or carrying passengers in excess of the certified

capacity and empowers the proper officer to board the vessel whenever necessary and

obligates the master, owner and every other person to provide all reasonable facilities for the

survey or audit.

Clause 253.––This clause seeks to provide with the power to detain the vessel which

is unseaworthy or likely to pose a threat to the security or the environment. It provides for

the liablility of the person in charge of the vessel in respect of such unseaworthiness or

threat to the security on Indian coasts or offshore installations under any other provisions

of this Bill.

Clause 254.––This clause seeks to empower the Central Government to exempt

vessels from the applicable requirements, if it is satisfied that the requirements have been

substantially complied with or that compliance with the requirement is or ought to be

dispensed with in the circumstances of the case.

Clause 255.––This clause seeks to empower the Central Government to make rules

for carrying out the provisions contained in Part XIII.

Clause 256.––This clause seeks to provide the penalties for the contravention of the

provisions as specified therein. It empowers the Principal Officer to impose the monitory

penalty, against which an appeal shall lie to the Director-General. It further provides that the

competency to sentence the imprisonment has been vested with the Court only and the

table, inter alia, indicates the contravention made and the penalty to be imposed and

specifying the competent authority for imposing such penalty.

Clause 257.––This clause seeks to provide for that any person committing any offence

under the Bill may be tried at a place in which he may be found, or in any Court which the

Central Government may, by notification, direct in this behalf, or in any Court in which he

might be tried in any other law for time being in force.

Clause 258.––This clause seeks to empower the Metropolitan Magistrate or a Judicial

Magistrate of the first class to pass any sentence authorised by or under this Bill on any

person convicted of an offence under this enactment or any rules or regulations made

thereunder.

Clause 259.––This clause seeks to provide that the report of the Proper Officer is

required for enforcement of penalties, under section 256, against the masters or owners of

special trade passenger vessels.

Clause 260.––This clause seeks to provide that in case the person committing an

offence under this Bill is a company, every person who, at the time the offence was

committed, was in charge of, and was responsible to, the company for the conduct of its

business, as well as the company, shall be deemed to be guilty of the offence and shall be

liable to be proceeded against and punished accordingly and if such person proves that the

offence was committed without his knowledge or that he exercised all due diligence to

prevent the commission of such offence, such person need not to be subject to punishment

and at the same time if it is proved that the offence was committed with the consent or

connivance of, or is attributable to any neglect, such person shall be punished accordingly

as per provisions.

Clause 261.––This clause seeks to provide for depositions to be received in evidence

when witness cannot be produced. It provides that for the purpose of evidence during the

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legal proceedings, if the testimony of any witness is required in relation to the subject-matter,

and the defendant or the person accused, as the case may be, after being allowed a reasonable

opportunity for so doing, does not produce the witness before any court or Metropolitan

Magistrate or a Judicial Magistrate of the first class or person authorised, any deposition

previously made by the witness in relation to the same subject-matter before any court or

Metropolitan Magistrate or a Judicial Magistrate of the first class in any other place in India

or, if elsewhere, before any Indian consular officer, shall be admissible in evidence. It also

provides that such deposition need to be authenticated by the signature of the presiding

officer of any court or Metropolitan Magistrate or a Judicial Magistrate of the first class or

consular officer, before whom it is made and also be subject to certain other conditions as

enumerated therein.

Clause 262.––This clause seeks to empower the High Court to detain a foreign

vessel that has caused the damage caused to property belonging to the Government or to

any citizen of India or a company, when such vessel is found within Indian jurisdiction and

empowers the proper officer to detain such vessel if it is expected that the vessel may depart

and allow the application to be made by any person to High Court for detention of the vessel.

Clause 263.––This clause seeks to provide that when an order for the detention of

the vessel has been made, any commissioned officer of the Indian Navy or Indian Coast

Guard or any port officer, pilot, harbour master, conservator of port or customs collector may

detain the vessel under instructions of proper officer and any contravention of detention

order or notice is an offence.

Clause 264.––This clause seeks to provide that if an order for the payment of any

wages or other sums of money has been made but has not been paid, then such payment may

be levied by distress and sale of the movable property of the person directed to pay the same

under a warrant to be issued for that purpose by such a court or Metropolitan Magistrate or

a Judicial Magistrate of the first class.

Clause 265.––This clause seeks to provide that in case any foreign vessel is detained

under this Bill, or if any proceeding is taken under this Bill against the master, owner or agent

of any such vessel, notice shall forthwith be served on the consular officer of the country in

which the vessel is registered, at or nearest to the port where the vessel is for the time being,

specifying the grounds of such detention or the proceedings.

Clause 266.––This clause seeks to provide the manner of service of documents on

any person, such as, personal delivery, leaving the same at his last place of abode, or by post

and if such delivery is to be made to the master of a vessel then such document may be left

on board with person in command of the vessel and if no master or owner or agent is there,

it may be affixing to the master of the vessel or at a suitable place on the bridge.

Clause 267.––This clause seeks to put responsibility on the master of a vessel to

inform about birth, death, and cause of death or any other relevant details that the

Central Government may specify at the next port or place of call.

Clause 268.––This clause seeks to put responsibility on the master of Indian vessel

to inform of any person missing or died on board to the Director-General and the proper

officer of the port or the next port of call. It provides that on receiving the information, the

proper officer would inquire into the causes of death and make in the official log book an

endorsement to that effect whether the statement of cause of death is true or not or contrary

to the result of inquiry. It further provides that if it appears to the proper officer that the death

occurred due to violence or other improper means, shall, report to the Director-General and in

case of emergency, shall take immediate steps for bringing the offender into trial.

Clause 269.––This clause seeks to provide for certain persons mentioned therein to

be public servants within the meaning of section 21 of the Indian Penal Code.

Clause 270.––This clause seeks to empower an officer conducting investigation and

inquiry to board a vessel to inspect or detain a vessel, etc., and prohibits any person to

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hinder or obstruct any officer or person referred above from going on board any vessel or

otherwise impede him in exercution of his duties or exercise his powers.

Clause 271.––This clause seeks to empower the Central Government to permit such

alternate provisions and arrangements in order to meet the requirements of the convention

through a notice.

Clause 272.––This clause seeks to empower the Central Government to give permission

for a nuclear ship to proceed to sea and the Central Government by general or special order

give such direction to the registered owner of the vessel for taking security measure as is

necessary.

Clause 273.––This clause seeks to exempt the application of this Bill to veseels

belonging to Government or to any class of such vessels.

Clause 274.––This clause seeks to empower the Central Government by order, to

impose or exempt any vessel or tindal or seafarer or any class thereof, from any specified

requirement contained in or prescribed in pursuance of this Bill or dispense with the

observance of any such requirements in the case of any vessel or tindal or seafarer, or any

class thereof if it is satisfied that the requirements have been substantially complied with or

that compliance with the requirement is or ought to be dispensed with in the circumstances

of the case subject to restriction which is prohibited by the Safety Convention or Pollution

Prevention Convention and makes it an offence for breach of any such condition.

Clause 275.––This clause seeks to empower the Central Government to make rules

generally to carry out the provisions of the Bill.

Clause 276.––This clause seeks to provide for the publication of rules in the

Official Gazette subject to previous publication and also makes the breach of it as punishable.

It further provides that every rule made and every notification issued by the Central Government

shall be required to be laid before each House of Parliament.

Clause 277.––This clause seeks to protect any person acting in good faith from any

suit or other legal proceedings.

Clause 278.––This clause seeks to empower the Central Government to enter into

agreement with other countries or organisations for effective implementation of the provisions

of the Bill.

Clause 279.–– This clause empowers the Central Government to make, by order

published in the Official Gazette, provisions for removal of difficulties in giving effect to the

provisions of the Bill and restrict the power to make such order within a period of three years

and mandates every such order issued under this clause to be laid before each House of

Parliament.

Clause 280.––This clause seeks to repeal the Merchant Shipping Act, 1958 and the

Coasting Vessel Act, 1838. It provides for saving of various actions undertaken under the

said enactments as specified therein.

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FINANCIAL MEMORANDUM

Clause 4 of the Bill provides for establishment of the National Shipping Board by the

Central Government to advise it on matters relating to Indian shipping including the

development thereof.

Clause 5 of the Bill provides for constitution of Seafarers Welfare Board by the

Central Government for advising it on the measures for promoting the welfare of the seafarers.

Clause 6 of the Bill empowers the Central Government to appoint the Director-General

of Shipping for discharging the powers, authorities or duties under the provisions of the Bill.

Clause 7 of the Bill empowers the Central Government to appoint Surveyors at such

port or place as it may consider necessary.

Clause 8 of the Bill empowers the Central Government to appoint Radio Inspectors

relating to radio communication.

Clause 9 of the Bill empowers the Central Government to establish and maintain office

of Mercantile Marine Department in the ports of Mumbai, Kolkatta, Chennai, Kochi, Kandla

and such other ports or places for the administration of the provisions of the Bill.

Clause 10 of the Bill empowers the Central Government to establish Shipping Office

and appoint shipping master and other officers as it may consider necessary.

Clause 11 of the Bill empowers the Central Government to establish at every port a

seafarer’s employment office and shall appoint thereto a Director and as many Deputy

Directors and Assistant Directors as it may consider necessary.

Clause 12 of the Bill empowers the Central Government to appoint Seafarers Welfare

Officer in any port or place outside India.

Clause 54 of the Bill provides for fee to be paid to the examiner appointed to examine

the qualification of persons desirous of certificate of competency or certificate of proficiency.

Clause 115 of the Bill provides for making arrangements for search and rescue at sea

and establishment of rescue coordination centres and sub-centres.

Clause 135 of the Bill empowers the port authority to impose suitable charge for

setting-up facilities to receive wastes, facilities for handling, treatment and disposal of wastes

generated on ships in an environmentally sound manner by public sector ports.

The expenditure on establishing the National Shipping Board, constituting the Seafarer

Welfare Board, appointing the Director-General of Shipping, the Surveyors, the Radio

Inspectors, establishing and maintaining office of the Mercantile Marine Departments,

establishing Shipping Office and appointing shipping master and other officers, establishing

at every port a seafarer’s employment office and appointing Director, Deputy Directors and

Assistant Directors, appointing the Seafarers Welfare Officer, fee to be paid to the examiners

will be met out of the existing budgetary allocations of the Ministry of Shipping. The

arrangements for search and rescue at sea and the establishment of rescue coordination

centres and sub-centres are already in place and do not involve any additional expenditure.

The expenditure of setting-up facilities to receive wastes, reception facilities and the facilities

for handling, treatment and disposal of such wastes in an environmentally sound manner by

public sector ports, or places which have an interface with ships, will be met from their own

budget and charges imposed on ships for providing such facilities.

The Bill, therefore, if enacted, will not involve any additional expenditure of recurring

or non-recurring nature.

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MEMORANDUM REGARDING DELEGATED LEGISLATION

Sub-clause (7) of clause 4 of the Bill empowers the Central Government to make

rules for the matters relating to the term of office of members of the Shipping Board; the

manner of filling vacancies in the Shipping Board; the travelling allowances and other

allowances payable to the members of the Shipping Board; and the manner of appointment

of officers and other employees of the Shipping Board and the terms and conditions of

their service.

2. Sub-clause (2) of clause 5 of the Bill empowers the Central Government to make

rules for the matters relating to the composition of the Welfare Board and the term of

office of members thereof; the procedure to be followed in the conduct of business by the

Welfare Board; the travelling and other allowances payable to the members of the Welfare

Board; the rate of levy of fee payable by owners of vessels for the purposes of providing

amenities to seafarer and for taking other measures for the welfare of the seafarer; the

procedure by which any such fee may be collected or recovered and the manner in which

the proceeds of such fees, after deduction of the cost of collection, shall be utilised for

the purpose specified in sub-clause (d).

3. Clause 50 of the Bill empowers the Central Government to make rules to carry

out the purposes of the provisions of the Part III of the Bill. Sub-clause (2) specifies the

matters in respect of which such rules may be made. These matters, include the conditions

for registration of an Indian vessel; the manner of keeping the register book and making

entries therein and maintenance of the records of vessels registered under this Bill; the

form and manner of making application for registry of an Indian vessel; the other particulars

descriptive of the identity of vessel; the manner of making endorsement; the procedure

for issuing a provisional certificate of registry; the form of mortgage; the form of instrument

effecting the transfer; the manner of description of the name, call sign and official number

of Indian vessel; the fee for inspection of register book and a certified copy of any entry of

the register book; the procedure for registration of vessel chartered on bareboat charter-

cum-demise and any other matter which is required to be or may be made.

4. Clause 59 of the Bill empowers the Central Government to make rules to carry

out the purposes of the provisions of Part IV of the Bill. Sub-clause (2) specifies inter

alia, the manning scale of seafarers; the different manning scales in relation to different

categories of vessels, areas and type of operations; the requirement and grant of certificates,

its form fees and its valid period and the manner of keeping the copies of certificates; the

manner of conducting examination for certificate of competency or proficiency, the fee

for grant of such certificate and any other matter which is required to be or may be made.

5. Sub-clause (1) of clause 62 of the Bill empowers the Central Government to

make rules for classification of seafarers into different categories, the minimum manning

scale of seafarers of such categories and the different scales of different classes to ships.

6. Clause 68 of the Bill empowers the Central Government to make rules, having

regard to the provisions of the Maritime Labour Convention, for the matters relating to

the seafarer's employment officer. These matters, include the payment of wages; hours of

work and hours of rest; leave entitlement; accommodation, recreational facilities, food

and catering; health protection, medical facilities, welfare and social security protection.

7. Sub-clause (8) of clause 86 of the Bill empowers the Central Government to

make rules with respect to relief, maintenance and return to the proper port of a seafarer

found in distress; the circumstances in which and the conditions subject to which the seafarer

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may be relieved; and to carry out the provisions of Part V of the Bill relating to distressed

seafarer.

8. Clause 109 of the Bill empowers the Central Government to make rules to carry

out the provisions of Part V of the Bill. Sub-clause (2) enumerates the matters in respect

of which such rules may be made. These matters, include the continuous discharge

certificate and seafarers identity documents; other function and duties of the seafarers

employment offices; the form, manner of issue of continuous discharge certificates;

seafarers identity documents and fees for such certificates and documents; the qualifications

of seafarers; the manner of discharge from service of seafarers; the restrictions and

conditions for utilisation of any amount deposited with or recovered from shipping master;

the form and manner of keeping logbook and any other matter which is required to be or

may be made.

9. Clause 128 of the Bill empowers the Central Government to make rules for safety

and security requirements applicable to vessel, company or port facility under Part VI of

the Bill. Sub-clause (2) thereof enumerates the matters in respect of which such rules may

be made. These matters, include the safety and security requirements for different classes

of vessels; the manner of reporting the particulars of incidents and the authority to whom

such particulars to be reported; the communication equipment, distress and safety

equipment to be equipped and maintained, and the certified operators to be provided; the

requirements for safety or security management; the provisions with regard to insurance,

classification and condition of vessel; any other matter which is required to be or may be

made.

10. Sub-clause (1) of clause 131 of the Bill empowers the Central Government to

make rules for requiring Indian vessel to be fitted with such equipment and to comply with

such requirements relating to construction, survey of equipment and structure of such

vessel and specifying conditions, prior to issuing a certificate under Part VII of the Bill.

11. Clause 138 of the Bill empowers the Central Government, having regard to the

Pollution prevention convention, to make rules to carry out the purposes of Part VII of the

Bill. Sub-clause (2) enumerates the matters in respect of which such rules may be made.

These matters, include the conditions to comply the provisions of the conventions; the

pollution prevention requirements; the form and manner and other matter relating to

maintenance of record book; the reception facility, surveillance, supervision and guidance;

the manner of reporting the incidents to the authority to whome the incident to be reported

and any other matter which is required to be or may be made.

12. Clause 143 of the Bill empowers the Central Government to make rules for

recognition of a certificate issued under a Convention in respect of vessel other than

Indian vessel by the government of the country to which the vessel belongs.

13. Clause 145 of the Bill empowers the Central Government to make rules to carry

out the purposes of Part VIII of the Bill. Sub-clause (2) enumerates the matters in respect

of which such rules may be made. These matters, include the requirements for verification

of vessel, company, port facility, shipyard, ship breaking yard, ship repair unit, offshore

facilities or terminal; the manner of requirements and the manner of survey, audit and

certification of vessel, company, port facility, shipyard, ship breaking yard, ship repair

unit, offshore facilities or terminal and modification, revocation, suspension, cancellation

or surrender of the certificates and documents; the certificates to be possessed by a vessel,

company, port facility, shipyard, ship breaking yard, ship repair unit, offshore facilities or

terminal; the manner of compliance for survey, audit and certification; the requirement

and the manner of survey, audit and certification of different classes of vessel, company,

port facility, shipyard, ship breaking yard, ship repair unit, offshore facilities; and any

other matter which is required to be or may be made.

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14. Clause 166 of the Bill empowers the Central Government having regard to the

LLMC Convention to make rules to carry out the purposes of Chapter II of Part IX of the

Bill. Sub-clause (2) provides that the rules may be made in matters relating to the limits

and liability in cases where the LLMC Convention not applicable; the amount of limit of

liability of the owner for loss of life or personal injury to passengers of a ship and any

other matter which is required to be made or may be made.

15. Clause 181 of the Bill empowers the Central Government to make rules to carry

out the provisions of Chapter III of Part IX of the Bill. Sub-clause (2) provides that the

rules may be made in matters relating to the form of certificate and particulars to be given

thereto; the fees to be charged for issue of certificates and any other matter which is

required to be or may be made.

16. Clause 196 of the Bill empowers the Central Government to make rules to carry

out the provisions of Chapter IV of Part IX of the Bill. Sub-clause (2) provides that the

rules may be made in matters relating to the limits of liability of the insurer or other

person providing financial security; the form of certificate, the particulars containing therein

with the conditions and fee for issue of certificate; the renewal of certificate and fees

therefor and any other matter which is required to be or may be made.

17. Clause 206 of the Bill empowers the Central Government to make rules to carry

out the provisions of the Fund Convention.

18. Clause 238 of the Bill empowers the Central Government to make rules to carry

out the provisions of Part XI of the Bill. Sub-clause (2) enumerates the matters in respect

of which such rules may be made. These are the matters relating to manner of marking

wreck; the time limit to remove the wreck; the other financial security; the measures to be

taken to protect the coastline or related interest from pollution or threat of pollution; the

criteria for calming rewards, the manner of fixing rewards, the payment of special

compensation, the apportionment of payment amongst salvors, the salvage of persons, the

payment under the contract, the payment for additional services not covered under the

contract and the effect of misconduct of salvors on reward or payment and any other matter

which is required to be or may be made.

19. Clause 245 of the Bill empowers the Central Government to make rules to carry

out the provisions of Part XII of the Bill. Sub-clause (2) thereof enumerates the matters in

respect of which such rules may be made. These matters, inter alia, include the form of

licence and the valid period of such licence and any other matters which is required to be

or may be made.

20. Clause 255 of the Bill empowers the Central Government to make rules to carry

out the provisions of Part XIII of the Bill. Sub-clause (2) provides the rules may be made

in matters relating to the scale of manning and fittings material, appliance and apparatus to

be carried on board by Indian vessels; the certificates required to ply or proceed to sea by

a vessel; the manner of issuance of grant of certificate and the period for which the said

certificate shall be in force; the form for maintaining a statement of the crew of the vessel

and any other matter which is required to be or may be made.

21. Clause 275 of the Bill empowers the Central Government to make rules to carry

out the provisions of the Bill in respect of matters contained elsewhere in the Bill.

22. Clause 276 of the Bill provides for the rules to be published in the Official

Gazette subject to previous publication and every rules made or notification issued under

this Bill shall be laid before each House of Parliament.

23. Clause 279 of the Bill empowers the Central Government to make an order

published in the Official Gazette, for removal of difficulties in giving effect to the

134

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

provisions of this Bill, and every such order issued shall be laid before each House of

Parliament.

24. The matters in respect of which rules may be made or notifications to be issued

under the proposed legislation are matters of procedure or administrative details and it is

not practicable to provide for them in the Bill itself. The delegation of legislative powers

is, therefore, of a normal character.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

135

BILL NO. 328 OF 2016

A Bill to provide for regulation, operation and planning of Major Ports in India and to

vest the administration, control and management of such ports upon the Boards of

Major Port Authorities and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as

follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Major Port Authorities Act, 2016.

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

in the Official Gazette, appoint.

(3) It shall, in the first instance, apply to the Major Ports of Chennai, Cochin, Jawaharlal

Nehru Port, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, V.O.

Chidambaranar and Visakhapatnam and to such other Major Ports with effect from such

date as the Central Government may notify.

2. (1) In this Act, unless the context otherwise requires,—

(a) “Adjudicatory Board” means the Board constituted by the Central

Government under section 51;

Short

title,

commencement

and application.

Definitions.

136

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(b) “Board” means the Board of Major Port Authority constituted by the

Central Government in accordance with sub-section (1) of section 3 for each Major

Port under this Act;

(c) “capital reserves” for the purpose of this Act, shall mean the total of the

revenue excluding the reserves set forth in sub-section (1) of section 40 and the value

of the current assets of the Board in the preceding financial year;

(d) “Chairperson” means the Chairperson of the Board appointed under

sub-section (1) of section 4;

(e) “dock” includes all basins, locks, cuts, entrances, graving docks, graving

blocks, inclined planes, slipways, gridirons, moorings, transit-sheds, warehouses,

tramways, railways and other works and things appertaining to any dock, and also the

portion of the sea enclosed or protected by the arms or groynes of a harbour;

(f) “foreshore”, in relation to a Major Port, means the area between the high-

water mark and the low-water mark relating to that Major Port;

(g) “goods” includes livestock and every kind of movable property;

(h) “grave emergency” means a condition as determined by the

Central Government wherein the Board is unable to discharge its duties appropriately

and includes acts of sedition, non-performance, unlawful and illegal actions, negligence

and financial misappropriation;

(i) “high-water mark”, in relation to a Major Port, means a line drawn through

the highest points reached by ordinary spring-tides at any season of the year at that

Major Port;

(j) “immovable property” includes wharfage-rights and all other rights exercisable

on, over, or in respect of, any land, wharf, dock or pier;

(k) “Independent Member” means a Member of the Board appointed under

sub-section (3) of section 4;

(l) “Indian Ports Act” means the Indian Ports Act, 1908;

(m) “land” includes the bed of the sea or river below high-water mark, and also

things attached to the earth or permanently fastened to anything attached to the earth;

(n) “low-water mark”, in relation to a Major Port, means a line drawn through

the lowest points reached by ordinary spring-tides at any season of the year at that

Major Port;

(o) “Major Port” or 'Major Port Authority' means the Major Port as defined in

clause (8) of section 3 of the Indian Ports Act;

(p) “Major Port approaches”, in relation to a Major Port, means those parts of

the navigable rivers and channels leading to the Major Port, where the Indian Ports

Act is in force;

(q) “master”, in relation to any vessel or any aircraft making use of any

Major Port, means any person having for the time being the charge or control of such

vessel or such aircraft, as the case may be, except a pilot, harbour master, assistant

harbour master, dock master or berthing master of the Major Port;

(r) “Member” means the Member of the Board appointed under section 4;

(s) “notification” means a notification published in the Official Gazette and the

expression “notify” shall be construed accordingly;

15 of 1908.

SEC. 2]

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137

(t) “owner”,—

(i) in relation to goods, includes any consignor, consignee, shipper or

agent for the sale, custody, loading or unloading of such goods; and

(ii) in relation to any vessel or any aircraft making use of any Major Port,

includes any part-owner, charterer, consignee, or mortgagee in possession thereof;

(u) “pier” includes any stage, stairs, landing place, hard, jetty, floating barge,

transhipper or pontoon, and any bridges or other works connected therewith.

Explanation.—For the purposes of this clause, the term “transhipper” means a floating

craft or vessel, whether dumb or self-propelled, on which gears are provided for discharging

cargo from a barge or wharf and loading it into a ship;

(v) “port assets” means any asset within the port limits including land, movable

or immovable property or any other property, whether tangible or intangible, owned

by or vested with the Board through the Central Government or the State Government,

as the case may be;

(w) “port limits” in relation to a Major Port, means the limits including any

piers, jetties, landing-places, wharves, quays, docks and other works made on behalf

of the public for convenience of traffic, for safety of vessels or for the improvement,

maintenance or good governance of the Major Port and its approaches whether within

or without high-water-mark, and, subject to any rights of private property therein, any

portion of the shore or bank within fifty yards of high-water mark and the area of such

Major Port as may be determined by the Central Government by way of notification

from time to time;

(x) “port security” means the debentures, bonds or stock certificates issued by

the Board in respect of any loan contracted by it under the provisions of this Act or

issued by any other Authority for the payment of which the Board is liable under this

Act;

(y) “prescribed” means prescribed by the rules made under this Act;

(z) “Public Private Partnership project” means the projects taken up through a

concession contract entered into by the Board of Major Port Authority under sub-

section (1) of section 21 based on a revenue or royalty sharing basis;

(za) “rate” includes any toll, due, rent, rate, fee, or charge leviable under this

Act;

(zb) “regulations” means the regulations made by the Board under this Act;

(zc) “vessel” includes anything made for the conveyance, by water, of human

beings or of goods and a caisson;

(zd) “wharf” includes any wall or stage and any part of the land or foreshore that

may be used for loading or unloading goods, or for the embarkation or disembarkation

of passengers and any wall enclosing or adjoining the same.

(2) Words and expression used but not defined in this Act and defined in the Indian

Ports Act shall have the same meanings respectively assigned to them in that Act.

CHAPTER II

BOARD OF MAJOR PORT AUTHORITY

3. (1) The Central Government shall, within a period of ninety days from the date of

commencement of this Act, by notification, in respect of each Major Port, constitute a Board

called the Board of Major Port Authority for that Port which shall consist of the following

Members, namely:—

Constitution

and

composition of

Board of Major

Port Authority.

138

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

Qualifications

of Chairperson,

Deputy

Chairperson

and Members

of Board.

38 of 1963.

(a) a Chairperson;

(b) a Deputy Chairperson;

(c) one Member each from the—

(i) Concerned State Government in which the Major Port is situated;

(ii) Ministry of Railways;

(iii) Ministry of Defence; and

(iv) Customs, Department of Revenue;

(d) not less than three and not exceeding four Independent Members;

(e) one Member not below the rank of Director nominated by the Central

Government, ex officio; and

(f) one Member representing the interest of the employees of the Major Port

Authority:

Provided that until the constitution of the Board of Major Port Authority, the Board of

Trustees constituted under section 3 of the Major Port Trust Act, 1963 shall continue to

function and shall cease to exist immediately after the constitution of the Board under this

Act.

(2) The Board of each Major Port Authority constituted under this Act shall be a

permanent body having perpetual succession and a common seal with power, subject to the

provisions of this Act, to acquire, hold or dispose of property, both movable and immovable,

and to contract, and shall, by the said name, sue or be sued.

4. (1) The Chairperson and Deputy Chairperson of the Board shall be appointed by

the Central Government on the recommendation of a Select Committee consisting of such

persons and in such manner, as may be prescribed.

(2) The Members of the Board as mentioned in clause (c) of sub-section (3) of

section 3 shall be appointed by the Board in such manner as may be prescribed from amongst

persons having adequate knowledge and professional experience of not less than fifteen

years in shipping, marine, management or administration.

(3) The qualifications, experience and manner of appointment of Independent Members

shall be such as may be prescribed.

(4) The appointment of the Member referred to in clause (f) of sub-section (3) of

section 3 shall be made by the Central Government, by notification, from amongst the persons

who in the opinion of the Central Government are capable of representing the interest of the

employees in the Major Port Authority.

(5) Every person nominated or appointed to the office of the Chairperson or the Member

of the Board, shall, within thirty days of his nomination or appointment, furnish to the said

Board his consent and a declaration that he is not disqualified or ineligible to hold such

office.

5. (1) A person shall not be eligible for appointment or to continue as a Member of the

Board, if —

(a) he has been adjudged as an insolvent; or

(b) he has become physically or mentally incapable of acting as a Member; or

(c) he has been convicted of an offence, involving moral turpitude; or

(d) he holds an office of profit or the office of the Functional Head in the

Major Port Authority or the Board of that Authority; or

Removal of

Chairperson,

Deputy

Chairperson

and Member

from office in

certain

circumstances.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

139

(e) he has made a false declaration under sub-section (5) of section 4; or

(f) he has been removed or dismissed from the service of a Major Port Authority,

Government or a body corporate owned or controlled by the Central Government or

the State Government; or

(g) an order disqualifying him for appointment as a Member has been passed by

a court or tribunal and such order is in force.

(2) The Chairperson or Deputy Chairperson or any other Member shall not be removed

from his office except by an order of the Central Government on the ground of his proved

misbehaviour or incapacity or in contravention of the provisions of section 7 after the Central

Government, has, on an inquiry, held in accordance with the procedure prescribed in this

behalf by the Central Government, come to the conclusion that the Member ought on any

such ground to be removed.

(3) The Central Government may suspend the Chairperson or Deputy Chairperson or

any other Member in respect of whom an inquiry under sub-section (2) is being initiated or

pending till the Central Government has passed an order on receipt of the report of the

inquiry.

6. (1) The Chairperson and the Deputy Chairperson shall hold office for a term not

exceeding five years from the date on which they enter upon their office or until they attain

the age of superannuation, whichever is earlier.

(2) Subject to the provisions of this Act, a person appointed as a Member of the Board

by virtue of an office under clause (c) of sub-section (3) of section 3 shall continue to be a

Member of the Board so long as he continues to hold that office.

(3) An Independent Member shall hold office for a term of three years from the date of

his appointment or up to the age of seventy years, whichever is earlier and shall be eligible

for re-appointment:

Provided that no Independent Member shall hold office for more than two consecutive

terms:

Provided further that an Independent Member shall not, during the said period of

three years, be appointed to or be associated with any Major Port Authority in any other

capacity, either directly or indirectly.

(4) The Member appointed under clause (f) of sub-section (3) of section 3 shall hold

office for a term of three years.

7. Before appointing any person as a Chairperson or Deputy Chairperson or Member,

the Central Government shall satisfy itself that the person does not have any such financial

or other interest as is likely to affect prejudicially his functions as such Chairperson,

Deputy Chairperson or Member:

Provided that where any Member who is not so concerned or interested at the time

of occupying such office, he shall, if he becomes concerned or interested afterwards,

disclose his concern or interest forthwith when he becomes concerned or interested or at

the first meeting of the Board held after he becomes so concerned or interested and resign

forthwith.

8. The Chairperson, Deputy Chairperson and Members may, by notice in writing under

their hand addressed to the Central Government, resign their office and on such resignation

being accepted by that Government, shall be deemed to have vacated their office.

Term of office

of Chairperson,

Deputy

Chairperson

and Members.

Disclosure of

interest.

Resignation of

Members.

140

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

Removal from

office of

Chairperson,

Deputy

Chairperson

and Members.

Meetings

of

Board.

9. The Central Government shall remove the Chairperson, Deputy Chairperson or any

Member, if he-—

(a) becomes subject to any of the disqualification mentioned in section 5; or

(b) has, in the opinion of the Central Government, ceased to represent the interest

by virtue of which he was appointed or elected; or

(c) refuses to act or becomes incapable or acting; or

(d) is, without the permission of the Board previously obtained, absent from six

consecutive ordinary meetings of the Board; or

(e) is absent from the meetings of the Board for a period exceeding six consecutive

months; or

(f) acts in contravention of the provisions of this Act.

10. The Members appointed under clauses (c), (d) and (f) of sub-section (3) of

section 3, shall be paid such honorarium as may be prescribed.

11. The Chairperson and in his absence, the Deputy Chairperson shall have powers of

general superintendence and directions in the conduct of affairs of the Major Port Authority

and he shall, in addition to presiding over the meetings of the Board, exercise supervision

and control over the acts of all employees of the Major Port Authority in matters of executive

administration and in matters concerning the accounts and records of such Board.

12. (1) The Board shall meet at such places and times, and shall follow such rules of

procedure in regard to the transaction of business at its meetings (including quorum at such

meetings), as may be specified by the regulations.

(2) If the Chairperson for any reason, is unable to attend a meeting of the Board, the

Deputy Chairperson and in the absence of such Deputy Chairperson, any other Member

chosen by the Members present amongst themselves at the meeting, shall preside at the

meeting.

(3) All questions which come up before any meeting of the Board shall be—

(a) decided by a majority of votes by the Members present and voting, and in

the event of an equality of votes, the Chairperson or in his absence, the person presiding

shall have a second or casting vote;

(b) dealt with as expeditiously as possible and the Board shall dispose of the

same within a period of sixty days from the date of receipt of the application:

Provided that where any such application could not be disposed of within the said

period of sixty days, the Board shall record its reasons in writing for not disposing of the

application within that period.

13. (1) A Board may, from time to time, from amongst its Members and any other

person, constitute committees for the purpose of discharging such of its functions as may be

delegated to such committee or committees by the Board.

(2) The committee or committees constituted under this section shall meet at such time and

at such places and shall observe such rules of procedure in regard to the transaction of business

at its meetings (including the quorum) as may be provided by regulations made under this Act.

14. The Board may, for the purpose of discharging of its powers, functions and duties,

by general or special order in writing, specify—

(a) the powers and duties conferred or imposed upon the Board by or under this

Act which may also be exercised or performed by the Chairperson; and

Fees and

honorarium

payable to

Members.

Powers and

duties of

Chairperson,

Deputy

Chairperson

and Members.

Appointment

of committees.

Delegation of

powers.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

141

Vacancies,

etc., not to

invalidate

proceedings of

Board.

Power to make

appointments.

(b) the powers and duties conferred or imposed on the Chairperson by or under

this Act, which may also be exercised or performed by the Deputy Chairperson or any

officer or officers of the Board and the conditions and restrictions, if any, subject to

which the powers and duties may be exercised and performed:

Provided that any powers and duties conferred or imposed upon the Deputy Chairperson

or any officer of the Board under this clause (b) shall be exercised and performed by him

subject to the supervision and control of the Chairperson.

15. No act or proceedings of the Board shall be invalid merely by reason of—

(a) any vacancy in, or any defect in, the constitution of the Board; or

(b) any defect in the appointment of a person acting as a Member of such Board;

or

(c) any irregularity in the procedure of the Board not affecting the merits of the

case.

16. (1) The power of appointing any person to any Post, whether temporary or permanent

shall—

(a) in the case of a post—

(i) the incumbent of which is to be regarded as the Head of a department; or

(ii) to which such incumbent is to be appointed; or

(iii) the maximum of the pay scale of which (exclusive or allowances)

exceeds such amount as the Central Government may, by notification in the

Official Gazette, fix,

be exercisable by the Central Government after consultation with the Chairperson;

(b) in the case of any other post, be exercisable by the Chairperson or by such

authority as may be specified by regulations:

Provided that no person shall be appointed as a pilot at any port, who is not for the

time being authorised by the Central Government under the provisions of the Indian Ports

Act to pilot vessels at that or any other port.

(2) The Central Government may, by order, specify any post the incumbent of which

shall, for the purposes of this Act, be regarded as the Head of a department.

CHAPTER III

MANAGEMENT AND ADMINISTRATION

A. STAFF OF MAJOR PORT AUTHORITY

17. The Board shall after every five years prepare and submit to the Central Government

a list of the employees of the Board of Major Port Authority indicating therein the designations

and grades of employees and the salaries, fees and allowances which are proposed to be paid

to them.

B. PROPERTY AND CONTRACTS

18. On and from the date of constitution of the Board—

(a) the Board of the Major Port Authority shall be the successor of the Board of

Trustees constituted under the Major Port Trusts Act, 1963;

(b) all the assets and liabilities of the Board of Trustees shall stand transferred

to, and vested in, the Board.

List of staff of

Board.

Board to be

deemed as

successor of

Board of

Trustees of

Major Port.

38 of 1963.

142

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[PART II—

Usage of

property,

assets, etc., by

Board.

Explanation.—The assets of the Board of Trustees shall be deemed to include

all rights and powers, all properties, whether movable or immovable, including, in

particular, cash balances, deposits and all other interests and rights in, or arising out

of, such properties as may be in the possession of the Board of Trustees and all books

of account and other documents relating to the same; and liabilities shall be deemed to

include all debts, liabilities and obligations of whatever kind;

(c) without prejudice to the provisions of clause (a), all debts, obligations and

liabilities incurred, all contracts entered into and all matters and things engaged to be

done by, with or for the Board of Trustees immediately before that date, for or in

connection with the purpose of the said Board of Trustees, shall be deemed to have

been incurred, entered into or engaged to be done by, with or for, the Board;

(d) all sums of money due to the Board of Trustees immediately before that date

shall be deemed to be due to the Board;

(e) all suits and other legal proceedings instituted or which could have been

instituted by or against the Board of Trustees immediately before that date may be

continued or may be instituted by or against the Board;

(f) every employee serving under the Board of Trustees of the Major Port

immediately before such date shall become an employee of the Board, shall hold his

office or service therein by the same tenure and upon the same terms and conditions of

service as he would have held the same if the Board had not been established and shall

continue to do so unless and until his employment in the Board is terminated or until

his tenure, remuneration or terms and conditions of service are duly altered by the

Board:

Provided that the tenure, remuneration and terms and conditions of service of

any such employee shall not be altered to his disadvantage without the previous sanction

of the Central Government.

19. (1) The Board of each Major Port shall be entitled to use its property, assets and

funds in such manner and for such purposes as it may deem fit for the benefit of that Major

Port.

(2) All Port assets under the ownership of the Board or vested with the Board through

the Central Government shall be used and developed as per the regulations made by the

Board in that behalf and to the exclusion of any municipal, local or Government regulation:

Provided that any contract or arrangement by the Board for sale of land or immovable

property or for lease of land or immovable property for port related use for a term exceeding

forty years and for any purpose other than the purposes specified in section 22 for a term

exceeding twenty years shall be subject to the prior approval of the Central Government:

Provided further that the tenure for lease of land or immovable property for

Public Private Partnership projects by the Board shall be subject to the policy notified by the

Central Government in respect of such Public Private Partnership projects.

(3) The Board of each Major Port may erect, construct or build such civil structures

within the port limits for port development or improving commerce and trade in national

interest for which no regulatory license or approval from the State authorities shall be required,

unless so mandated by the Central Government.

20. Where any immovable property is required for the purposes of the Board, the

Central Government or, as the case may be, the State Government may, at the request of the

Board, procure the acquisition thereof under the provisions of the Right to Fair Compensation

and Transparency in Rehabilitation and Resettlement Act, 2013 or any other law for the time

being in force, and on payment by the Board of the compensation awarded under that Act

and of the charges incurred by the Government in connection with the proceedings, the land

shall vest in the Board.

30 of 2013.

Procedure

when

immovable

property

cannot be

acquired by

agreement.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

143

Powers

of

Board

in

respect

of

planning and

development.

52 of 1962.

21. (1) The Board of each Major Port shall be competent to enter into and perform any

contract necessary for the performance of its functions under this Act.

(2) Every contract shall, on behalf of the Board of each Major Port, be made by the

Chairperson or by any such officer of the Board as the Chairperson may by general or

special order, authorise in this behalf and shall be sealed with the common seal of the Board.

(3) The form and manner in which any contract shall be made under this Act shall be

such as may be prescribed.

C. PLANNING AND DEVELOPMENT

22. For the purposes of planning and development of the Major Port, the Board in

relation to that Major Port shall have the power to make regulations, not inconsistent with

the Customs Act, 1962 or any rules made thereunder, to—

(a) undertake, execute and perform such works and provide such services at or

within the port limits and Major Port approaches on such terms and conditions as it

may deem necessary or expedient;

(b) declare availability of the port assets at the Major Port or Major Port

approaches for port related activities and services subject to such limits, conditions

and restrictions as it may deem necessary or expedient;

(c) develop and provide infrastructure facilities including setting up new ports,

jetties, navigational channels, dry ports and such other infrastructure in furtherance of

the interest of the Major Port;

(d) take charge of the goods from the concerned owner for the purpose of

performing any port related services;

(e) order, in cases of emergency or for any other reason, the master or owner or

agent of any sea-going vessel, not to bring any vessel alongside of, or to remove such

vessel from, any dock, berth, wharf, quay, stage, jetty or pier belonging to or under the

control of the Board;

(f) permit construction and development by itself or through any person, to make,

erect, fix or remove within the port limits or Major Port approaches any wharf, dock,

quay, stage, jetty, pier, building or structure, erection or mooring or undertake any

reclamation of foreshore within the said limits and buildings and amenities required

for the residence and welfare of the employees of the Board, subject to such limits,

conditions and restrictions as it may deem necessary or expedient;

(g) provide exemption or remission from payment of any rate or charge leviable

on any goods or vessels or class of goods or vessels under this Act;

(h) provide any other services or amenities in respect of vessels, passengers,

goods or employees;

(i) undertake, execute and perform such works, activities and studies to promote

maritime education, training skill development of coastal communities, seafarers

welfare and Major Port related development; and

(j) make or construct or erect within the port limits such structures, buildings,

drains, roads, fences, tube-wells, in-take wells, storage facilities, warehouses, pipelines,

telephone lines, communication towers, electricity supply or transmission equipment,

and such other works and conveniences as the Board of each Major Port thinks proper.

Contracts by

Board.

144

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

Scale of rates

for assets and

services

available at

Major Port.

D. IMPOSITION OF RATES

23. (1) The Board of each Major Port Authority or the committee or committees

appointed in this behalf by the Board in accordance with section 13, may,—

(a) frame scale of rates at which, and a statement of conditions under which any

services shall be performed or made available;

(b) frame scale of rates at which, and a statement of conditions under which, the

access to and usage of the port assets may be allowed by the Board;

(c) frame consolidated scale of rates for any combination of services specified in

clause (a) or for any combination of such service or services with any user or permission

to use or access to any port assets as specified in clause (b);

(d) pass an order for refund of any amount overcharged by the Board in relation

to the services provided to any person;

(e) pass an order for recovery of any rate or charge which is short-levied or

erroneously refunded by the Board to any person under this Act;

(f) frame different scales, fees, rates and conditions for different classes of goods

and vessels under this section:

Provided that the fixation and implementation of such scales, fees, rates and

conditions shall—

(a) not be with retrospective effect;

(b) not be applicable for Public Private Partnership projects already awarded

by the Board or the Central Government;

(c) not be in derogation with the rules made by or the directives of the

Central Government in this behalf;

(d) not be inconsistent with the provisions of the Competition Act, 2002;

and

(e) not be inconsistent with the provisions of any other law for the time

being in force:

Provided further that in case of such Public Private Partnership projects, the

Board may fix the reference tariff for purposes of bidding only and the concessionaire

appointed under any such Public Private Partnership projects shall be free to fix the

tariff based on market conditions and such other conditions as may be notified:

Provided also that the revenue share and other conditions would be as per the

provisions of the specific concession agreement between the Board and the

Public Private Partnership concessionaire appointed under the Public Private

Partnership project.

(2) Notwithstanding anything contained in clause (b) of sub-section (1), the Board

may, by auction or by inviting tenders, lease any land or shed belonging to or in its possession

or occupation at a rate higher than that provided under clause (b) of sub-section (1).

24. (1) The Board for the amount of all rates leviable under this Act in respect of any

goods and for the rent due to such Board for any buildings, plinths stacking areas, or other

premises on or in which any goods may have been placed, it shall have a lien on such goods,

and may seize and detain the same until such rates and rents are fully paid.

(2) The right of lien referred to in sub-section (1) shall have priority over all other liens

and claims, except for general average and for ship owner's lien upon the said goods for

freight and other charges where such lien exists and has been preserved in the manner

12 of 2003.

Board's lien

for rates.

SEC. 2]

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145

Ship-owner ’s

lien for freight

and

other

charges.

Sale of goods

and application

of sale

proceeds in

certain cases.

52 of 1962.

52 of 1962.

provided in sub-section (1) of section 25, and for money payable to the Central Government

under any law for the time being in force relating to customs, other than by way of penalty or

fine.

(3) The right of lien shall also vest with any concessionaire appointed by the Board

with whom a concession contract under a Public Private Partnership project for operating

any berth or terminal within the port limits has been executed by the said Board.

25. (1) If the master or owner of any vessel or his agent, at or before the time of

landing from such vessel or any goods at any port asset belonging to or in the occupation of

the Board of the Major Port, gives to such Board a notice in writing that such goods are to

remain subject to a lien for freight or other charges payable to the ship owner, to an amount

to be mentioned in such notice, such goods shall continue to be liable to such lien to such

amount.

(2) The goods shall be retained in the custody of the Board at the risk and expense of

the owners of the goods until such lien is discharged and godown or storage rent shall be

payable by the party entitled to such goods for the time during which they may be so retained.

(3) Upon the production, before any officer appointed by the Board in that behalf, of

a document purporting to be a receipt for, or release from, the amount of such lien, executed

by the person by whom or on whose behalf such notice has been given, the Board may

permit such goods to be removed without regard to such lien, provided that the Board shall

have used reasonable care in respect to the authenticity of such document.

26. (1) The Board may, after expiry of such time and in such manner as stipulated in

section 48 of the Customs Act, 1962, sell any goods that have passed or placed into the

custody of the Board upon landing thereof—

(a) if any rates payable to the Board in respect of such goods have not been

paid; or

(b) if any rent payable to the Board in respect of any place on or in which such

goods have been stored has not been paid; or

(c) if any lien of any ship-owner for freight or other charges of which notice has

been given has not been discharged and if the person claiming such lien for freight or

other charge has made to the Board an application for such sale; or

(d) if such goods are not removed by the owner or the person entitled thereto

from the premises of the Board.

(2) The procedure for sale of goods under sub-section (1) and the proceeds of any

such sale shall be applied in the manner as provided in section 150 of the Customs

Act, 1962.

(3) Notwithstanding anything contained in this section, controlled goods may be sold

at such time and in such manner as the Central Government may direct.

Explanation.—In this section, “controlled goods” means the goods, the price or disposal

of which is regulated under any law for the time being in force.

27. Subject to the rules made under this Act, the Board of each Major Port shall be

entitled to create specific master plan in respect of any development or infrastructure

established or proposed to be established within the port limits and such master plan shall be

independent of any local or State Government regulations of any authority whatsoever.

28. (1) If the master of any vessel in respect of which any rates or penalties are payable

under this Act, or under any regulations or orders made in pursuance thereof, refuses or

neglects to pay the same or any part thereof on demand, the Board may distrain or arrest

such vessel and the tackle, apparel and furniture belonging thereto, or any part thereof, and

detain the same until the amount so due to the Board, together with such further amount as

may accrue for any period during which the vessel is under distraint or arrest, is paid.

Master Plan.

Recovery of

rates and

charges by

distraint of

vessel.

146

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[PART II—

Application to

Adjudicatory

Board.

Power to raise

loans and issue

securities.

42 of 1999.

(2) In case any part of the said rates or penalties, or of the cost of the distress or arrest,

or of the keeping of the same, remains unpaid for the space of fifteen days next after any such

distress or arrest has been so made, the Board may cause the vessel or other thing so

distrained or arrested to be sold, and, with the proceeds of such sale, shall satisfy such rates

or penalties and costs, including the costs of sale remaining unpaid, rendering the surplus

(if any) to the master of such vessel on demand.

29. Any person aggrieved by any action of the Board while exercising its powers

under sections 19 to 28 (except section 25), may approach the Adjudicatory Board constituted

under section 51 by filing an application before it in such form, manner and on payment of

such fee, as may be prescribed.

CHAPTER IV

POWERS OF BOARDS OF MAJOR PORT AUTHORITIES IN RESPECT OF LOANS AND SECURITIES

A. FINANCIAL POWERS OF BOARDS OF MAJOR PORT AUTHORITIES

30. (1) The Board may for the purposes of its capital expenditure and working capital

requirements raise loans in any currency or currencies from any—

(a) scheduled bank or financial institution located within India; or

(b) financial institution in any country outside India in compliance with the laws

for the time being in force:

Provided that no loan or loans exceeding a sum equivalent to fifty per cent. of

the capital reserves of the Board shall be raised by the Board without the previous

sanction of the Central Government.

(2) The loans may be raised by the Board in open market within India and in any

country outside India on port securities including but not limited to debentures, bonds and

stock certificates issued by the Board or may be obtained from the Central Government or a

State Government:

Provided that no loan shall be raised from and no securities shall be issued to any

person resident outside India without complying with the Foreign Exchange Management

Act, 1999, the circulars and guidelines issued by the Reserve Bank of India, the Foreign

Direct Investment Policy issued by the Central Government and any other law for the time

being in force.

(3) The holder of any port security in any form may obtain in exchange thereof, upon

such terms as the Board may from time to time determine, a port security in such form as

may be specified by the regulations made by the Board.

(4) The right to sue in respect of moneys secured by port securities shall be exercisable

by the holders thereof subject to the provisions of the Limitation Act, 1963.

(5) Nothing contained in this Act shall be deemed to affect the power of the Boards of

Major Port Authorities to raise loans under the Local Authorities Loans Act, 1914.

(6) Notwithstanding anything contained in this Act, the Board may borrow moneys by

means of temporary overdraft or otherwise by pledging the securities held by the Board in

its reserve funds or on the security of the fixed deposits of the Board in its banks:

Provided that such temporary overdrafts or other loans shall not be taken, without

previous sanction of the Central Government, if at any time in any year the amount of such

overdrafts or other loans exceeds a sum equivalent to fifty per cent. of the capital reserves of

the Board:

Provided further that all moneys so borrowed by temporary overdrafts or otherwise

shall be expended for the purposes of this Act.

9 of 1914.

SEC. 2]

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147

31. Notwithstanding anything contained in section 15 of the Negotiable Instruments

Act, 1881, no indorsement of a port security, which is transferable by indorsement, shall be

valid unless made by the signature of the holder inscribed on the back of the security itself.

32. Notwithstanding anything contained in the Negotiable Instruments Act, 1881, a

person shall not by reason only of his having indorsed any port security be liable to pay any

money due, either as principal or as interest, thereunder.

33. (1) The person to whom a duplicate or new security has been issued under the regulations

made by the Board under section 22 shall be deemed for the purposes of sub-section (2) to

have been recognised by the Board as the holder of the security; and a duplicate security or

a new security so issued to any person shall be deemed to constitute a new contract between

the Board and such person and all persons deriving title thereafter through him.

(2) No recognition by the Board of a person as the holder of a port security shall be

called in question by any court so far as such recognition affects the relations of the Board

with the person recognised by it as the holder of a port security or with any person claiming

an interest in such security; and any such recognition by the Board of any person shall

operate to confer on that person a title to the security or securities subject only to a personal

liability to the rightful owner of the security for money had and received on his account.

34. Notwithstanding anything contained in the Limitation Act, 1963—

(a) on payment of the amount due on a port security on or after the date on

which payment becomes due; or

(b) when a duplicate security has been issued under the regulations made by the

Board under section 22; or

(c) when a new security has issued upon conversion, consolidation or sub-division

under the regulations made by the Board,

the Board shall be discharged from all its liability in respect of the security so paid or in

place of which a duplicate or new security has been issued—

(i) in the case of payment after the lapse of six years from the date on

which payment was due;

(ii) in the case of a duplicate security after the lapse of six years from the

date of the issue thereof or from the date of the last payment of interest on the

original security, whichever date is later;

(iii) in case of a new security issued upon conversion, consolidation or

sub-division after the lapse of six years from the date of the issue thereof.

35. If a loan is raised by the Board of any Major Port and a security other than the port

security is required to be furnished to secure such loan, the Board of that Major Port may

secure such loan against—

(a) the port assets other than—

(i) any sum set apart by the Board—

(A) as the sinking fund for the purpose of paying off any loan; or

(B) for the payment of pension to its employees; or

(ii) the provident or pension fund established by the Board; and

(b) income of the Board from the port assets and services.

36. The Board may apply any sums, out of moneys which may come into its hands

under the provisions of this Act and which can be so applied without prejudicing the security

of the other holders of port securities, in repaying to the Government any sum which may

remain due to it in respect of the principal account of any loan although the time fixed for the

repayment of the same may not have arrived.

Endorsements

to be made on

security itself.

Indorser

of

security

not

liable

for

amount thereof.

Recognition as

holder of port

securities

in

certain cases

and legal effect

thereof.

Discharge in

certain cases.

26 of 1881.

26 of 1881.

Security

for

loans taken out

by Boards of

Major

Port

Authorities.

Power of

Board to

repay loans to

Government

before due

date.

36 of 1963.

148

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[PART II—

38 of 1963.

37. (1) In respect of loans raised by the respective Board of the Major Port Authorities

under this Act, which are not repayable before the expiration of one year from the date of

such loans, such Boards shall set apart out of their income enough sinking fund or funds to

service or liquidate such loans for a period of at least one year.

(2) Before the commencement of this Act, if any sinking fund had been established by

the Board of Trusts constituted under the Major Port Trusts Act, 1963 in respect of a loan

raised by it for which loan, the Board is liable under this Act and the sinking fund so established

by that Board of Trusts shall be deemed to have been established by the Board under this Act.

(3) The sums so set apart by the Board under sub-section (1) and the sums forming

part of any sinking fund referred to in sub-section (2) shall be applied in such manner as may

be prescribed.

(4) The Board may apply the whole or any part of the sums accumulated in any sinking

fund in or towards the discharge of the moneys borrowed for the repayment of which the

fund has been established:

Provided that The Board pays into the fund in each year, and accumulates until the

whole of the moneys borrowed are discharged a sum equivalent to the interest which would

have been produced by the sinking fund, or the part of the sinking fund so applied.

38. Notwithstanding anything contained in this Act, all loans raised or borrowed and

all securities issued or pledged in relation to a Major Port prior to the commencement of this

Act shall continue to be governed in accordance with the provisions of the Major Port Trusts

Act, 1963.

B. GENERAL ACCOUNTS OF MAJOR PORT AUTHORITIES

39. All moneys received by or on behalf of the Board under the provisions of this Act

shall be credited to such general account or accounts of the Board which the Board may

from time to time generally open with the scheduled banks as per the guidelines of the

Ministry of Finance, Government of India.

40. (1) The moneys credited to the general account or accounts under section 39, shall

be applied by the Board in payment of the following charges, namely:-—

(a) the salaries, fees, allowances, pensions, gratuities, compassionate allowances

or other moneys due to—

(i) the Members of the Board except Members appointed under

clauses (d), (e) and (f) of sub-section (3) of section 3;

(ii) the employees of the Board; and

(iii) the surviving relatives, if any, of such employees;

(b) the cost and expenses, if any, incurred by the Board in the conduct and

administration of any provident or welfare fund or loan or special fund established by

the Board;

(c) the maintenance, development, security and protection of the Board and the

docks, warehouses and other properties of the Board;

(d) the cost of repairs and maintenance of the property belonging to or vested in

the Board and all charges upon the same and all working expenses;

(e) the costs, expenses, sums, payments and contributions to be made or incurred

by the Board for the purposes provided under section 23; and

(f) any other charge or expenditure for which the Board may be legally liable.

(2) All moneys standing to the credit of the Board which cannot immediately be applied

in the manner or for the purposes specified in sub-section (1) may be used for such lawful

purposes as the Board may from time to time decide.

Establishment

and application

of sinking fund.

38 of 1963.

Existing loans

and securities to

continue.

General

accounts of

Board.

Application of

money in

general

accounts.

SEC. 2]

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149

Accounts and

audit.

(3) Notwithstanding anything contained in section 38 and sub-sections (1) and (2),

moneys received by or on behalf of the Board from non-port related use except those falling

under section 59 shall be credited to a designated account and shall be applied by the Board

for capital investment or for such purposes as may be prescribed.

C. ACCOUNTS AND AUDIT

41. (1) The Board shall prepare a budget, maintain proper accounts and other relevant

records and prepare an annual statement of accounts including the balance sheet in such

form as may be prescribed by the Central Government in consultation with the Comptroller

and Auditor-General of India.

(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General

of India or such other person as may be appointed by him in this behalf and any amount

payable to him by the Board in respect of such audit shall be debitable to the general account

of the Board.

(3) The Comptroller and Auditor-General and any person appointed by him in

connection with the audit of the accounts of the Board under this Act shall have the same

rights and privileges and authority in connection with such audit as the Comptroller and

Auditor-General generally has in connection with the audit of Government accounts and, in

particular shall have the right to demand the production of books, accounts, connected

vouchers and other documents and papers, and to inspect any of the offices of the Authority.

(4) The accounts of the Board, as certified by the Comptroller and Auditor-General of

India or any other person appointed by him in this behalf, together with the audit report

thereon shall be forwarded annually to the Central Government by the Board and the Central

Government shall cause the same to be laid, as soon as may be after it is received, before

each House of Parliament.

CHAPTER V

SUPERVISION OF CENTRAL GOVERNMENT

42. As soon as may be after the first day of April in every year and not later than such

date as may be fixed by the Central Government, the Board shall submit to the Central

Government a detailed report of the administration of the Board during the preceding year

ending on the thirty-first day of March, in such form as the Central Government may direct.

43. The Central Government may, at any time, order a local survey or examination of

any works of the Board, or the intended site thereof and the cost of such survey and

examination shall be borne and paid by the Board from and out of the moneys credited to its

general account.

44. (1) If, at any time, the Central Government is of the opinion that the inaction by

any Board in repairing, completing, restoring, carrying out or providing any work or appliance

mentioned in sub-section (2) has led to a grave emergency, the Central Government may

cause such work to be restored or completed or carried out, or such repairs to be carried out

or such appliance to be provided and the cost of any such restoration, completion, construction,

repair or provision shall be paid by the concerned Board from and out of the moneys credited

to its general account.

(2) The following actions or omissions may be considered to have led to grave

emergency under sub-section (1), if any Board-—

(a) allows any work or appliance constructed or provided by, or vested in, the

Board to fall into disrepair; or

(b) does not, within a reasonable time, complete any work commenced by the

Board or included in any estimate sanctioned by the Central Government; or

Administration

report.

Power of Central

Government to

order survey or

examination of

works of Board.

Power of

Central

Government to

restore or

complete works

at cost of

Board.

150

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[PART II—

(c) does not, after due notice in writing, proceed to carry out effectually any

work or repair or provide any appliance which is necessary in the opinion of the

Central Government for the purposes of this Act.

45. (1) If, at any time, the Central Government is of the opinion—

(a) any Board is unable to perform the duties imposed on it by or under the

provisions of this Act or of any other law for the time being in force; or

(b) that any Board has persistently made defaults in performance of the duties

imposed upon it by or under the provisions of this Act or of any other law for the time

being in force and as a result of such default, the financial position or the administration

of that Board has greatly deteriorated,

the Central Government may, by notification, take over the management of that Board for

such period, not exceeding twelve months at a time, as may be specified in the notification:

Provided that before issuing a notification under this sub-section for the reasons

mentioned in clause (b), the Central Government shall give a reasonable time of not less

than three months to the Board to show-cause why its management should not be taken over

and shall consider the explanations and objections, if any, of that Board.

(2) Upon the publication of a notification under sub-section (1) for taking over the

management of the Board,—

(a) all the Members of the Board shall, as from the date of taking over, stand

removed from their respective office or position in the Board;

(b) all the powers and duties which may, by or under the provisions of this Act

or of any other law for the time being in force, to be exercised or performed by or on

behalf of the Board, shall be exercised and performed by such person or persons as the

Central Government may direct in this behalf until the Board is reconstituted under

clause (b) of sub-section (3);

(c) all property vested in the Board shall, until the Board is reconstituted under

clause (b) of sub-section (3), vest in the Central Government.

(3) On the expiration of the period of taking over specified in the notification issued

under sub-section (1) or at any time prior to such expiration, the Central Government may

by notification —

(a) extend the period of taking over the management of the Board for such

further term, not exceeding twelve months, as it may consider necessary; or

(b) reconstitute the Board by making fresh appointment to all posts of the Board

on such terms and conditions as the Central Government may consider necessary, and

in such case, any persons who stand removed from their offices under clause (a) of

sub-section (2) shall be deemed disqualified for appointment.

46. For any action or actions taken under sections 42 and 44 and any notification

issued under section 45, the Central Government shall prepare and cause a full report of any

such action or actions and notification and the circumstances leading to such action to be

laid before each House of Parliament.

47. Notwithstanding anything contrary in this Act, the Central Government may, in the

interest of security of the nation or on account of a grave emergency, by general or special

order, from time to time, permit certain specified vessels or classes of vessels to discharge or

ship goods or certain specified goods or classes of goods, at such place in a Major Port or

within the Major Port approaches, in such manner, during such period and subject to such

payments to the concerned Board in relation to such Major Port or such Major Port approaches

and on such conditions as the Central Government may think fit.

Power of

Central

Government to

take over

management of

Board.

Laying of

report.

Power of

Central

Government to

exempt from

obligation to

use port assets.

SEC. 2]

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151

38 of 1963.

48. The Board shall not sell, alienate or divest its assets, properties, rights, powers and

authorisation vested in it under this Act without the prior sanction of the Central Government.

49. (1) The Central Government or a State Government, from the date of commencement

of this Act, shall have, in respect of loans made by it to the Board or to any other authority

for the repayment of which the Board is legally liable on such commencement, the same

remedies and priority as applicable under the Major Port Trusts Act, 1963 as if this Act had

not been passed.

(2) For prospective loans by the Central or State Governments or of loans made by any

other authority, the remedies would be the same as available to holders of port securities

issued by the Board unless priority or greater rights are granted by the Board in respect of

such loans within the respective loan agreements.

50. (1) Without prejudice to the foregoing provisions of this Chapter, the Board shall

in discharge of its functions under this Act, be bound by such directions on question of

policy as the Central Government may give in writing from time to time:

Provided that the Board shall be given an opportunity to express its views before any

direction is given under this sub-section.

(2) The decision of the Central Government on whether a question is one of policy or

not shall be final and binding on the Board.

CHAPTER VI

CONSTITUTION OF ADJUDICATORY BOARD

51. (1) The Central Government may, by notification, constitute an Adjudicatory Board

for adjudicating disputes relating to Major Ports and such Board shall consist of a

Presiding Officer and such other members not exceeding two, as may be appointed by the

Central Government.

(2) The head office of the Adjudicatory Board shall be in Mumbai:

Provided that the Adjudicatory Board may hold its sittings at such other places as the

Presiding Officer may decide from time to time having taken into consideration the

convenience to decide the disputes referred to it.

(3) The Adjudicatory Board referred to in sub-section (1) shall perform the following

functions, namely:—

(a) the functions envisaged to be carried out by the erstwhile Tariff Authority

for Major Ports arising from the Tariff Guidelines of 2005, 2008 and 2013 and tariffs

orders issued by the said Authority;

(b) to receive and adjudicate reference on any dispute or differences or claims

related to rights and obligations of Major Ports and Public Private Partnership

concessionaires or captive users for dedicated berth within the framework of their

concession agreements and to pass orders after considering and hearing all the parties

involved in the dispute:

Provided that any party not agreeable with order of the Adjudicatory Board may

resort to arbitration as provided under the provisions of their respective concession

agreements;

Board not to

sell, alienate or

divest its assets,

properties,

rights, powers

and

authorisations

without sanction

of Central

Government.

Remedies of

Government in

respect of loans

made to Board.

Power of

Central

Government to

issue

directions.

Constitution of

Adjudicatory

Board and its

functions.

152

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[PART II—

(c) to appraise, review the stressed Public Private Partnership projects as referred

by the Central Government or the Board of the Major Ports and to suggest measures to

revive such projects; and

(d) to look into the complaints received from port users against the services and

terms of service rendered by the Major Ports or the private operators operating in the

Major Ports and to pass necessary orders after hearing the parties concerned:

Provided that any party not satisfied with the order of the Adjudicatory Board

shall be free to resort to arbitration or any other available legal remedy.

(4) A person shall not be qualified for appointment as the Presiding Officer of the

Adjudicatory Board unless he is, or has been, or is qualified to be, a judge of a High Court.

(5) The Presiding Officer and members of the Adjudicatory Board shall be appointed

by the Central Government on the recommendation of a Select Committee consisting of

such persons and in such manner as may be prescribed.

(6) The Presiding Officer and members of the Adjudicatory Board shall hold office

for a term not exceeding five years from the date on which they enters upon their office or

until they attain the age of seventy years, whichever is earlier.

(7) A person shall not be qualified for appointment as a member of the Adjudicatory

Board unless he is an expert in the field of finance, commerce, marine, shipping and port related

matters, etc., having worked in the respective field for not less than twenty years.

(8) The salaries and allowances payable to and other terms and conditions of service

of the Presiding Officer and members of the Adjudicatory Board shall be such as may be

prescribed:

Provided that neither the salary and allowance nor other terms and conditions of service

of the Presiding Officer or members of the Adjudicatory Board shall be varied to their

disadvantage after their appointment.

(9) The procedure to be adopted by the Adjudicatory Board, while discharging its

functions referred to in sub-section(1) shall be such as may be prescribed.

(10) Notwithstanding anything contained in any other law for the time being in force,

while exercising the powers under sub-section (1), the Adjudicatory Board shall have the

same powers as are vested in a civil court under the Code of Civil Procedure, 1908 while

trying a suit, in respect of the following matters, namely:—

(a) the discovery and production of books of account and other documents, at

such place and at such time as may be specified by the Adjudicatory Board;

(b) summoning and enforcing the attendance of persons and examining them on

oath;

(c) issuing commissions for the examination of witnesses or documents; and

(d) any other matter which may be prescribed.

(11) Any proceeding before the Adjudicatory Board shall be deemed to be a judicial

proceeding within the meaning of sections 193 and 228 and for the purposes of section 196

of the Indian Penal Code and the Adjudicatory Board shall be deemed to a civil court for all

the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

(12) Subject to the provisions of this Act, every order made by the Adjudicatory Board

under this Act shall be final and shall not be called in question in any suit, application,

execution or other proceeding and no injunction shall be granted by any court or other

authority in respect of any action taken or intended to be taken in pursuance of any power

conferred by or under this Act.

5 of 1908.

45 of 1860.

2 of 1974.

SEC. 2]

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Offences by

companies.

Persons

employed by

Board of

Authority to be

public servants.

45 of 1860.

CHAPTER VII

PENALTIES

52. Any person who contravenes any of the provisions of this Act or any rule, regulation

or order made thereunder, shall be punishable with fine which may extend to rupees one

lakh.

53. (1) If the person committing an offence under this Act is a company, every person

who, at the time the offence was committed was in charge of, and was responsible to, the

company for the conduct of business of the company, as well as the company, shall be

deemed to be guilty of the offence and shall be liable to be proceeded against and punished

accordingly:

Provided that nothing contained in this sub-section shall render any such person liable

to such punishment provided in this Act if he proves that the offence was committed without

his knowledge or that he exercised all due diligence to prevent the commission of such

offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under

this Act has been committed by a company and it is proved that the offence has been committed

with the consent or connivance of, or that the commission of the offence is attributable to

any negligence on the part of, any director, manager, secretary or other officer of the company,

such director, manager, secretary, or other officer shall also be deemed to be guilty of that

offence and shall be liable to be proceeded against and punished accordingly.

Explanation.—For the purposes of this section,—

(a) “company” means a body corporate and includes a firm or other

association of individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.

CHAPTER VIII

MISCELLANEOUS

54. No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the

First Class shall try any offence punishable under this Act or any rule or regulation made

thereunder.

55. No suit or other legal proceeding shall lie against the Board or any Member or

employee thereof in respect of anything which is in good faith done or intended to be done

under this Act or any rule or regulation made thereunder, or for any deficiency of service or

any consequential losses on account of deficiency in services.

56. Every person employed by the Board under this Act, shall be deemed to be a

public servant within the meaning of section 21 of the Indian Penal Code.

57. (1) Notwithstanding anything contained in any other law for the time being in

force, the Board in exercise of the powers conferred on it by regulations made under this Act

or by invoking the contractual remedies available to the Board may cancel the allotment of

any premises made to any employee of the Board or any other person or evict an employee

of the Board or any person in occupation of any port asset or premises or area in the port

limits, by notice in writing, addressed to such allottee or employee or other person who may

be in occupation or possession thereof in violation of the regulations specified or formulated

by the Board:

Provided that such notice shall indicate the reasons for cancellation of allotment or

eviction or removal along with the period within which the removal or eviction is sought and

General

provision for

punishment of

offences.

Cognizance of

offences.

Protection of

acts done in

good faith.

Power to evict

certain persons

from premises

of the Board.

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[PART II—

Corporate

Social

Responsibility

and

development of

infrastructure

by Board.

recovery of the sums of dues in arrears and also for the extended unauthorised use of such

premises.

(2) If any allottee or employee or other person is aggrieved by the order made under

sub-section (1), then the said allottee or employee or other person may appeal against the

order with the compensation officer so appointed by the Board within thirty days from the

receipt of the order under sub-section (1).

(3) If any allottee or employee or other person refuses or fails to comply with an order

made under sub-section (1), then any Magistrate of the First Class may, on application made

by or on behalf of the Board, order any police officer, with proper assistance, to enter into

the premises and evict any person from, and take possession of, the premises and to deliver

the same to the Board or a person appointed by the Board in that behalf and the police

officer may, for the purpose, use such force as may be necessary.

(4) Any such notice as is referred to in sub-section (1) may be served—

(a) by delivering or tendering it to the allottee or employee or any other person

who may be in occupation or possession of the whole or any part of the premises; or

(b) if it cannot be so delivered or tendered, by affixing it on the outer door or

some other conspicuous part of the premises; or

(c) by registered post; or

(d) by publishing in the local newspaper having circulation in the area.

Explanation.—For the purposes of this section, the expression “premises” means any

land, building or part of a building which is part of port assets and includes—

(i) areas such as canteens, gardens, grounds and out-houses, if any, appertaining

to such building or part of a building;

(ii) any fittings affixed to such building or part of a building for the more beneficial

enjoyment thereof; and

(iii) any furniture, books or other things belonging to the Board and found in

such building or part of a building.

58. Without prejudice to any other action that may be taken under this Act, the Board

may recover by suit any rates, damages, expenses, costs, or in case of sale the balance

thereof, when the proceeds of sale are insufficient, or any penalties payable to, or recoverable

by, the Board under this Act or under any regulations made in pursuance thereof.

59. (1) Subject to the provisions of the Companies Act, 2013, the Board may use its

funds for providing social benefits including development of infrastructure in areas of

education, health, housing, accommodation, skill development, training and recreational

activities within the port limits for its own employees, customers, business partners,

Government and Non-Government Organisation, local communities, environment and society

at large.

(2) The manner of utilisation of funds for the Corporate Social Responsibility shall be

such, as may be prescribed.

60. (1) The Central Government may, by notification, make rules for carrying out the

provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such

rules may provide for all or any of the following matters, namely:—

(a) the composition of the Select Committee and the manner of appointment of the

Chairperson and Deputy Chairperson of the Board under sub-section (1) of section 4;

(b) the manner of appointment of Members of Board under sub-section (3) of

section 4;

Alternate

remedy by suit.

18 of 2013.

Power of

Central

Government to

make rules.

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155

(c) the procedure for conducting of any inquiry made under sub-section (3) of

section 5;

(d) the honorarium payable to the Members of the Board under section 10;

(e) the form and manner in which contracts shall be made by the Board under

sub-section (3) of section 21;

(f) the form, manner and fees for filing application before the Adjudicatory Board

under section 29;

(g) the manner of applying the sums under sub-section (3) of section 37;

(h) the purposes for which the moneys received by the Board shall be applied

under sub-section (3) of section 40;

(i) the form in which and the time at which the Board shall prepare an annual

report under sub-section (1) of section 41;

(j) the salaries and allowances payable to and other terms and conditions of

services of the Presiding Officer and members of the Adjudicatory Board under

sub-section (8) of section 51;

(k) the procedure to be adopted by the Adjudicatory Board, under

sub-section (9) of section 51;

(l) other functions of the Adjudicatory Board under sub-section (10) of section 51;

(m) the manner of utilisation of funds for Corporate Social Responsibility under

sub-section (2) of section 59; and

(n) any other matter which is required to be, or may be, prescribed, or in respect

of which provision is to be made, by rules.

61. (1) The Board may, with the previous approval of the Central Government and

after previous publication, by notification, shall make regulations consistent with this Act

and the rules made thereunder to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such

regulations may provide for all or any of the following matters, namely:—

(a) rules of procedure for transaction of business under sub-section (1) of

section 12;

(b) rules of procedure for transaction of business under sub-section (2) of

section 13;

(c) the appointment of employees under clause (b) of sub-section (1) of

section 16;

(d) the use and development of the port assets under sub-section (2) of

section 19;

(e) the purposes of planning and development of Major Port under section 22;

(f) the form of port security under sub-section (3) of section 30; and

(g) any other matter which is required to be, or may be, specified by regulations

or in respect of which provision is to be made by regulations.

62. Every rule made by the Central Government, every regulation made by the Board

and every notification issued by the Central Government under this Act shall be laid, as soon

as may be after it is made, before each House of Parliament, while it is in session for a total

period of thirty days which may be comprised in one session or in two or more successive

sessions, and if, before the expiry of the session, immediately following the session or the

successive sessions aforesaid, both Houses agree in making any modification in the rule,

regulation or notification or both Houses agree that the rule, regulation or notification should

not be made, the rule, regulation or notification shall thereafter have effect only in such

modified form or be of no effect, as the case may be; so, however, that any such modification

or annulment shall be without prejudice to the validity of anything previously done under

that rule, regulation or notification.

Power of

Boards of Port

Authorities to

make

regulations.

Laying of rules

and regulations.

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[PART II—

38 of 1963.

38 of 1963.

38 of 1963.

38 of 1963.

38 of 1963.

38 of 1963.

38 of 1963.

38 of 1963.

38 of 1963.

10 of 1897.

Repeal

and

savings.

63. (1) The Major Port Trusts Act, 1963 is here by repealed.

(2) Notwithstanding the repeal of the Major Port Trusts Act, 1963 under

sub-section (1),—

(a) anything done primarily by the Board of Trustees under the Major Port Trusts

Act, 1963 in respect of any rule, notification, inspection, order or notice made or

issued or any appointment or declaration made or any operation undertaken or any

direction given or any proceeding taken or any penalty, punishment, forfeiture or fine

imposed under the Major Port Trusts Act, 1963, shall, insofar as it is not inconsistent

with the provisions of this Act, be deemed to have been done or taken under the

corresponding provisions of this Act;

(b) any order, rule, notification, regulation, appointment, conveyance, mortgage,

deed, trust, special purpose vehicle, joint venture, document or agreement made, fee

directed, resolution passed, direction given, proceeding taken, instrument executed or

issued, or thing done under or in pursuance of the repealed Major Port Trusts Act,

1963 shall, if in force at the commencement of this Act and not inconsistent with the

provisions of this Act, continue to be in force, and shall have effect as if made, directed,

passed, given, taken, executed, issued or done under or in pursuance of this Act;

(c) any principle or rule of law, or established jurisdiction, form or course of

pleading, practice or procedure or existing usage, custom, privilege, restriction or

exemption shall not be affected, notwithstanding that the same respectively may have

been in any manner affirmed or recognised or derived by, in, or from, the repealed

Major Port Trusts Act, 1963;

(d) any person appointed to any office under or by virtue of the repealed Major

Port Trusts Act, 1963 shall be deemed to have been appointed to that office under or

by virtue of this Act;

(e) any jurisdiction, custom, liability, right, title, privilege, restriction, exemption,

usage, practice, procedure or other matter or thing not in existence or in force shall not

be revised or restored;

(f) any documents and any funds constituted and established under the repealed

enactments shall be deemed to be documents and funds constituted or established

under the corresponding provisions of this Act;

(g) any prosecution instituted under the repealed enactments and pending

immediately before the commencement of this Act before any Court shall, subject

to the provisions of this Act, continue to be heard and disposed of by the said

Court; and

(h) any inspection, investigation or inquiry ordered to be done under the repealed

Major Port Trusts Act, 1963 shall continue to be proceeded with as if such inspection,

investigation or inquiry has been ordered under the corresponding provisions of this

Act.

(3) The mention of particular matters in sub-section (2) shall not be held to prejudice

the general application of section 6 of the General Clauses Act, 1897 with regard to the

effect of repeal of the Major Port Trusts Act, 1963.

64. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central

Government may, by order, published in the Official Gazette, make such provisions not

inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for

removing the difficulty:

Provided that no such order shall be made in respect of a Major Port after the expiry of

a period of three years from the date on which this Act is made applicable to that Major Port.

Power to

remove

difficulties.

SEC. 2]

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157

Transitional

provision.

(2) Every order made under this section shall be laid, as soon as may be after it is made,

before each House of Parliament.

65. Notwithstanding anything contained in this Act, the Board of Trustees functioning

as such immediately before the commencement of this Act shall continue to so function until

the Board for each Major Port is constituted under this Act, but on the constitution of such

Board, under this Act, the Members of the Board of Trustees holding office before such

constitution shall cease to hold office.

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[PART II—

STATEMENT OF OBJECTS AND REASONS

The Major Ports Trust Act was enacted in the year 1963 for 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.

2. In India, the Major Port Trusts were created by the Central Government in the 1960's

following the Service Port Model. Each of the Major Port Trust so constituted is being

governed by a Board of Trustees. The powers of these Trustees are limited as they are

bound by the directions on policy matters and orders of the Central Government. The current

model of the Board of Trustees has operational restrictions due to diverse representation of

the Trustees. With the growth and development of private ports, the Major Ports are facing

severe competition and difficulties in implementing the changes which may help the Major

Ports compete in the evolving market conditions. The regulation of tariff in the Major Ports

by the Tariff Authority under the Major Port Trusts Act, 1963 and their administrative control

by the Central Government are some of the critical factors hindering their growth and

development.

3. In view of the above, and to provide greater autonomy, flexibility to the Major Ports

and to professionalise their governance, it is proposed to repeal the Major Port Trusts Act,

1963 and to replace it with a new legislation, namely the Major Ports Authorities Bill, 2016.

4. The proposed Major Port Authorities Bill, 2016, inter alia, provides for the following,

namely:—

(i) to constitute the Board of Port Authority for each Major Port in the place of

the Board of Trustees;

(ii) the Board for each Major Port Authority shall consist of—a Chairperson, a

Deputy Chairperson, one Member each from the (a) concerned State Government in

which the Major Port is situated; (b) Ministry of Railways; (c) Ministry of Defence;

and (d) Customs, Department of Revenue, minimum three and not exceeding four

Independent Members, one Member representing the interest of the employees and

one Member nominated by the Central Government;

(iii) to enable the Board of Port Authority—

(a) to use its property, assets and funds in such manner and for such

purposes as it may deem fit for the benefit of that Major Port;

(b) to enter into and perform any contract necessary for the performance

of its functions under the proposed legislation;

(c) to make regulations for the purposes of operations, development and

planning of the Major Port;

(d) to frame the scales of rates for assets and services available at Major

Port;

(e) to claim lien on such goods and to seize and detain the same until such

rates and rents are fully paid;

(iv) to empower the Board of Port Authority to raise the loans and issue securities

for the purposes of the capital expenditure and working capital requirements of such

Port Authority;

(v) empowering the Central Government—

(a) to order survey or examination of the works of the Port Authority;

(b) to restore and complete the works at the cost of the Port Authority;

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(c) to take over the management of the Port Authority in certain

circumstances;

(d) to exempt certain specified vessels from obligation to use port assets in

the interest or security of the nation or on account of a grave emergency; and

(e) to issue directions to every Port Authority;

(vi) to constitute an Adjudicatory Board for adjudication of disputes among

Major Ports, Public Private Partnership concessionaries and captive users. This

Adjudicatory Board shall consist of a Presiding Officer and such other Members not

exceeding two, as may be appointed by the Central Government; and

(vii) to make a provision for Corporate Social Responsibility measures within the

port limits.

5. The Notes on Clauses explain in detail the various provisions contained in the Bill.

6. The Bill seeks to achieve the above objectives.

NEW DELHI;

NITIN GADKARI

The 15th December, 2016.

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[PART II—

Notes on Clauses

Clause 1.—This clause relates to the short title and commencement of the proposed

legislation and enables the Central Government to appoint a date with respect to the

commencement of the proposed legislation.

Clause 2.—This clause contains the definitions of various expressions used in the

proposed legislation.

Clause 3.—This clause lays down the provisions for the constitution and composition

of the Board of Major Port Authority. The Board shall consists of a Chairperson, a Deputy

Chairperson, one Member each from the (a) concerned State Government in which the Major

Port is situated; (b) Ministry of Railways; (c) Ministry of Defence; and (d) Customs,

Department of Revenue, minimum three and not exceeding four Independent Members, one

Member representing the interest of the employees and one Member nominated by the

Central Government.

Clause 4.—This clause lays down the provisions relating to the qualification, experience

and the manner of appointment of the Chairperson, Deputy Chairperson and Members of the

Board.

Clause 5.—This clause lays down the circumstances in which the Chairperson,

Deputy Chairperson and other Members of the Board shall be ineligible for appointment.

Clause 6.—This clause lays down the term of office of the Chairperson,

Deputy Chairperson and Members.

Clause 7.—This clause provides that the Members of the Board shall disclose their

interests which are likely to affect their official functions within the Board.

Clause 8.—This clause lays down the procedure and manner in which the Chairperson,

Deputy Chairperson and Members of the Board may resign from their office.

Clause 9.—This clause lays down the circumstances under which the Chairperson,

Deputy Chairperson or any Member of the Board shall be removed from his office.

Clause 10.—This clause relates to fees and honorarium payable to Members appointed

from amongst the Members referred to in clauses (c), (d) and (f) of sub-section (1) of section 3.

Clause 11.—This clause provides that the Chairperson and in his absence, the

Deputy Chairperson shall have powers of general superintendence and directions in the

conduct of the affairs of the Major Port Authority and he shall, in addition to presiding over

the meetings of the Board, exercise supervision and control over the acts of all the employees

of the Major Port Authority, in matters of executive administration and in matters concerning

the accounts and records of such Board.

Clause 12.—This clause lays down the procedure and manner in which the meetings

of the Board shall be conducted.

Clause 13.—This clause lays down the power of the Board to appoint Committees and

delegation of powers to such Committees.

Clause 14.—This clause provides that Board may, for the purpose of discharging its

powers, functions and duties, by general or special order in writing, specify (a) the powers

and duties conferred or imposed upon the Board by or under this Act which may also be

exercised or performed by the Chairperson; and (b) the powers and duties conferred or

imposed on the Chairperson by or under this Act, which may also be exercised or performed

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by the Deputy Chairperson or any officer or officers of the Board and the conditions and

restrictions, if any, subject to which the powers and duties may be exercised and performed.

Clause 15.—This clause provides that any vacancy, defect or irregularity in the

constitution of the Board or appointment of the Members shall not invalidate the proceedings

of the Board.

Clause 16.—This clause, inter alia, specifies the relevant authorities empowered to

make appointments on different posts in the Major Port.

Clause 17.—This clause provides that the Board shall prepare and submit to the

Central Government, after every five years, a list of the employees of the Board of the

Major Port Authority indicating therein the designations and grades of employees and the

salaries, fees and allowances which are proposed to be paid to them.

Clause 18.—This clause provides that the Board of the Port Authority shall be deemed

to be the successor of the Board of Trustees of Major Port and all assets, contracts, obligations,

liabilities and employees serving under the Board of Trustees under the Major Port Trusts

Act, 1963 shall transferred to the Board of the Port Authority constituted under the proposed

legislation.

Clause 19.—This clause lays down the provisions relating to usage of property, assets,

etc, by the Board. This clause further lays down that any contract or arrangement to be

entered by the Board for sale of land or immovable property or for lease of land or immovable

property for port related use for a term exceeding forty years and for any purpose other than

the purposes specified in clause 22 for a term exceeding twenty years shall be subject to the

prior approval of the Central Government. This clause also provides that the tenure for lease

of land or immovable property by the Board for Public Private Partnership projects shall be

subject to the policy notified by the Central Government in respect of such Public Private

Partnership projects.

Clause 20.—This clause lays down the procedure for the Board to acquire immovable

property through the Central Government or State Government by payment of compensation

under the Right to Fair Compensation and Transparency in Rehabilitation and Resettlement

Act, 2013.

Clause 21.—This clause empowers the Board to enter into contracts for performance

of its functions under the proposed legislation. This clause further provides that the contracts

shall be entered into by the Chairperson or any authorised officer on behalf of the Board.

Clause 22.—This clause empowers the Board to make different regulations for the

planning and development of the Major Port and such regulations shall not be inconsistent

with the Customs Act, 1962 and the rules made thereunder.

Clause 23.—This clause empowers the Board to frame and fix the scale of rates for

assets and services available at Major Ports. This clause further provides that the fixation

and implementation of such rates, etc. shall not be (a) with retrospective effect; (b) applicable

for Public Private Partnership projects already awarded by the Board or the

Central Government; (c) in derogation of the rules made by or directives of the

Central Government in this behalf; (d) inconsistent with the provisions of the Competition

Act, 2002; and (e)inconsistent with the provisions of any other law for the time being in

force.

Clause 24.—This clause empowers the Board to have lien over the goods in respect of

which any fee or rent is leviable and due to the Board under the proposed legislation. This

clause further provided that the Board also has powers to detain such goods until the

outstanding fee or rate is fully paid to the Board.

Clause 25.—This clause relates to ship-owner's lien for freight and other charges and

provides that if the master or owner of any vessel or his agent, at or before the time of landing

from such vessel or any goods at any port asset belonging to or in occupation of the Board,

gives to such Board a notice in writing that such goods are to remain subject to a lien for

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[PART II—

freight or other charges payable to the ship owner, to an amount to be mentioned in such

notice, such goods shall continue to be liable to such lien to such amount.

Clause 26.—This clause lays down the circumstances under which the Board may sell

the goods that have been passed or placed into its custody upon landing at the Major Port

and also empowers the Board to apply the sale proceeds of such goods in the manner

stipulated under section 150 of the Customs Act, 1962.

Clause 27.—This clause empowers the Board to create specific master plan in respect

of development of infrastructure within the port limits. The said master plan shall be

independent of any local or State Government regulations.

Clause 28.—This clause relates to recovery of rates and charges by distraint of vessel

and empowers the Board to detain or arrest any vessel in respect of which the rates or

penalties are not paid as per the provisions of the proposed legislation.

Clause 29.—This clause provides that any person aggrieved by the action or decision

of the Board under clauses 19 to 28 (except clause 25) of the Act to file an application against

such action or decision before the Adjudicatory Board.

Clause 30.—This clause empowers the Board to raise loans and issue port securities

for capital expenditure and working capital requirements of the Port Authority from any

Scheduled Bank or financial institution located in India or from any financial institutions in

any country outside India without prior approval of the Central Government up to fifty-one

per cent. of the capital reserves of the Board.

Clause 31.—This clause relates to indorsements to be made on port security such as

debentures, bonds and stock certificates issued by the Board and states that notwithstanding

anything contained in section 15 of the Negotiable Instruments Act, 1881, no endorsement

of a port security, which is transferable by indorsement, shall be valid unless made by the

signature of the holder inscribed on the back of the security itself.

Clause 32.—This clause provides that the indorser of security not liable for amount

thereof and states that notwithstanding anything contained in the Negotiable Instruments

Act, 1881, a person shall not by reason only of his having indorsed any port security be

liable to pay any money due, either as principal or as interest, thereunder.

Clause 33.—This clause provides for recognition of the person to whom a duplicate or

new port security has been issued under the regulations made by the Board under clause 22

as the holder of the security. This clause further provides that such recognition by the Board

of a person as the holder of a port security shall not be called in question by any court so far

as such recognition affects the relations of the Board with the person recognised by it as the

holder of a port security or with any person claiming an interest in such security. This clause

also provides that such recognition by the Board of any person shall operate to confer on

that person a title to the security or securities subject only to a personal liability to the

rightful owner of the security for money had and received on his account.

Clause 34.—This clause lists out the events and circumstances in which the Board of

Major Port Authority shall be discharged from its liability to make payments on amount due

on port securities.

Clause 35.—This clause lists out different securities (other than the port security) that

the Board of Major Port Authority may secure for raising loans.

Clause 36.—This clause relates to the power of the Board to repay loans to the

Government before due date.

Clause 37.—This clause requires the Board to establish sinking fund in respect of

loans raised by the Board which are not repayable before the expiry of one year from the date

of such loan. This clause further provides that the Board is also required to set apart enough

funds from its income as sinking fund and apply those funds to service or liquidate its loans.

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Clause 38.—This clause clarifies that the loans raised and securities issued or pledged

by the Major Ports before the commencement of the proposed legislation shall continue to

be governed by the provisions of the Major Port Trusts Act, 1963.

Clause 39.—This clause provides that all moneys received by the Board shall be

credited to the general accounts of the Board which it may open with the Scheduled Banks

as per the guidelines of the Ministry of Finance, Government of India.

Clause 40.—This clause lays down the purposes for which the Board shall apply the

moneys credited into the general accounts of the Board. This clause further provides that

the provision includes payment of salaries, fees, allowances, pension, etc., of the Members

and employees of the Board, cost and expenses incurred by the Board in the conduct and

administration of any provident or welfare fund established by the Board, maintenance,

development, security and protection of the Board, docks, warehouses and other properties

of the Board, and the like.

Clause 41.—This clause relates to the accounts and audit of the Board and requires

the Board to prepare a budget and an annual statement of its accounts. This clause further

provides that the accounts of the Board shall be audited by the office of the Comptroller and

Auditor-General of India and the audited report as certified by the Comptroller and Auditor-

General shall be forwarded to the Central Government for presentation before both the

Houses of Parliament.

Clause 42.—This clause requires the Board to submit to the Central Government, an

annual report in relation to the administration of the Major Port.

Clause 43.—This clause empowers the Central Government to order a survey or

examination of the works of the Board and the cost of such survey and examination by the

Central Government shall be borne and paid by the Board from and out of the moneys

credited to its general account.

Clause 44.—This clause relates to the power of the Central Government to restore or

complete works at the cost of the Board in case of non-completion or inaction of the Board

to complete such works has led to grave emergency. This clause further provides the

circumstances under which the actions or omissions of the Board may be considered to have

led to grave emergency.

Clause 45.—This clause provides the circumstances under which the Central

Government may take over the management of the Board.

Clause 46.—This clause requires the Central Government to prepare and lay report of

actions taken under clauses 42, 44 and 45 before each House of the Parliament.

Clause 47.—This clause relates to the power of the Central Government to exempt

from obligation to use port assets and states that the Central Government may, in the interest

of security of nation or on account of grave emergency, by general or special order, from time

to time, permit certain specified vessels or classes of vessels to discharge or ship goods or

certain specified goods or classes of goods, at such place in a Major Port or within the Major

Port approaches, in such manner, during such period and subject to such payments to the

concerned Board in relation to such Major Port or such Major Port approaches and on such

conditions as the Central Government may think fit.

Clause 48.—This clause restricts the Board not to sell, alienate or divest its assets,

properties, rights, powers and authorisation vested in it under the Act without the prior

sanction of the Central Government.

Clause 49.—This clause, inter alia, provides that the Central and State Governments

in respect of loans given by it to the Board or of loans given to any other authority for the

repayment of which the Board is legally liable on the commencement of the Act, the same

remedies and priority as applicable under the Major Port Trusts Act, 1963, as if the new Act

had not been passed.

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Clause 50.—This clause states that the Board shall in discharge of its functions under

the Act, be bound by the directions on questions of policy as the Central Government may

give in writing from time to time. This clause further states that the Board shall be given an

opportunity to express its views before any direction is given by the Central Government;

but the decision of the Central Government on whether a question is one of policy or not

shall be final and binding on the Board.

Clause 51.—This clause provides for the constitution of the Adjudicatory Board for

hearing the application against any person aggrieved by any action of the Board while

exercising its powers under sections 19 to 28 (except section 25).

Clause 52.—This clause relates to general provision for punishment of offences and

states that any person who contravenes any of the provisions of the Act or any rule,

regulation or order made thereunder, shall be punishable with fine which may extend to

rupees one lakh.

Clause 53.—This clause relates to the offences by companies and inter alia, states

that if the person committing an offence under the proposed legislation is a company, then,

every person who, at the time the offence was committed was in charge of, and was responsible

to, the company for the conduct of business of the company, as well as the company, shall be

deemed to be guilty of the offence and shall be liable to be proceeded against and punished

accordingly. This clause further provides that no such person shall be liable to punishment

if he proves that the offence was committed without his knowledge or that he exercised all

due diligence to prevent the commission of such offence.

Clause 54.—This clause relates to cognizance of offences and states that no court

inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the First Class shall try

any offence punishable under the proposed legislation or any rule or regulation made

thereunder.

Clause 55.—This clause relates to protection of acts done in good faith and states that

no suit or other legal proceeding shall lie against the Board or any Member or employee

thereof in respect of anything which is in good faith done or intended to be done under the

Act or any rule or regulation made thereunder, or for any deficiency of service or any

consequential losses on account of deficiency in services.

Clause 56.—This clause stipulates that every person employed by the Board under

the Act, shall be deemed to be a public servant within the meaning of section 21 of the Indian

Penal Code.

Clause 57.—This clause relates to power of the Board to evict certain persons from

premises of the Board and stipulates that the Board in exercise of the powers conferred on it

by regulations made under the Act or by invoking the contractual remedies available to the

Board may cancel the allotment of any premises made to any employee of the Board or any

other person or evict an employee of the Board or any person in occupation of any port asset

or premises or area in the port limits, by notice in writing, addressed to such allottee or

employee or other person who may be in occupation or possession thereof in violation of the

regulations specified or formulated by the Board.

Clause 58.—This clause entitles the Board with an alternate remedy to recover by suit

any rates, damages, expenses, costs, or in case of sale the balance thereof, when the proceeds

of the sale are insufficient, or any penalties payable to, or recoverable by, the Board under

the Act or under any regulations made in pursuance thereof.

Clause 59.—This clause relates to Corporate Social Responsibility of the Major Ports

and requires the Board of Port Authorities to utilise funds for providing social benefits

including development of infrastructure in areas of education, environment, health, housing,

skill development, training, etc., within the port limits for its employees, customers, business

partners, Non-Government Organisations and society at large.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

165

Clause 60.—This clause provides that the Central Government may, by notification

make rules for carrying out the provisions of the Act.

Clause 61.—This clause provides that the Board may, with the prior approval of the

Central Government, by notification, make regulations consistent with the provisions of the

Act and the rules made thereunder.

Clause 62.—This clause provides that every rule, regulation and notification made

under the Act shall be laid, as soon as may be after it is made, before each House of Parliament.

Clause 63.—This clause relates to repeal of the Major Port Trusts Act, 1963 and

saving of certain actions taken under the said Act.

Clause 64.—This clause relates to power to remove difficulties and provides that if

any difficulty arises in giving effect to the provisions of the proposed legislation, the Central

Government may, by order, published in the Official Gazette, make such provisions not

inconsistent with the provisions of the Act, as appears to it to be necessary or expedient for

removing the difficulty.

Clause 65.—This clause relates to the transitional provision and provides that the

Board of Trustees functioning as such immediately before the commencement of the Act

shall continue to so function until the Board for each Major Port is constituted under the

proposed legislation, but on the constitution of such Board under the proposed legislation,

the Members of the Board of Trustees holding office before such constitution shall cease to

hold office.

166

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

FINANCIAL MEMORANDUM

Clause 23 of the Major Port Authorities Bill, 2016 Bill empowers the Board of each

Major Port authority to frame scale of rates for services to be performed or made available,

and for access to and usage of the port assets.

2. Clause 30 of the Bill empowers the Board to raise loans for capital expenditure and

working capital requirements of the Port Authority from any Scheduled Bank or financial

institution located in India or from financial institutions in any country outside India without

prior approval of the Central Government upto fifty per cent. of the capital reserves of the

Board.

3. Clause 37 of the Bill, inter alia, requires the Board to establish sinking fund in

respect of loans raised by the Board which are not repayable before the expiry of one year

from the date of such loan.

4. Clause 39 of the Bill provides that all moneys received by or on behalf of the Port

Authority under the provisions of this Act shall be credited to such general account or

accounts of the Port Authority which the Board may from time to time generally open with

the Scheduled Banks as per the guidelines of the Ministry of Finance, Government of India.

5. Clause 40 of the Bill requires that the moneys credited in the general account shall

be applied by the Port Authority for payment of such charges and for such purposes as

mentioned in the said clause.

6. The Bill does not involve any other expenditure from the Consolidated Fund of

India, either recurring or non-recurring.

166

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

167

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 60 of the Major Port Authorities Bill, 2016 seeks to empower the

Central Government to make rules for—(a) the composition the Select Committee and the

manner of appointment of the Chairperson and Deputy Chairperson of the Board under

sub-section (1) of section 4; (b) the manner of appointment of members of the Board under

sub-section (3) of section 4; (c) the procedure for conducting any inquiry made under

sub-section (3) of section 5; (d) the honorarium payable to the Members of the Board under

section 10; (e) the form and manner in which contracts shall be made by the Board under

sub-section (3) of section 21; (f) the form, manner and fees for filing application before the

Adjudicatory Board under section 29; (g) the manner of applying the sums under

sub-section (3) of section 37; (h) the purposes for which the moneys received by the Board

shall be applied under sub-section (3) of section 40; (i) the form in which and the time at

which the Board shall prepare an annual report under sub-section (1) of section 41; (j) the

salaries and allowances payable to and other terms and conditions of services of the Presiding

Officer and members of the Adjudicatory Board under sub-section (8) of section 51; (k) the

procedure to be adopted by the Adjudicatory Board, under sub-section (9) of section 51; (l)

other functions of the Adjudicatory Board under sub-section (10) of section 51; (m) the

manner of utilisation of funds for Corporate Social Responsibility under sub-section (2) of

section 59; and (n) any other matter which is required to be, or may be, prescribed, or in

respect of which provision is to be made, by rules.

2. Clause 61 of the Bill empowers the Board, with the previous approval of the

Central Government, by notification, to make regulations consistent with the provisions of

the Act and the rules made thereunder to provide for — (a) rules of procedure for transaction

of business under sub-section (1) of section 12; (b) rules of procedure for transaction of

business under sub-section (2) of section 13; (c) the appointment of employees under clause

(b) of sub-section (1) of section 16; (d) the use and development of the port assets under

sub-section (2) of section 19; (e) the purposes of planning and development of Major Port

under section 22; (f) the form of port security under sub-section (3) of section 30; and

(g) any other matter which is required to be, or may be, specified by regulations or in respect

of which provision is to be made by regulations.

3. The matters in respect of which the aforementioned rules and regulations may be

made are matters of procedure and administrative detail, and as such, it is not practicable to

provide for them in the proposed Bill itself. The delegation of legislative power is, therefore,

of a normal character.

————

ANOOP MISHRA

Secretary General

GMGIPMRND—3964GI(S3)—23-12-2016.

UPLOADED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

MANOJ

KUMAR

Digitally signed by

MANOJ KUMAR

Date: 2016.12.26

14:35:10 +05'30'