Report No. 151

6. Mode of exercise of admiralty jurisdiction.-

(1) Subject to the provisions of section 7 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 clauses (a) to (c) and (r) of sub-section (1) of section 5 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 by an action in rem against that ship or property in question.

(4) In the case of any such claim as is mentioned in section 5(2)(e) to (r), where:-

(a) the claim arises in connection with a ship; and

(b) the person who would be liable in the claim in an action in personam (hereinafter referred to as "the relevant person") was, when the cause of action arose, the owner, or charterer of, or in possession, or in control of a ship, admiralty jurisdiction may be invoked (whether or not the claim gives rise to a maritime lien on that ship) by an action in rem against-

(i) that ship, if at the time when the action is brought the relevant person is either the beneficial owner of that ship as respects all the shares in it or the charterer of it under a charter by demise; or

(ii) any other ship of which, at the time when the action is brought, the relevant person is the beneficial owner as respects all the shares in it.

(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 is mentioned in paragraph (n) of sub-section (2) of section 5 of this Act unless the claim relates wholly or partly to wages.

(6) Where, in the exercise of its Admiralty jurisdiction, the Court orders any ship or other property to be sold, the 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 able on a claim in an action in personam, the Court may presume that such person, at the commencement of the action, actually and voluntarily resides or carries on business or personally works for gain in 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 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.