Report No. 151

12. Order of Priority of Claims.-

(1) The order of claim 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 on 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) Claims 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 six months' 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) Claims in respect of the loss of life or personal injury in direct connection with the operation of the ship;

(ii) Claims for contribution for general average;

(iii) Claims based on tort arising out of physical damage or damage 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) The following rules shall apply in determining the priority of claims inter se

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

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

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

(iv) Claims for salvage, port dues, wages and claims in the nature of general average shall take priority over all other claims mentioned in clause 2(e) above which are attached to ship prior to the time when the operations giving rise to the said claims were performed.