THE MERCHANT SHIPPING (AMENDMENT) ACT, 2002

An

Act

further to amend the Merchant Shipping Act, 1958, and the

Major Port Trusts Act, 1963.

BE it enacted by Parliament in the Fifty-third Year of the

Republic of India as follows:-

CHAPTER I

PRELIMINARY

1.(1) This Act may be called the Merchant Shipping Short title and
commencement.
(Amendment) Act, 2002.

(2) It shall come into force on such date as the Central

Government may, by notification in the Official Gazette,
appoint and different dates may be appointed for different
provisions of this Act.

CHAPTER II

AMENDMENT OF THE MERCHANT SHIPPING ACT, 1958

44 of 1958. 2. For section 76 of the Merchant Shipping Act, 1958 Substitution of

new section for
(hereinafter referred to as the principal Act), the following section 76.
section shall be substituted, namely:-

“76. (1) Every Indian ship, when going to sea from any
Certificates of
port or place, shall be provided with officers duly competency to
certificated under this Act in accordance with such be held by
manning scales as may be prescribed: officers of ships

Provided that the Central Government may prescribe

different manning scales for different types of ships.

(2) Every ship, whether at sea or in any port or place,

shall engage such number of persons and with such
qualifications as may be prescribed for maintaining
watches .”
Amendment of 3. In section 87 of the principal Act, in sub-section (2), in
section 87.
clause (b), for the words “by a ship”, the words “by different
types of ships” shall be substituted.

Amendment of 4. In section 95 of the principal Act,-

section 95.

(i) in sub-section (1), for clauses (a) and (b), the

following clauses shall be substituted, namely:-

“(a) to issue licence, to regulate and control

the recruitment and placement service, and to –

(i) ensure that no fees or other

charges for recruitment or placement of
seafarers are borne directly or indirectly or
in whole or in part, by the seafarers;
(ii) ensure that adequate machinery
and procedures exist for the investigation, if
necessary, of complaints concerning the
activities of recruitment and placement
services; and

(iii) to maintain registers of seamen

in respect of the categories of seamen.”;

(ii) sub-section (2) shall be omitted;

(iii) in sub-section (3), for clauses (b) and (c), the

following clauses shall be substituted, namely:-

“(b) the levy and collection of such fees as may be

specified for the issue of licences to recruitment and
placement services, renewal of such licences and
services to be rendered by the seamen’s employment
office;

(c) the issue of directions by the Central

Government to any seamen’s employment office or any
recruitment and placement service with reference to the
exercise of any of its powers; “;

(ca) the conditions under which the recruitment

and placement service to recruit and place seafarers’
abroad;

(cb) circumstances and conditions under which

 licence to be suspended or withdrawn;

(cc) conditions under which seafarers’ personal

data to be processed by the recruitment and placement
services including the collection, storage, combination
and communication of such data to third parties;”;

(iv) after sub-section (3), the following Explanation

shall be inserted, namely:--

‘Explanation.- For the purposes of this section,--

(a) “recruitment and placement service”

means any person, company, institution, agency or
other organisation, in the public or private sector
which is engaged in recruiting seafarers on behalf
of employers or placing seafarers with employers;

(b) “seafarer” means any person who

fulfils the conditions to be employed or engaged in
any capacity on board a sea-going ship other than
a government ship used for military or non-
commercial purposes.’.

5. For section 97 of the principal Act, the following section Substitution of

new section for
shall be substituted, namely:- section 97.

“97. (1) A person or company or organisation including Receipt of

a union purporting to represent the interests of seamen shall remuneration,
not demand or receive either directly or indirectly, from any donation, fees,
etc., from
seamen or person seeking employment as seamen or any seamen for
person on his behalf, any remuneration or donation or fees shipping them
or compulsory subscription of any kind attributable from prohibited.
such seamen or persons’ employment as seamen, other than
the fees authorised by this Act.

(2) It shall be the duty of the company employing or

proposing to employ persons as seamen to ensure that no
money has been demanded or received by any person or
company or organisation including the union purporting to
represent the interests of seamen by way of any
remuneration or donation or fees or compulsory
subscription of any kind attributable to employment of such
persons as seamen.”.
 6. After section 97 of the principal Act, the following Insertion of new
section 97A.
section shall be inserted, namely:--
.
“97A. There shall be no discrimination between seamen ,- Prohibition
against
discrimination.
(a) on the ground of their membership or lack of
membership in any particular union purporting to represent
the interests of seamen and membership in such union shall
not be pre-requisite condition;

(b) on the basis of training institute from where they

obtained training or place of issue of their continuous
discharge certificates,

for their recruitment and engagement on board any ship.”.

7. For the sub-heading “Safety certificates, safety equipment Substitution of

new sub-
certificates, safety radio telegraphy certificates, safety radio heading.
telephony certificates, exemption certificates, etc.” above
section 299 of the principal Act, the following sub-heading shall
be substituted, namely:-

“Safety certificates, safety equipment certificates,

safety radio certificates, exemption certificates, etc.”.

8. In section 299 of the principal Act,- Amendment of

section 299.

(a) in sub-section (1),-

(i) for the words “radio telegraphy or radio telephony

installation and radio direction finder”, the words “radio
installation” shall be substituted;

(ii) after the words “safety certificate”, the words “and

record of equipment for passenger ship certificate” shall
be added at the end;

(b) in sub-section (3), the words “or a pilgrim ship” shall

be omitted;

(c) after sub-section (3), the following sub-section shall

be inserted, namely:-

“(4) The Certificates issued under sub-sections (1) and (2),

sub-sections (1) and (2) of section 300 and section 301
shall be supplemented by a record of equipment in the
 prescribed form.”.

9. In section 299A of the principal Act,- Amendment of

section 299A.

(a) in sub-section (1)-

(i) for the words “the Central Government”, the words

“the Central Government or any person authorised by it in
this behalf “ shall be substituted;

(ii) for the words “the Central Government ”, the words

“the Central Government or the authorised person ” shall be
substituted;

(b) in sub-section (2),-

(i) for the words “of the Act and the Central
Government”, the words “and the Central Government or
any person authorised by it in this behalf” shall be
substituted;

(ii) for the words “ the Central Government”, the words

“the Central Government or the authorised person ” shall be
substituted;

(c) after sub-section (2), the following sub-section shall be

inserted, namely:-

“(3) The owner of every ship in respect of which a certificate is

issued under sub-section (1) or sub-section (2), sub-section (1)
or sub-section (2) of section 300 or section 301 shall, so long as
the certificate remains in force, cause the ship to be surveyed in
the manner as specified in the Safety Convention or in cases
where such specified manner is not applicable, in such manner
as the rules made in this behalf prescribe, as the case may be.”.

10. For section 300 of the principal Act, the following Substitution of
new section for
section shall be substituted, namely:-- section 300.

“300. (1) If in respect of an Indian cargo ship the Central Cargo ship
safety
Government or any person authorised by it in this behalf is equipment and
satisfied that the ship complies with the provisions of this Act cargo ship
and the rules made there under relating to life saving and fire equipment
certificates for
appliances applicable to such ship and is provided with lights ships other than
and shapes and the means of making fog and distress signals passenger ship.
required by the collision regulations, the Central Government or
 the authorised person may issue in respect of the ship-

(a) if the ship is of five hundred tons gross or more

and performs international voyages, a certificate in the
prescribed form to be called a cargo ship safety
equipment certificate;

(b) in other cases, a certificate in the prescribed form to

be called a cargo ship equipment certificate.

(2) Where, in respect of a ship referred to in sub-

section (1), there is in force an exemption certificate granted
under section 302 and the Central Government or any person
authorised by it in this behalf is satisfied that the ship complies
with all the requirements referred to in that sub-section other
than those from which the ship is exempt under that certificate,
the Central Government or the authorised person may issue a
certificate in the prescribed form to be called a qualified cargo
ship safety equipment or a qualified cargo ship equipment
certificate, as the case may be.

Substitution of 11. For section 301 of the principal Act, the following
new section for
section 301. section shall be substituted, namely:-

Cargo ship “301. The owner or master of any Indian cargo ship,
safety radio
certificate and which is required by the provisions of section 291 to be
qualified cargo provided with a radio installation shall, if the Central
ship safety Government or any person authorised by it in this behalf is
radio
certificate, etc. satisfied that the ship complies with all the provisions of
this Act and the rules made thereunder relating to radio
installation applicable to such ship, receive-

(a) in the case of a ship of three hundred tons gross

or more, a certificate in the prescribed form to be called
a cargo ship safety radio certificate;

(b) in the case of a ship of three hundred tons gross

or more but less than three thousand tons gross
performing voyages only between ports or places in
India, a certificate in the prescribed form to be called a
qualified cargo ship safety radio certificate; and

(c) in other cases a certificate in the prescribed form

 to be called a cargo ship radio certificate.”.

12. For section 303 of the principal Act, the following Substitution of
new section for
section shall be substituted, namely:-- section 303.

“303. (1) A passengers ship safety certificate, a Duration of

certificates.
qualified passenger ship safety certificate, a special trade
passenger ship safety certificate and a special trade
passenger ship space certificate issued under this Part shall
be in force for a period of twelve months from the date of
its issue or for such shorter period as may be specified in
the certificate.

(2) A cargo ship safety equipment certificate, a

qualified cargo ship safety equipment certificate, a cargo
ship equipment certificate, a qualified cargo ship equipment
certificate, a cargo ship safety construction certificate, a
qualified cargo ship safety construction certificate, a cargo
ship construction certificate, a qualified cargo ship
construction certificate, a cargo ship safety radio certificate,
a qualified cargo ship safety radio certificate and a cargo
ship radio certificate issued under this Part shall be in force
for a period of five years from the date of its issue or for
such shorter period as may be specified in the certificate.

(3) An exemption certificate issued under section

302 shall be in force for the period for which the certificate
to which it relates remains in force or for such shorter
period as may be specified in the exemption certificate.

(4) Notwithstanding the requirements of sub-

sections (1), (2) and (3) when the renewal survey is
completed within three months before the expiry date of the
existing certificate, the new certificate may be valid from
the date of completion of the renewal survey,-

(a) for a passenger ship, a date not exceeding

twelve months; and
(b) for a cargo ship, a date not exceeding five
years,
from the date of expiry of the existing certificate.

(5) The Central Government or any person authorised

by it in this behalf may grant an extension of any certificate
issued under this Part in respect of an Indian ship-
 (a) where the ship is not in a port in which it is
to be surveyed, on the date when the certificate would,
but for the extension, have expired, for such period not
exceeding three months from the said date as may be
sufficient to enable the ship to complete its voyage to
the port in which it is to be surveyed;

(b) where the ship is engaged on a short voyage

and whose certificate has not been extended under
clause (a), for a period up to one month from the date
when the certificate would have expired:

Provided that any extension granted under clause (a)

shall cease to be operative upon the ship’s arrival at the port
referred to in that clause:

Provided further that no extension shall be granted

under clause (b) in respect of a certificate extended under
clause (a).

(6) Where an existing certificate of a ship has been

extended under sub-section (5) and when renewal survey is
completed, the new certificate shall be valid up to, –

(a) for a passenger ship, a date not exceeding twelve

months; or

(b) for a cargo ship, a date not exceeding five years,

from the date of expiry of the existing certificate.

(7) In special circumstances where the Central

Government so determines, a new certificate, need not be
dated from the date of expiry of the existing certificate,
shall be valid up to,--

(a) for a passenger ship, a date not exceeding

twelve months;

(b) for a cargo ship, a date not exceeding five years,

from the date of completion of the renewal survey.

(8) Where a certificate referred to in sub-section (2) is

issued for a period of less than five years, the Central
 Government or any person authorised by it in this behalf
may extend the validity of the certificate beyond the expiry
date to the maximum period specified in sub-section (2) if
appropriate surveys, applicable when a certificate is issued
for a period of five years, are carried out.

(9) If a renewal survey has been completed and a new

certificate cannot be issued or placed on board the ship
before the expiry date of the existing certificate, the Central
Government or any person authorised by it in this behalf
may endorse the existing certificate and such certificate
shall be in force for a further period which shall not exceed
five months from the expiry date of the existing certificate.

(10) If annual, intermediate or periodical surveys in the

manner as specified in the Safety Convention or in cases
where such specified manner is not applicable, in such
manner as the rules made in this behalf prescribe, as the
case may be, are completed before the period stipulated
therefor, then-

(a) the anniversary date mentioned on the relevant

certificate shall be amended by endorsement to a date
which shall not be more then three months later than the
date on which the survey was completed;

(b) the subsequent surveys shall be completed at

the stipulated intervals using the new anniversary date
so endorsed;

(c) the expiry date may remain unchanged

provided one or more annual, intermediate or periodical
surveys, as the case may be, are carried out so that the
maximum stipulated intervals between the surveys are
not exceeded.

(11) A certificate issued under section 299A, section

300 or section 301 shall cease to be valid,-

(a) if the relevant surveys specified in the Safety

Convention or in cases where such specified manner is
not applicable, in such manner as the rules made in this
behalf prescribe, as the case may be, are not completed
within the stipulated period;

(b) if the certificate is not endorsed; or

 (c) if the ship ceases to be an Indian ship.”.

Amendment of 13. In section 307 of the principal Act,-

section 307.

(a) in sub-section (2), in clause (b), for the words “ radio

telegraphy certificate or a cargo ship safety radio telephony
certificate”, the words “ radio certificate” shall be substituted;

(b) for sub-section (2A), the following sub-section shall

be substituted, namely:-

“(2A) No sea-going Indian cargo ship, less than

five hundred tons gross, shall proceed on a voyage from
any port or place in India to any port or place in India or
to any port or place outside India unless there is in force
in respect of the ship a cargo ship construction certificate
issued under section 299A and a cargo ship equipment
certificate issued under section 300 and,

(i) a cargo ship safety radio certificate if the

ship is three hundred tons gross or more;

(ii) a qualified cargo ship safety radio certificate

if the ship is operating within ports or places in
India and is of three hundred to five hundred tons
gross; or

(iii) a cargo ship radio certificate if the ship is

less than three hundred tons gross, issued under
section 301.”;

(c) in sub-section (3),-

(i) (i) in clause (a), for the words “equipment certificate

issued under section 300”, the words “safety construction
certificate or cargo ship construction certificate issued
under section 299A” shall be substituted;

(ii) (ii) in clause (b), in the opening portion, after the

word “a”, the words “cargo ship equipment certificate or ”
shall be inserted;

(iii) (iii) in clause (c), for the words “radio telegraphy

certificate or a cargo ship radio telephony certificate”, the
words and figures “safety radio certificate or a qualified
 cargo ship safety radio certificate, if the ship operates
between ports or places in India and is between five
hundred to three thousand tons gross,” shall be
substituted.

Amendment of 14. In section 317 of the principal Act,-

section 317.

(i) in sub-section (1), after the existing proviso, the

following proviso shall be inserted, namely:--

“Provided further that when the renewal survey

for the purpose of issue of certificate under sub-
section (1) of section 316 is completed within three
months before the expiry date of the existing
certificate, the new certificate may be valid from the
date of completion of the renewal survey to a date not
exceeding five years from the date of expiry of the
existing certificate.”;

(ii) in sub-section (3), for the words “shall cease to be

valid when the ship ceases to be an Indian ship.”, the
words, brackets and figure “shall cease to be valid when-

(a) the ship ceases to be an Indian ship;

(b) material alterations such as would necessitate

assignment of an increased free board have taken
place in the hull or superstructure of the ship;

(c) the fittings and appliances for the protection

of openings, the guard rails, freeing ports, or the
means of access to the crew’s quarters are not
maintained in an effective condition;

(d) the structural strength of the ship is lowered to

such an extent as to render the ship unsafe;

(e) the certificate is not endorsed to prove that the

ship has been surveyed as required under sub-section
(5); or

(f) the marking of the deck line and load lines on

the ship have not been properly maintained;

(iii) sub-section (4) shall be omitted;

 (iv) in sub-section (5), for the words beginning with
the words “once at least in each year” and ending with the
words “caused to be so surveyed.”, the following words,
brackets and figures shall be substituted, namely:-

“and the certificate endorsed once at least in each year

during the period commencing three months before and
ending three months after the anniversary date of expiry
of the certificate for the purpose of ensuring that-

(a) alterations have not been made to the hull or

superstructure which would affect the calculations
determining the position of the load line;

(b) the fittings and the appliances for the

protection of openings, the guard rails, freeing ports,
or the means of access to the crew’s quarters are
maintained in an effective condition;

(c) the free board marks are correctly and

permanently marked; and

(d) the stability information required under

section 298 is readily available on board.”;

(v) for sub-sections (6) and (7), the following sub-

sections shall be substituted, namely:-

“(6) If an annual survey is completed before the

period specified in sub-section (5) then,-

(a) the anniversary date mentioned on the

certificate shall be amended by endorsement to a
date which shall not be more than three months later
than the date on which the survey was completed;

(b) the subsequent annual survey required by

sub-section (5) shall be completed using the new
anniversary date;

(c) the expiry date of the certificate may

remain unchanged provided one or more annual
survey is carried out so that the maximum interval
between the surveys specified under sub-section (5)
is not exceeded.
 (7) If a certificate under sub-section (1) of section 316
is issued for a period of less than five years, the Central
Government or any person authorised by it in this behalf,
may extend the validity of the certificate beyond the expiry
date to a maximum period specified in sub-section (1):

Provided that annual surveys referred to in sub-section

(5) are carried out as may be appropriate.

(7A) If a ship at the time when a certificate expires is not

in a port at which it is to be surveyed, the Central
Government or any person authorised by it in this behalf
may extend the period of validity of the certificate, but this
extension shall be granted only for the purpose of allowing
the ship to complete the voyage to the port in which it is to
be surveyed and also only in cases where it appears proper
and reasonable to do so:
Provided that no certificate shall be extended for a period
longer than three months and the ship to which an
extension is granted shall on its arrival at the port in which
it is to be surveyed leave that port without having a new
certificate:
Provided further that when the renewal survey is
completed, the new certificate shall be valid to a date not
exceeding five years from the date of expiry of the existing
certificate.

(7B) A certificate, issued to a ship engaged in short

voyage which has not been extended under sub-section
(7A), may be extended by the Central Government or any
person authorised by it in this behalf for a period up to one
month from the date of expiry when the renewal survey is
completed, the new certificate shall be valid up to a date
not exceeding five years from the date of expiry of the
existing certificate.

(7C) In special circumstances where the Central

Government so determines a new certificate, need not be
dated from the date of expiry of the existing certificate,
shall be valid up to a date not exceeding five years from the
date of completion of the renewal survey.”.
Amendment of
15. In section 344 of the principal Act, in sub-section (2), section 344.
for clause (a), the following clauses shall be substituted,
namely:-
 “(a) the form of any certificate and record of
equipment issued under this Part;

(aa) the manner of surveys required to be made in

respect of ships to which the manner of surveys specified in
the Safety Convention is not applicable;”.
Amendment of
16. In section 352 of the principal Act,- section 352.

(i) clause (b) shall be omitted;

(ii) after clause (g), the following clauses shall be

inserted, namely:--

‘(h) “Convention” means the Convention on

Limitation of liability for Maritime Claims, 1976 as
amended from time to time;

(i) “salvor” means any person rendering

services in direct connection with salvage operations.

Explanation.--For the purpose of clause (i),

“salvage operations includes,-

(a) the raising, removal, destruction or the

rendering a ship harmless which is sunk,
wrecked, stranded or abandoned including
anything that is or has been on board such ship;

(b) removal, destruction or rendering the

cargo of a ship harmless, and

(c) measures taken to avert or minimise loss

to a ship or its cargo or both;

(j) “ship owner” means owner, charterer, manager

and operator of a sea going ship;

(k) “Special Drawing Rights” means Special

Drawing Rights as determined by the International
Monetary Fund.’.

Substitution of 17. For section 352A of the principal Act, the following
new section for
section shall be substituted, namely:--
section 352A.

Limitation of “352A. (1) The ship owner, salvor, any person for
liability for
damages in whose act, neglect or default the ship owner or salvor, as
respect of
the case may be, is responsible, and an insurer of liability
certain claims.
for claims to the same extent as the assured himself, may
limit his liability as provided under section 352B in respect
of,-

(a) claims arising from loss of life of or personal

injury to, or loss of or damage to, property (including
damage to harbour works, basins and waterways and
aids to navigation), occurring on board or in direct
connection with the operation of the ship;

(b) claims arising out of loss resulting from

delay in the carriage by sea of cargo and passengers
or their luggage;

(c) claims arising out of other loss resulting

from infringement of rights other than contractual
rights, occurring in direct connection with the
operation of the ship or salvage operations;

(d) claims of a person other than the person liable

in respect of measures taken in order to avert or
minimise loss for which the person liable may limit
his liability in accordance with the provisions of the
Convention or the rules made in this behalf prescribe,
as the case may be, and such further loss caused by
such measures;

(e) claims for the loss of life or personal injury to

passengers of a ship brought by or on behalf of any
person ,-

(i) under the contract of passenger carriage;

or

(ii) who, with the consent of the carrier, is

accompanying a vehicle for live animals which
are covered by a contract for the carriage of
goods,
carried in that ship:
Provided that the limits for passengers claim specified in
the rules made under this Part shall not be applicable to the
passengers carried in and around the coast of India in respect
of whom separate limits shall be prescribed.
 (2) Claims set out in sub-section (1) shall be subject to
limitation of liability even if brought by way of recourse or
for indemnity under a contract or otherwise:

Provided that claims set out in clause (d) of sub-section

(1) shall not be subject to limitation of liability to the extent
that they relate to remuneration under a contract with the
person liable.

(3) Nothing in this section shall apply to-

(a) claims for salvage or contribution in general

average;

(b) claims for oil pollution damage within the

meaning of the International Convention on Civil
Liability for Oil Pollution Damage, 1992 as amended
from time to time;

(c) claims by servants of the ship owner or salvor

whose duties are connected with the ship or the salvage
operations, including claims of their heirs, dependents or
other persons entitled to make such claims, if under the
law governing the contract of service between the ship
owner or salvor and such servants of the ship owner or
salvor is not entitled to limit his liability in respect of
such claims, or if he is by such law only permitted to
limit his liability to an amount greater than that provided
for in accordance with the provision of the Convention or
the rules made under this Part prescribe;

(d) claims subject to any international Convention or

any law for the time being in force in India governing or
prohibiting limitation of liability for nuclear damage;

(e) claims against the ship owner of a nuclear ship

for nuclear damage.

Explanation 1.-For the purpose of this section the act of

involving limitation of liability shall not constitute an
admission of liability.

Explanation 2.-For the purpose of this Part the liability of

a ship owner shall include liability in an action brought
against the ship herself.”.
Substitution of
new section for 18. For section 352B of the principal Act, the following
section 352B.
section shall be substituted, namely:-

Limitation of “352B. The amount to which any person referred to in

liability.
sub-section (1) of section 352A may limit his liability in
accordance with the provisions of the Convention and in
cases where the provisions of the Convention are not
applicable, the limit shall be in accordance with the rules
made in this behalf prescribe.”.

19. In section 352C of the principal Act,- Amendment of

section 352C.

(a) in the marginal heading the words “against owner”

shall be omitted;

(b) for sub-section (1), the following sub-section shall

be substituted, namely:-

“(1) Where any liability is alleged to have been

incurred by a person referred to in sub-section (1) of
section 352A in respect of claims arising out of an
occurrence, and legal proceedings are instituted in
respect of claims subject to limitation, then such
person may apply to the High Court for the setting up
of a limitation Fund for the total sum representing the
amounts set out in the Convention or the rules made
in this behalf under this Part applicable to claims for
which that person may be liable together with interest
thereon from the date of occurrence giving rise to the
liability until the date of the constitution of the
Fund.”;

(c) in sub-section (2), for the words beginning with

the words “or furnish” and ending with the words “or
secured”, the words “or produce a guarantee acceptable
or produce a bank guarantee in respect of the amount as
in the opinion of the High Court is satisfactory and the
amount so deposited or guarantee so given” shall be
substituted;

(d) for sub-sections (5) and (6), the following sub-

sections shall be substituted, namely :-

“(5) Where the person referred to in sub-section

(1) or his insurer establishes that he has paid in whole
or in part any claims in respect of which he can limit
 his liability under this Part, the High Court shall place
him in the same position and to the same extent in
relation to the Fund as the claimant whose claim has
been paid and allow to acquire by subrogation the
rights which the person so compensated would have
enjoyed under this Part:

Provided that the right of subrogation provided for

in this sub-section may also be exercised by persons
other than those therein mentioned in respect of any
amount of compensation which they might have paid
to that extent if prescribed by the rules made in this
behalf under this Part.

(6) Where the person liable or any other person

has established that he may at a later date be required
to pay in whole or in part, any of the claims under this
Part, which could be settled from the Fund, the High
Court may notwithstanding the foregoing provisions
of this section order that a sufficient sum may be
provisionally set aside for the purpose to enable the
person to enforce his claim against the Fund at a later
date in accordance with the provisions of sub-section
(5).”.

Amendment of 20. In section 352D of the principal Act,-

section 352D.

(i) in sub-section (5), for clause (a), the following

clause shall be substituted, namely:-

‘(a) “Convention country” means a country in

which the Convention on Limitation of Liability for
Maritime Claims, 1976 as amended from time to time
is for the time being in force;”;

(ii) after sub-section (5), the following sub-sections

shall be inserted, namely:--

“(6) Notwithstanding anything contained in sub-

sections (1) to (4), the vessels or property referred in
sub-section (1) shall be ordered to be released if the
limitation Fund has been constituted,-

(a) in the port where the occurrence took

place, or, if it took place out of port, in the first
port of call thereafter;
 (b) in the port of disembarkation in respect of
claims for loss of life or personal injury; or

(c) in the port of discharge in respect of

damage to cargo.

(7) The provision of sub-section (5) shall apply

only if the claimant brings a claim against the
limitation Fund before the High Court administering
the Fund and the Fund is actually available and freely
transferable in respect of that claim.”.
Substitution of
21. For section 352E of the principal Act, the following new section for
section shall be substituted, namely:-- section 352E.

Scope of
“352E. (1) The provisions of this Part shall apply application.
whenever any person referred to in sub-section (1) of
section 352A seeks to limit his liability before the Court
or seeks to procure the release of a ship or other property
or the discharge of any guarantee given within the Indian
jurisdiction but any person referred to in sub-section (1)
of section 352A who at the time when the provisions
under this Part are invoked before any Court in India does
not have his habitual residence in India or does not have
his principal place of business in India or any ship in
relation to which the right of limitation is invoked or
whose release is sought and which does not at the time
specified above fly the Indian Flag is wholly excluded
from the provisions of this Part.

(2) The provisions of this Part shall not be applicable

to the following vessels unless the Central Government,
by notification, specify otherwise,-

(a) ships intended for navigation on or around

coast of India and registered as coastal vessels under
the provisions of this Act;

(b) ships less than three hundred tons;

(c) air-cushion vehicles;

(d) floating platforms constructed for the purpose

of exploring or exploiting the natural resources of the
sea-bed or the subsoil thereof.”.
 22. After section 352F of the principal Act, the following Insertion of new
section 352FA.
section shall be inserted, namely:-

“352FA. The Central Government may make rules to Power to make

rules in respect
carry out the purposes of this Part: of matters in
this Part.
Provided that the rules under this Part shall be made
having regard to the provisions of the Convention.”.

23. For section 352H of the principal Act, the following

section shall be substituted, namely:-

‘352H. In this Part, unless the context otherwise

Substitution of
requires,- new section for
section 352H.
(a) “incident” means any occurrence, or series of Definitions.
occurrences having the same origin, which causes
pollution damage or creates a grave and imminent threat of
causing such damage;

(b) “oil” means any persistent hydro carbon mineral oil

such as crude oil, fuel oil, heavy diesel oil, lubricating oil
whether carried on board a ship as cargo or in the bunker
of such ship;

(c) “owner” means-

(i) the person registered as owner of the ship;

(ii) in the absence of registration, the person

owning the ship; or

(iii) in the case of a ship owned by a foreign State,

the person registered in that State as operator of the
ship;

(d) “pollution damage” means,-

(i) loss or damage caused outside the ship by

contamination resulting from escape or discharge of oil
from the ship, wherever such escape or discharge occurs,
provided that compensation for impairment of the
environment other than losses or profit from such
impairment shall be limited to costs of reasonable
 measures of reinstatement actually undertaken or to be
undertaken;

(ii) the costs of preventive measures and further loss

or damage caused by such measures;

(e) “preventive measures” means any reasonable

measures taken by any person after the incident to prevent or
minimize pollution damage;

(f) “ship” means any seagoing vessel and sea borne craft
of any type whatsoever constructed or adapted for the
carriage of oil in bulk as cargo, provided that a ship capable
of carrying oil and other cargoes shall be regarded as a ship
only when it is actually carrying oil in bulk as cargo and
during any voyage following such carriage unless it is proved
that it has no residues of such carriage of oil in bulk aboard;’;

(g) “person” means any individual or partnership or any

public or private body, whether corporate or not, including a
state or any of its constituent sub-divisions;

(h) “State of the ship’s registry”, in relation to

registered or unregistered ships, means the State of
registration of the ship, or as the case may be, the State
whose flag the ship is flying;

(i) “Liability Convention” means the International

Convention on Civil Liability for Oil Pollution Damage,
1992 as amended from time to time.’.

24. In section 352I of the principal Act,- Amendment of

section 352 I.

(a) for sub-section (4), the following sub-section shall

be substituted, namely:-

“(4) When any incident involving two or more

ships occurs and pollution damage results there from,
the owners of all the ships concerned, unless
exonerated under sub-section (3), shall be jointly and
severally liable for such damage which is not
reasonably separable.”;

(b) for sub-section (6), the following sub-section shall

be substituted, namely:-
 “(6) Without prejudice to any right of recourse of
the owner against third parties, no claim for
compensation for pollution damage may be made
against

(a) the servants or agents of the owner or the

members of the crew;

(b) the pilot or any other person who, without

being a member of the crew, renders services
for the ship;

(c) any charterer (howsoever described,

including a bare-boat charterer), manager or
operator of the ship;

(d) any person performing salvage operations

with the consent of the owner or on the
instructions of a competent public authority;

(e) any person taking preventive measures;

(f) all servants or agents of persons mentioned

in clauses (c), (d) and (e),

unless the incident causing such damage occurred as a result of

their personal act or omission, committed or omitted with the
intent to cause such damage, or recklessly and with knowledge
that such damage would probably result.”.
Substitution of 25. For section 352J of the principal Act, the following
new section for
section 352J. section shall be substituted, namely:--

Limitation of “352J.(1) The owner shall be entitled to limit his

liability.
liability under this Part, in respect of any one or more
incident, as may be prescribed.

(2) The owner shall not be entitled to limit his liability

if it is proved that the incident causing pollution damage
occurred as a result of his personal act or omission,
committed or omitted with the intent to cause such damage,
or recklessly and with knowledge that such damage would
probably result.”.
Amendment of
26. In 352R of the principal Act, after clause (b), the
section 352R.
following clause shall be inserted, namely:-
 “(c) the limits of liability of owner in respect of one or
more incident of pollution damage or other requirements
having regard to the provisions of the Liability
Convention.”.

Insertion of 27. After Part XB of the principal Act, the following Part
new Part XC.
shall be inserted, namely:-

‘PART XC

INTERNATIONAL OIL POLLUTION COMPENSATION FUND

Definitions. 352S. In this Part, unless the context otherwise requires,-

(a)”contributing oil” means crude oil and fuel oil.

Explanation.-For the purposes of this clause,--

(i) “crude oil” means any liquid hydro

carbon mixture occurring naturally in the earth
whether or not treated to render it suitable for
transportation and includes crude oils from which
certain distillate fractions have been removed or
to which certain distillate fractions have been
added,

(ii) “fuel oil” means heavy distillates or

residues from crude oil or blends of such
materials intended for use as a fuel for the
production of heat or power of a quality
equivalent to the ‘American Society for Testing
and Materials’ Specification for Number Four
Fuel Oil (Designation D 396-69)’, or heavier;

(b)“discharge or escape”, in relation to pollution

damage, means the discharge or escape of oil carried by
the ship;
 (c) “Fund” means the International Oil Pollution
Compensation Fund established by the Fund Convention;

(d) “Fund Convention” means the International

Convention on the Establishment of an International Fund
for Compensation for Oil Pollution Damage, 1992 as
amended form time to time ;

(e) “Fund Convention country” means a country in

which the Fund Convention is for the time being in force;

(f) “guarantor” means any person providing

insurance or other financial security to cover the owner’s
liability;

(g) “terminal installation” means any site for the

storage of oil in bulk which is capable of receiving oil
from waterborne transportation, including any facility
situated off-shore and linked to such site;

(h) “ton”, in relation to oil, means a metric ton.

Contribution to 352T. (1) Contributions to the Fund in respect of

the Fund.
contributing oil carried by sea to ports or terminal
installations in India, shall be payable in accordance with
Articles 10 and 12 of the Fund Convention.

(2) Sub-section (1) shall apply whether or not the

contributing oil is imported, and notwithstanding that
 contributions are payable to the Fund in respect of
carriage of the same contributing oil on a previous
voyage.

(3) Contributions shall also be payable to the Fund in

respect of contributing oil when first received in any
installation in India after having been carried by sea and
discharged in a port or terminal installation in a country
which is not a Fund Convention country.

(4) The person liable to pay contributions to the Fund

shall be,-

(a) in case of contributing oil which is being

imported into India, the importer; or

(b) in any other case, the person by whom the oil is

received in India.

(5) A person shall not be liable to pay contributions to

the Fund in respect of the contributing oil imported or
received by him in any year if the quantity of contributing
oil so imported or received in the year does not exceed
one hundred and fifty thousand tones or as may be
specified from time to time by the Fund Convention.

Contributions 352U. (1) The contributions payable to the Fund by a

payable by
persons to the person for any year shall be,-
Fund.
(a) such amount as may be determined by the
Assembly of the Fund under Articles 10 and 12 of
the Fund Convention and notified to him by the
Fund;

(b) in such instalments, becoming due at such

dates, as may be notified to him,

and if any amount due from such person remains unpaid

after the date on which it became due, it shall from that
due date bear interest at a rate determined by the said
Assembly until it is paid.

(2) The Central Government may require persons,

who are or may be liable to pay contributions to the Fund
under section 352T, to give financial security for payment
 of contributions to that Government or the Fund.

Power to call 352V. (1) The Central Government may, for the
for
purpose of transmitting to the Fund the names and
information.
addresses of the persons who under section 352T are
liable to make contributions to the Fund every year and
the quantity of contributing oil in respect of which they
are so liable, by notice require any such person to furnish
such information as may be specified therein.

(2) A notice under this section may require a person to

give such information as may be required to ascertain
whether he is liable to contribute to the Fund.

(3) A notice under this section may specify the

manner in which, and the time within which, it is to be
complied with.

(4) In proceedings by the Fund against any person

to recover any amount due under section 352T,
particulars contained in any list transmitted by the Central
Government to the Fund shall, so far as those particulars
are based on information obtained under this section, be
admissible as evidence of the facts stated in the list; and
so far as particulars which are so admissible are based on
information given by the person against whom the
proceedings are brought, those particulars shall be
presumed to be accurate until the contrary is proved.

(5) No person shall disclose any information which

has been furnished to or obtained by him under this
section unless the disclosure is made,-

(a) with the consent of the person from whom the

information was obtained;

(b) in connection with the compliance of this

section;

(c) for the purpose of any legal proceedings

arising out of this section or of any report of such
proceedings.

(6) A person who,-

 (a) refuses or wilfully neglects to comply with
a notice under this section, or

(b) makes, while furnishing any information in

compliance with a notice under this section, any
statement which he knows to be false in a material
particular, or recklessly makes any statement which
is false in a material particular,

shall be guilty of an offence punishable under this Act.

352W. The Fund shall be liable for pollution Liability of the

Fund.
damage in accordance with the provisions of the Fund
Convention if any person suffering pollution damage
has been unable to obtain full and adequate
compensation for the damage under the terms of the
Liability Convention on any of the grounds specified in
Article 4 of the Fund Convention.

352X. (1) Any action for a claim against the Fund Jurisdiction of
Courts.
for compensation under section 352W shall be brought
before the High Court.

(2) The Fund shall have the right to intervene as a

party to any legal proceedings instituted in the High
Court against the owner or his guarantor.

(3) Where an action for compensation for

pollution damage has been brought against the owner or
his guarantor before the High Court each party to the
proceedings may notify the Fund of the proceedings.

(4) Where such notice of proceedings has been

given to the Fund, any judgment given in the
proceedings shall, after it has become final and
enforceable, become binding upon the Fund in the
sense that the facts and evidence in that judgment may
not be disputed by the Fund on the ground that it has
not intervened in the proceedings.

Extinguishment 352Y. Notwithstanding anything contained in any

of claims.
other law for the time being in force no action to
enforce a claim against the Fund under this Part shall be
entertained by a High Court in India unless-

(a) the action to enforce is commenced; or

 (b) notice of action to enforce a claim against
the owner or his guarantor in respect of the same
pollution damage is given to the Fund,

within three years from the date when the damage

occurred:

Provided that in no case an action to enforce a claim

shall be brought after six years from the date of the
incident that caused such damage.

Subrogation 352Z. In respect of any sum paid by a public

and right of
recourse. authority in India or the Fund, as the case may be, as
compensation for pollution damage, that authority shall
acquire by subrogation any rights which the person so
compensated would have enjoyed under the Fund
Convention.

Power to make 352ZA. The Central Government may make such

rules.
rules as may be required to carry out the purposes of the
Fund Convention.’.

CHAPTER III
Amendment of
section 116 of
Act 38 of 1963.

AMENDMENT OF MAJOR PORT TRUSTS ACT, 1963

44 of 1958.

28. In section 116 of the Major Port Trusts Act, 1963, for the
portion beginning with the words “such recovery, by distress
and sale,” and ending with the words “attributable to the order,
act or improper omission of such employee”, the words, letters
and figures “such recovery in accordance with the provisions of
Part XA of the Merchant Shipping Act, 1958” shall be
substituted.
 STATEMENT OF OBJECTS AND REASONS

The Merchant Shipping Act, 1958 governs matters relating to shipping in India. The main
objective of the Act is to ensure development and efficient maintenance of the Indian mercantile
marine. The Act has been amended from time to time in the light of experience gained in its
implementation and also to give effect to the provisions of various International Conventions to
which India has acceded.

2. As an active member of the International Maritime Organisation (IMO), India has

acceded to a number of International Conventions and Protocols adopted by the IMO. Suitable
provisions are required to be made in the Merchant Shipping Act, 1958 to enable the
Government of India or its agencies to give effect to those Conventions and Protocols. Besides,
amendments of certain provisions of the Act are also required to enable the maritime
administration to meet its operational requirements.

3. The Conventions and Protocols for implementation of which provisions are required to
be made in the Merchant Shipping Act, 1958 are outlined as under:-
The International Maritime Organisation has adopted the International Convention on
Limitation of Liability for Maritime Claims (LLMC), 1976 on 19 th November, 1976
under which the limitation tonnage is the gross tonnage of the vessel as calculated under
the universal measurement system in accordance with the Tonnage Measurement of
Ships Convention, 1969. The limitation of liability has been extended to any person for
whose neglect or default the shipowner or salvor is responsible. Limitation of liability
will be barred if it is proved that the loss resulted from any personal act or omission
committed by the shipowner or the salvor with the intent to cause such loss or committed
recklessly and with the knowledge that such loss would probably result. The Safety of
Life at Sea (SOLAS) Convention, 1974 was amended in 1988 to streamline and
harmonise the survey of ships and their equipment to ensure safety of ships proceeding
on sea voyages. The Convention on Load Lines, 1966 as amended in 1988 deals with
harmonised system of survey of ships and their certification. The Civil Liability
Convention (CLC), 1992 mainly deals with payment for oil pollution damages by any
 ship in the Indian waters up to limits of exclusive economic zone and by any Indian ship
abroad. The Fund Convention, 1992 provides a second tier of compensation regime
where a claimant can proceed against the Fund located in London that pays for damages.

4. The Bill seeks to amend various provisions of the Act, which, inter alia, include the
following, namely:-

(i) sections 76 and 87 are being amended to empower the Central Government to prescribe
different manning scales for different types of ships and section 95 is being amended to redefine
the role of seamen’s employment offices to control and regulate the manning agents and
recruitment and placement service instead of controlling and regulating the employment of
seamen. Section 97 is being amended to bring the unions within its purview to enable curbing of
malpractices by the seamen’s unions and a new section 97A is being inserted to prohibit any
discrimination in recruitment of seafarers;

(ii) sections 299, 299A, 300, 301, 303 and 307 are being amended to include the changes
made in the Convention on Safety of Life at Sea, 1974 as amended in 1988. Section 317 is being
amended to implement the provisions of the Load Line Convention, 1966 as amended in 1988 to
harmonise the survey and certification procedures with those of SOLAS Convention, 1974 as
amended in 1988;

(iii) section 344 is being amended to empower the Central Government to prescribe the
record of equipment and the manner of surveys to be made in respect of ships;

(iv) sections 352, 352A, 352B, 352C, 352D and 352E are being amended to enable the
Central Government to implement the provisions of the LLMC, 1976. A new section 352 FA is
being added to empower the Central Government to frame rules;

(v) sections 352H, 352I, 352J, and 352R are being amended to implement the provisions of
CLC, 1992 ;
(vi) new sections 352S to 352ZA are being inserted for implementation of the provisions of
the Fund Convention, 1992 ;

(vii) consequent to amendment of section 352A, section 116 of the Major Port Trust Act, 1963
is being amended to provide for recovery of damage to the port properties in accordance with the
provisions of Part XA of the Merchant Shipping Act, 1958;

(viii) the Indian ships which carry country’s commercial trade to the outside world are
subjected to control of the Port State which has the right to inspect such ships. Hence, the Indian
ships are required to carry internationally valid survey certificates issued in accordance with the
procedures established by the International Maritime Organisation but for which they will be
required to undergo surveys at foreign ports at the time they call at those ports. The proposed
amendments of the Merchant Shipping Act, 1958 will enable the Government of India to take
care of these aspects.

5. The Bill seeks to achieve the above objects.

NEW DELHI; VEDPRAKASH P.GOYAL.

The th July, 2002.
 Notes on clauses

Clause 2 of the Bill seeks to amend section 76 of the Merchant Shipping Act, 1958 to

empower the Central Government to prescribe different manning scales for different

types of ships and the number of persons and qualifications with which different types

of ships shall engage such persons for maintaining watches.

Clause 3 seeks to amend section 87 to provide the number of persons and the

qualifications they may possess for maintaining watches may be engaged by different

types of ships at sea or in any port or place.

Clause 4 seeks to amend section 95 to re-define the role of the seamen’s employment

offices which will now issue licence, regulate and control the recruitment and

placement service instead of controlling and regulating the employment of seamen.

Clause 5 seeks to substitute section 97 to provide that a person, company or

organisation including a union purporting to represent the interests of the seamen shall

not demand or receive either directly or indirectly, from any seamen or person seeking

employment as seamen or any person on his behalf, any remuneration or donation or

fees or compulsory subscription of any kind attributable from such seamen or persons’

employment as seamen, other than the fees authorised under the Act.

Clause 6 seeks to insert a new section 97A to prohibit any discrimination between
seamen for employment on the grounds of either membership of any particular union

or the training institute from where they obtained training or the place of issue of their

continuous discharge certificates.

Clause 7 seeks to substitute the sub-heading above section 299 because certain

expressions therein have become irrelevant due to installation of radio communication

equipment on board ships.

Clause 8 seeks to amend section 299 by substituting certain expressions which have

become irrelevant consequent upon the adoption of Global Maritime Distress and

Safety System. Further, the amendment provides that the passenger ship safety

certificate and qualified passenger ship safety certificate shall be supplemented by a

record of equipment in the prescribed form as required by the Safety of Life at Sea

Convention, 1974.

Clause 9 seeks to amend section 299A to provide for the Central Government to

authorise any person to issue cargo ship safety construction certificate, cargo ship safety

certificate, qualified cargo ship safety construction certificate or qualified cargo ship

construction certificate in the prescribed form and also to provide that the owner of

every ship in respect of which a certificate is issued under section 299A, section 300 or

section 301 shall, so long as the certificate remains in force, cause the ship to be

surveyed in the manner as specified in the Safety Convention or in cases where the
manner specified is not applicable, in such manner as the rules made in this behalf

prescribe, as the case may be.

Clause 10 seeks to substitute section 300 to provide for the Central Government or any

person authorised by it may issue cargo ship safety equipment certificate or cargo ship

equipment certificate in the prescribed form and also to provide that the certificate so

issued shall be supplemented by record of equipment in the prescribed form .

Clause 11 seeks to substitute section 301 to provide that the Central Government or any

person authorised by it may issue cargo ship safety radio certificate and qualified cargo

ship safety radio certificate in the prescribed form.

Clause 12 seeks to substitute section 303 to provide for shorter period of validity for

various safety certificates issued to passenger and cargo ships. It also provides that the

Central Government or any person authorised by it may grant an extension of any

certificate issued in respect of an Indian ship.

Clause 13 seeks to amend section 307 to substitute certain irrelevant expressions with

new expressions due to advancement in technology.

Clause 14 seeks to amend section 317 by insertion of a new proviso after the existing

proviso in sub-section (1) to provide that when the renewal survey for the purpose of
issue of certificate under sub-section (1) of section 316 is completed within three

months before the expiry date of the existing certificate, the new certificate may be

valid for a period of five years from the date of expiry of the existing certificate. It also

provides grounds when a certificate shall cease to be valid. It also empowers the Central

Government or any person authorised by it to extend the period of validity of the

certificate for the purpose of completing the voyage to the port in which it is to be

surveyed.

Clause 15 seeks to substitute clause (a) of sub-section (2) of section 344 to provide that

the Central Government may prescribe the form of any certificate, record of equipment

and the manner of surveys in respect of those ships to which the manner of surveys

specified in the Safety Convention is not applicable.

Clause 16 seeks to amend section 352 to define various expressions on the lines of the

Convention on Limitation of Liability for Maritime Claims (LLMC), 1976.

Clause 17 seeks to substitute section 352A to provide for limitation of liability for

damages in respect of certain maritime claims in accordance with the provision of the

Convention on Limitation of Liability for Maritime Claims (LLMC), 1976.

Clause 18 seeks to substitute section 352B to provide for limitation of liability in

accordance with the provisions of the Convention or the rules made therefor, as the case
may be.

Clause 19 seeks to amend section 352C of the Act to provide for setting of a limitation

Fund and production of a bank guarantee to settle the liability in respect of maritime

claims in accordance with the provision of the Convention on Limitation of Liability of

Maritime Claims (LLMC), 1976 as amended from time to time.

Clause 20 seeks to amend section 352D to redefine the “Convention Country” on lines

of the Convention on Limitation of Liability of Maritime Claims (LLMC), 1976 as

amended from time to time and to insert new sub-sections (6) and (7) to define the

condition when the vessel or property shall be ordered to be released in case of setting

up of limitation Fund and to specify when the provisions of sub-section (5) shall apply.

Clause 21 seeks to substitute section 352E to redefine the scope of application of the

provisions of part XA of the Act in accordance with the provisions of the Convention on

Limitation of Liability of Maritime Claims (LLMC), 1976.

Clause 22 seeks to insert a new section 352FA to empower the Central Government to

make rules to carry out the purposes of Part XA of the Act having regard to the

provisions to the Convention on Limitation of Liability of Maritime Claims (LLMC),

1976 as amended from time to time.

Clause 23 seeks to amend section 352H to define various expressions on lines of the

Convention on Civil Liability , 1992.

Clause 24 seeks to amend section 352I to provide that in case of an incident involving

two or more ships occurs resulting into pollution damage, the owners of all ships,

unless exonerated, shall be jointly and severally liable for such damage which is not

reasonably separable. Sub-section (6) is substituted to specify the parties against whom

no claim for compensation for pollution damage may be made.

Clause 25 seeks to substitute section 352J to provide for limitation of liability in

accordance with the provisions of Convention on Civil Liability, 1992.

Clause 26 seeks to amend section 352R to insert a new clause (c) to empower the Central

Government to make rules to specify the limits of liability in respect of pollution

damage having regard to the provisions of the Convention on Civil Liability, 1992.

Clause 27 seeks to insert a new Part XC to the Act comprising sections 352 S to 352 ZA

to incorporating the provisions of the Fund Convention, 1992. This Part provide as to

who shall or shall not be liable to pay contributions to the Fund and the manner in

which contribution to the Fund shall be payable, the quantum of amount payable to be

determined by the Assembly of the Fund, requirement for giving financial security for

payment of contribution to the Central Government or the Fund, the power of Central
Government to call for information from persons who are liable to make contribution

to the Fund for the purpose of transmitting the same to the Fund, action to enforce a

claim against the Fund to be entertained within three years from the date when the

damage occurred provided certain conditions are fulfilled and the Central Government

to make rules that may be required for carrying out the purposes of Fund Convention.

Clause 28 seeks to amend section 116 of the Major Port Trusts Act, 1963 to provide for

recovery of damage to the port properties in accordance with the provisions of Part XA

of the Merchant Shipping Act, 1958.

 MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 2 of the Bill empowers the Central Government to prescribe different manning
scales for different types of ships and the number of persons and qualifications with which
different ships shall engage such persons for maintaining watches. Clause 4 empowers the
Central Government to specify the levy of fee and collection thereof by the samens’ eployment
ofices for issue of licences to recruitment and placement services or renewal of licences, and the
services to be rendered by the samens’ employment offices. It also empowers the Central
Government to issue directions to the seamens’ employment office or any recruitment and
placement service with reference to the conditions under which the seafarers are to be placed
abroad by the recruitment and placement service, circumstances and conditions under which
licence to be suspended or withdrawn and the conditions under which seaferers’ personal data to
be processed by the recruitment and placement service including the collection, storage,
combination and communication of such data to the third parties. Clause 8 requires that
certificates issued under sub-sections (1) and (2) of section 299, sub-sections (1) and (2) of
section 300 and section 301 shall be supplemented by a record of equipment in the prescribed
form. Clause 9 empowers the Central Government to provide the manner, wherever necessary,
for survey of ships for the purpose of issuing certificate under sub-section (1) or sub-section (2)
of section 299A, sub-section (1) or section (2) of section 300 or section 301 in the prescribed
form. Clause 12 empowers the Central Government to frame rules, wherever necessary, to
specify the manner of completing surveys for renewal of certificates or otherwise. Clause 22
empowers the Central Government to frame rules with regard to the provisions of the
Convention on Limitation of Liability of Maritime Claims(LLMC), 1976 to carry out the
purposes of Part XA of the Act. Clause 26 empowers the Central Government to prescribe the
limits of liability of the owner under Part XB of the Act, in respect of any one or more incident
of pollution damage. Clause 27 empowers the Central Government to frame rules to carry out
the purposes of the International Convention on the Establishment of an International Fund for
Compensation for Oil Pollution Damage, Convention, 1992.

2. The matters in respect of which rules may be made are matters of procedure and
administrative detail and it is not practicable to provide for all the matters in the Bill. The
delegation of legislative power is, therefore, of a normal character.
 MARPOL

Substitution of 28. For sections 356 A to 356 H of the principal Act, the
new sections
for sections 356 following sections shall be substituted, namely:-
A to 356 H.

Commencemen ‘356A. (1) The provisions of this Part shall come into force on
t and such date as the Central Government may, by notification in the
application. Official Gazette, appoint, and different dates may be appointed
for different provisions of this Part.

(2) Save as otherwise provided, this Part shall apply

to-

(a) oil tankers of one hundred and fifty tons gross or

more, other ships of four hundred tons gross or more
and off-shore installations ; and

(b) incidents of marine casualty or acts relating to

such casualty occurring with grave and
imminent danger to Indian coast line or related
interests from pollution or threat of pollution in
the sea either by deliberate, negligent or
accidental release of oil, ballast water, noxious
liquid and other harmful substances into sea
including such incidents occurring on the high
seas.

(3) This Part shall not apply to war ship or other ship
owned or operated by Government and used for the time being
only on Government non-commercial service.

356 B. In this Part, unless the context otherwise requires,-

Definitions.

(a) “ballast” means any solid or liquid placed in a ship

to increase the draft to change the trim, to regulate the
stability, or to maintain stress load within such limits as
may be prescribed;

(b) “cargo” includes ballast and ship’s stores and fuel;

(c) “chemical tanker” means a ship constructed or

adapted primarily to carry a cargo of noxious liquid
substances in bulk and includes an oil tanker when it is
carrying cargo or part cargo of noxious liquid
substances in bulk;
 (d) “coasts” has the same meaning assigned to it in
section 357;

(e) “coastal waters” means any part of the territorial

waters of India, or any marine areas adjacent thereto
over which India has, or, may hereafter have, exclusive
jurisdiction in regard to control of marine pollution
under the Territorial Waters, Continental Shelf,
Exclusive Economic Zone and other Maritime Zones
80 of 1976.
Act, 1976, or any other law for the time being in force;

(f) “combination carrier” means a ship designed to

carry either oil or solid cargoes in bulk;

(g) “Convention” means the International Convention

for the Prevention of Pollution from Ships, 1973 and
includes Protocol of 1978 relating to the International
Convention for the Prevention of Pollution from
Ships,1973 as amended from time to time;

(h) “discharge”, in relation to harmful substances or

effluents containing such substances, means any release
howsoever caused, from a ship and includes any
escape, disposal, spilling, leaking, pumping, emitting or
emptying, but does not include dumping within the
meaning of the Convention on the Prevention of
Marine Pollution by Dumping of Wastes and Other
Matter adopted at London on 13th November, 1972 as
amended from time to time, or release of harmful
substances directly arising from the exploration,
exploitation and associated off-shore processing of sea-
bed mineral resources, or release of harmful substances
for purposes of legitimate scientific research into
pollution abatement or control;

(i) “from the nearest land” means from the baseline

from which the territorial sea of the territory in question
is established in accordance with the international law;

(j) “garbage” means all kinds of victual, domestic and

operational waste excluding fresh fish and parts
thereof, generated during the normal operation of the
ship and liable to be disposed of continuously or
periodically except those substances as may be
prescribed;
(k) “harmful substance” means any substance which, if
introduced into the sea, is liable to create hazards to
human health, to harm living resources and marine life,
to damage amenities or to interfere with other
legitimate uses of the sea, and includes any substance,
subject to control by the Convention, as may be
prescribed;

(l) “instantaneous rate of discharge of oil content”

means the rate of discharge of oil in litres per hour at
any instant divided by the speed of the ship in knots at
the same instant;

(m) “International Pollution Preservation Certificate”

means any certificate issued in accordance with the
provisions of those Pollution Prevention Conventions
and Protocols thereto which are acceded to by India;

(n) “liquid substances” means substances having a

vapour pressure not exceeding 2.8 kp/cm2 at a
temperature of 37.8 C;

(o) “mile” means a nautical mile of 1,852 metres;

(p) “noxious liquid substance” means any substance

which has been designated as such by rules made under
this Part;

(q) “oil” means petroleum in any form including crude

oil, fuel oil, sludge, oil refuse and refined products;

(r) “oil fuel” means any oil used as fuel in connection

with the propulsion and auxiliary machinery of the ship
in which such oil is carried;

(s) “oily mixture” means a mixture with any oil

content;

(t) “oil tanker” means a ship constructed or adapted

primarily to carry oil in bulk in its cargo spaces and
includes any combination carrier or, any chemical
tanker when it is carrying a cargo or part cargo of oil in
bulk;

(u) “reception facilities”, in relation to port, means

 facilities for enabling tankers or ships using the ports to
discharge or deposit residue or mixture of any
substance subject to control by the Convention;
(v) “sewage” means-

(i) drainage and other waste from any form of

toilets, urinals and Water Closet scuppers;

(ii) drainage from medical premises (dispensary,

sick bay, and other like places) via wash basins,
wash tubs and scuppers located in such
premises;

(iii) drainage from spaces containing living

animals; or

(iv) other waster water when mixed with the

drainages specified above;

(w) “ship” means a vessel of any type whatsoever

operating in the marine environment and includes
hydrofoil boats, air-cushion vehicles, submersibles,
floating craft and fixed or floating platforms;

(x) “special area” means a sea area where for

recognised technical reasons in relation to its
oceanographical and ecological condition and to the
particular character of its traffic the adoption of special
mandatory methods for the prevention of sea pollution
by oil or noxious substance is required.

Issue of 356C. (1) No Indian oil tanker or no other Indian ship shall
Pollution
Prevention proceed to sea unless there is in force, in respect of that ship, a
Certificate. Certificate called International Oil Pollution Prevention
Certificate.

(2) No Indian oil tanker and other ship carrying noxious liquid
substances in bulk shall proceed to sea except with International
Pollution Prevention Certificate for the carriage of noxious
liquid substances in bulk.

(3) No Indian oil tanker and other ship to which the annex IV
of the Convention apply shall proceed to sea except with
International Sewage Pollution Prevention Certificate.

(4) A valid International Pollution Prevention Certificate

 issued in respect of a ship, other than an Indian ship, by the
Government of the country to which the ship belongs shall,
subject to such rules as the Central Government may make in
this behalf, have the same effect in India as the corresponding
certificate issued in respect of an Indian ship under this Part.

Issue of 356D. (1) The Central Government may at the request of the
Certificates for
foreign ships in Government of a country to which the Convention applies,
India and cause any of the International Pollution Prevention Certificate
Indian ships in to be issued in accordance with the Convention in respect of a
foreign
countries. ship in that country, if it is satisfied that such certificate can
properly be issued, and where a certificate is so issued it shall
contain a statement that it has been issued on a request.

(2) The Central Government may request the Government of a

country to which the Convention applies, to issue any of the
International Pollution Prevention Certificates in accordance
with the Convention in respect of a ship and the certificate
issued in pursuance of such a request containing a statement
that it has been so issued shall have the same effect as if it had
been issued by the Central Government under this Act.

Requirement 356E. For the purpose of preventing or reducing discharges of

for construction harmful substances or mixtures containing such substances
and equipment from the oil tankers and other ships, the Central Government
in ships to
prevent may make rules requiring Indian oil tankers and other ships to
pollution. be fitted with such equipment and to comply with such
requirements for construction, survey of equipments and
structure of such oil tankers or other ships and specifying
conditions for making of surveys of all oil tankers or other ships
prior to issue of International Pollution Prevention Certificates
as may be prescribed.

Record books. 356F. (1) Every Indian oil tanker and every other ship which
carry substances subject to control by the Convention shall
maintain, as may be required, on board record books in the
prescribed forms.
(2) The manner in which record books shall be maintained, the
nature of entries to be made, the custody and disposal thereof,
and all other matters relating thereto shall be such as may be
prescribed having regard to the provisions of the Convention.

Inspection and 356G. (1) A surveyor or any person authorised in this behalf
control of oil
tankers and may, at any reasonable time, go on board an oil tanker or other
other ships to ship to which any of the provisions of this Part applies, for the
which this Part purposes of-
applies.
 (a) ensuring that the prohibitions, restrictions and
obligations imposed by or under this Part are
complied with;
(b) satisfying himself about the adequacy of the
measures taken to prevent pollution;
(c) ascertaining the circumstances relating to an
alleged discharge of substances which are subject
to control by the Convention from the oil tanker
and other ship in contravention of the provisions
of this Part;
(d) inspecting any record required to be maintained on
board; and
(e) checking the validity of the International Oil
Pollution Prevention Certificates.

(2) The surveyor or any such person may, if necessary, make,

without unduly delaying the oil tanker or the other ship, a true
copy of any record of the oil tanker or the other ship and may
require the master of such tankers or such ship to certify the
copy to be a true copy and such copy shall be admissible as
evidence of the facts stated therein.

Information 356H.(1) If on report from a surveyor or other person

regarding
contravention authorised to inspect an oil tanker and other ship under section
of the 356 G, the Director-General is satisfied that any provision of
provisions of the Convention has been contravened by such oil tanker and
the Convention.
other ship within the coastal waters, the Indian Navy or the
Coast Guard, as the case may be, upon ordered by the Director-
General, shall-

(a) detain the oil tanker and other ship until the causes
of such contravention are removed to the satisfaction of
the authority concerned; and

(b) proceed against such oil tanker and other ship for
recovery of cost of pollution damage, if any, and the
cost of prevention of pollution damage and cleaning of
such pollution.

(2) On receipt of information from the Government of any

country to which the Convention applies that an Indian oil
tanker and other ship have contravened any provisions of the
Convention, the Central Government may, if it deems it
necessary so to do, request such Government to furnish further
details of the alleged contravention and if satisfied that
sufficient evidence is available to establish contravention of any
of the provisions of this Part or rules made thereunder, take
appropriate action against the owner or master and intimate the
reporting Government of the action so taken.’.

29. In section 356 I of the principal Act, for the words “oil Amendment of
section 356 I
reception facilities” wherever they occur, the words “reception
facilities” shall be substituted.

30. In section 356 J of the principal Act, for the word “oil” Amendment of
section 356 J
wherever it occurs, the words “oil or noxious liquid substance”
shall be substituted.

31. In section 356 K of the principal Act, for the word “oil” Amendment of
section 356 K
wherever it occurs, the words “oil or noxious liquid substance”
shall be substituted.

32. In section 356 O of the principal Act, in sub-section (2),- Amendment of

section 356 O.
(i) for clauses (a) and (b), the following clauses shall be
substituted, namely:-

“(a) prescribe limits of ballast under clause (a), specify

substances which are not liable to be disposed of
continuously or periodically under clause (j), specify
substances subject to control by the Convention under
clause (k) and designate noxious liquid substances
under clause (p) of section 356B;

(b) prescribe the forms in which, the duration for which

and conditions subject to which various International
Pollution Prevention certificates shall be issued under
sub-sections (1), (2), (3) and (4) of section 356 C;
(bb) prescribe the period within which, the manner in
which and conditions for making surveys of oil tankers
or other ships prior to issue of International Pollution
Prevention Certificates, the requirements as to
equipment which are to be fitted for prevention of
pollution by an oil tanker and other ship under section
356E;”;

(ii) in clause ( c), for the words “oil record books”, the
words “record books” shall be substituted;

(iii) in clause (d), for the words “oil monitoring

system, oily water separator, oil content metre, crude
oil washing system, inert gas system or other
equipments or contrivances carried out on board for
preventing pollution of sea by oil”, the words “various
equipments carried out on board under the Convention”
shall be substituted;

(iv) after clause (e), the following clause shall be

inserted, namely:-

“(ee) any other matter which has to be or may be

prescribed.”.