What is Admiralty Jurisdiction?

Admiralty law and its jurisdiction have been kept separate from the ordinary civil jurisdiction by virtue of section 4(1) and section 112(2) of Civil Procedure Code, 1908 (hereinafter, “the CPC, 1908”). Admiralty law is a special law and nothing in CPC overrides it. Further, Section 140 of CPC, 1908 provides for appointing two assessors in causes of salvage before the Court exercising original or appellate jurisdiction, upon request of either party. These provisions affirm the view that admiralty law and its jurisdiction is essentially a special law. Section 140 is not providing admiralty jurisdiction or form of procedure in admiralty matter as it is specifically refrained in sections 4(1) and 112(2) of the Code, it is just recognizing the special character, expertise and specialization required in admiralty jurisdiction.

Admiralty jurisdiction is dealt with in the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 (hereinafter, “the Admiralty Act”). The Act is divided into 4 chapters and contains 18 sections. It is an act which aims to consolidate laws pertaining to admiralty jurisdiction, legal proceedings in connection with vessels, their arrest, detention, sale, and other matters connected therewith or incidental thereto. The Act is applicable to every vessel irrespective of the place of residence or domicile of the owner as per Section 1(2) of the said Act. However, proviso to this Section mentions that it is not applicable to inland vessel, warship, naval auxiliary or other vessel owned or operated by the Central or a State Government. Also, the provision exempts any non-commercial purpose vessel, or a foreign vessel used for any non-commercial purpose as may be notified by Central Government.

Section 2(a) of the Admiralty Act defines admiralty jurisdiction as a jurisdiction which is exercisable by a High Court under Section 3, in respect of maritime claims specified under this Act. Further, admiralty proceeding is defined in Section 2(b) to mean any proceeding before a High Court which exercises admiralty jurisdiction. Section 2(e) mentions the High Courts which have been conferred admiralty jurisdiction as per Section 3 which are High Courts of Calcutta, Bombay, Madras, Karnataka, Gujarat, Orissa, Kerala and Hyderabad.   

What Are Maritime Claims?

Section 2(f) of the Admiralty Act says that maritime claim means a claim referred to in Section 4 of the Act. Section 4 of the Act provides twenty-three types of maritime claims with respect to which a High Court can exercise jurisdiction against any vessel. Following are the types of maritime claim under the Act:

1. Dispute related to possession or ownership of a vessel or ownership of any share therein;
2. Dispute between co-owners of a vessel as to the employment or earnings of the vessel;
3. Mortgage or charge of the same nature on a vessel;
4. Loss/damage caused by operation of a vessel;
5. Loss of life or personal injury in direct connection to operation of vessel whether land or water;
6. Loss/damage to or in connection with any goods;
7. Agreement relating to the carriage of goods/passengers on board of a vessel which may be mentioned in charter party or not;
8. Agreement related to use/hire of a vessel, whether contained in charter-party or not;
9. salvage services, including, if applicable, special compensation relating to salvage services in respect of a vessel which by itself or its cargo threatens damage to the environment;
10. Towage;
11. Pilotage;
12. Goods, materials, perishables or non-perishables provisions, bunker fuel, equipment (including containers), supplied or services rendered to the vessel for its operation, management, preservation, or maintenance including any fee payable or leviable;
13. Construction, reconstruction, repair, converting or equipping of the vessel;
14. Dues related to any port, harbour, canal, dock or light tolls, other tolls, waterway or any charges of similar kind chargeable under any law for the time being in force;
15. claim by a master or member of the crew of a vessel or their heirs and dependents for wages or any sum due out of wages or adjudged to be due which may be recoverable as wages or cost of repatriation or social insurance contribution payable on their behalf or any amount an employer is under an obligation to pay to a person as an employee, whether the obligation arose out of a contract of employment or by operation of a law (including operation of a law of any country) for the time being in force, and includes any claim arising under a manning and crew agreement relating to a vessel, notwithstanding anything contained in the provisions of sections 150 and 151 of the Merchant Shipping Act, 1958; (44 of 1958);
16. Disbursements incurred on behalf of the vessels or its owners;
17. Particular average or general average
18. Dispute arising out of contract for the sale of the vessel;
19. Insurance premium related to the vessel, payable by or on behalf of the vessel owners or demise charterers;
20. Commission, brokerage or agency fees payable in respect of the vessel, payable by or on behalf of the vessel owner or demise charterer;
21. damage or threat of damage caused by the vessel to the environment, coastline or related interests; measures taken to prevent, minimise, or remove such damage; compensation for such damage; costs of reasonable measures for the restoration of the environment actually undertaken or to be undertaken; loss incurred or likely to be incurred by third parties in connection with such damage; or any other damage, costs, or loss of a similar nature to those identified in this clause;
22. Costs or expenses relating to raising, removal, recovery, destruction or the rendering harmless of a vessel which is sunk, wrecked, stranded or abandoned, including anything that is on board such vessel, and costs or expenses relating to the preservation of an abandoned vessel and maintenance of its crew;
23. Maritime lien.

In Which High Court Can Maritime Claim be Filed in India?

Prior to the enactment of the Admiralty Act, 2017, under the archaic British law, admiralty jurisdiction vested with the High Courts of Bombay, Madras and Calcutta only.

Now, section 2(1)(e) of the Admiralty Act provides that High Court in relation to an admiralty proceeding means the High Court of Calcutta, High Court of Bombay, High Court of Madras, High Court of Karnataka, High Court of Gujarat, High Court of Orissa, High Court of Kerala, High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh or any other High Court. Central Government has been given the power to notify other High Courts to have admiralty jurisdiction under the Act.  

These High Courts exercise admiralty jurisdiction over the territorial waters falling within control of respective states over which these High Courts have jurisdiction. However, there is a lack of clarity to the limits of territorial waters of these states. In the landmark case of MV Elizabeth & others v. Harwan Investment Trading Pvt. Ltd. (1992 SCR (1)1003), the Supreme Court held that High Courts in India hold a superior position than any other Courts or laws. Further, it noted that High Court in India have unlimited jurisdiction with inherent and plenary powers to decide upon their own jurisdiction. Then, in the case of Kamalkar Mahbadev Bhagat v. Scindia Steamship Navigation Co. Ltd. (AIR 1961 Bom 186), it was noted that in case suit for damages pursuant to collision of vessels in high seas then the High Court having admiralty jurisdiction in the area shall exercise it regardless of whether it’s an Indian vessel or foreign vessel. Similarly, in case collision leads to loss of life on high seas, then a suit for damages falls within the exclusive jurisdiction of the High Court under its admiralty jurisdiction.

What Is the Legal Provision for Transfer of Maritime Claims Between High-Court?

Section 15 of the Admiralty Act, 2017 provides power to Supreme Court to transfer proceedings from one High Court to another High Court having admiralty jurisdiction. Either of the party can file application to the Supreme Court for transferring proceedings from one High Court to another. Upon transfer of proceeding the other High Court continues the proceeding from the stage at which it was before transferring. Also, Supreme Court can transfer the proceedings only after hearing both the parties.

“Section 15. The Supreme Court may on an application of any party, transfer, at any stage, any admiralty proceeding from one High Court to any other High Court and the latter High Court shall proceed to try, hear and determine the matter from the stage at which it stood at the time of transfer:

Provided that no such proceeding shall be transferred unless parties to the proceeding have been given an opportunity of being heard in the matter.”

Under What Circumstances and on What Grounds Can Such Cases be Transferred Between High-Courts?

Cases can be transferred between High Courts by approaching the Supreme Court under Section 15 of the Act. A party may seek transfer of case proceedings in following suggestable cases-

1. When the vessel is positioned in territorial water of a particular state which falls within the jurisdiction of another High Court than where the suit is instituted.
2. When the cause of action has arisen at a different port than where the vessel is usually positioned.
3. When the owner of the vessel is residing or has property in another court’s jurisdiction.
4. When certain proceedings or cases are already pending in one High Court and new proceedings are initiated in another high court.

In the case of Bank of Sharjah v. Joplin Overseas Investment Private Limited and Another (2015) 11 Supreme Court Cases 486, the Supreme Court noted that even though Gujarat High Court should have been the appropriate High Court to hear all the suits in view of the fact that the vessel was always positioned in the territorial waters of India and in the port area over which Gujarat High Court has territorial jurisdiction, but the Bombay High Court had passed various orders of arrest prior to the filing of admiralty suit in Gujarat High Court. So, the court deemed it appropriate to transfer all admiralty suits pending in Gujarat High Court with regard to the vessel in question to the Bombay High Court. Further, court directed the Bombay HC to dispose of the suits within four weeks from the date of receipt of the records from Gujarat High Court.

What Is the Procedure of Transfer of Case at Supreme Court?

The procedure for transfer of case proceedings between High Courts by the Supreme Court are governed by Order XLI of the Supreme Court Rules, 2013. As the nature of admiralty cases is similar to that of civil suits. Order XLI has to be read with Section 15 of the Admiralty Act, 2017 which provides the Supreme Court the power to transfer admiralty case proceedings between High Courts.

The application under Section 15 of the Act has to ensure following things:

1. Transfer application should be in writing.
2. All the relevant facts and particular of the case, name of the High Court in which admiralty case is pending and the grounds on which transfer is sought shall be clearly mentioned.
3. Such petition shall be supported by an Affidavit.
4. Then the petition will be put up before Court for preliminary hearing and orders as to issue of notice.
   1. If the court is satisfied that there is no prima facie case to transfer then it may dismiss the petition.
   1. Or prima facie case exists then it shall direct that notice be issued to the parties in the case concerned to show cause why the case should not be transferred.
   1. The copy of such an order should be transmitted to the concerned High Court.
5. Such a notice shall be served at least 4 weeks before the date fixed for the final hearing of the petition.
6. Affidavits in opposition shall be filed in the Registry at least 1 week before the date appointed for hearing and the affidavit in reply shall be filed not later than 2 days before the day of the hearing of the petition.
7. Copies of affidavits in opposition and in reply shall be served on the opposite party/ parties and such an affidavit shall not be accepted by the Registrar unless it contains an endorsement of service signed by such party/parties.
8. Then such a transfer petition is listed for final hearing before the Court.

Conclusion

Understanding of the applicability of Admiralty Act, 2017 is at a nascent stage at the moment due to lack of judicial interpretation of the provisions. Nonetheless, maritime is a crucial sector for Indian economy considering that India has a 7500 km coastline with more than 200 ports. All major ports in India handled more than 650 million tonnes of cargo traffic in Financial Year 2022.[1] With increase of admiralty transactions, disputes are bound to arise which are mostly settled in amicable manners by adopting alternative dispute resolution mechanisms however, execution is a bottleneck and needs intervention from courts. A decree or award holder or claimant may try to file cases at a High Court of his convenience, but it may not be the High Court with proper jurisdiction or may be a forum non-conveniens for other parties as such it becomes imperative for transferring cases to a High Court which can not only adjudicate but can also enforce its orders in execution.