The Merchant Shipping Act, 2025
Administered Ministry: Ministry of Ports, Shipping and Waterways
Section
Section 241 Search warrants where wreck is involved.
Where a receiver of wreck suspects or receives information that any wreck is released or is in the possession of some person who is not the owner thereof or that any wreck is otherwise improperly dealt with, he may apply to the nearest Judicial Magistrate of the first class for a search warrant and such Magistrate shall have power to grant the warrant and the receiver of wreck by virtue thereof may enter any house or other place wherever situate and also any ship and search for, seize and detain any such wreck found thereof
Section 242 Measures to facilitate removal of wrecks.
(1) When it is determined that the wreck constitutes a hazard, the receiver of wreck shall give the detailed information of the hazard to the Central Government, in such manner as may be prescribed.
(2) The Central Government, on receipt of information under sub-section (1) shall,---
(a) inform the Government of the State in which the ship is registered as well as the registered ship owner; and
(b) consult such State and any State affected by the wreck regarding measures to be taken in relation to such wreck.
(3) The registered ship owner or the operator of the ship shall remove such wreck which is determined to constitute a hazard: Provided that where any dispute arises as to whether the wreck constitutes a hazard or not, the decision of the Central Government shall be final and binding on all parties.
(4) When a wreck is determined to constitute a hazard, the registered ship owner or any interested person shall provide to the Central Government or the receiver of wreck with the evidence of insurance or other financial security maintained by him in accordance with the provisions of this Act.
(5) The receiver of wreck or ship owner or operator of the ship shall submit a plan for removal of wreck to the Central Government.
(6) The Central Government shall approve or disapprove or approve with certain modifications, the plan submitted before it under sub-section (5) and having regard to the nature of the hazard, specify on a case to case basis, the time within which the ship owner or operator shall remove the wreck.
(7) If the ship owner or operator do not remove the wreck within the time specified under sub-section (6), the Central Government may, at the expense of such ship owner or operator, remove the wreck by the most practical and expeditious means available, consistent with considerations of safety and protection of the marine environment and the wreck or any sale proceeds derived from such wreck shall become the property of the Central Government.
(8) Where immediate action is required and the receiver of wreck has informed the ship owner or the operator accordingly, he may, at the expense of such ship owner or operator, remove the wreck by the most practical and expeditious means available, consistent with considerations of safety and protection of the marine environment.
(9) Where any measure taken under this section is construed to be salvage, the provisions of Chapter II of this Part relating to salvage shall apply.
(2) The Central Government, on receipt of information under sub-section (1) shall,---
(a) inform the Government of the State in which the ship is registered as well as the registered ship owner; and
(b) consult such State and any State affected by the wreck regarding measures to be taken in relation to such wreck.
(3) The registered ship owner or the operator of the ship shall remove such wreck which is determined to constitute a hazard: Provided that where any dispute arises as to whether the wreck constitutes a hazard or not, the decision of the Central Government shall be final and binding on all parties.
(4) When a wreck is determined to constitute a hazard, the registered ship owner or any interested person shall provide to the Central Government or the receiver of wreck with the evidence of insurance or other financial security maintained by him in accordance with the provisions of this Act.
(5) The receiver of wreck or ship owner or operator of the ship shall submit a plan for removal of wreck to the Central Government.
(6) The Central Government shall approve or disapprove or approve with certain modifications, the plan submitted before it under sub-section (5) and having regard to the nature of the hazard, specify on a case to case basis, the time within which the ship owner or operator shall remove the wreck.
(7) If the ship owner or operator do not remove the wreck within the time specified under sub-section (6), the Central Government may, at the expense of such ship owner or operator, remove the wreck by the most practical and expeditious means available, consistent with considerations of safety and protection of the marine environment and the wreck or any sale proceeds derived from such wreck shall become the property of the Central Government.
(8) Where immediate action is required and the receiver of wreck has informed the ship owner or the operator accordingly, he may, at the expense of such ship owner or operator, remove the wreck by the most practical and expeditious means available, consistent with considerations of safety and protection of the marine environment.
(9) Where any measure taken under this section is construed to be salvage, the provisions of Chapter II of this Part relating to salvage shall apply.
Section 243 Liability of ship owner.
(1) The registered ship owner shall be liable for the costs of locating, marking and removing the wreck under this Chapter unless he proves that the maritime casualty which caused the wreck---
(a) resulted from an act of war, hostilities, civil war, insurrection, or a natural phenomenon of an exceptional, inevitable and irresistible character; or
(b) was wholly caused by act or omission done with an intent to cause damage by a third party; or
(c) was wholly caused by the negligence or other wrongful act of any Government or other authority responsible for the maintenance of lights or other navigational aids in the exercise of that function.
(2) Nothing contained in this Chapter shall---
(a) affect the right of the registered ship owner to limit his liability in accordance with the provisions of section 162; or
(b) prejudice any right of recourse available to the registered ship owner against third parties.
(3) Notwithstanding anything contained in this section, the registered ship owner shall not be liable for any cost, if, and to the extent that liability or such costs is in conflict with---
(a) any other provisions of this Act;
(b) the provisions of the Civil Liability for Nuclear Damage Act, 2010 (38 of 2010); or
(c) any other international legal instrument to which India is a party.
(a) resulted from an act of war, hostilities, civil war, insurrection, or a natural phenomenon of an exceptional, inevitable and irresistible character; or
(b) was wholly caused by act or omission done with an intent to cause damage by a third party; or
(c) was wholly caused by the negligence or other wrongful act of any Government or other authority responsible for the maintenance of lights or other navigational aids in the exercise of that function.
(2) Nothing contained in this Chapter shall---
(a) affect the right of the registered ship owner to limit his liability in accordance with the provisions of section 162; or
(b) prejudice any right of recourse available to the registered ship owner against third parties.
(3) Notwithstanding anything contained in this section, the registered ship owner shall not be liable for any cost, if, and to the extent that liability or such costs is in conflict with---
(a) any other provisions of this Act;
(b) the provisions of the Civil Liability for Nuclear Damage Act, 2010 (38 of 2010); or
(c) any other international legal instrument to which India is a party.
Section 244 Maintenance of insurance or other financial security.
(1) Every registered owner of an Indian vessel of gross tonnage of three hundred and above shall, for the purposes of covering his liability under this Chapter, be required to maintain compulsory insurance coverage or such other financial security, as may be prescribed.
(2) Every ship owner or operator of a ship other than an Indian vessel of gross tonnage of three hundred and above, while it is in the area to which this Chapter applies, shall maintain insurance coverage or other financial security to cover his liability under the Convention and shall carry onboard a certificate to that effect.
(3) The certificate referred to in sub-section (2) shall, in case the ship is,---
(a) registered in India, be granted by the authority;
(b) registered in a Convention State other than India, be granted by or under the authority of the Government of that State; and
(c) registered in a State which is not a Convention State, be granted or certified by the appropriate authority authorised by any Convention State.
(4) Any ship which contravenes the provisions of sub-section (2), shall be liable to be detained by the authority.
(5) Any claim for costs arising under this Chapter may be brought directly against the insurer or other person providing financial security for the registered ship owner’s liability and in such a case, the insurer or such person may invoke defences (other than bankruptcy or winding up of the company) which the registered ship owner would have been entitled to invoke, including limitation of liability as provided under this Act:
Provided that where the registered ship owner is not entitled to limitation of liability under this Act, the insurer or such person may limit liability to an amount equal to the amount of the insurance or other financial security required to be maintained under sub-section (1):
Provided further that the insurer or such person may invoke the defence that the maritime casualty resulted from the wilful misconduct of the registered ship owner but shall not invoke any other defence which such insurer or person might have been entitled to invoke in proceedings brought by the registered ship owner against such insurer or person:
Provided also that the insurer or such person shall have the right to require the registered ship owner to be joined in such proceedings.
(2) Every ship owner or operator of a ship other than an Indian vessel of gross tonnage of three hundred and above, while it is in the area to which this Chapter applies, shall maintain insurance coverage or other financial security to cover his liability under the Convention and shall carry onboard a certificate to that effect.
(3) The certificate referred to in sub-section (2) shall, in case the ship is,---
(a) registered in India, be granted by the authority;
(b) registered in a Convention State other than India, be granted by or under the authority of the Government of that State; and
(c) registered in a State which is not a Convention State, be granted or certified by the appropriate authority authorised by any Convention State.
(4) Any ship which contravenes the provisions of sub-section (2), shall be liable to be detained by the authority.
(5) Any claim for costs arising under this Chapter may be brought directly against the insurer or other person providing financial security for the registered ship owner’s liability and in such a case, the insurer or such person may invoke defences (other than bankruptcy or winding up of the company) which the registered ship owner would have been entitled to invoke, including limitation of liability as provided under this Act:
Provided that where the registered ship owner is not entitled to limitation of liability under this Act, the insurer or such person may limit liability to an amount equal to the amount of the insurance or other financial security required to be maintained under sub-section (1):
Provided further that the insurer or such person may invoke the defence that the maritime casualty resulted from the wilful misconduct of the registered ship owner but shall not invoke any other defence which such insurer or person might have been entitled to invoke in proceedings brought by the registered ship owner against such insurer or person:
Provided also that the insurer or such person shall have the right to require the registered ship owner to be joined in such proceedings.
Section 245 Claims of ship owners to wreck.
(1) The owner of any wreck in the possession of the receiver, upon establishing his claim to the satisfaction of the receiver within one year from the time at which the wreck came into the possession of the receiver shall, upon paying the salvage and other charges, be entitled to have the wreck or the proceeds thereof delivered to him.
(2) Where any articles belonging to or forming part of a ship other than an Indian vessel which is wrecked or belonging to and forming part of the cargo of such ship, are found in any area to which this Chapter applies or are brought into any port in India, the ambassador of the State in which the ship is registered or, in the case of cargo, the State to which the owners of the cargo may have belonged shall, in the absence of the owner and of the master or other agent of the owner, be deemed to be the agent of the owner, with respect to the custody and disposal of the articles.
(3) Where the owner of the wreck does not appear and claim the balance of the proceeds of sale within one year from the date of sale, the said balance shall become the property of the Central Government.
(2) Where any articles belonging to or forming part of a ship other than an Indian vessel which is wrecked or belonging to and forming part of the cargo of such ship, are found in any area to which this Chapter applies or are brought into any port in India, the ambassador of the State in which the ship is registered or, in the case of cargo, the State to which the owners of the cargo may have belonged shall, in the absence of the owner and of the master or other agent of the owner, be deemed to be the agent of the owner, with respect to the custody and disposal of the articles.
(3) Where the owner of the wreck does not appear and claim the balance of the proceeds of sale within one year from the date of sale, the said balance shall become the property of the Central Government.
Section 246 Extinguishment of right to claim recovery of costs.
Any claim for recovery of costs for locating and marking of the ship under this Chapter shall be made within a period of three years from the date of determination of the hazard and six years from the date the maritime casualty resulted in the wreck:
Provided that where the maritime casualty consists of a series of occurrences, the six years period shall be reckoned from the date of the first occurrence.
Provided that where the maritime casualty consists of a series of occurrences, the six years period shall be reckoned from the date of the first occurrence.
Section 247 Application of this Chapter.
(1) This Chapter shall apply to---
(a) salvage operations within the territory of India including the coastal waters; and
(b) judicial or arbitral proceedings relating to salvage operations in respect of a vessel or any other property which are instituted in India.
(2) This Chapter shall not apply to---
(i) the fixed or floating platforms or mobile offshore drilling units when such platforms or units are on location engaged in the exploration, exploitation or production of seabed mineral resources;
(ii) warships or other non-commercial vessels owned or operated by the Government which are entitled, at the time of salvage operations, to sovereign immunity;
(iii) such vessels as the Central Government may, by notification, specify.
(3) This Chapter shall apply, notwithstanding that the vessel undertaking the salvage operations belong to the same owner of the vessel being salvaged.
(a) salvage operations within the territory of India including the coastal waters; and
(b) judicial or arbitral proceedings relating to salvage operations in respect of a vessel or any other property which are instituted in India.
(2) This Chapter shall not apply to---
(i) the fixed or floating platforms or mobile offshore drilling units when such platforms or units are on location engaged in the exploration, exploitation or production of seabed mineral resources;
(ii) warships or other non-commercial vessels owned or operated by the Government which are entitled, at the time of salvage operations, to sovereign immunity;
(iii) such vessels as the Central Government may, by notification, specify.
(3) This Chapter shall apply, notwithstanding that the vessel undertaking the salvage operations belong to the same owner of the vessel being salvaged.
Section 248 Definitions.
In this Chapter, unless the context otherwise requires,---
(a) "damage to the environment" means substantial physical damage to human health or to marine life or resources in coastal or inland waters or areas adjacent thereto caused by pollution, contamination, fire, explosion or similar major incidents;
(b) "payment" means any reward, remuneration or compensation due under the Salvage Convention;
(c) "property" means any property not permanently and intentionally attached to the shoreline and includes freight at risk;
(d) "vessel" means any ship or craft, or any structure capable of navigation.
(a) "damage to the environment" means substantial physical damage to human health or to marine life or resources in coastal or inland waters or areas adjacent thereto caused by pollution, contamination, fire, explosion or similar major incidents;
(b) "payment" means any reward, remuneration or compensation due under the Salvage Convention;
(c) "property" means any property not permanently and intentionally attached to the shoreline and includes freight at risk;
(d) "vessel" means any ship or craft, or any structure capable of navigation.
Section 249 Salvage payable for saving life, cargo or wreck.
(1) Where services are rendered by any master or salvor or any person other than the authority notified by the Central Government,---
(a) wholly or in part within the territorial waters of India in saving life from any vessel, or elsewhere in saving life from a vessel registered in India; or
(b) in assisting a vessel or saving the cargo or equipment of a vessel which is wrecked, stranded or in distress at any place to which this Chapter applies; or
(c) in saving any wreck,
there shall be payable to such master or salvor or person by the owner of the vessel, cargo, equipment or wreck, a reasonable sum for salvage having regard to all the circumstances of the case.
(2) A master or person or salvor rendering salvage under clause (a) of sub-section (1) shall be entitled to a fair share of the payment for the salvage of the vessel or other property or preventing or minimising damage to the environment.
(3) Salvage in respect of the preservation of life when payable by the owner of the vessel shall be payable in priority to all other claims for salvage.
(a) wholly or in part within the territorial waters of India in saving life from any vessel, or elsewhere in saving life from a vessel registered in India; or
(b) in assisting a vessel or saving the cargo or equipment of a vessel which is wrecked, stranded or in distress at any place to which this Chapter applies; or
(c) in saving any wreck,
there shall be payable to such master or salvor or person by the owner of the vessel, cargo, equipment or wreck, a reasonable sum for salvage having regard to all the circumstances of the case.
(2) A master or person or salvor rendering salvage under clause (a) of sub-section (1) shall be entitled to a fair share of the payment for the salvage of the vessel or other property or preventing or minimising damage to the environment.
(3) Salvage in respect of the preservation of life when payable by the owner of the vessel shall be payable in priority to all other claims for salvage.
Section 250 Salvage operations controlled by Government or port and public authorities.
Where salvage operations are rendered by or on behalf of the Government or by a vessel of the Indian Navy or of the Coast Guard or the commander or crew of any such vessel or the port authorities or any public authority, the Government or other authority acting on its behalf shall be entitled to salvage and payment for such services as provided under this Chapter and shall have the same rights and remedies in respect of those services as any other salvor.
Section 251 Salvage contracts.
(1) The owner of a vessel or the master on behalf of the owner shall conclude contracts with salvors to undertake necessary and adequate salvage operations in compliance with the provisions of this Chapter.
(2) The master or the owner of the vessel shall have the authority to conclude such contracts on behalf of the owner of the property onboard the vessel.
(2) The master or the owner of the vessel shall have the authority to conclude such contracts on behalf of the owner of the property onboard the vessel.
Section 252 Duties of salvor, owner and master.
(1) The salvor shall have the following duties towards the owner of the vessel or other property in danger, namely:---
(a) to carry out the salvage operations with due care;
(b) to exercise due care to prevent or minimise damage to the environment during salvage operations;
(c) to seek assistance from other salvors including port authorities or public authorities when circumstances so require;
(d) to coordinate with the Director-General and act in compliance with the instructions issued by him; and
(e) to accept the intervention of other salvors when reasonably requested to do so by the owner or master of the vessel or other property in danger:
Provided that if it is found that such a request was unreasonable, it shall not prejudice the amount of reward of such salvor.
(2) The owner or master of the vessel or the owner of other property which is in danger shall have the following duties towards the salvor, namely:---
(a) to cooperate with the salvor during the course of the salvage operations;
(b) to exercise due care to prevent or minimise damage to the environment during the salvage operations;
(c) when the vessel or other property is brought to a place of safety, to accept redelivery when reasonably requested by the salvor; and
(d) to provide satisfactory security for the claim, including interest and costs of the salvor for the salvage operations, at the request of the salvor.
(a) to carry out the salvage operations with due care;
(b) to exercise due care to prevent or minimise damage to the environment during salvage operations;
(c) to seek assistance from other salvors including port authorities or public authorities when circumstances so require;
(d) to coordinate with the Director-General and act in compliance with the instructions issued by him; and
(e) to accept the intervention of other salvors when reasonably requested to do so by the owner or master of the vessel or other property in danger:
Provided that if it is found that such a request was unreasonable, it shall not prejudice the amount of reward of such salvor.
(2) The owner or master of the vessel or the owner of other property which is in danger shall have the following duties towards the salvor, namely:---
(a) to cooperate with the salvor during the course of the salvage operations;
(b) to exercise due care to prevent or minimise damage to the environment during the salvage operations;
(c) when the vessel or other property is brought to a place of safety, to accept redelivery when reasonably requested by the salvor; and
(d) to provide satisfactory security for the claim, including interest and costs of the salvor for the salvage operations, at the request of the salvor.
Section 253 Rights of salvors.
(1) A salvor shall have a right to payment for the services rendered by him relating to salvage operations:
Provided that no such payment shall be made where there is express and reasonable prohibition from rendering any such service by the owner or master of vessel or owner of any other property in danger which is not and has not been onboard the vessel.
(2) The criteria for claiming rewards, manner of fixing rewards, payment of special compensation under Article 14 of the Salvage Convention, apportionment of payment amongst salvors, salvage of persons, payment under the contract, payment for additional services not covered under the contract and effect of misconduct of salvors on reward or payment under this Chapter shall be such as may be prescribed.
(3) The salvor shall have right to enforce his maritime lien against the ship owner or master of vessel or owner of any other property in danger when satisfactory security for his claim, including interest and costs, is not provided by such ship owner or master or owner.
Provided that no such payment shall be made where there is express and reasonable prohibition from rendering any such service by the owner or master of vessel or owner of any other property in danger which is not and has not been onboard the vessel.
(2) The criteria for claiming rewards, manner of fixing rewards, payment of special compensation under Article 14 of the Salvage Convention, apportionment of payment amongst salvors, salvage of persons, payment under the contract, payment for additional services not covered under the contract and effect of misconduct of salvors on reward or payment under this Chapter shall be such as may be prescribed.
(3) The salvor shall have right to enforce his maritime lien against the ship owner or master of vessel or owner of any other property in danger when satisfactory security for his claim, including interest and costs, is not provided by such ship owner or master or owner.
Section 254 Powers and duties of Central Government in relation to salvage operations.
(1) The Central Government shall take such measures as may be necessary to protect its coastline or related interests from pollution or threat of pollution arising out of a maritime casualty or acts relating to such casualty which may result in major harmful consequences.
(2) The Central Government may give such directions as it deems fit to the ship owner or the master or the salvor or a port authority or a public authority or any other person in relation to salvage operations.
(3) The Central Government may, for the purposes of efficient and effective salvage operations, saving life or property in danger and preventing damage to the environment, seek cooperation from the concerned ship owner or the master or the salvor or a port authority or a public authority or any other person, to give assistance to vessel in need, to admit to ports of vessel in distress or in need of assistance and to give facilities to salvors.
(4) The circumstances under which the salvage operation shall be exercised by the Central Government shall be such as may be prescribed.
(2) The Central Government may give such directions as it deems fit to the ship owner or the master or the salvor or a port authority or a public authority or any other person in relation to salvage operations.
(3) The Central Government may, for the purposes of efficient and effective salvage operations, saving life or property in danger and preventing damage to the environment, seek cooperation from the concerned ship owner or the master or the salvor or a port authority or a public authority or any other person, to give assistance to vessel in need, to admit to ports of vessel in distress or in need of assistance and to give facilities to salvors.
(4) The circumstances under which the salvage operation shall be exercised by the Central Government shall be such as may be prescribed.
Section 255 Retention of salvors.
The Central Government may, for the purposes of this Chapter, notify a list of salvors having such qualifications and experience and subject to such terms and conditions as may be prescribed.
Section 256 Disputes between ship owner and salvor.
The ship owner and salvor may, for the redressal of grievances relating to this Part, approach the Director-General who shall assist the parties in an independent and impartial manner to enable an amicable settlement in accordance with such procedure as may be prescribed.
Section 257 Adjudication of disputes between ship owner and salvor.
(1) Either party to the salvage contract shall prefer an arbitration for a dispute that is not resolved by the Director-General under section 256:
Provided that where the salvage contract does not provide for the resolution of disputes by arbitration, the disputes shall be adjudicated in accordance with the salvage contract.
(2) Any person aggrieved by the arbitral award may appeal to the concerned High Court in accordance with the applicable law.
(3) Any dispute involving more than one claimant to the salvage amount shall be decided by the High Court.
(4) The High Court may, by interim order, direct that the salvor shall be paid such amount as may appear to it to be fair and just.
Provided that where the salvage contract does not provide for the resolution of disputes by arbitration, the disputes shall be adjudicated in accordance with the salvage contract.
(2) Any person aggrieved by the arbitral award may appeal to the concerned High Court in accordance with the applicable law.
(3) Any dispute involving more than one claimant to the salvage amount shall be decided by the High Court.
(4) The High Court may, by interim order, direct that the salvor shall be paid such amount as may appear to it to be fair and just.
Section 258 Extinguishment of claims.
Any action relating to payment under this Chapter shall extinguish if no action for such claim is made within a period of two years from the date of completion of salvage operations.
Section 259 Savings.
Nothing in this Part shall,---
(a) affect any treaty or arrangement with any foreign State to which India is a party with reference to the disposal of the proceeds of wrecks on their respective coasts; or
(b) entitle any person to salvage under this Act in respect of any property recovered by creeping or sweeping in contravention of the Indian Ports Act, 1908 (15 of 1908).
(a) affect any treaty or arrangement with any foreign State to which India is a party with reference to the disposal of the proceeds of wrecks on their respective coasts; or
(b) entitle any person to salvage under this Act in respect of any property recovered by creeping or sweeping in contravention of the Indian Ports Act, 1908 (15 of 1908).
Section 260 Power to make rules.
(1) The Central Government may make rules to carry out the provisions of this Part.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:---
(a) the other criteria to determine whether a wreck constitute a hazard or not under clause (q) of section 237;
(b) the manner of marking wreck under clause (a) of sub-section (1) of section 238;
(c) the manner of giving detailed information of the hazard to the Central Government under sub-section (1) of section 242;
(d) the other financial security under sub-section (1) of section 244;
(e) the criteria for claiming rewards, manner of fixing rewards, payment of special compensation, apportionment of payment and the effect of misconduct of salvors on reward or payment under sub-section (2) of section 253;
(f) the circumstances in which salvage operation shall be exercised by the Central Government under sub-section (4) of section 254;
(g) the qualification, experience and the terms and conditions subject to which salvors shall be notified under section 255;
(h) the procedure in accordance with which the Director-General shall settle the dispute under section 256;
(i) any other matter which is required to be or may be prescribed.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:---
(a) the other criteria to determine whether a wreck constitute a hazard or not under clause (q) of section 237;
(b) the manner of marking wreck under clause (a) of sub-section (1) of section 238;
(c) the manner of giving detailed information of the hazard to the Central Government under sub-section (1) of section 242;
(d) the other financial security under sub-section (1) of section 244;
(e) the criteria for claiming rewards, manner of fixing rewards, payment of special compensation, apportionment of payment and the effect of misconduct of salvors on reward or payment under sub-section (2) of section 253;
(f) the circumstances in which salvage operation shall be exercised by the Central Government under sub-section (4) of section 254;
(g) the qualification, experience and the terms and conditions subject to which salvors shall be notified under section 255;
(h) the procedure in accordance with which the Director-General shall settle the dispute under section 256;
(i) any other matter which is required to be or may be prescribed.