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Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017
Evolution of Maritime Law in India
India’s maritime legal framework has undergone a remarkable transformation over the past century. The foundations of Indian admiralty law were established during the colonial era, with the enactment of British maritime legislation that remained operational even after India gained independence in 1947. For decades, Indian courts grappled with outdated colonial statutes, including the Admiralty Court Act of 1840, the Admiralty Court Act of 1861, the Colonial Courts of Admiralty Act of 1890, and the Colonial Courts of Admiralty (India) Act of 1891. These archaic laws, some dating back over 170 years, proved increasingly inadequate for addressing the complexities of modern international maritime commerce.
The need for reform became apparent as India’s maritime trade expanded significantly. In 1986, a committee chaired by Mr. Praveen Singh, the then Director-General of Shipping in Mumbai, conducted an extensive review of existing maritime laws. The committee’s findings highlighted that the admiralty jurisdiction exercised by Indian courts had become obsolete and recommended the enactment of modern legislation that would clearly define the scope and extent of admiralty jurisdiction in India [1]. Despite numerous attempts to introduce an Admiralty Bill in Parliament during 1993, 1999, 2005, 2009, and 2012, it was only in 2017 that the Parliament finally passed the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 [2]. The Act received presidential assent and came into force on April 1, 2018, following a notification dated February 22, 2018.
Structure and Applicability of the Act
The Admiralty Act, 2017 is organized into four distinct chapters containing 18 sections that address various aspects of maritime law. The Act applies to every vessel operating within Indian territorial waters, regardless of the owner’s place of residence or domicile. However, certain categories of vessels fall outside its purview. The Act specifically excludes inland vessels as defined in the Inland Vessels Act of 1917, vessels under construction that have not yet been launched, and warships or naval auxiliaries owned or operated by the Central or State Government for non-commercial purposes. Additionally, foreign vessels used for non-commercial purposes, as may be notified by the Central Government, are also exempt from the Act’s application [2].
The legislation defines a vessel broadly to include any ship, boat, sailing vessel, or other description of vessel used or constructed for use in navigation by water, whether propelled or not. This definition encompasses barges, lighters, other floating vessels, hovercrafts, offshore industry mobile units, and even vessels that have sunk, are stranded or abandoned, and the remains of such vessels. This expansive definition ensures that the Act covers virtually all types of maritime property that could give rise to maritime claims.
Expansion of Admiralty Jurisdiction
One of the most significant reforms introduced by the Admiralty Act, 2017 was the substantial expansion of admiralty jurisdiction beyond the three traditional chartered High Courts. Prior to the enactment of this legislation, admiralty jurisdiction was vested exclusively in the High Courts of Bombay, Madras, and Calcutta under various colonial-era laws [3]. The new Act extended this jurisdiction to five additional High Courts, namely those of Karnataka, Gujarat, Orissa, Kerala, and Hyderabad (for the States of Telangana and Andhra Pradesh). This expansion brought the total number of High Courts with admiralty jurisdiction to eight, significantly improving access to specialized maritime courts across India’s coastal states.
The Act grants each of these High Courts jurisdiction over the territorial waters falling within their respective state boundaries. However, the precise demarcation of these territorial waters has been a subject of ongoing discussion. During the parliamentary debates on the Admiralty Bill in 2016, concerns were raised about the lack of clarity regarding the boundaries of territorial waters for each state. Some members of Parliament suggested that modern technologies such as satellite mapping and geo-spatial mapping should be employed to clearly delineate these jurisdictional boundaries. The Act also empowers the Central Government to extend admiralty jurisdiction to other High Courts through official notifications, allowing for future expansion as needed.
Landmark Judicial Precedents
The development of admiralty jurisdiction in India has been significantly shaped by judicial interpretation, particularly in cases decided before the enactment of the 2017 Act. The Supreme Court’s decision in M.V. Elisabeth and Others v. Harwan Investment and Trading Pvt. Ltd. stands as a watershed moment in Indian admiralty jurisprudence [4]. In this landmark case, the Court addressed the fundamental question of whether Indian High Courts possessed the authority to exercise admiralty jurisdiction over foreign vessels owned by foreign companies with no place of residence or business in India.
The facts of the case involved a Greek-owned vessel, M.V. Elisabeth, which departed from the Port of Marmagao without issuing the required bills of lading for goods being carried. Upon reaching its destination, the carrier misdelivered the goods contrary to the respondent’s instructions. When the vessel subsequently entered the port of Visakhapatnam, it was arrested pursuant to an action in rem initiated by the respondent under the admiralty jurisdiction of the Andhra Pradesh High Court. The vessel owners challenged this arrest, arguing that Indian courts lacked jurisdiction over foreign vessels for causes of action arising outside Indian waters.
The Supreme Court rejected this narrow interpretation of admiralty jurisdiction. The Court held that High Courts in India are superior courts of record with inherent and plenary powers, including the jurisdiction to determine their own authority. The Court emphasized that the admiralty jurisdiction of Indian High Courts is not frozen at the level defined by colonial-era legislation but continues to evolve. The judgment established that once a foreign ship is arrested in Indian waters by order of a High Court exercising admiralty jurisdiction, the court can proceed with the trial as in any other suit, and any decree obtained is enforceable against the owner’s property within the jurisdiction [4].
In Kamalakar Mahadev Bhagat v. Scindia Steamship Navigation Co. Ltd., the Bombay High Court further clarified that suits for damages arising from collisions on the high seas must be adjudicated by the High Court having admiralty jurisdiction, regardless of whether the vessels involved are Indian or foreign-flagged [5]. Similarly, in Bai Kashibai & Ors. v. Scindia Steamship Navigation Co. Ltd., it was held that suits for damages relating to loss of life resulting from collisions on the high seas, whether brought in rem or in personam, fall within the exclusive jurisdiction of the High Court under its admiralty authority [6]. These decisions collectively established important principles regarding the scope and exercise of admiralty jurisdiction in India.
Maritime Claims Under the Act
The Act provides an exhaustive enumeration of maritime claims that can be adjudicated by courts exercising admiralty jurisdiction. Drawing inspiration from the International Convention Relating to the Arrest of Seagoing Ships of 1952 and 1999, the Act lists various categories of claims in its fourth section. These include claims relating to the operation of ships, such as loss or damage caused by a vessel, loss of life or personal injury occurring in connection with the operation of a vessel, and salvage operations. The Act also covers claims for necessaries supplied to a vessel, construction, repair, or equipment of any vessel, wages of masters and crew members, and master’s disbursements.
Additionally, the Act recognizes claims arising from disputes regarding the ownership or possession of a vessel, co-ownership disputes, mortgages and charges on vessels, towage services, pilotage services, goods and materials supplied for vessel operation, port and waterway dues, insurance premiums, and commissions and brokerage relating to vessels. Claims concerning the sale of vessels, agreements for the use or hire of vessels (including charter parties), and agreements for the carriage of goods or passengers are also included within the definition of maritime claims.
Maritime Liens and Their Priority
A distinctive feature of admiralty law is the concept of maritime liens, which the Act addresses in detail. A maritime lien is a privileged claim against a vessel, cargo, or freight for services rendered to or damage caused by the maritime property. Unlike ordinary liens, a maritime lien travels with the vessel and can survive changes in ownership, registration, or flag. The Act establishes a clear hierarchy of maritime liens, prioritizing them in the following order: claims for wages and other amounts due to the master, officers, and crew arising from their employment on the vessel, including costs of repatriation and social insurance contributions; claims for loss of life or personal injury occurring in direct connection with the operation of the vessel; claims for reward for salvage services; and claims for port, canal, and other waterway dues and pilotage dues [2].
The Act specifies that maritime liens for crew wages are extinguished after a period of two years from the date when the claim arose. This time limitation balances the need to protect seafarers’ rights with the principle of finality in maritime transactions. When a vessel is sold pursuant to a court order, the maritime lien on the vessel is extinguished, though the claim against the owner may continue. The establishment of this clear priority system helps resolve conflicts between multiple claimants and provides certainty in maritime financing and transactions.
Vessel Arrest and Sale Procedures
The Act establishes detailed procedures for the arrest and sale of vessels in connection with maritime claims. A High Court may order the arrest of a vessel within its jurisdiction to provide security against a maritime claim when the court has reason to believe that the person who owned the vessel at the time the claim arose is liable for the claim and remains the owner when the arrest is effected. Alternatively, arrest may be ordered if the demise charterer at the time the claim arose is liable and remains either the demise charterer or the owner at the time of arrest, or if the claim is based on a mortgage or similar charge on the vessel [2].
The Act also permits sister-ship arrests, whereby a court may order the arrest of any other vessel owned by the same person or demise charterer in place of the vessel against which the maritime claim has been made. However, only one vessel may be arrested at any given time. When a vessel is ordered to be arrested, it is held as security against the claim pending the final outcome of the admiralty proceedings. The court may require the arresting claimant to furnish an unconditional undertaking on terms determined by the court to secure the defendant against any loss or damage that may result from the arrest if it proves to be wrongful or unjustified.
The Act distinguishes between actions in rem and actions in personam. An action in rem is brought against the vessel itself as the defendant, allowing the court to exercise jurisdiction over the maritime property regardless of the owner’s presence. An action in personam is brought against the person liable for the claim. However, the Act places certain restrictions on actions in personam. For instance, the High Court generally will not entertain an action in personam to enforce certain maritime claims unless any proceedings previously brought by the plaintiff in any court outside India against the same defendant for the same incident have been discontinued or have become final [2].
Impact and Significance of the Reform
The enactment of the Admiralty Act, 2017 represents a watershed moment in Indian maritime law. By repealing outdated colonial legislation and establishing a modern, codified framework for admiralty jurisdiction, the Act has brought Indian maritime law into alignment with contemporary international practices. The extension of admiralty jurisdiction to eight High Courts across coastal states has democratized access to specialized maritime courts, reducing the burden on the three traditional chartered High Courts and enabling more efficient resolution of maritime disputes across the country.
The Act also introduced important procedural reforms. Any judgment, decree, or order passed by a single judge of a High Court exercising admiralty jurisdiction may be appealed to a Division Bench of the same High Court. This ensures adequate appellate review while maintaining specialization in maritime matters. Furthermore, the Act mandates that the Central Government shall appoint a list of assessors with expertise in maritime affairs to assist judges in determining rates and claims in admiralty proceedings. This provision recognizes the technical complexity of maritime disputes and ensures that courts have access to specialized knowledge when needed [7].
For the maritime industry, the Act has provided much-needed clarity and predictability. Ship owners, charterers, cargo interests, maritime financiers, and other stakeholders now have a clear statutory framework governing their rights and obligations. The codification of maritime claims, the establishment of a clear hierarchy of maritime liens, and the detailed procedures for vessel arrest and sale have reduced uncertainty and facilitated more efficient maritime commerce. The Act has also enhanced India’s attractiveness as a maritime jurisdiction, potentially encouraging greater use of Indian courts for the resolution of international maritime disputes.
Conclusion
The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 stands as a testament to India’s commitment to modernizing its legal framework to support its growing maritime sector. By replacing colonial-era legislation with a contemporary statute that reflects international best practices, India has taken a significant step toward establishing itself as a major maritime nation. The Act’s clear articulation of jurisdictional boundaries, maritime claims, arrest procedures, and the priority of maritime liens provides the legal certainty necessary for the efficient functioning of maritime commerce.
As India continues to develop its ports, shipping infrastructure, and maritime capabilities, the importance of a robust legal framework cannot be overstated. The Admiralty Act, 2017 provides this foundation, ensuring that maritime disputes can be resolved fairly, efficiently, and in accordance with recognized international principles. While the Act represents a major achievement, its ultimate success will depend on how it is interpreted and applied by Indian courts in the years to come. The early jurisprudence under the Act suggests that Indian courts are rising to this challenge, developing a body of case law that will guide the maritime sector for decades to come.
References
[1] Law Commission of India. (Various Reports on Maritime Law Reform). Available at: https://lawcommissionofindia.nic.in
[2] The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017. India Code. Available at: https://www.indiacode.nic.in/handle/123456789/2256
[3] Colonial Courts of Admiralty Act, 1890 and Colonial Courts of Admiralty (India) Act, 1891. India Code Legislative Archives.
[4] M.V. Elisabeth and Others v. Harwan Investment and Trading Pvt. Ltd., AIR 1993 SC 1014. Available at: https://indiankanoon.org/doc/1515069/
[5] Kamalakar Mahadev Bhagat v. Scindia Steamship Navigation Co. Ltd., AIR 1961 Bom 186. Available at: https://www.casemine.com/judgement/in/5608f948e4b0149711144821
[6] Bai Kashibai & Ors. v. Scindia Steamship Navigation Co. Ltd., AIR 1961 Bom 200. International Centre for Commercial Law (ICLG). Available at: https://iclg.com/practice-areas/shipping-laws-and-regulations/india
[7] Admiralty (Assessors) Rules, 2018. Directorate General of Shipping. Available at: https://www.dgshipping.gov.in/Content/admiraltyactrules.aspx
