he Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017

The Admiralty Act, 2020 (which is actually “The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017” as there was no major amendment in 2020, though rules might have been framed), is a significant piece of legislation in India that consolidates and updates the laws relating to admiralty jurisdiction, legal proceedings concerning vessels, maritime claims, the arrest, detention, and sale of ships, and other related matters. Here are the salient features of this Act:

1. Consolidation of Laws:

• The Act repeals and replaces several archaic British-era laws that previously governed admiralty jurisdiction in India. This brings all related legal provisions under a single, modern statute.

2. Extension of Admiralty Jurisdiction:

• Previously, admiralty jurisdiction in India was primarily vested in the High Courts of Bombay, Calcutta, and Madras. The new Act extends this jurisdiction to all coastal State High Courts, including those of Karnataka, Gujarat, Odisha, Kerala, Hyderabad (Telangana), and any other High Court notified by the Central Government. This ensures wider access to admiralty courts across the country.

3. Comprehensive Definition of “Maritime Claim”:

• The Act provides a detailed and inclusive list of what constitutes a “maritime claim.” This list is similar to Article 1 of the International Convention on Arrest of Ships, 1999, and includes:
  • Disputes regarding ownership, possession, or operation of a vessel.
  • Disputes between co-owners regarding the employment or earnings of a vessel.
  • Claims based on mortgages or charges on a vessel.
  • Claims relating to the construction, repair, or conversion of a vessel.
  • Claims arising out of agreements for the use or hire of a vessel (charterparties).
  • Claims for salvage services.
  • Claims for damage caused by a vessel (collision, etc.).
  • Claims for loss of life or personal injury caused by the operation of a vessel.
  • Claims for loss or damage to goods carried on a vessel.
  • Claims for environmental damage caused by a vessel.
  • Port, canal, and other waterway dues, pilotage dues, and statutory dues.
  • Claims relating to marine insurance.
  • Claims for agency fees and expenses.

4. Actions in Rem and in Personam:

• The Act clarifies the powers of the High Courts to exercise admiralty jurisdiction in both in rem (against the vessel itself) and in personam (against the shipowner or other responsible parties) actions.
• It outlines the circumstances under which a vessel can be arrested within the court’s jurisdiction to secure a maritime claim.

5. Maritime Lien Recognition and Priority:

• The Act recognizes the concept of “maritime lien,” which is a privileged claim against a vessel that arises by operation of law. It specifies the following claims as maritime liens, which have a higher priority than other maritime claims:
  • Wages due to the crew for their employment on the vessel.
  • Claims for loss of life or personal injury directly resulting from the operation of the vessel.
  • Claims for reward for salvage services.
  • Claims for port, canal, and other waterway dues, and pilotage dues.
  • Claims based on tort for loss or damage caused by the operation of the vessel (excluding claims relating to cargo).
• The Act also establishes the order of priority for the settlement of maritime claims, with maritime liens generally having the highest priority.

6. Arrest of Vessels:

• The Act lays down the procedure for the arrest of a vessel to provide security for a maritime claim that is the subject of admiralty proceedings.
• It also includes provisions for the protection of owners, demise charterers, managers, operators, or crew of an arrested vessel under certain circumstances.

7. Vesting of Rights on Sale of Vessels:

• The Act clarifies that when a vessel is sold under an order of the High Court in its admiralty jurisdiction, the rights, title, and interests of all persons in the vessel stand transferred to the buyer free from any prior charges or encumbrances, subject to any existing maritime lien. This ensures a clean title for the purchaser.

8. Application of the Code of Civil Procedure:

• The procedure for admiralty proceedings in the High Courts is generally governed by the Code of Civil Procedure, 1908, unless specifically provided otherwise in the Admiralty Act or rules framed thereunder.

9. Assistance of Assessors:

• The Act empowers the Central Government to appoint a list of qualified and experienced assessors in admiralty and maritime matters to assist the High Courts in determining rates and claims in admiralty proceedings.

10. Appeals: - Judgments, decrees, or orders passed by a single Judge of the High Court in the exercise of its admiralty jurisdiction are appealable to a Division Bench of the same High Court.

11. International Alignment: - The Act aims to align Indian maritime laws with international conventions and best practices, particularly the International Convention on Arrest of Ships, 1999.

In summary, the Admiralty Act, 2017 (and subsequent rules) provides a modern, comprehensive, and unified legal framework for admiralty jurisdiction and the settlement of maritime claims in India, extending the reach of admiralty courts and aligning Indian law with international standards. This has strengthened the legal regime for the shipping and maritime sectors in India.