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Report No. 151

6. Jurisdiction for Wages.-

(1) Notwithstanding the provisions contained in section 146 of the Merchant Shipping Act, 1958 the Admiralty Court shall have jurisdiction to entertain an action for wages.

(2) Nothing in this part of the Act shall be construed as limiting the Jurisdiction of the Court to entertain an action for wages by the Master or a member of the crew of a ship, not being an Indian ship.

7. (1) Wherein a suit in rem the Admiralty Court has ordered the property proceeded against to be sold, any party who has obtained or obtains a decree or order against the said property or the proceeds of sale thereof may after obtaining judgment apply to the Admiralty Court by a notice of motion for an order determining the order of priority of the claims against the proceeds of sale of the said property.

(2) Wherein a suit in rem the Admiralty Courts orders the property proceeded against to be sold, IT SHALL FURTHER ORDER that a notice be given in one international and one national newspaper as the Admiralty Court may specify that the property has been sold by the Order of the Admiralty court in a suit in rem giving the number of suit and the names of the parties to the suits, and that the gross sale proceeds, specifying the amount thereof, have been paid into the Admiralty Court and that the order of priority of the claims the said proceeds will be determined only after the expiration of a period of ninety days from the date of the publication of the said notice and that any party having a claim against the property or the proceeds of sale thereof, should apply to the Court for leave to intervene and, prove its claim before the Admiralty Court by filing a suit and obtaining a decree before the expiration of that period.

(3) The Admiralty Court may extend the period of ninety days on the application of any party who has instituted proceedings before the Court as provided in sub-section (2) or before any other Admiralty Court of competent jurisdiction in India for obtaining a decree against the property or proceeds of sale and the court shall not disburse the sale proceeds and/or determine priority until thirty days after the disposal of the said suit or any appeal filed therefrom.

(4) Notwithstanding what is stated in sub-section 3 above, the Admiralty Court may determine priority and direct payment out of the sale proceeds on an application by any party who has obtained a decree or order against the property or the sale proceeds if the Admiralty Court is of the opinion that the claim of the applicant is in any event on priority to the claim for which a suit has been instituted PROVIDED THAT the Admiralty Court shall hear all parties who have made claims and filed suits against the property or sale proceeds within the prescribed period of 90 days before determining priority and directing disbursement out of sale proceeds.



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