MARITIME LAW
UNIT-2 LEGAL ISSUES UNDER MARITIME LAW
INTRODUCTION OF MARITIME LIEN
A maritime lien in admiralty law is a privileged claim upon maritime property, such as a ship, in
respect of services rendered to, works done to, or the injuries caused by that property.
In common law, a lien is the right of the creditor to retain the properties of his debtor until the debt
is paid.
In India, maritime liens are recognized and enforced under admiralty law, which is primarily
governed by the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017.
A lien in a simple language can be described as, ‘A lien is a right in one man to retain that which is
in his possession belonging to another until certain demand on him, by the person in possession is
satisfied’.
NATURE AND PURPOSE: MARITIME LIENS
Maritime liens are universally recognized and enforced in maritime jurisdictions worldwide.
Governed by principles of admiralty law developed over centuries, they ensure that creditors can
enforce their claims against vessels irrespective of their location.
In admiralty proceedings, maritime liens enjoy priority over most other claims against the vessel.
They are typically ranked above mortgages, maritime torts, and other encumbrances, enhancing
creditors' chances of recovering their debts from the proceeds of the vessel's sale.
Enforcement of maritime liens occurs through judicial proceedings in admiralty courts. Creditors
may arrest the vessel or initiate foreclosure proceedings to satisfy their claims.
Admiralty courts have jurisdiction to adjudicate maritime claims and enforce maritime liens,
thereby safeguarding creditors' interests.
IN REM NATURE
Maritime liens are characterized by their in rem nature, a fundamental aspect of admiralty law.
In rem refers to the attachment of the lien to the vessel itself rather than to any particular individual
or entity.
This means that the lien remains attached to the vessel regardless of changes in ownership. Even if
the vessel is sold or transferred to a new owner, the maritime lien remains associated with the
vessel.
The enforcement of maritime liens is directly against the vessel in admiralty court proceedings.
Creditors can seek satisfaction of their claims by arresting the vessel or initiating foreclosure
proceedings.
The vessel becomes the subject matter of the legal action, and the court may order its sale to satisfy
the creditor's claim.
TYPES OF LIENS
Under maritime law, there are primarily two types of liens: general liens and particular liens. These
liens serve as remedies for creditors to secure payment for debts related to maritime transactions.
General Maritime Lien:
A general maritime lien is a claim or privilege that attaches to the vessel itself, rather than to a
specific item of property or service.
It arises from maritime transactions such as salvage, damage caused by a ship, wages of seamen,
and claims for necessaries supplied to a vessel.
General maritime liens are highly favored in admiralty law and have priority over most other claims
against the vessel, including mortgages and other encumbrances.
Examples of claims giving rise to general maritime liens include salvage claims, maritime torts, and
claims for crew wages.
Particular Lien:
A particular lien is a possessory lien that arises when a creditor provides goods or services that are
necessary for the operation or maintenance of a vessel. Unlike a general maritime lien, a particular
lien attaches to specific goods or property provided by the creditor.
The scope of a particular lien is limited to the specific goods or services provided by the creditor
and does not extend to the entire vessel.
Examples of claims giving rise to particular liens include claims for repairs, supplies, and equipment
furnished to a vessel.
THE APPROACH OF INDIA ENFORCING MARITIME LIEN
In India, the enforcement of maritime liens is governed primarily by admiralty law, which is
regulated by the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017.
The approach to enforcing maritime liens in India aligns with international practices and principles
of admiralty law, ensuring the protection of creditors' interests and the efficient resolution of
maritime disputes. Here's how India approaches the enforcement of maritime liens:
Admiralty Jurisdiction: The Admiralty Act provides for the establishment of admiralty jurisdiction
over maritime claims, including those related to the enforcement of maritime liens.
Admiralty courts in India have the authority to adjudicate maritime claims and enforce maritime
liens through judicial proceedings.
Recognition of Maritime Liens: India recognizes and enforces maritime liens as in rem claims
upon maritime property, particularly vessels.
These liens are afforded special privileges and priority in admiralty proceedings, ensuring that
creditors have a means of recourse for the satisfaction of their claims.
Procedures for Enforcement: Creditors seeking to enforce maritime liens in India may initiate
legal proceedings in admiralty courts.
They may arrest the vessel or initiate foreclosure proceedings to satisfy their claims.
Admiralty courts have jurisdiction to adjudicate maritime claims and enforce maritime liens,
ensuring the protection of creditors' interests.
Priority in Admiralty Proceedings: Maritime liens typically enjoy a high priority in admiralty
proceedings in India.
They are ranked above most other claims against the vessel, including mortgages, maritime torts,
and other encumbrances.
This priority ensures that maritime lienholders have a better chance of recovering their debts from
the proceeds of the vessel's sale.
Adherence to International Standards: India's approach to enforcing maritime liens is consistent
with international standards and practices in admiralty law.
The Admiralty Act and related regulations ensure that India complies with international conventions
and treaties governing maritime commerce and navigation.
INTRODUCTION TO MARITIME CLAIMS
Maritime claims form the bedrock of admiralty law, delineating the scope of disputes that fall within
the purview of admiralty courts and the specialized legal framework governing maritime
transactions.
These claims are defined under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act,
2017, providing a comprehensive framework for their adjudication and resolution.
Essentially, a maritime claim encompasses a wide array of disputes arising in the maritime context,
ranging from goods or services supplied to vessels to personal injury incidents, salvage operations,
agreements for carriage of goods or passengers, and more.
ADMIRALTY (JURISDICTION AND SETTLEMENT OF MARITIME CLAIMS), 2017
Parliament gave its nod to a bill that seeks to upgrade the law related to maritime claims, arrest and
detention of ships and extends jurisdiction of trial to various courts across the country.
The Admiralty (Jurisdiction and Settlement of Maritime Claims), 2017 seeks to repeal laws such as
the Admiralty Court Act, 1861, the Colonial Courts of Admiralty Act, 1890.
The bill was passed by the Rajya Sabha by a voice vote. It had been passed by the Lok Sabha
earlier.
KEY FEATURES OF THE ADMIRALTY BILL:
Admiralty jurisdiction
The jurisdiction with respect to maritime claims under the Bill will vest with the respective High
Courts and will extend up to the territorial waters of their respective jurisdictions.
The central government may extend the jurisdiction of these High Courts. Currently, admiralty
jurisdiction applies to the Bombay, Calcutta and Madras High Courts.
The Bill further extend this to the High Courts of Karnataka, Gujarat, Orissa, Kerala, Hyderabad,
and any other High Court notified by the central government.
Definition:
Section 2(1)(i) of the Admiralty Act defines a Maritime Claim as any claim, arising out of one or
more of the following:
a) Goods or materials supplied or services rendered to a ship for its operation, management,
preservation, or maintenance (including any charge relating to the use of a port or to the
provision of port, harbor, navigational, or other services);
b) Loss or damage caused by the operation of a ship;
c) Loss of life or personal injury occurring, whether on land or on water, in direct connection with
the operation of a ship;
d) Salvage or towage of a ship;
e) Agreement relating to the carriage of goods or passengers on board a ship;
f) Construction, repair, or equipment of a ship or dock charges and dues;
g) Mortgage or hypothecation of a ship;
h) Maritime lien against a ship;
i) Any other matter referred to in the Maritime Lien Act, 2017.
Maritime claims
The High Courts may exercise jurisdiction on maritime claims arising out of conditions including:
disputes regarding ownership of a vessel
disputes between co-owners of a vessel regarding employment or earnings of the vessel
mortgage on a vessel
construction, repair, or conversion of the vessel
disputes arising out of the sale of a vessel
environmental damage caused by the vessel, etc.
The Bill defines a vessel as any ship, boat, or sailing vessel which may or may not be mechanically
propelled.
While determining maritime claims under the specified conditions, the courts may settle any
outstanding accounts between parties with regard to the vessel.
They may also direct that the vessel or a share of it be sold. With regard to a sale, courts may
determine the title to the proceeds of such sale.
Priority of maritime claims
Among all claims in an admiralty proceeding, the highest priority will be given to maritime claims,
followed by mortgages on the vessel, and all other claims.
Within maritime claims, the highest priority will be given to claims for wages due with regard to
employment on the vessel.
This would be followed by claims with regard to loss of life or personal injury in connection with
the operation of the vessel.
Such claims will continue to exist even with the change of ownership of the vessel.
Jurisdiction over a person
Courts may exercise admiralty jurisdiction against a person with regard to maritime claims.
However, the courts will not entertain complaints against a person in certain cases.
These include: (i) damage, or loss of life, or personal injury arising out of collision between vessels
that was caused in India, or
(ii) non-compliance with the collision regulations of the Merchant Shipping Act, 1958 by a person
who does not reside or carry out business in India.
Further, Courts will not entertain action against a person until any case against them with regard to
the same incident in any court outside India has ended.
Arrest of vessel
The courts may order for the arrest of any vessel within their jurisdiction for providing security
against a maritime claim which is the subject of a proceeding.
They may do so under various reasons such as: (i) owner of the vessel is liable for the claim,
(ii) the claim is based on mortgage of the vessel, and
(iii) the claim relates to ownership of the vessel, etc.
Appeals
Any judgments made by a single Judge of the High Court can be appealed against to a Division
Bench of the High Court.
Further, the Supreme Court may, on application by any party, transfer an admiralty proceeding at
any stage from one High Court to any other High Court.
The latter High Court will proceed with the matter from the stage where it stood at the time of the
transfer.
Assessors
The central government will appoint a list of assessors qualified and experienced in admiralty and
maritime matters.
The central government will also determine the duties of assessors and their fee. Typically, assessors
assist the judges in determining rates and claims in admiralty proceedings.
