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Low Legal cost and third party expenses
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Prompt response and immediate reliefs
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Extent of Admiralty jurisdiction on presence of a ship in Indian waters (12 nautical miles from shore)
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A ship can be arrested regardless of her flag, owner and registered address
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Ship can be arrested regardless of where the claim arose
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Admiralty court has admiralty jurisdiction to enforce maritime lien via an action in rem
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The basis for Admiralty jurisdiction is by statute
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Bombay, Calcutta, Madras, Ahmedabad, Odisha, Karnataka, Andhra Pradesh, Telangana, Kerala are the High Courts with jurisdiction to arrest ship.
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Sister-ship arrests are allowed in India
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Ship arrests are allowed by High Courts having admiralty jurisdiction on establishing that there is a prima-facie case
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Ship arrests are allowed ex-parte without giving notice to the opponent or the opponent being heard
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Ship can be arrested under Admiralty jurisdiction only by filing Admiralty suit
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Claims can be in any currency
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Admiralty judges are available for arrest or release of ship even after court hours for extreme urgent cases
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Appeal can be filed to the Appeal court comprising of Division Bench of the High Court having Admiralty jurisdiction from the trial court (single Judge) and an Special Leave Petition (SLP) can be filed in the Supreme Court of India (Apex Court) from the order order of the Appeal court
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Scan copy of the Power of Attorney or Letter of Authority are accepted by High Court having Admiralty jurisdiction for filing of Admiralty suit and obtaining order of arrest of a ship
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No cash bond or security is required to be furnished to the court by the Plaintiff for arrest of a ship but an undertaking by way of an Affidavit for wrongful arrest is required to be filed
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Ship can be arrested as security in Arbitration
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Parties promptly arrive at an out of court settlement
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High number of case withdrawals and disposals
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User-friendly procedures & environment
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Specialised shipping law firms for ship arrest work are available
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Ship arrest specialist, solicitors with specialised knowledge are available in Mumbai also at Kolkata
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India is a common law jurisdiction with an English legal heritage, derives
most of its modern judicial framework from the British legal system. Its
admiralty jurisdiction is broadly similar to English admiralty jurisdiction,
with notable exceptions.
In order for the admiralty jurisdiction of the Indian court to be invoked
(i.e. used), a claim must fall within a prescribed list of maritime claims.
These maritime claims, broadly speaking, may be divided into two types
namely:- (1) proprietary or possessory claims; or (2) debt recovery or
damages claims.
Proprietary or possessory claims include claims to possession, ownership,
shares, employment, earnings, mortgage charges, forfeiture, or condemnation
in, over or of ships.
Debt or damages recovery claims include claims concerning damage done or
received by ships, fatal accident and personal injury, negligent ship
navigation or ship management, cargo loss or damage, charters and other uses
or hires of ships, salvage, towage, pilotage, provisions, ship building and
ship repair, crew, agency and general average.
For certain classes of claims, there are other requirements to satisfy.
Broadly speaking, the claim must arise in connection with a ship, the person
held liable on the claim must be in certain prescribed control of the ship
and must be the beneficial owner or demise charterer of the ship when
admiralty proceedings are commenced.
Admiralty proceedings against “sister ships” are also available in India,
subject to conditions being met.
Once admiralty proceedings are commenced, applications may be made for the
ship or “sister ship” to be arrested. The claim must be properly
demonstrated and disclosure must be made to the court of all relevant
matters, advantageous or disadvantageous, to the claim.
Once an arrest is affected, a ship may be released upon provision of
alternative security in several forms, including bank guarantee or payment
into court. The practice of the Indian courts is to consider applications
for the judicial sale of ships if alternative security is not provided, even
if litigation or arbitration is still pending. Once a ship is sold
judicially, the sale proceeds are usually paid into court in the said suit
filed and, after a moratorium, paid out to creditors under a traditional
(but not inflexible) order of priorities.