Report No. 151

4. Mode of exercise of Admiralty Jurisdiction.-

(1) Subject to the provisions of section 5 of this Act, the Jurisdiction of the Admiralty Court may in all cases be invoked by an action in personam.

(2) The jurisdiction of the Admiralty Court may, in the cases mentioned in paragraphs (a) to (c) and (s) sub-section (1) of section 3 of this Act be invoked by an action in rem against the ship or property in question by its arrest.

(3) In any case in which there is a maritime lien or other charge on any ship, or other property including bunker for the amount claimed, the Admiralty Jurisdiction of the Court, may be invoked an action in rem against that ship or property in question by its arrest.

(4) In the case of any such claim as is mentioned in paragraphs (d) and (f) to (r) of sub-section (1) of section 3 of this Act, being a claim arising in connection with a ship, where the person who would be liable on the claim in an action in personam was, when the cause of action arose, the Owner or Charterer of, or in possession or in control of, the ship (whether the claim gives rise to a maritime lien on the ship or not) may be invoked by an action in rem by an arrest as aforesaid against-

(a) that ship, if at the time when the action is brought she is beneficially owned in respect of all the shares therein by that person; or the charterer if it is under a party by demise; or

(b) any other ship which, at the time when the action is brought, she is beneficially owned in respect of all her shares thereon.

(5) Notwithstanding anything in the preceding provisions of this section, the Jurisdiction of the Admiralty Court shall not be invoked by an action in rem in the case of any such claim as it mentioned in clause (n) of sub-section (1) of section 3 of this Act unless the claim relates wholly or partly to wages only.

(6) Where, in the exercise of its Jurisdiction, the Admiralty Court orders any ship or other property to be sold, the Admiralty Court shall have jurisdiction to hear and determine any question arising as to the title to the proceeds of sale.

(7) In determining for the purposes of sub-section (4) of this section whether a person would be liable on a claim in an action in personam it shall be assumed that he has his habitual residence or a place of business within India.

(8) Notwithstanding anything contained in this Act, the Jurisdiction of the Admiralty Court shall not be invoked by an action in rem by arrest of a ship, in the case of a ship registered in India as an Indian ship, unless six clear days notice in writing is served upon the registered owners or the Master of the ship intended to be proceeded against, stating the cause of action and the quantum of claim and the date and the time of application to the court for arrest and calling upon the owners or Master to provide security for the claim to the satisfaction of the Admiralty Court in lieu of the arrest, and where such a security is provided the court shall entertain the action without arresting the ship and shall order arrest of the ship only in the event of failure to provide such security.