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Report No. 151

11. Order of Priority of Claims.-

(1) The order of claim for determining inter se priority in an admiralty action shall be as follows:

(a) A claim where there is a maritime lien on any ship or other property including bunker, against which action is proceeded with.

(b) Mortgages and charges of the ship or other property against which the action is proceeded with.

(c) All other claims.

(2) The priority among the claims inter se in clause 1(a) above shall be as follows:

(a) Claim for salvage of life, ship or property provided that salvage of life shall take priority over other salvages.

(b) Wages and other sums due to the Master or the members of the crew of the ship in respect of their employment in the ship not exceeding four month's wages.

(c) Port, canal and other waterway dues and pilotage dues.

(d) Balance of wages and other sums due to the Master or the members of the crew of the ship in respect of their employment on the ship after deducting the amount paid under clause (b) above.

(e) (i) Loss of life or personal injury in direct connection with the operation of the ship;

(ii) Claim for contribution for general average;

(iii) Claim based on tort arising out of physical damage or damages caused by the operation of the ship other than loss or damage to cargo, containers, and passengers' effects carried on the ship;

(iv) Bottomry.

(3) (i) Claims prior in order of priority shall exclude subsequent;

(ii) If there are more claims than one in each of the category of priority, they shall rank pari passu;

(iii) Claim for various salvages shall rank in inverse order of time when the claim secured thereto accrue;

(iv) Claims for salvage, port, dues, wages, and the nature of general average shall take priority over all other claims mentioned in Clause D(e) above which are attached to ship prior to the time when the operations giving rise to the said claims were performed.

12. In all suits under this Act, the nationality of the ship proceeded against shall be stated in the plaint, and if the ship is a foreign ship, notice or institution of the suit shall be given to the Consul of the State to which the ship belongs if there be one resident in the City where the Admiralty Court is situated. A statement of service of such notice or a statement that there is no such Consul present in the City, shall be made in the affidavit, in support of any application for arrest of the ship. If a notice is served on the Consul, a copy of the said notice shall be annexed to the affidavit.



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