INDIA Trends and Developments Contributed by: Gautam Bhatikar, Deeksha Dev Singh and Isha Patil, Phoenix Legal
cause of action must originate within Indian juris - diction for a case to be heard before an admiralty court. Additionally, the presence of the defend - ant in India is required, either as a resident or in a professional capacity, at the commencement of legal proceedings before an admiralty court. These provisions ensure that admiralty courts maintain jurisdiction over cases with tangible connections to Indian territorial waters and par - ties. The Introduction of the Maritime Lien The Admiralty Act introduces the concept of the maritime lien, constituting a significant addition to India’s maritime legal framework. A maritime lien is defined as a claim against the owner, demise charterer, manager or operator of the vessel specified in clauses (a) and (e) of Section 9 of the Act, under specific circumstances. In essence, a maritime lien grants a creditor the legal right to retain possession of the debtor’s property until the debt is settled. Section 9 of the Act delineates the priority afforded to mari - time liens in a given claim. Notably, the case of Chrisomar Corp v MJR Steels Pvt Ltd pro - vides an in-depth examination of the concept of the maritime lien as established by the Admi - ralty Act. This introduction of the maritime lien underscores the Act’s aim to modernise and align India’s maritime legal framework with inter - national standards, enhancing legal clarity and efficacy in resolving maritime disputes. Power to Arrest Vessels Section 5 of the Admiralty Act delineates provi - sions regarding the arrest of vessels to secure material security for maritime claims. It author - ises vessel arrest under the following conditions: • the person who was the vessel’s owner when the maritime claim arose is liable for the
claim and remains the owner when the arrest occurs; • the demise charterer of the vessel when the maritime claim arose is liable for the claim and remains either the demise charterer or the vessel’s owner at the time of arrest; • the claim is predicated on a mortgage or simi - lar charge on the vessel; • the claim pertains to vessel ownership or possession; • the claim targets the vessel’s owner, demise charterer, manager or operator and is secured by a maritime lien as delineated in Section 9 of the Act; and • the High Court is empowered to order the arrest of any other vessel to provide security against a maritime claim in lieu of the primary vessel subject to the claim. These provisions empower admiralty courts to enforce material security for maritime claims effectively, ensuring accountability and recourse for claimants while safeguarding the interests of vessel owners and operators. By establishing clear criteria for vessel arrest, the Act promotes legal clarity and consistency in addressing mari - time disputes within India’s jurisdiction. The Merchant Shipping Bill, 2024 The Merchant Shipping Bill, 2024, introduced in Lok Sabha in December of that year, represents a comprehensive modernisation of India’s mari - time regulatory framework, replacing the Mer - chant Shipping Act, 1958. This transformative legislation broadens the scope of vessel regis - tration to include all types of vessels, regard - less of their propulsion method or weight, while expanding the definition to encompass modern vessel types such as mobile offshore drilling units and submersibles.
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