Admiralty & Maritime · Guide
Maritime claims, liens and priorities
A maritime claim is any claim within the 23 heads in section 4(1) of the Admiralty Act, 2017. Only five classes of claim are maritime liens under section 9(1). A lien follows the vessel through a change of owner and ranks first when the vessel is sold. Every other claim ranks after registered mortgages (section 10).
- Section 4(1) lists 23 heads of maritime claim, lettered (a) to (w).
- Section 9(1) names five maritime liens, in an order of priority: crew wages; death or personal injury; salvage; port and similar dues; and tort damage other than to cargo.
- A lien lapses after one year, or two years for crew wages, unless the vessel is arrested and a forced sale follows (section 9(2)).
- On a sale the order is lien claims, then registered mortgages, then all other claims (section 10).
- Supplies of bunker fuel and necessaries are claims, not liens.
The 23 heads of claim
Section 4(1) lets the High Court hear a claim against any vessel arising out of the matters below. The last column shows whether the head corresponds to a lien class in section 9(1). That mapping is our reading of the text.
| Head | Claim | Maritime lien? |
|---|---|---|
| (a) | Dispute over possession or ownership of a vessel or a share in it | No |
| (b) | Dispute between co-owners over the vessel’s employment or earnings | No |
| (c) | Mortgage or a charge of the same nature on the vessel | No; ranks second if registered (s.10(1)(b)) |
| (d) | Loss or damage caused by the vessel’s operation | Only tort damage other than to cargo and containers (s.9(1)(e)) |
| (e) | Loss of life or personal injury connected with the vessel’s operation, on land or water | Yes (s.9(1)(b)) |
| (f) | Loss of or damage to goods | No |
| (g) | Agreement for carriage of goods or passengers, in a charter party or otherwise | No |
| (h) | Agreement for the use or hire of the vessel, in a charter party or otherwise | No |
| (i) | Salvage services, including special compensation | Yes (s.9(1)(c)) |
| (j) | Towage | No |
| (k) | Pilotage | Pilotage dues, yes (s.9(1)(d)) |
| (l) | Goods, materials, provisions, bunker fuel, equipment and services supplied to the vessel | No |
| (m) | Construction, reconstruction, repair, conversion or equipping | No |
| (n) | Port, harbour, canal, dock, light and other tolls, waterway dues and similar charges under any law | Yes (s.9(1)(d)) |
| (o) | Crew claims for wages, repatriation costs, social insurance and similar sums | Yes (s.9(1)(a)) |
| (p) | Disbursements on behalf of the vessel or its owners | No |
| (q) | Particular or general average | No |
| (r) | Dispute over a contract for sale of the vessel | No |
| (s) | Insurance premiums, including mutual insurance calls | No |
| (t) | Commission, brokerage or agency fees | No |
| (u) | Damage or threat of damage to the environment or coastline, and the costs of preventing, minimising, removing or restoring it | Not separately listed; see s.9(1)(e) and the s.9(4) exclusions |
| (v) | Raising, removing or destroying a sunk, wrecked, stranded or abandoned vessel, and preserving an abandoned vessel and maintaining its crew | No |
| (w) | Maritime lien | Yes, by definition |
The five maritime liens
| Rank | Lien |
|---|---|
| 1 (s.9(1)(a)) | Wages and other sums due to the master, officers and crew for their employment on the vessel, including repatriation costs and social insurance contributions |
| 2 (s.9(1)(b)) | Loss of life or personal injury connected with the vessel’s operation, on land or water |
| 3 (s.9(1)(c)) | Reward for salvage services, including special compensation |
| 4 (s.9(1)(d)) | Port, canal and other waterway dues, pilotage dues and other statutory dues related to the vessel |
| 5 (s.9(1)(e)) | Tort arising from loss or damage caused by the vessel’s operation, other than loss or damage to cargo and containers |
Section 9(4) bars a lien for claims that arise from damage in carrying oil or other hazardous or noxious substances where compensation is payable under law, and for claims from the radioactive properties of nuclear fuel, products or waste.
How long a lien lasts
- A lien continues to exist on the vessel despite a change of ownership, registration or flag (section 9(2)).
- It ends one year after it arises unless, before then, the vessel has been arrested or seized and that has led to a forced sale by the High Court (section 9(2)).
- For crew wages and related sums the period is two years from the date the sum falls due or becomes payable (proviso to section 9(2)).
- The wages lien starts when the claimant is discharged from the vessel; the other four start when the claim arises (section 9(3)).
- Time under arrest or seizure does not count (proviso to section 9(3)).
Ranking on a sale
A vessel sold by the High Court vests in the buyer free of encumbrances, liens, attachments and registered mortgages (section 8). The proceeds are then shared in this order (section 10(1)):
- Claims secured by a maritime lien, in the order set out in section 9(1).
- Registered mortgages and charges of the same nature.
- All other claims.
Two further rules apply. Claims in the same category rank equally. Salvage claims rank in inverse order of the time they accrued (section 10(2)).
Three points that catch people out
- Bunkers and necessaries are claims, not liens. They fall under section 4(1)(l) and rank in the last category. To arrest under section 5(1), the court must also have reason to believe the owner or demise charterer is liable. See our guide to ship arrest in India.
- A registered mortgage ranks behind lien claims. It is ahead of ordinary claims but second to lien-secured claims (section 10(1)(b)).
- Cargo claims are not liens. The tort lien expressly excludes loss or damage to cargo and containers (section 9(1)(e)).
Questions
What is the difference between a maritime claim and a maritime lien?
A maritime claim is any claim within the 23 heads of section 4(1). A maritime lien is one of five classes in section 9(1) that stays attached to the vessel through a change of owner and ranks ahead of other claims on a sale.
What are the five maritime liens?
Under section 9(1): crew wages and related sums; death or personal injury connected with the vessel’s operation; salvage; port, canal and waterway dues, pilotage dues and other statutory dues; and tort damage caused by the vessel’s operation other than damage to cargo and containers.
How long does a maritime lien last?
One year, or two years for crew wages, unless the vessel is arrested or seized and that leads to a forced sale by the High Court. Time under arrest does not count (section 9(2) and (3)).
What ranks first when a vessel is sold?
Claims secured by a maritime lien, in the order set out in section 9(1). Registered mortgages come next, then all other claims (section 10(1)).
Is a bunker supplier’s claim a maritime lien?
No. Supplying bunker fuel or necessaries to a vessel is a maritime claim under section 4(1)(l), but it is not one of the five liens in section 9(1), so it ranks among the other claims.
Sources
- The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, Ministry of Law and Justice: sections 4, 5, 8, 9 and 10 (statute text; every section reference on this page).
Related: Admiralty & Maritime Law · The Admiralty Act, 2017, section by section · Ship arrest in India
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