(a) to the ports mentioned in the First Schedule, and to such parts of the navigable rivers and channels leading to such ports respectively as have been declared to be subject to Act XXII of 1855 (for the regulation of
Ports and Port-dues) or to the Indian Ports Act, 1875,
(12 of 1875.) or to the Indian Ports Act, 1889; (10 of
1889.)

(b) to the other ports or parts of navigable rivers or channels to which the 2*[Government], in exercise of the power hereinafter conferred, extends this Act.

(3) But nothing in section 31 or section 32 shall apply to any port, river or channel to which the section has not been specially extended by the 2*[Government].

2. Savings. Nothing in this Act shall–

(i) apply to any vessel belonging to, or in the service of
3*[the Central Government or a State Government] 4*, or to any vessel of war belonging to any Foreign Prince or
State, or

Amended in Andhra Pradesh by A. P. Act 18 of 1968.Amended in Pondicherry by Pondy. Act 10 of 1969.Amended in Tamil Nadu by T. N. Act 19 of 1975.Extended to Goa, Daman and Diu with modifications, by Reg. 12 of 1962, s. 3 and Sch.

The Act comes into force in Pondicherry on 1.10.1963 vide Reg. 7 of
1963, s. 3 and Sch. I.
———————————————————————-
1. This Act has been amended in its application to the port of
Cochin by the Cochin Port Act, 1936 (6 of 1936), s. 2 and Sch.
2. Subs. by the A. O. 1937 for “L. G.”.
3. Subs. by the A. O. 1950 for “His Majesty”.
4. The words “or the G. of I.” omitted by the A. O. 1937.64.(ii) deprive any person of any right of property or other private right, except as hereinafter expressly provided, or

(iii) affect any law or rule relating to the customs or any order or direction lawfully made or given pursuant thereto.

3. Definitions. In this Act, unless there is anything repugnant in the subject or context,–

(1) “Magistrate” means a person exercising powers under the
Code of Criminal Procedure, 1898, (5 of 1898.) not less than those of a Magistrate of the second class, and includes, in the towns of Calcutta, Madras and Bombay, a Presidency Magistrate:

(2) “master”, when used in relation to any vessel 1*[or any aircraft making use of any port], means, subject to the provisions of any other enactment for the time being in force, any person (except a pilot or harbour-master
1*[of the port]) having for the time being the charge or control of the vessel 1*[or the aircraft, as the case may be]:

(3) “pilot” means a person for the time being authorized by the 2*[Government] to pilot vessels:

(4) “port” includes also any part of a river or channel in which this Act is for the time being in force:

(5) “port-officer” is synonymous with master-attendant:

(6) “ton” means a ton as determined or determinable by the rules made under section 74 of the Merchant Shipping
Act, 1958, for regulating the measurement of the gross tonnage of ships:]

(7) “vessel” includes anything made for the conveyance
1*[mainly] by water of human beings or of property:

3*[(8) "major port" means any port which the Central
Government may by notification in the Official Gazette declare, or may under any law for the time being in force have declared, to be a major port: [and] 4*
———————————————————————-
1. Ins. by Act 35 of 1951, s. 188.2. Subs. by the A. O. 1937 for “L. G.”.
3. Added by the A. O. 1937.4. Subs. and ins. by Act 23 of 1992, s. 2 (w.e.f. 23.1.1994).

65.(9) “Government”, as respects major ports, for all purposes, and, as respects other ports, for the purposes of making rules under clause (p) of section 6 (1) and of the appointment and control of port health-officers under section 17, means the Central Government, and save as aforesaid, means the State Government.]

CHAPTER IPRELIMINARY

1.Short title and extent.

1. Short title and extent. (1) This Act may be called the [Inland
Vessels] 8* Act, 1917.4*[(2) It extends to the whole of India except the State of Jammu and Kashmir:

5*[Provided that it shall not come into force in any part of the territories which on the 31st day of March 1936, were included in the
Province of Madras or which on the 31st day of October, 1956, were included in the State of Travancore-Cochin, unless the State
Government concerned, by notification in the Official Gazette, so directs.]

2.Definitions.

2. Definitions. 6*[(1)] In this Act, unless there is anything repugnant in the subject or context,–

7*[(a) "inland vessel" or "inland mechanically propelled vessel" means a mechanically propelled vessel which ordinarily plies on any inland water;]

6*[(b)] “inland water” means any canal, river, lake or other navigable water 5***;

7*[(c) "mechanically propelled vessel" means every description of vessel propelled wholly or in part by electricity, steam or other mechanical power]

6*[(d)] “passenger” includes any person carried in a
10*[mechanically propelled vessel] other than the master and crew and the owner, his family and servants;

———————————————————————-
1. This Act has been amended in Bengal by Ben. Act 7 of 1940. This
Act came into force on 1st June, 1917, vide Gazette of India,
1917, Pt. I., P. 988.Extended to Goa, Daman and Diu with modifications, by Reg. 12 of 1962, s. 3 and Sch.

The Act comes into force in Pondicherry on 1.10.1963 vide Reg. 7 of
1963, s. 3 and Sch. I.
2. Subs. by Act 35 of 1977 s. 2, for “steam-vessel” (w.e.f.1.5.1978).
3. Subs. by s. 3, ibid., for “steam-vessel” (w.e.f. 1.5.1978).
4. Subs. by Act 26 of 1951, s. 2, for sub-sections (2) and (3).
5. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for the former proviso.
6. Cl. (c) renumbered by Act 35 of 1977, s. 6 (w.e.f. 1.5.1978).
7. Ins. by s. 6, ibid. (w.e.f. 1.5.1978).
8. For power to define how much of any tidal water shall be deemed to be an “inland water”, see s. 70, infra.
9. The words “in the Provinces” omitted by the A. O. 1950.
10. Subs. by Act 35 of 1977, s. 5, for “steam-vessel” (w.e.f.
1.5.1978)

116.1*[(e)] “prescribed” means prescribed by any rule under this
Act;

3* * * * *

1*[(f)] “survey” means the survey of a 3*[mechanically propelled vessel] under this Act;

1*[(g)] “surveyor” means a surveyor appointed under this
Act; and

1*[(h)] “voyage” includes the plying of a 2*[mechanically propelled vessel] at or about any place.

4*[(2) Any reference to the Inland Steam-vessels Act, 1917 (1 of
1917), in any law for the time being in force or in any instrument or other document shall be construed as a reference to the Inland Vessels
Act, 1917.]

CHAPTER II 1*SURVEY OF INLAND 2*[MECHANICALLY PROPELLED VESSELS

]

3. Inland 3*[mechanically propelled vessel] not to proceed on voyage or to be used for service without certificate of survey. (1) An inland 3*[mechanically propelled vessel] shall not proceed on any voyage, or be used for any service unless she has a certificate of survey in force and applicable to such voyage or service.

(2) Nothing in this section shall apply to any 2*[mechanically propelled vessel] proceeding on a voyage during the interval between the time at which her certificate of survey expires and the time at which it is first practicable to have the certificate renewed.

4.Appointment of surveyors and places of survey.

4. Appointment of surveyors and places of survey. (1) The State
Government may, by notification in the Official Gazette,–

(a) declare such places, within the territories under its administration, as it thinks fit, to be places of survey, and

(b) appoint so many persons to be surveyors at the said places as it thinks fit, for the purposes of this Act.

(2) Every surveyor shall, for the purposes of any survey made by him, be deemed to be a public servant within the meaning of the Indian
Penal Code. (45 of 1977).

5.Powers of surveyors.

5. Powers of surveyors. (1) For the purposes of a survey, the surveyor may, at any reasonable time, go on board any inland
2*[mechanically propelled vessel] and may inspect the 2*[mechanically propelled vessel] and every part thereof, including the hull, boilers,
———————————————————————-
1. Reletted by Act 35 of 1977, s. 6 (w.e.f. 1.5.1978).
2. Cl. (5) omitted by s. 6, ibid. (w.e.f. 1.5.1978).
3. Subs. by s. 5. ibid., for “steam-vessel”.
4. Ins. by Act. s. 6, ibid. (w.e.f. 1.5.1978)

117.engines and other machinery, and all equipments and articles on board:

Provided that he shall not unnecessarily hinder the loading or unloading of the 1*[mechanically propelled vessel] or unnecessarily detain or delay her from proceeding on any voyage.

(2) The owner, master and officers of the 1*[mechanically propelled vessel] shall afford to the surveyor all reasonable facilities for a survey, and all such information respecting the
1*[mechanically propelled vessel] and her machinery or any part thereof, and all equipments and articles on board, as he may require for the purposes of a survey.

6.Fees in respect of surveys.

6. Fees in respect of surveys. Before a survey is commenced, the owner or master of the 2*[mechanically propelled vessel] to be surveyed shall pay to such officer as the State Government may, by notification in the Official Gazette, appoint in this behalf–

(a) a fee calculated on the tonnage of the 1*[mechanically propelled vessel] according to the rates mentioned in
Schedule I, or according to any other prescribed rates;
and

(b) when the survey is to be made in any place of survey other than Calcutta, Madras, 2*[or Bombay], such additional fee in respect of the expense (if any) of the journey of the surveyor to the place as the State
Government may by such notification direct.

7.Declaration of surveyor.

7. Declaration of surveyor. When the survey of a 1*[mechanically propelled vessel] is completed, if the surveyor making it is satisfied that–

(a) the hull, boilers, engines and other machinery of the
1*[mechanically propelled vessel] are sufficient for the voyage or service intended and in good condition, and

(b) the equipments of the 1*[mechanically propelled vessel]
and the certificates of the master and engineer are such and in such condition as are required by any law for the time being in force as and applicable to the
1*[mechanically propelled vessel],

the surveyor shall forthwith give to the owner or master a declaration in the prescribed form containing the particulars mentioned in clauses
(a) and (b), and the following further particulars, namely:–

(i) the time (if less than one year) for which the hull, boilers, engines and other machinery and equipments of the 1*[mechanically propelled vessel] will be sufficient;
———————————————————————-
1. Subs. by Act 35 of 1977, S. 5, foor “dtem-vessel” (w.e.f.
1.5.1978).
2. Subs. by the A. O. 1937. for “Bombay or Rangoon”.

118.(ii) the limit (if any) beyond which, as regards the hull, boilers, engines and other machinery or equipments, the
1*[mechanically propelled vessel] is in the surveyors judgement not fit to ply;

(iii) the number of passengers (if any) which the
1*[mechanically propelled vessel] is, in the judgement of the surveyor, fit to carry, specifying, if necessary, the respective numbers to be carried on the deck and in the cabins, and in different parts of the deck and cabins: the number to be subject to such conditions and variations, according to the time of year, the nature of the voyage, the cargo carried or other circumstances, as the case requires; 2*xxx

2*[(iiia) the nature and quantum of cargo which the mechanically propelled vessel is, in the judgment of the surveyor, fit to carry; and]

(iv) any other prescribed particulars.

8.Sending of declaration by owner or master to State Government.

8. Sending of declaration by owner or master to State Government.
(1) The owner or master of a 1*[mechanically propelled vessel] to whom a declaration is given under section 7 shall, within fourteen days after the date of the receipt thereof, send the declaration to such officer as the State Government may, by notification in the Official
Gazette, appoint in this behalf.

(2) If any owner or master fails to send a declaration as required by sub-section (1), he shall forfeit a sum not exceeding five rupees for every day during which the sending of the declaration is delayed.

9.Power for State Government to grant or authorise the grant ofcertificates of survey.

9. Power for State Government to grant or authorise the grant of certificates of survey. (1) The State Government shall, if satisfied that all the provisions of this Act have been complied with in respect of a declaration sent under section 8, cause,–

(a) a certificate of survey, in duplicate, to be prepared, and

(b) notice thereof to be given by post or otherwise to the owner or master of the 1*[mechanically propelled vessel] to which the certificate relates.

(2) On application made by the owner or master to such officer at the place of survey as the State Government may, by notification in the Official Gazette, appoint in this behalf, and on payment to such officer by the owner or master of the sum (if any) forfeited by him under section 8, sub-section (2) (the actual amount of which within the limit thereby fixed shall be determined by the State Government), the certificate, in duplicate, so prepared shall be granted to the owner or master by the State Government and issued to him through such officer.

(3) A certificate granted under this section shall be in the prescribed form, shall contain a statement to the effect that all the
———————————————————————-
1. Subs. by Act 35 of 1977, s. 5, for “steam-vessel” (w.e.f.
1.5.1978).
2. Omitted by s. 7. ibid (w.e.f. 1.5.1978).
3. Ins. by s. 7, ibid. (w.e.f. 1.5.1978).

119.provisions of this Act with respect to the survey of the
1*[mechanically propelled vessel] and the declaration of survey have been complied with, and shall set forth–

(a) the particulars concerning the 1*[mechanically propelled vessel] mentioned in the declaration of survey as required by clauses (i), (ii) and (iii) of section 7, and

(b) any other prescribed particulars.

(4) The State Government may, by notification in the Official
Gazette, delegate to any person all or any of the functions assigned to the State Government under this section:

Provided that no delegation shall be made under sub-section (2)
so as to authorise the grant of a certificate of survey by the surveyor who made the declaration of survey under section 7.10.Certificate of servey to be affixed in conspicuous part of1*[mechanically propelled vessel].

10. Certificate of servey to be affixed in conspicuous part of
1*[mechanically propelled vessel]. The owner or master of every
1*[mechanically propelled vessel] for which a certificate of survey has been granted, shall forthwith, on the receipt of the certificate, cause one of the duplicates thereof to be affixed and kept affixed so long as it remains in force and the 1*[mechanically propelled vessel]
is in use, on some conspicuous part of the 1*[mechanically propelled vessel] where it may be easily read by all persons on board.

10A.

Effect of certificates of survey.

2*[10A. Effect of certificates of survey. A certificate of survey shall have effect throughout the State in which it was granted:

Provided that such a certificate may be endorsed by the State
Government of any other State, or with the general or special sanction of the State Government of that other State, by the authority granting it, so as to have effect in that other State or any part thereof, and, if so endorsed shall have effect accordingly.]

11.Term of certificates of survey.

11. Term of certificates of survey. A certificate of survey shall not be in force 1*[in any State]–

(a) after the expiration of one year from the date thereof;
or

(b) after the expiration of the period (if less than one year) for which the hull, boilers, engines or other machinery, or any of the equipments of the
1*[mechanically propelled vessel] to which the certificate relates have been stated in the certificate to be sufficient; or

(c) after notice has been given 2*[by the State Government of the State in which it was granted], to the owner or
———————————————————————-
1. Subs. by Act 35 of 1977, s. 5, for “steam-vessel” (w.e.f.
1.5.1978).
2. Ins. by the A. O. 1937.3. Subs. by “by any L. G.”.

120.master of such 3*[mechanically propelled vessel] that such State Government has cancelled or suspended it.

2*[A certificate of survey shall not be in force in any State by virtue of any endorsement in respect of that State, after notice has been given by the State Government of that State, to the owner or master of a 1*[mechanically propelled vessel] that that Government has cancelled or suspended the endorsement.]

12.Renewal of certificates of survey.

12. Renewal of certificates of survey. After a certificate of survey has ceased to be in force, the same shall only be renewed after a fresh survey of the 1*[mechanically propelled vessel] to which the certificate relates, has been held in accordance with the provisions of this Chapter, save so far as any relaxation thereof may be prescribed.

13.Power for State Government to suspend or cancel certificate of survey.

13. Power for State Government to suspend or cancel certificate of survey. 3*[A certificate of survey or any endorsement thereon made under section 10A may be suspended or cancelled by the Government of the State in which the certificate was granted or in respect of which the endorsement was made, as the case may be, if that Government has reason to believe]–

(a) that the declaration by the surveyor of the sufficiency and good condition of the hull, boilers, engines or other machinery or of any of the equipments of the
3*[mechanically propelled vessel] has been fraudulently or erroneously made ; or

(b) that the certificate has otherwise been granted upon false or erroneous information ; or

(c) that since the making of the declaration the hull, boilers, engines or other machinery, or any of the equipments of the 3*[mechanically propelled vessel]
have sustained any material injury, or have otherwise become insufficient.

14.Power for State Government to require delivery of expired or cancelledcertificate.

14. Power for State Government to require delivery of expired or cancelled certificate. The State Government may require any certificate of survey, which has expired or has been suspended or cancelled, to be delivered up to such officer as the State Government may, by notification in the Official Gazette, appoint in this behalf.

2*[Where an endorsement on any certificate of survey for any
State has been suspended or cancelled, the State Government of that
State may require the certificate of survey to be delivered up to such officer as that Government may by notification in the Official Gazette
----------------------------------------------------------------------
1. Subs. by Act 35 of 1977, s. 5, for "steam-vessel" (w.e.f.
1.5.1978).
2. Ins. by the A. O. 1937.3. Subs., ibid., for cetain words.

121.appoint in this behalf, in order that particulars of the suspension or cancellation of the endorsement may be noted on the certificate.]

15.Report of suspension or cancellation of certain certificates.

15. Report of suspension or cancellation of certain certificates.
1*[If a State Government suspends or cancels an endorsement made under section 10A on a certificate of survey, it] shall report the fact of suspension or cancellation, together with the reasons therefor, to the
State Government which (or whose delegate) granted the certificate.

16.Power for State Government to direct survey by two surveyors.

16. Power for State Government to direct survey by two surveyors.
A survey shall ordinarily be made by one surveyor, but two surveyors may be employed if the State Government, by order in writing, so directs either generally in the case of all 2*[mechanically propelled vessels] at any place of survey, or specially in the case of any particular 2*[mechanically propelled vessels] or class of
2*[mechanically propelled vessels] at any such place.

17.Power for State Government to order a second survey.

17. Power for State Government to order a second survey. (1) If the surveyor making a survey of a 2*[mechanically propelled vessels]
refuses to give a declaration under section 7 with regard to the
2*[mechanically propelled vessels] or gives a declaration with which the owner or master of the 3*[mechanically propelled vessels] is dissatisfied, the State Government may, on the application of the owner or master, and the payment by him of such fee, not exceeding twice the amount of the fee payable for the previous survey, as the
State Government may require, direct two other surveyors to survey the
2*[mechanically propelled vessel].

(2) The surveyors so directed shall forthwith survey the
2*[mechanically propelled vessel] and may, after the survey, either refuse to give a declaration or give such declaration as, under the circumstances, seems to them proper.

(3) Any declaration given, or any refusal to give a declaration under sub-section (2), shall be final.

18.Division of duties when two surveyors employed.

18. Division of duties when two surveyors employed. When a survey is made by two surveyors under either section 16 or section 17, each of the surveyors shall perform the prescribed portion of the duties assigned to a surveyor under this Act or the rules made thereunder.

19.Power for State Government to make rules as to surveys.

19. Power for State Government to make rules as to surveys. (1)
The State Government may 2* make rules to regulate the making of surveys.
———————————————————————-
1. Subs. by the A. O. 1937, for certain words.
2. Subs. by Act 35 of 1977, S. 5, for “steam-vessel” (w.e.f.
1.5.1978).
3. The words “with the previous sanction of the G. G. in C.” omitted by Act 38 of 1920, s. 2 and Sch. I, Pt. I.

122.(2) In particular and without prejudice to the generality of the foregoing power, such rules may prescribe–

(a) the times and places at which, and the manner in which, surveys are to be made;

(b) the duties of the surveyor making a survey and, where two surveyors are employed, the respective duties of each surveyor;

(c) the form in which declarations of survey and certificates of survey are to be framed, and the nature of the particulars to be stated therein under sections
7 and 9;

(d) the rates other than those mentioned in Schedule I
according to which the fees payable in respect of surveys are to be calculated in the case of all or any of the places of survey within the territories under its administration; and

(e) the cases in, and the extent to, which a survey may be dispensed with before the grant of a new certificate.

1*[CHAPTER IIAREGISTRATION OF INLAND 2*[MECHANICALLY PROPELLED VESSELS]

19A.

Inland mechanically propelled vessels not to proceed on voyage or beused for service without certificate of registration.

19A. Inland 2*[mechanically propelled vessels] not to proceed on voyage or be used for service without certificate of registration. (1)
An inland 2*[mechanically propelled vessel] shall not proceed on any voyage or be used for any service, unless it has a certificate of registration in force in respect thereof and granted under this Act.

(2) Nothing in this section shall–

(a) apply to any 2*[mechanically propelled vessel] built at any place other than a place of registry and making her first voyage to any such place for the purpose of registration; or

(b) be in derogation of the provisions contained in section
3.19B.

Place of registry and registering authorities.

19B. Place of registry and registering authorities. (1) The State
Government may, by notification in the Official Gazette,–

(a) declare such places within the territories under its administration as it thinks fit to be places of registry; and

(b) appoint registering authorities at the said places for the purposes of this Act.
———————————————————————-
1. Ins. by Act 26 of 1951, s. 3.2 Subs. by Act 35 of 1977, s. 5, for “steam-vessels” (w.e.f.
1.5.1978).

123.(2) Every person appointed as a registering authority shall, for the purposes of any registration made by him, be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860).

19C.

Book of registration.

19C. Book of registration. At every place of registry, a book shall be kept by the registering authority in which all the particulars contained in the form of the certificate of registration shall be duly entered and such registering authority shall, immediately after registering any inland 1*[mechanically propelled vessel] or within one month at the furthest, send to the State
Government a true and exact copy, together with the number, of every certificate which shall be so granted by it.

19D.

Application for registration.

19D. Application for registration. An application for registration of an inland 1*[mechanically propelled vessel] shall be made by the owner or master of the vessel in such form and shall contain such particulars as may be prescribed and shall be accompanied by a copy of the certificate of survey in force issued in respect of the vessel.

19E.

Places of registration.

19E. Places of registration. (1) Every application for registration shall be made to a registering authority within the local limits of whose jurisdiction thne owner of the inland 1*[mechanically propelled vessel] ordinarily resides or carries on business.

(2) Where the owner applying for a certificate of registration is a company 2*[within the meaning of section 3 of the Companies Act,
1956 ( 1 of 1956)] the application may be made to a registering authority within the local limits of whose jurisdiction the principal office of the company is situate.

(3) Notwithstanding anything contained in this section, an inland
1*[mechanically propelled vessel] may be registered by a registering authority in any State, although the owner does not ordinarily reside or carry on business in that State or, if a company, the principal place of business of the company is not situate in that State:

Provided that the Government of the State in which the owner ordinarily resides or carries on business, or in the case of a company the Government of the State where the principal place of business of the company is situate, has accorded its previous approval thereto.

19F.

Grant of certificate of registration.

19F. Grant of certificate of registration. (1) If, in respect of any inland 1*[mechanically propelled vessel] the registering authority, after making such inquiry as it thinks fit, is satisfied that
———————————————————————-
1. Subs. by Act 35 of 1977, s. 5, for “steam-vessel” (w.e.f.
1.5.1978)
2. Subs. by s. 8, ibid, for registred under the compnies Act, 1912.(7 of 1912) (w.e.f. 1.5.1978).

124.the provisions of this Act or of any rules made thereunder have been complied with, it shall grant to the applicant therefor a certificate of registration comprising such particulars as may be prescribed on payment of the prescribed fee.

(2) A registering authority may refuse to register an inland
1*[mechanically propelled vessel], if she is found to be mechanically defective, or if the applicant fails to furnish satisfactory evidence in support of any of the statements made in his application:

Provided that where the registering authority refuses to register any inland 1*[mechanically propelled vessel], it shall furnish to the applicant a statement in writing containing the reasons for such refusal.

2* * * * *

19H.

Marking of inland 1*[mechanically propelled vessel].

19H. Marking of inland [mechanically propelled vessel]. Where an inland 1*[mechanically propelled vessel] has been registered under this Chapter, the registering authority shall assign to the vessel, to be displayed thereon conspicuously in the prescribed manner, a distinguishing mark, hereinafter in this Act referred to as the registration mark.

19I.

Prohibition against transfer of certificate of registration.

19I. Prohibition against transfer of certificate of registration.
(1) A certificate of registration granted in respect of any inland
1*[mechanically propelled vessel] shall be used only for the lawful navigation of that vessel.

(2) A certificate of registration in respect of an inland
1*[mechanically propelled vessel] issued by a registering authority in one State shall be valid for that State only, but where any such vessel plies in 3*[inland waters of any other State] nothing in this section shall be deemed to require the owner or master of the vessel to obtain a fresh certificate of registration in relation to the State or States in which the vessel is not so registered:

4* * * * *

5*[(3) When an inland mechanically propelled vessel registered in one State has been kept in another State for a period exceeding twelve months, the owner or master of the vessel shall make an application under section 19K to the registering authority, within whose jurisdiction the vessel then is, for the transfer of registry from the registering authority of the place where the vessel is registered.]
———————————————————————-
1. Subs. by Act 35 of 1977, s. 5, for “steam-vessel” (w.e.f.
1.5.1978).
2. S. 19 G omitted by s. 9, ibid. (w.e.f. 1.5.1978).
3. Subs. by s.10, ibid., for “inland waters of more than one state”
(w.e.f. 1.5.1978).
4. Proviso ometted by s. 10, ibid. (w.e.f.1.5.1978).
5. Ins. by s. 10, ibid. (w.e.f 1.5.1978).

125.19J.

Registration of alterations.

19J. Registration of alterations. (1) When an inland
1*[mechanically propelled vessel] is so altered as not to correspond with the particulars relating to her or the description entered in the certificate of registration then the owner of the vessel shall, within such period as may be prescribed, make a report of such alteration to the registering authority of the place where the vessel is registered.

(2) The report under sub-section (1) shall be made in such form and shall contain such particulars with respect to the alteration as may be prescribed and shall be accompanied by the certificate of registration in force in respect of the vessel at the time of the report.

(3) The registering authority, on receipt of the report under sub-section (1) and on payment of the prescribed fee, shall either cause the alteration to be registered or direct that the vessel be registered anew:

Provided that where the registering authority directs that the vessel be registered anew, it shall either grant a provisional certificate describing the vessel as altered or provisionally endorse the particulars of the alteration on the existing certificate.

(4) Any provisional certificate granted or endorsement made under the provisions of this section shall be valid for a period of one month from the date thereof, within which period the owner shall cause all necessary steps to be taken to have the vessel registered anew.

19K.

Transfer of registry.

19K. Transfer of registry. (1) The registry of an inland
1*[mechanically propelled vessel] may be transferred from one place in a State to another place in another State on the application by the owner or master of the vessel to 2*[the registering authority of the
State in which the vessel is kept.]

(2) On receipt of such application, the registering authority shall transmit notice thereof to 2*[the registering authority of the place where the vessel is registered.]

2*[(3) The certificate of registration in respect of the vessel shall be delivered up to the registering authority of the intended place of registry along with the application.

(4) On receipt of the application under sub-section (1) and the prescribed fee, if any, the registering authority of the intended place of registry shall enter in its register book all the particulars relating to the vessel and grant a fresh certificate of registration in respect of the vessel and thenceforth such vessel shall be considered as registered at the new place of registry.

(5) A State Government may make rules under section 19R requiring the owner or master of an inland mechanically propelled vessel not registered within the State which is brought into or is, for the time being in the State, to furnish to a prescribed authority in the State such information with respect to the inland mechanically propelled vessel and its registration as may be prescribed.
----------------------------------------------------------------------
1. Subs. by Act 35 of 1977, s. 5, for "steam-vessel" (w.e.f.
1.5.1978).
2. Subs. by s. 11, ibid., for sub-sections (3) and (4) (w.e.f.
1.5.1978).

126.19L.

Change of residence or place of business.

19L. Change of residence or place of business. (1) If the owner of an inland 1*[mechanically propelled vessel] ceases to reside or carry on business at the address recorded in the certificate of registration of the vessel, he shall, within thirty days of the change of address, intimate his new address to the registering authority by which the certificate of registration was granted, or, if the new address is within the jurisdiction of another registering authority, to that registering authority, and shall at the same time forward the certificate of registration to the registering authority in order that the new address may be entered thereon.

(2) Where a registering authority other than the original registering authority makes any such entry, it shall communicate the new address to the original registering authority.

19M.

Prohibition against transfer of ownership of registered vessel.

19M. Prohibition against transfer of ownership of registered vessel. (1) An inland 1*[mechanically propelled vessel] registered under this Act in one State shall not be transferred to a person resident in another State in India or in any country outside India, without the previous approval of the Government of the State in which the vessel is registered:

Provided that where an inland 1*[mechanically propelled vessel]
is 2*[registered or deemed to be registered under the Merchant
Shipping Act, 1958 (44 of 1958)] this sub-section shall have effect as if for the words “the Government of the State in which the vessel is registered” the words “the Central Government” had been substituted.

(2) Subject to the provisions of sub-section (1), the owner of an inland 1*[mechanically propelled vessel] registered under this Act and the transferee thereof shall, within thirty days of the transfer of ownership of the said vessel to the transferee, jointly make a report of the transfer to the registering authority within the local limits of whose jurisdiction the transferee resides or carries on business and shall also forward the certificate of registration to that registering authority, together with the prescribed fee, in order that particulars of the transfer of ownership may be entered thereon.

19N.

Suspension of certificates of registration.

19N. Suspension of certificates of registration. (1) A
registering authority may suspend, for such period and subject to such conditions as it thinks fit, the certificate of registration of an inland 1*[mechanically propelled vessel], if it has reason to believe that after the granting of the certificate the vessel has become unfit to ply in inland waters.
———————————————————————-
1. Subs. by Act 35 of 1977, s. 5, for steam-vessel” (w.e.f.
1.5.1978).
2. Subs. by s. 12, ibid., for cetain words (w.e.f. 1.5.1978).

127.(2) Where the registration of an inland 1*[mechanically propelled vessels] is suspended under sub-section (1) for a period of not less than one month, the registering authority ordering the suspension shall, if it is not the original registering authority, inform that other authority of the fact of such suspension.

(3) The registering authority suspending the certificate may require the owner or master of the vessel to deliver up the certificate so suspended to itself or, if it is not the original registering authority, to that other authority.

(4) A certificate of registration surrendered under this section shall be returned to the owner when the order suspending the certificate has been rescinded or has ceased to operate.

19O.

Cancellation of registration.

19O. Cancellation of registration. (1) If an inland
1*[mechanically propelled vessel] has been destroyed or has been rendered permanently unfit for service, the owner of the vessel shall, with the least practicable delay, report the fact to the registering authority of the place where the vessel is registered and shall also forward to that authority, along with the report, the certificate of registration of the vessel and thereupon the registering authority shall have the certificate of registration cancelled.

(2) Any registering authority may at any time require that any inland 1*[mechanically propelled vessel] within the local limits of its jurisdiction may be inspected by such authority as the State
Government may, by general or special order, appoint in this behalf and, if as a result of such inspection, the registering authority is satisfied that the vessel is in such a condition that it is not fit to ply in any inland water, the registering authority may, after giving the owner of the vessel an opportunity of being heard, cancel the registration of the vessel and require the owner thereof to surrender forthwith to the registering authority, the certificate of registration in respect of that vessel, if it has not already been so surrendered.

19P.

Appeals.

19P. Appeals. (1) Any person aggrieved by an order–

(a) refusing to register any inland 1*[mechanically propelled vessel] under section 19F; or

(b) suspending a certificate of registration under section
19N; or

(c) cancelling a certificate of registration under sub-
section (2) of section 19O,

may, within thirty days of the date on which he receives notice of such order, appeal against it to the State Government.
———————————————————————-
1. Subs. by Act 35 of 1977, s. 5, for “steam-vessel” (w.e.f.
1.5.1978).

128.(2) The State Government shall cause notice of every such appeal to be given to the registering authority concerned in such manner as may be prescribed, and after giving an opportunity to that authority and to the appellant to be heard shall pass such order thereon as it thinks fit.

19Q.

Reciprocity.

19Q. Reciprocity. Where the Central Government is satisfied that by the law or practice of any country outside India, inland
1*[mechanically propelled vessel] having a certificate of registration in force under this Act–

(a) obtain by reason of such registration any special exemption in that country while plying in the inland waters thereof, or

(b) are required as a condition of plying in the inland waters of that country to comply with any special requirement, whether by way of registration anew or payment of a fee or otherwise,

the Central Government may, by notification in the Official Gazette, for the purpose of reciprocity, direct that the same exemption or requirement, or an exemption or a requirement as similar thereto as may be, be granted to, or imposed upon, inland 1*[mechanically propelled vessel] registered in that country while plying in the inland waters of the territories to which this Act extends.

19QA

Mortgage of mechanically propelled vessel or share.

2*[19QA. Mortgage of mechanically propelled vessel or share. The provisions of sections 47, 48, 49, 50, 51, 52 and 53 of the Merchant
Shipping Act, 1958, shall mutatis mutandis apply, in relation to the mortgage of a mechanically propelled vessel as they apply in relation to ships, subject to the following modifications, namely:--

(a) in sections 47, 48, 49, 50, 51, 52 and 53, references to
"ship", "registrar" and "register book", wherever they occur, shall, respectively, be construed as references to "mechanically propelled vessel", "registering authority" and "book of registration";

(b) in section 47, in sub-section (1), for the words "the registrar of the ships port of registry shall record it in the register book", the words "the registering authority shall record it in the book of registration"
shall be substituted."]

19R.

Power to make rules.

19R. Power to make rules. (1) The State Government may make rules to carry out the objects of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may–

(a) prescribe the powers, duties and functions of registering authorities and the local limits of their jurisdiction;

(b) prescribe the form of, and the particulars to be contained in, applications for, and certificates of, registration;

(c) provide for the form and manner in which books of registration shall be maintained under this Chapter;

(d) provide for the issue of duplicate certificates of registration to replace certificates lost, destroyed or mutilated;

(e) prescribe, subject to the approval of the Central
Government, the fees to be charged for the registration of inland 1*[mechanically propelled vessel] or for any other action to be taken by the registering authority under this Chapter, and provide for the exemption of any person or class of persons from payment of the whole or any part of any such fees;
———————————————————————-
1. Subs. by Act 35 of 1977, s. 5, for “steam-vessel” (w.e.f.
1.5.1978).
2. Ins. by s. 13, ibid. (w.e.f. 1.5.1978).

129.(f) prescribe the period within which, and the manner in which, the owner of an inland 1*[mechanically propelled vessel] shall make a report of any alteration in the vessel under section 19J;

2*[(fa) prescribe the authority and provide for furnishing to such authority the information with respect to the inland mechanically propelled vessel and its registration under sub-section (5) of section 19K;]

(g) prescribe the manner in which appeals to the State
Government may be preferred under this Chapter and the fees payable in respect of any such appeal;

2*[(ga) provide for the form of instrument creating a mortgage of a mechanically propelled vessel or a share therein or transfer of any such mortgage;]

(h) provide for any other matter which is to be or may be prescribed under this Chapter.]

19S.

Certain certificates issued under Merchant Shipping Act to be validunder this Act.

3*[19S. Certain certificates issued under Merchant Shipping Act to be valid under this Act. Every certificate of registry and every certificate of survey issued in respect of a mechanically propelled vessel under the Merchant Shipping Act, 1958, shall be valid and effective as a certificate of registration or certificate of survey, as the case may be, issued under this Act and the relevant provisions of this Act shall apply in relation to such vessel as they apply to an inland mechanically propelled vmssel registered under this Act.]

CHAPTER IIIMASTERS [INCLUDING SERANGS] AND ENGINEERS [INCLUDING ENGINE-DRIVERS]OF INLAND
2*[MECHANICALLY PROPELLED VESSELS].

CHAPTER VINCOMING AND OUTGOING PARTNERS

31.Introduction of a partner. (1) Subject to contract between the partners and to the provisions of section 30, no person shall be introduced as a partner into a firm without the consent of all the existing partners.

(2) Subject to the provisions of section 30, a person who is introduced as a partner into a firm does not thereby become liable for any act of the firm done before he became a partner.

32.Retirement of a partner.

32. Retirement of a partner. (1) A partner may retire-

(a) with the consent of all the other partners,

(b) in accordance with an express agreement by the partners, or

(c) where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire.

14.(2) A retiring partner may be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him with such third party and the partners of the reconstituted firm, and such agreement may be implied by a course of dealing between such third party and the reconstituted firm after he had knowledge of the retirement.

(3) Notwithstanding the retirement of a partner from a firm, he and the partners continue to be liable as partners to third parties for any act done by any of them which would have been an act of the firm if done before the retirement, until public notice is given of the retirement:

Provided that a retired partner is not liable to any third party who deals with the firm without knowing that he was a partner.

(4) Notices under sub-section (3) may be given by the retired partner or by any partner of the reconstituted firm.

33.Expulsion of a partner.

33.Expulsion of a partner. (1) A partner may not be expelled from a firm by any majority of the partners, save in the exercise in good faith of powers conferred by contract between the partners.

(2) The provisions of sub-sections (2), (3) and (4) of section
32 shall apply to an expelled partner as if he were a retired partner.

34.Insolvency of a partner.

34.Insolvency of a partner. (1) Where a partner in a firm is adjudicated an insolvent he ceases to be a partner on the date on which the order of adjudication is made, whether or not the firm is thereby dissolved.

(2) Where under a contract between the partners the firm is not dissolved by the adjudication of a partner as an insolvent, the estate of a partner so adjudicated is not liable for any act of the firm and the firm is not liable for any act of the insolvent, done after the date on which the order of adjudication is made.

35.Rights of outgoing partner to carry on competing business.

35.Libility of estate of deceased partner. Where under a contract between the partners the firm is not dissolved by the death of a partner, the estate of a deceased partner is not liable for any act of the firm done after his death.

36.
36.Rights of outgoing partner to carry on competing business. (1)
An outgoing partner may carry on a business competing with that of the firm and he may advertise such business, but, subject to contract to the contrary, he may not-

(a) use the firm name,

15.(b) represent himself as carrying on the business of the firm, or

(c) solicit the custom of persons who were dealing with the firm before he ceased to be a partner.

(2) Agreements in restraint of trade. A partner may make an agreement with his partners that on ceasing to be a partner he will not carry on any business similar to that of the firm within a specified period or within specified local limits ; and, notwithstanding anything contained in section 27 of the Indian
Contract Act, 1872,(9 of 1872). such agreement shall be valid if the restrictions imposed are reasonable.

37.Right of outgoing partner in certain cases to share subsequentprofits.

37.Right of outgoing partner in certain cases to share subsequent profits. Where any member of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on the business of the firm with the property of the firm without any final settlement of accounts as between them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of six per cent. per annum on the amount of his share in the property of the firm :

Provided that where by contract between the partners an option is given to surviving or continuing partners to purchase the interest of a deceased or outgoing partner, and that option is duly exercised, the estate of the deceased partner, or the outgoing partner or his estate, as the case may be, is not entitled to any further or other share of profits ; but if any partner assuming to act in exercise of the option does not in all material respects comply with the terms thereof, he is liable to account under the foregoing provisions of this section.

38.Revocation of continuing guarantee by change in firm.

38.Revocation of continuing guarantee by change in firm. A
continuing guarantee given to a firm, or to a third party in respect of the transactions of a firm, is, in the absence of agreement to the contrary, revoked as to future transactions from the date of any change in the constitution of the firm.

BE it enacted by Parliament in the Thirty-sixth Year of the
Republic of India as follows:–

CHAPTER IPRELIMINARY

1.Short title and commencement.

1. Short title and commencement. (1) This Act may be called the
Inland Waterways Authority of India Act, 1985.(2) It shall come into force on such date 1* as the Central
Government may, by notification in the Official Gazette, appoint.

2.Definitions.

2. Definitions. In this Act, unless the context otherwise requires,–

(a) “appurtenant land” means all lands appurtenant to a national waterway, whether demarcated or not;

(b) “Authority” means the Inland Waterways Authority of
India constituted under section 3;

(c) “channel” means any waterway, whether natural or artificial;

(d) “conservancy” includes dredging, training, closure, diversion or abandoning channels;

(e) “conservancy measures” means measures for purposes of conservancy, but does not include measures for protection of banks against floods or for restricting banks which have become eroded mainly on account of reasons not connected with shipping and navigation;

(f) “infrastructure” includes structures such as docks, wharves, jetties, landing stages, locks, buoys, inland ports, cargo handling equipment, road and rail access and cargo storage spaces, and the expression “infrastructural facilities” shall be construed accordingly;
———————————————————————
1. 27-10-1986 : Vide Notification No. S.O. 763 (E), dated 27-10-
1986, Gazette of India, Extraordinary, 1986, Part II, section 3 (ii).

460

(g) “member” means a member of the Authority appointed under sub-section (3) of section 3;

(h) “national waterway” means the inland waterway declared by section 2 of the National Waterway (Allahabad-Haldia Stretch of the Ganga-Bhagirathi-Hooghly River) Act, 1982 (49 of 1982), to be a national waterway.

Explanation.–If Parliament declares by law any other waterway to be a national waterway, then from the date on which such declaration takes effect, such other waterway–

(i) shall be deemed also to be a national waterway within the meaning of this clause; and

(ii) the provisions of this Act shall, with necessary modifications (including modification for construing any reference to the commencement of this Act as a reference to the date aforesaid), apply to such national waterway;

(i) “navigable channel” means a channel navigable during the whole or a part of the year;

(j) “prescribed” means prescribed by rules made under this
Act;

(k) “regulations” means regulations made by the Authority under this Act; and

(l) “rules” means rules made by the Central Government under this Act.

CHAPTER IIINLAND WATERWAYS AUTHORITY OF INDIA

3. Constitution and incorporation of the Inland Waterways
Authority of India. (1) With effect from such date 1* as the Central
Government may, by notification in the Official Gazette, appoint in this behalf, there shall be constituted for the purposes of this Act an Authority, to be called the Inland Waterways Authority of India.

(2) The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall by the said name sue and be sued.

(3) The Authority shall consist of the following members, namely:–

(a) a Chairman;

(b) a Vice-Chairman; and

(c) such number of persons, not exceeding five, to be appointed by the Central Government.

(4) The Authority may associate with itself, in such manner and for such purposes as may be determined by regulations, any person whose assistance or advice it may desire in complying with any of the provisions of this Act and a person so associated shall have the right to take part
———————————————————————
1. 27-10-1986 : Vide Notification No. S.O. 764 (E), dated 27-10-
1986, Gazette of India, Extraordinary, 1986, Part II, section 3 (ii).

461.in the discussions of the Authority relevant to the purpose for which he has been associated, but shall not be entitled to vote.

4.Conditions of service of members.

4. Conditions of service of members. The term of office and other conditions of service of the members shall be such as may be prescribed.

5.Powers of Chairman and Vice-Chairman.

5. Powers of Chairman and Vice-Chairman. (1) The Chairman of the
Authority shall, in addition to presiding over the meetings of the
Authority, exercise and discharge such powers and duties of the
Authority as may be delegated to him by the Authority and such other powers and duties as may be prescribed.

(2) The Vice-Chairman of the Authority shall exercise and discharge such of the powers and duties of the Chairman as may be prescribed or as may be delegated to him by the Authority.

6.Removal, etc., of members.

6. Removal, etc., of members. (1) The Central Government may remove from the Authority any member who, in its opinion,–

(a) refuses to act,

(b) has become incapable to act,

(c) has so abused his office as to render his continuance in office detrimental to the public interest, or

(d) is otherwise unsuitable to continue as a member.

(2) The Central Government may suspend any member pending an inquiry against him.

(3) No order of removal under this section shall be made unless the member concerned has been given an opportunity to submit his explanation to the Central Government and when such order is passed, the seat of the member removed shall be declared vacant.

(4) A member who has been removed under this section shall not be eligible for re-appointment as a member or in any capacity under the
Authority.

7.Vacancy, etc., not to invalidate proceedings of the Authority.

7. Vacancy, etc., not to invalidate proceedings of the Authority.
No act or proceeding of the Authority shall be invalidated merely by reason of–

(a) any vacancy in, or any defect in the constitution of, the Authority; or

(b) any defect in the appointment of a person acting as a member of the Authority; or

(c) any irregularity in the procedure of the Authority not affecting the merits of the case.

8.Secretary and other officers.

8. Secretary and other officers. (1) The Authority may appoint the Secretary and such other officers and employees as it considers necessary for the efficient discharge of its functions under this Act.

(2) The terms and conditions of service of the Secretary and other officers and employees of the Authority shall be such as may be determined by regulations.

462.9.Advisory Committees.

9. Advisory Committees. (1) Subject to any rules made in this behalf, the Authority may from time to time constitute such Advisory
Committees as may be necessary for the efficient discharge of its functions.

(2) Every Advisory Committee shall consist of such number of persons connected with shipping and navigation and allied aspects as the Authority may deem fit.

10.Authority to act on business principles.

10. Authority to act on business principles. In the discharge of its functions under this Act, the Authority shall act, so far as may be, on business principles.

CHAPTER IIIPROPERTY AND CONTRACTS

11. Transfer of assets and liabilities of the Central Government to the Authority. (1) As from such day 1* as the Central Government may, appoint by notification in the official Gazette,–

(a) all properties and other assets vested in the Central
Government for the purposes of Inland Water Transport
Directorate, and administered by the Chief Engineer-cum-
Administrator, Inland Water Transport Directorate, immediately before such day shall vest in the Authority;

(b) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done by, with, or for the Central Government immediately before such day for or in connection with the purposes of Inland Water
Transport Directorate shall be deemed to have been incurred;
entered into and engaged to be done by, with, or for the
Authority;

(c) all non-recurring expenditure incurred by the Central
Government for or in connection with the purposes of Inland Water
Transport Directorate up to such day and declared to be capital expenditure by the Central Government shall, subject to such terms and conditions as may be determined by the Central
Government, be treated as capital provided by the Central
Government to the Authority;

(d) all sums of money due to the Central Government in relation to Inland Water Transport Directorate immediately before such day shall be deemed to be due to the Authority;

(e) all suits and other legal proceedings with respect to any matter in relation to Inland Water Transport Directorate which having been instituted by or against the Central Government are pending, or which could have been so instituted, immediately before such date shall on and after such date be continued or instituted by or against the Authority; and

(f) every employee holding any office under the Central
Government immediately before such day solely or mainly for or in connection with such affairs of Inland Water Transport
Directorate as are relevant to the functions of the Authority under this
———————————————————————
1. 27-10-1986 : Vice Notification No. S.O. 767 (E), dated 27-10-
1986, Extraordinary, 1986, Part II, section 3 (ii).

463.Act shall be treated as on deputation with the Authority but shall hold his office in the Authority by the same tenure and upon the same terms and conditions of service as respects remuneration, leave, provident fund, retirement or other terminal benefits as he would have held such office, if the Authority had not been constituted and shall continue to do so until the
Central Government, either on its own motion or at the request of the Authority, recalls such employee to its service or until the
Authority, with the concurrence of the Central Government, duly absorbs such employee in its regular service, whichever is earlier:

Provided that during the period of deputation of any such employee with the Authority, the Authority shall pay to the
Central Government in respect of every such employee, such contribution towards his leave salary, pension and gratuity as the Central Government may, by order, determine:

Provided further that any such employee, who has, in respect of the proposal of the Authority to absorb him in its regular service, intimated within such time as may be specified in this behalf by the Authority his intention of not becoming a regular employee of the Authority, shall not be absorbed by the Authority in its regular service.

(2) If any dispute or doubt arises as to which of the properties, rights or liabilities of the Central Government have been transferred to the Authority or as to which of the employees serving under the
Central Government are to be treated as on deputation with the
Authority, under this section, such dispute or doubt shall be decided by the Central Government in consultation with the Authority and the decision of the Central Government thereon shall be final.

(3) Notwithstanding anything contained in the Industrial Disputes
Act, 1947 (14 of 1947) or in any other law for the time being in force, the absorption of any employee by the Authority in its regular service under this section shall not entitle such employee to any compensation under that Act or other law and no such claim shall be entertained by any court, tribunal or other authority.

12.Contracts by the Authority.

12. Contracts by the Authority. Subject to the provisions of section 13, the Authority shall be competent to enter into and perform any contract necessary for the discharge of its functions under this
Act.

13.Mode of executing contracts on behalf of the Authority.

13. Mode of executing contracts on behalf of the Authority. (1)
Every contract shall, on behalf of the Authority, be made by the
Chairman or such other member or such officer of the Authority as may be generally or specially empowered in this behalf by the Authority and such contracts or class of contracts as may be specified in the regulations shall be sealed with the common seal of the Authority:

Provided that no contract exceeding such value or amount as the
Central Government may, from time to time, by order, fix in this behalf shall be made unless it has been previously approved by the
Authority:

Provided further that no contract for the acquisition or sale of immovable property or for the lease of any such property for a term exceeding thirty years and no other contract exceeding such value or

464.amount as the Central Government may, from time to time, by order, fix in this behalf shall be made unless it has been previously approved by the Central Government.

(2) Subject to the provisions of sub-section (1), the form and manner in which any contract shall be made under this Act shall be such as may be prescribed by regulations.

(3) No contract which is not in accordance with the provisions of this Act and the regulations shall be binding on the Authority.

CHAPTER IVFUNCTIONS AND POWERS OF THE AUTHORITY

14. Functions of the Authority. (1) The Authority may–

(a) carry out surveys and investigations for the development, maintenance and better utilisation of the national waterways and the appurtenant land for shipping and navigation and prepare schemes in this behalf;

(b) provide or permit setting up of infrastructural facilities for national waterways;

(c) carry out conservancy measures and training works and do all other acts necessary for the safety and convenience of shipping and navigation and improvement of the national waterways;

(d) control activities such as throwing rubbish, dumping or removal of material, in or from the bed of the national waterways and appurtenant land, in so far as they may affect safe and efficient, shipping and navigation, maintenance of navigable channels, river training and conservancy measures;

(e) remove or alter any obstruction or impediment in the national waterways and the appurtenant land which may impede the safe navigation or endanger safety of infrastructural facilities or conservancy measures where such obstruction or impediment has been lawfully made or has become lawful by reason of long continuance of such obstruction or impediment or otherwise, after making compensation to person suffering damage by such removal or alteration;

(f) provide for the regulation of navigation and traffic
(including the rule of the road) on national waterways;

(g) regulate the construction or alteration of structures on, across or under the national waterways;

(h) disseminate navigational meteorological information about national waterways;

(i) ensure co-ordination of inland water transport on national waterways with other modes of transport; and

(j) establish and maintain pilotage on national waterways.

465.(2) The Authority may also–

(a) advise the Central Government on matters relating to inland water transport;

(b) study the transport requirement with a view to co-
ordinating inland water transport with other modes of transport;

(c) carry out hydrographic surveys and publish river charts;

(d) assist, on such terms and conditions as may be mutually agreed upon, any State Government in formulation and implementation of scheme for inland water transport development;

(e) develop consultancy services and provide such services, on such terms and conditions as may be mutually agreed upon, in
India and abroad in relation to planning and development of waterways for shipping and navigation or any facility thereat;

(f) conduct research in matters relating to inland water transport including development of craft design, mechanisation of country crafts, technique of towage, landing and terminal facilities, port installations and survey techniques;

(g) lay down standards for classification of inland waterways;

(h) arrange programme of technical training for inland water transport personnel within and outside the country; and

(i) perform such other functions as may be necessary to carry out the provisions of this Act.

(3) Any dispute arising out of or concerning the compensation referred to in clause (e) of sub-section (1) shall be determined according to the law relating to like disputes in the case of land required for public purposes.

(4) Every scheme, prepared by the Authority to carry out functions under sub-sections (1) and (2), involving capital expenditure exceeding the amount as may be prescribed, shall be submitted to the Central Government for approval.

(5) The Central Government may either approve the scheme submitted to it under sub-section (4) without modification or with such modifications as it may consider necessary or reject the scheme with directions to the Authority to prepare a fresh scheme according to such directions.

15.Amendment of schemes.

15. Amendment of schemes. The Authority shall not make any material change in the scheme approved under sub-section (5) of section 14 without the prior approval of the Central Government.

Explanation.–For the purposes of this section, “material change”
means an increase in the cost of the scheme by more than twenty per cent. of its cost or a change in the benefit and cost ratio which either makes the cost component in the ratio exceeds the benefit or reduces the benefit component by more than twenty per cent.

CHAPTER V 

FINANCE, ACCOUNTS AND AUDIT

FINANCE, ACCOUNTS AND AUDIT

17. Levy and collection of fees and charges. (1) The Authority may, with the previous approval of the Central Government, levy fees and charges at such rates as may be laid down by regulations made in this behalf for services or benefits rendered in relation to the use of the national waterways for the purposes of shipping, navigation, infrastructural facilities, including facilities for passengers and facilities relating to the berthing of vessels, handling of cargoes and storage of cargoes.

(2) The fees and charges levied under sub-section (1) shall be collected in such manner as may be determined by regulations.

18.Grants and loans by the Central Government.

18. Grants and loans by the Central Government. The Central
Government may, after due appropriation made by Parliament by law in this behalf, make to the Authority grants and loans of such sums of money as that Government may consider necessary.

19.Constitution of the Fund.

19. Constitution of the Fund. (1) There shall be constituted a
Fund to be called the Inland Waterways Authority of India Fund and there shall be credited thereto–

(a) any grants and loans made to the Authority by the
Central Government under section 18;

(b) all fees and charges received by the Authority under this Act; and

(c) all sums received by the Authority from such other sources as may be decided upon by the Central Government.

(2) The Fund shall be applied for meeting–

(a) salary, allowances and other remuneration of the members, officers and other employees of the Authority;

1 Omitted by Act 8 of 1994, s. 2.467.(b) expenses of the Authority in the discharge of its functions under section 14; and

(c) expenses on objects and for purposes authorised by this
Act.

20.Budget.

20. Budget. The Authority shall prepare, in such form and at such time each financial year as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the
Authority and forward the same to the Central Government.

21.Investment of funds.

21. Investment of funds. The Authority may invest its funds
(including any reserve fund) in the securities of the Central
Government or in such other manner as may be prescribed.

22.Annual report.

22. Annual report. The Authority shall prepare, in such form and at such time each financial year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the Central Government.

23.Accounts and audit.

23. Accounts and audit. The accounts of the Authority shall be maintained and audited in such manner as may, in consultation with the
Comptroller and Auditor-General of India, be prescribed and the
Authority shall furnish, to the Central Government, before such date as may be prescribed, its audited copy of accounts together with the auditors report thereon.

24.Annual report and auditors report to be laid before Parliament.

24. Annual report and auditors report to be laid before
Parliament. The Central Government shall cause the annual report and auditors report to be laid, as soon as may be after they are received, before each House of Parliament.

CHAPTER VIMISCELLANEOUS

25.Power of Central Government to issue directions.

25. Power of Central Government to issue directions. (1) Without prejudice to the foregoing provisions of this Act, the Authority shall, in the discharge of its functions and duties under this Act, be bound by such directions on questions of policy as the Central
Government may give in writing to it from time to time:

Provided that the Authority shall, as far as practicable, be given opportunity to express its views before any direction is given under this sub-section.

(2) The decision of the Central Government whether a question is one of policy or not shall be final.

26.Compulsory acquisition of land for the Authority.

26. Compulsory acquisition of land for the Authority. Any land required by the Authority for discharging its functions under this Act shall be deemed to be needed for a public purpose and such land may be acquired for the Authority under the provisions of the Land
Acquisition Act, 1894 (1 of 1894.) or of any other corresponding law for the time being in force.

468.27.Application, etc., of certain laws.

27. Application, etc., of certain laws. (1) The provisions of this Act shall be in addition to the provisions of the Indian Ports
Act, 1908 (15 of 1908) and the Major Port Trusts Act, 1963 (38 of
1963) and in particular nothing in this Act shall affect any jurisdiction, functions, powers or duties required to be exercised, performed or discharged by–

(a) the conservator of any port or by any officer or authority under the Indian Ports Act, 1908 (15 of 1908) or

(b) the Board of Trustees for any major port or by any officer or authority under the Major Port Trusts Act, 1963 (38 of
1963) in or in relation to any portion of an inland waterway
(including the national waterway) falling within the limits of such port or major port.

(2) Nothing in this Act shall affect the operation of the Inland
Vessels Act, 1917 (1 of 1917) or any other Central Act (other than the Indian Ports Act, 1908 (15 of 1908) and the Major Port Trusts
Act, 1963 (38 of 1963) or any State or provincial Act in force immediately before the commencement of this Act with respect to shipping and navigation on any national waterway 1***.

28.Power to enter.

28. Power to enter. Subject to any rules made in this behalf, any person, generally or specially authorised by the Authority in this behalf, may, whenever it in necessary so to do for any of the purposes of this Act, at all reasonable times, enter upon any land or premises and–

(a) make any inspection, survey, measurement, valuation or inquiry;

(b) take levels;

(c) dig or bore into sub-soil;

(d) set out boundaries and intended lines of work;

(e) mark such level boundaries and lines by placing marks and cutting trenches; or

(f) do such other acts or things as may be prescribed:

Provided that no such person shall enter any building or any enclosed court or garden attached to a dwelling-house (unless with the consent of the occupier thereof) without previously giving such occupier at least twenty-four hours notice in writing of his intention to do so.

29.Delegation.

29. Delegation. The Authority may, by general or special order in writing, delegate to the Chairman or any other member or to any officer of the Authority, subject to such conditions and limitations, if any, as may be specified in the order such of its powers and functions under this Act (except the powers under section 35) as it may deem necessary.

1. Certain words omitted by Act 8 of 1994, s. 3.469.30

Authentication of orders and other instruments of the Authority.

30. Authentication of orders and other instruments of the
Authority. All orders and decisions of the Authority shall be authenticated by the signature of the Chairman or any other member authorised by the Authority in this behalf and all other instruments executed by the Authority shall be authenticated by the signature of an officer of the Authority authorised by the Authority in this behalf.

31.Members, officers and employees of the Authority to be publicservants.

31. Members, officers and employees of the Authority to be public servants. All members, officers and other employees of the Authority shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).

32.Protection of action taken in good faith.

32. Protection of action taken in good faith. (1) No suit, prosecution or other legal proceedings shall lie against the
Government or any officer of the Government or any member, officer or employee of the Authority for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder.

(2) No suit or other legal proceedings shall lie against the
Authority for any damage caused or likely to be caused by anything in good faith done or purported to be done under this Act or the rules or regulations, and in particular, it shall not be the responsibility of the Authority to provide for relief measures necessitated by floods or by breaches and failures of works.

33.Power of Central Government to supersede the Authority.

33. Power of Central Government to supersede the Authority. (1)
If, at any time, the Central Government is of opinion–

(a) that on account of a grave emergency, the Authority is unable to discharge the functions and duties imposed on it by or under the provisions of this Act; or

(b) that the Authority has persistently made default in complying with any direction issued by the Central Government under this Act or in the discharge of the functions and duties imposed on it by or under the provisions of this Act and as a result of which default the financial position of the Authority or the administration of any national waterway has deteriorated;
or

(c) that circumstances exist which render it necessary in the public interest so to do, the Central Government may, by notification in the Official Gazette, supersede the Authority for such period, not exceeding six months, as may be specified in the notification:

Provided that before issuing a notification under this sub-
section for the reasons mentioned in clause (b), the Central
Government shall give a reasonable opportunity to the Authority to show cause why it should not be superseded and shall consider the explanations and objection, if any, of the Authority.

470

(2) Upon the publication of a notification under sub-section (1)
superseding the Authority,–

(a) all the members shall, as from the date of supersession, vacate their offices as such;

(b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority, shall, until the Authority is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct;

(c) all property owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the Central Government.

(3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may–

(a) extend the period of supersession for such further term, not exceeding six months, as it may consider necessary; or

(b) reconstitute the Authority by fresh appointment and in such case any persons who vacated their offices under clause (a)
of sub-section (2) shall not be deemed disqualified for appointment:

Provided that the Central Government may, at any time before the expiration of the period of supersession, whether as originally specified under sub-section (1) or as extended under this sub-section, take action under clause (b) of this sub-section.

(4) The Central Government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before such House of Parliament at the earliest opportunity.

34.Power to make rules.

34. Power to make rules. (1) The Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:–

(a) the term of office and other conditions of service of the members of the Authority under section 4;

(b) the powers and duties of the Chairman and Vice-Chairman under section 5;

(c) the matters with respect to the Advisory Committee referred to in sub-section (1) of section 9;

(d) the amount required to be prescribed under sub-section
(4) of section 14;

(e) the form in which, and the time at which, the Authority shall prepare its budget under section 20 and its annual report under section 22;

471.(f) the manner in which the Authority may invest its funds under section 21;

(g) the manner in which the accounts of the Authority shall be maintained and audited under section 23;

(h) the conditions and restrictions with respect to exercise of the power to enter under section 28 and the matters referred to in clause (f) of that section; and

(i) any other matter which is to be, or may be, prescribed or in respect of which provision is to be, or may be, made by rules.

35.Power to make regulations.

35. Power to make regulations. (1) The Authority may, with the previous approval of the Central Government, by notification in the
Official Gazette, make regulations consistent with this Act and the rules generally to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:–

(a) the manner in which and the purposes for which, the
Authority may associate with itself any person under sub-section
(4) of section 3;

(b) the terms and conditions of service of the Secretary and other officers and employees of the Authority under sub-section
(2) of section 8;

(c) the contracts or class of contracts which are to be sealed with the common seal of the Authority and the form and manner in which a contract may be made by the Authority;

(d) the manner in which, and the conditions subject to which, any functions in relation to the matters referred to in sub-sections (1) and (2) of section 14 may be performed;

(e) the rule of the road on a national waterway;

(f) the safe, efficient and convenient use, management and control of the infrastructures and infrastructural facilities;

(g) the reception, porterage, storage and removal of goods brought on a national waterway, and the procedure to be followed for taking charge of goods which may have been damaged before landing, or may be alleged to have been so damaged;

(h) regulating, declaring and defining the docks, wharfs, jetties, landing stages on which goods shall be landed from vessels and shipped on board vessels;

(i) regulating the manner in which and the conditions under which the loading and unloading of vessels on a national waterway shall be carried out; and

(j) the exclusion from a national waterway of disorderly or other undesirable persons and of trespassers.

472.(3) Any regulation made under any of the clauses (c) to (j) of sub-section (2) may provide that a contravention thereof shall be punishable with fine which may extend to five hundred rupees and in the case of a continuing contravention with an additional fine which may extend to twenty rupees for every day during which such contravention continues after conviction for the first such contravention.

36.Rules and regulations to be laid before Parliament.

36. Rules and regulations to be laid before Parliament. Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both House agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.

37.Power to remove difficulties.

37. Power to remove difficulties. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:

Provided that no order shall be made under this section after the expiry of five years from the commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

38.Amendment of Act 49 of 1982.38. Amendment of Act 49 of 1982. In the National Waterway
(Allahabad-Haldia Stretch of the Ganga-Bhagirathi-Hooghly River) Act,
1982,–

(a) in section 3, for the words “Central Government”, the word “Union” shall be substituted, and for the words “to the extent hereinafter provided”, the words and figures “to the extent provided in the Inland Waterways Authority of India Act,
1985″ shall be substituted;

(b) sections 4 to 15 shall be omitted.

CHAPTER IPRELIMINARY

1.Short title and commencement.

1. Short title and commencement. (1) This Act may be called the
Jayanti Shipping Company (Acquisition of Shares) Act, 1971.(2) It shall be deemed to have come into force on the 17th day of
October, 1971.2.Definitions.

2. Definitions. In this Act, unless the context otherwise requires,–

(a) “appointed day” means the date of commencement of this
Act;

(b) “company” means the Jayanti Shipping Company Limited, being a company as defined in the Companies Act, 1956.(1 of 1956), having its registered office at Bombay;

(c) “shareholder” means a person, who, immediately before the appointed day, was registered as a shareholder in the capital of the company;

(d) “Shipping Corporation of India” means the Shipping
Corporation of India Limited, being a Government company as defined in the Companies Act, 1956 (1 of
1956), having its registered office at Bombay;

(e) words and expression used but not defined in this Act and defined in the Companies Act, 1956 (1 of 1956), shall have the meanings respectively assigned to them in that Act.

CHAPTER IIACQUISITION OF SHARES OF THE COMPANY

3.Vesting of shares of company in Central Government and compensationtherefor.

3. Vesting of shares of company in Central Government and compensation therefor. (1) On the appointed day,–

(a) all shares in the capital of the company shall, by virtue of this Act, be deemed to be transferred to and vested in the Central Government free from all trusts, liabilities and encumbrances; and

(b) as compensation therefor the Central Government shall, in accordance with the provisions of section 4, pay to the shareholders the sum of rupees four crores and fifty lakhs only in the aggregate.

(2) For the removal of doubts it is hereby declared that the transfer and vesting of shares effected under clause (a) of sub-
section (1) shall not be deemed to affect any right of the company subsisting immediately before the appointed day against any shareholder to recover from him any sum of money on the ground that the shareholder has not paid or credited to the company the whole or any part of the value of the shares held by him or on any other ground whatsoever.

4.Apportionment and manner of payment of compensation.

4. Apportionment and manner of payment of compensation. (1) The amount of compensation payable under clause (b) of sub-section (1) of section 3 to the shareholders shall be apportioned among the shareholders according to the number of shares held by such shareholders.

(2) The amount of compensation payable to a shareholder in accordance with the provisions of sub-section (1) shall be given to him, at his option–

(a) in cash (to be paid by cheque drawn on the Reserve Bank of India) in three equal annual instalments, the amount of each instalment carrying interest at the rate of four per cent. per annum from the appointed day, or

(b) in saleable or otherwise transferable promissory notes or stock certificates of the Central Government issued and repayable at par, and maturing at the end of–

(i) ten years from the appointed day and carrying interest from that day at the rate of four and a half per cent. per annum, or

97.(ii) thirty years from the appointed day and carrying interest from that day at the rate of five and a half per cent. per annum, or

(c) partly in cash (to be paid by cheque drawn on the
Reserve Bank of India) and partly in such number of securities, specified in sub-clause (i) or sub-clause
(ii), or both, of clause (b), as may be required by the shareholder, or

(d) partly in such number of securities specified in sub-
clause (i) of clause (b) and partly in such number of securities specified in sub-clause (ii) of that clause, as may be required by the shareholder.

(3) The first of the three equal annual instalments referred to in clause (a) of sub-section (2) shall be paid, and the securities referred to in clause (b) of that sub-section shall be issued, within sixty days from the date of receipt by the Central Government of the option referred to in that sub-section, or where no such option has been exercised, from the latest date before which such option ought to have been exercised.

(4) The option referred to in sub-section (2) shall be exercised by a shareholder before the expiry of a period of three months from the appointed day (or within such further time, not exceeding three months, as the Central Government may, on the application of the shareholder, allow) and the option so exercised shall be final and shall not be altered or rescinded after it has been exercised.

(5) If a shareholder omits or fails to exercise the option referred to in sub-section (2), within the time specified in sub-
section (4), he shall be deemed to have opted for payment in securities specified in sub-clause (i) of clause (b) of sub-section
(2).

(6) Notwithstanding anything contained in this section, a shareholder may, before the expiry of three months from the appointed day (or within such further time, not exceeding three months, as the
Central Government may, on the application of the shareholder, allow)
make an application in writing to the Central Government for–

(a) the full payment of the compensation payable to him, if the compensation payable to him does not exceed rupees two lakhs; or

98.(b) an interim payment of an amount equal to seventy-five per cent, of the face value of the shares in respect of which compensation is payable to him, or rupees two lakhs, whichever is greater, if the compensation payable to him exceeds rupees two lakhs,

indicating in such application whether the payment is desired in cash or in securities specified in sub-section (2), or in both.

(7) The Central Government shall, within sixty days from the receipt of the application referred to in sub-section (6), make the full payment or, as the case may be, the interim payment to the shareholder in accordance with the option indicated in such application.

(8) The interim payment made to a shareholder under sub-section
(7) shall be set off against the total amount of compensation payable to him under this Act and the balance of the compensation remaining outstanding after such payment shall be given to the shareholder in accordance with the option exercised, or deemed to have been exercised, under sub-section (4) or sub-section (5), as the case may be:

Provided that where any part of the interim payment is obtained by the shareholder in cash, the payment so obtained shall be set off, in the first instance, against the first instalment of the cash payment referred to in sub-section (2), and in case the payment so obtained exceeds the amount of the first instalment, the excess amount shall be adjusted against the second instalment and the balance of such excess amount, if any, against the third instalment of the cash payment.

(9) If any dispute arises as to the person entitled to receive the compensation payable in respect of any share, the Central
Government shall deposit the amount of such compensation in the court for being paid to the person or persons entitled to be paid.

CHAPTER IIIMANAGEMENT OF COMPANY

5.Allocation of shares to Shipping Corporation of India and certainother persons.

5. Allocation of shares to Shipping Corporation of India and certain other persons. (1) All the shares of the company vested in the
Central Government by virtue of this Act, except one hundred thereof, shall immediately after they have so vested, stand transferred to and vested in the Shipping Corporation of India.

99.(2) The Central Government may by order transfer the remaining shares to such persons as may be specified in the order to enable the company to function as a Government company.

(3) On the transfer of shares to the Shipping Corporation of
India under sub-section (1) or to any person under sub-section (2), the company shall forthwith register each transferee as a member of the company.

(4) The amount paid by the Central Government for the acquisition of the shares which stand transferred to and vested in the Shipping
Corporation of India under sub-section (1) shall be deemed to be the contribution by the Central Government to the equity capital of the
Corporation and that Corporation shall issue (if necessary, after amending its memorandum and articles of association) to the Central
Government paid-up shares in its capital for a corresponding amount.

6.Amendment of memorandum and articles of association of company.

6. Amendment of memorandum and articles of association of company. For the purpose of enabling the company to function as a
Government company, the Central Government may, by notification published in the Official Gazette, make such amendments in the memorandum and articles of association of the company as it may consider necessary.

7.Interim management of company.

7. Interim management of company. (1) Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or in the memorandum or articles of association of the company, on and from the appointed day and till a new Board of directors of the company is duly constituted, the persons specified in the Schedule shall be the directors of the company and shall constitute the Board of directors of the company.

(2) If any vacancy arises in the Board of directors specified in the Schedule, it shall be filled by the Central Government in such manner as it thinks fit and thereupon the Schedule shall be deemed to be amended accordingly.

(3) No act or proceeding of the Board of directors specified in the Schedule shall be invalid merely by reason of the existence of any vacancy in the membership of the Board.

CHAPTER IVMISCELLANEOUS

8.Directors, etc., not entitled to compensation.

8. Directors, etc., not entitled to compensation. Notwithstanding anything contained in any law for the time being in force, no director or managerial personnel specified in section 197A of the Companies
Act, 1956 (1 of 1956), or other person entitled to manage the whole or a substantial part of the business and affairs of the company under a special agreement or otherwise shall be entitled to any compensation against the company or the Central Government for the loss of office or for the premature termination of any contract of management entered into by him with the company whether such loss or termination was due to the provisions of the Jayanti Shipping Company (Taking Over of
Management) Act, 1966 (24 of 1966) or this Act.

9.Contracts in bad faith, etc., may be cancelled or varied.

9. Contracts in bad faith, etc., may be cancelled or varied. The company may, within three years from the appointed day, make an application to any court having jurisdiction in this behalf for the purpose of cancelling or varying any contract or agreement entered into, at any time before the issue of the notified order under sub-
section (1) of section 3 of the Jayanti Shipping Company (Taking Over of Management) Act, 1966 (24 of 1966), between the company and any other person and the court may, if satisfied after due inquiry that such contract or agreement had been entered into in bad faith and is detrimental to the interests of the company, make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) that contract or agreement, and the contract or agreement shall have effect accordingly.

10.Duty to deliver possession of property of company and documentsrelating to company.

10. Duty to deliver possession of property of company and documents relating to company. Any person who has in his possession, custody or under his control any property of, or any books, documents or other papers relating to the property and assets of, the company, including any letters, memoranda, notes or other communications between him and the company, shall be liable to account for the said property, books, documents and other papers (including such letters, memoranda, notes or other communications) to the company and shall deliver them up to the company or to such other person as may be authorised for the purpose by the company.

11.Powers of inspection.

11. Powers of inspection. (1) For the purpose of ascertaining whether any property is the property of the company or for any other purpose mentioned in this Act or the rules made thereunder, any person authorised by the Central Government in this behalf shall have the right to–

(a) enter and inspect any premises;

101.(b) require any person having the possession, custody or control of any register or record of the company to produce such register or record;

(c) require the occupier of any property belonging to, or claimed to be the property of, the company, to submit to the person so authorised such accounts, books or other documents or to furnish to him such information as he may reasonably think necessary; and

(d) examine any person having the control of, or employed in connection with, the company and require him to make any statement touching the affairs of the company.

(2) Any person authorised by the Central Government under sub-
section (1) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).

12.Penalty for false statements.

12. Penalty for false statements. (1) If any person,–

(a) when required by this Act or by any order under this Act to make any statement or furnish any information, makes any statement or furnishes any information which is false in any material particular and which he knows or believes to be false or does not believe to be true; or

(b) makes any such statement as aforesaid in any book, account, record, return or other document which he is required by any order made under this Act to submit,

he shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to two thousand rupees, or with both.

(2) Any person, who–

(a) having in his possession, custody or control any property forming part of the assets of the company, wrongfully withholds such property from the company, or any person authorised by the company, or

(b) wrongfully obtains possession of any property forming part of the assets of the company, or

(c) wilfully withholds or fails to produce to any person authorised under this Act, any register, record or other document which may be in his possession, custody or control, or

102.(d) fails, without any reasonable cause, to submit any accounts, books or other documents, when required to do so,

shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to two thousand rupees, or with both.

13.Limitation on prosecution.

13. Limitation on prosecution. No court shall take cognizance of an offence under this Act except with the previous sanction of the
Central Government or of an officer authorised by that Government in this behalf.

14.Act to have overriding effect.

14. Act to have overriding effect. The provisions of this Act or any notification, order or rule made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any law other than this Act or in any instrument having effect by virtue of any law other than this Act or in any order made by a civil court.

15.Protection of action taken under this Act.

15. Protection of action taken under this Act. No suit, prosecution or other legal proceeding shall lie against the Central
Government or the Shipping Corporation of India or any officer or other employee serving in connection with the affairs of the company for anything which is in good faith done or intended to be done under this Act.

16.Power to make rules.

16. Power to make rules. (1) The Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act.

(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or 1*[in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid], both
Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

17.Power to remove difficulties.

17. Power to remove difficulties. If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order as occasion requires, do anything (not inconsistent with the provisions of this Act) which appears to it to be necessary for the purpose of removing the difficulty:
———————————————————————-
1 Subs. by Act 4 of 1986, s. 2 & sch. (w.e.f. 15-5-1986).

103.Provided that no such order shall be issued after the expiration of two years from the appointed day.

18.Repeals and saving.

18. Repeals and saving. (1) The Jayanti Shipping Company (Taking
Over of Management) Act, 1966 (24 of 1966), is hereby repealed.

(2) The Jayanti Shipping Company (Acquisition of Shares)
Ordinance, 1971 (14 of 1971), is hereby repealed:

Provided that notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provision of this Act.

CHAPTER IPRELIMINARY

1.Short title, commencement and application.

1. Short title, commencement and application. (1) This Act may be called the Major Port Trusts Act, 1963.(2) It shall come into force on such date 1* as the Central
Government, may, by notification in the Official Gazette, appoint.

(3) It applies in the first instance to the major ports of
Cochin, Kandla and Vishakhapatnam, and the Central Government may, by notification in the Official Gazette, apply the provisions of this Act to such other major port 2*** 3*** and with effect from such date, as may be specified in the notification.

2.Definitions.

2. Definitions. In this Act, unless the context otherwise requires,–

(a) “appointed day”, in relation to a port, means the date on which this Act is made applicable to that port;

(b) “Board”, in relation to a port, means the Board of
Trustees constituted under this Act for that port;

(c) “Chairman” means the Chairman of a Board and includes the person appointed to act in his place under section
14;

(d) “Collector of Customs” has the same meaning as in the
Customs Act, 1962;

(e) “Deputy Chairman” means 4*[the Deputy Chairman, or, as the case may be, a deputy chairman of a Board] and includes the person appointed to act in his place under section 14;

———————————————————————-
1. 29th February, 1964, vide Notifn. No. G.S.R. 296, dt. 28-2-
1964, Gazette of India, Extraordinary, Pt. II, Sec. 3(i), p. 79.1.4.1979: The date on and from which the provisions of the Act shall apply to the major port of Tuticorin: vide Notifn. No. G.S.R.91(E), dt. 1.3.1979, Gaz. of India, Pt.II, Sec.3(i), p. 174.2. Applied to the major port of Mormugao (w.e.f. 1-7-1964) by
Notifn. No. G.S.R. 922, dt. 22-6-1964, Gazette of India, Pt.
II, Sec. 3(i), p. 951.Applied to the major port of Paradip (w.e.f. 1-11-1967) by
Notifn. No. G.S.R. 1516, dt. 27-9-1967, Gazette of India, Pt. II, Sec. 3(i), p. 1646.3. Omitted by Act 29 of 1974, s. 2 (w.e.f. 1.2.1975).
4. Subs. by Act 17 of 1982, s.2, for “the Deputy Chairman of a Board”
(w.e.f. 31.5.1982).

644.(f) “dock” includes all basins, locks, cuts, entrances, graving docks, graving blocks, inclined planes, slipways, gridirons, moorings, transit-sheds, warehouses, tramways, railways and other works and things appertaining to any dock, and also the portion of the sea enclosed or protected by the arms or groynes of a harbour;

(g) “foreshore”, in relation to a port, means the area between the high-water mark and the low-water mark relating to that port;

(h) “goods” includes livestock and every kind of movable property;

(i) “high-water mark”, in relation to a port, means a line drawn through the highest points reached by ordinary spring-tides at any season of the year at the port;

1*[(ia) "immovable property" includes wharfage-rights and all other rights exercisable on, over, or in respect of, any land, wharf, dock or pier;]

(j) “Indian Ports Act” means the Indian Ports Act, 1908 (15.of 1908)

(k) “land” includes the bed of the sea or river below high-
water mark, and also things attached to the earth or permanently fastened to anything attached to the earth;

(l) “low-water mark”, in relation to a port, means a line drawn through the lowest points reached by ordinary springtides at any season of the year at that port;

(m) “major port” has the same meaning as in the Indian Ports
Act;

(n) “master”, in relation to any vessel or any aircraft making use of any port, means any person having for the time being the charge or control of such vessel or such aircraft, as the case may be, except a pilot, harbour master, assistant harbour master; dock master or berthing master of the port;

(o) “owner”, (i) in relation to goods, includes any consignor, consignee, shipper or agent for the sale, custody, loading or unloading of such goods; and (ii)
in relation to any vessel or any aircraft making use of any port, includes any part-owner, charterer, consignee, or mortgagee in possession thereof;

(p) “pier” includes any stage, stairs, landing place, hard, jetty, floating barge, 2*[transhipper] or pontoon, and any bridges or other works connected therewith;

2*[Explanation.--For the purposes of this clause, "transhipper"
means a floating craft or vessel, whether dumb or self-propelled, on which gears are provided for discharging cargo from a barge or wharf and loading it into a ship;]

(q) “port” means any major port to which this Act applies within such limits as may, from time to time, be defined by the Central Government for the purposes of this Act
———————————————————————-
1. Ins. by Act 29 of 1974, s. 3 (w.e.f. 1.2.1975).
2. Ins. by Act 17 of 1982, s. 2 (w.e.f. 31.5.1982).

645.by notification in the Official Gazette, and, until a notification is so issued, within such limits as may have been defined by the Central Government under the provisions of the Indian Ports Act;

(r) “port approaches”, in relation to a port, means those parts of the navigable rivers and channels leading to the port, in which the Indian Ports Act is in force;

(s) “Port Trust security” means debentures, bonds or stock certificates issued by a Board in respect of any loan contracted by it under the provisions of this Act or issued by any other authority for the payment of which the Board is liable under this Act;

(t) “prescribed” means prescribed by rules or regulations made under this Act;

(u) “public securities” means–

(i) promissory notes, debentures, stock or other securities of the Central Government or of any State
Government:

Provided that securities, both the principal whereof and the interest whereon have been fully and unconditionally guaranteed by any such Government, shall be deemed, for the purposes of this clause, to be securities of such Government;

(ii) debentures or other securities for money issued by or on behalf of any municipal body, Improvement Trust or Port Trust under the authority of any law for the time being in force in India (including the Port Trust securities)

(v) “rate” includes any toll, due, rent, rate, fee, or charge leviable under this Act;

(w) “regulations” means regulations made under this Act;

(x) “rules” means rules made by the Central Government under this Act;

(y) “Trustee”, in relation to a port, means a member of the
Board constituted for the port;

1*[(z) "vessel" includes anything made for the conveyance, mainly by water, of human beings or of goods and a caisson,]

(za) “wharf” includes any wall or stage and any part of the land or foreshore that may be used for loading or unloading goods, or for the embarkation or disembarkation of passengers and any wall enclosing or adjoining the same.
———————————————————————-
1. Subs. by Act 29 of 1974, s. 3, for cl. (2) (w.e.f. 1.2.1975).

CHAPTER IIBOARD OF TRUSTEES AND COMMITTEES THEREOF

3. Constitution of Board of Trustees. (1) With effect from such date as may be specified by notification in the Official Gazette, the
Central Government shall cause to be constituted in respect of any major port a Board of Trustees to be called the Board of Trustees of that port, which shall consist of the following Trustees, namely:–

(a) a Chairman to be appointed by the Central Government;

1*[(b) one Deputy Chairman or more, as the Central
Government may deem fit to appoint;]

2*[(c) not more than nineteen persons in the case of each of the ports of Bombay, Calcutta and Madras and not more than seventeen persons in the case of any other port who shall consist of--

(i) such number of persons, as the Central
Government may, from time to time, by notification in the Official Gazette, specify, to be appointed by that
Government from amongst persons who are in its opinion capable of representing any one or more of such of the following interests as may be specified in the notification, namely:--

(1) labour employed in the port;

(2) the Mercantile Marine Department;

(3) the Customs Department;

(4) the Government of the State in which the port is situated;

(5) the Defence Services;

(6) the Indian Railways; and

(7) such other interests as, in the opinion of the Central Government, ought to be represented on the Board:

Provided that before appointing any person to represent the labour employed in the port, the Central
Government shall obtain the opinion of the trade unions, if any, composed of persons employed in the port and registered under the Trade Unions Act, 1926, and that the number of persons so appointed shall not be less than two;

(ii) such number of persons, as the Central
Government may, from time to time, by notification in the Official Gazette, specify, to be elected by such bodies and representing any one or more of such of the following interests as may be specified in the notification from among themselves, namely:--

(1) ship owners;

(2) owners of sailing vessels;

(3) shippers; and

(4) such other interests as, in the opinion of the Central Government, ought to be represented on the Board:

Provided that in a case where any such body is an undertaking owned or controlled by the Government, the person to be elected by such body shall be appointed by the Central Government.]

(2) A Trustee appointed by the Central Government under this Act may be appointed by name or by virtue of office.

(3) Every notification issued under 1*[sub-clause (ii) of clause
(c) of sub-section (1)] may also specify the number of Trustees that each of the bodies referred to in that clause may elect.
———————————————————————-
1. Subs. by Act 17 of 1982, s. 3, for cl. (b) (w.e.f. 31.5.1982).
2. Subs. by Act 29 of 1974, s. 4, for cl. (c) (w.e.f. 1.2.1975).
3. Subs. by s. 4 ibid., for certain words (w.e.f. 1.2.1975).

647.(4) The election of Trustees under 1*[sub-clause (ii) of clause
(c) of sub-section (1)] shall be held within such period as may, from time to time, be specified by the Central Government.

(5) The chief executive authority of every electing body shall communicate forthwith to the Central Government the result of any election held in pursuance of sub-section (4).

(6) The names of persons appointed or elected as Trustees shall be notified by the Central Government in the Official Gazette.

4.First Board of Trustees.

4. First Board of Trustees. (1) Notwithstanding anything contained in section 3, the Central Government may, by notification in the Official Gazette, constitute in respect of any major port the first Board of Trustees thereof consisting of–

(a) a Chairman to be appointed by the Central Government;

(b) a Deputy Chairman, if the Central Government deems fit to appoint one; and

(c) such number of other Trustees, 2*[not exceeding seventeen] as that Government may deem expedient, to be appointed by that Government from amongst persons who are in its opinion capable of representing,–

(i) labour employed in the port;

(ii) Government of the State in which the port is situated;

(iii) Government departments specified 2*[in sub-
clause (i) of clause (c)] of sub-section (1) of section
3; and

(iv) such other interests as, in the opinion of the Central Government, ought to be represented on the
Board.

(2) Subject to the provisions of sub-section (3), the persons appointed as Trustees under sub-section (1) shall hold office during the pleasure of the Central Government.

(3) On the constitution of the Board under section 3, the first
Board of Trustees shall cease to exist.

5.Board to be body corporate.

5. Board to be body corporate. Every Board constituted under this
Act shall be a body corporate having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold or dispose of property and may by the name by which it is constituted, sue or be sued.
———————————————————————-
1. Subs. by Act 29 of 1974, s. 4, cl. (d) of sub-section (1) (w.e.f.
1.2.1975).
2. Subs. by s. 5, ibid., for certain words.

648.6.Disqualification for office of Trustee.

6. Disqualification for office of Trustee. A person shall be disqualified for being chosen as a Trustee, if he–

(a) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central
Government, involves moral turpitude; or

(b) is an undischarged insolvent; or

(c) holds any office of profit under the Board:

1*[Provided that this disqualification shall not apply to the Chairman, Deputy Chairman or a Trustee who has been appointed to represent the labour employed in the port or appointed by virtue of office as officer or member of an association formed for the purpose of promoting the interests or welfare of any class of employees of the Board;]

(d) has, directly or indirectly, any share or interest in any work done by order of the Board, or in any contract or employment, with, by, or on behalf of the Board:

Provided that no person shall be deemed to have a share or interest in such work, contract or employment by reason only of his–

(i) having a share in any company or firm which may contract with or be employed by or on behalf of the
Board, or

(ii) having a share or interest in any newspaper in which any advertisement relating to the affairs of the Board may be inserted, or

(iii) being interested in any loan of money to the
Board, or

(iv) having a share or interest in any lease, sale, exchange or purchase of immovable property or any agreement for the same, or

(v) having a share or interest in any licence by the Board, or right by agreement or otherwise with the
Board to the sole or preferential use of any railway siding or any berth for vessels in the docks belonging to the Board, or

(vi) having a share or interest in the occasional sale to the Board, to a value not exceeding ten thousand rupees in any one financial year, of any article in which he trades.

7.Term of office of Trustees.

7. Term of office of Trustees. (1) The Chairman and the Deputy
Chairman shall hold office during the pleasure of the Central
Government.
———————————————————————-
1. Subs. by Act 29 of 1974, s. 6, for the former proviso (w.e.f.
1.2.1975).

649.(2) Subject to the provisions of this Act,–

(a) every person elected or appointed by name to be a
Trustee shall hold office to which he is elected or so appointed, for a term of two years commencing on the
1st day of April next following his election or appointment, as the case may be:

Provided that the term of office of a member elected to represent any body of persons shall come to an end as soon as he ceases to be a member of that body;

(b) a person appointed by virtue of an office to be a
Trustee shall, until the Central Government by notification in the Official Gazette otherwise directs, continue to be a Trustee so long as he continues to hold that office.

8.Vacation of office of Trustees.

8. Vacation of office of Trustees. (1) The Central Government shall remove a Trustee if he–

(a) becomes subject to any of the disqualifications mentioned in section 6; or

1*[(aa) has, in the opinion of the Central Government, ceased to represent the interest by virtue of which he was appointed or elected; or]

(b) refuses to act or becomes incapable of acting; or

(c) is, without the permission of the Board previously obtained, absent from six consecutive ordinary meetings of the Board; or

(d) is absent from the meetings of the Board for a period exceeding six consecutive months; or

(e) acts in contravention of the provisions of section 19.(2) A Trustee may resign his office by giving notice in writing to the Chairman who shall forward the same to the Central Government, and on such resignation being accepted by that Government he shall be deemed to have vacated his office.

9.Eligibility of Trustee for re-appointment or re-election.

9. Eligibility of Trustee for re-appointment or re-election. Any person ceasing to be a Trustee shall, unless disqualified under section 6, be eligible for re-appointment or re-election.

10.Filling of vacancies in office of Trustees.

10. Filling of vacancies in office of Trustees. (1) In the case of a vacancy in the office of a Trustee appointed by name or an elective Trustee caused by the expiration of the term of office of such Trustee, the appointment to fill such vacancy shall be made or an election to fill such vacancy shall be completed, as the case may be, within two months immediately preceding the date of expiration of such term.
———————————————————————-
1. Ins. by Act 29 of 1974, s. 7 (w.e.f. 1.2.1975).

650

(2) In the case of a vacancy in the office of a Trustee appointed by the Central Government by virtue of an office, the appointment to fill such vacancy shall be made within one month of the occurrence of such vacancy.

(3) In the case of a casual vacancy in the office of a Trustee appointed by name or an elective Trustee caused by the death of such
Trustee or by virtue of the provisions of section 8, such vacancy shall be filled within one month of the occurrence thereof by appointment or election, as the case may be, in the manner hereinbefore specified:

Provided that the Trustee so appointed or elected shall retain his office so long only as the vacating Trustee shall have retained the same if such vacancy had not occurred:

Provided further that no such casual vacancy occurring within three months of the date of expiry of the normal term of office of the vacating Trustee shall be filled up under this sub-section.

11.Saving provision for appointment of Trustee by Central Governmentafter prescribed period.

11. Saving provision for appointment of Trustee by Central
Government after prescribed period. Nothing in the foregoing provisions shall prevent a person being appointed by the Central
Government to fill any vacancy in the office of a Trustee appointed by the Central Government after the expiration of the period specified in section 10, if for any reason it has not been possible for the Central
Government to make the appointment within the said period.

12.Power of Central Government to extend time for election or appointTrustees in default of election.

12. Power of Central Government to extend time for election or appoint Trustees in default of election. (1) If the Central Government is satisfied that an electing body has failed to elect a Trustee within the period specified there for in sub-section (4) of section 3.or section 10 for reasons beyond its control, the Central Government may, by notification in the Official Gazette, direct that the election shall be held on or before such date as may be specified in the notification.

(2) In the event of default being made in electing any Trustee within the period specified therefor under sub-section (4) of section
3 or under section 10, or as the case may be, on or before the date specified in the notification issued under sub-section (1), it shall be lawful for the Central Government to appoint a person by notification in the Official Gazette and the person so appointed shall be deemed to be an elective Trustee.

13.Term of office in case of certain Trustees.

13. Term of office in case of certain Trustees. Where a Trustee is appointed under section 11 or under sub-section (2) of section 12.or elected in pursuance of a direction issued under sub-section (1) of section 12, the term of office of such Trustee shall commence on the date on which his appointment or election.

651.as the case may be, is notified in the Official Gazette and shall expire on the date on which his term of office would have expired if his appointment or election had been made within the period specified under section 10, or, as the case may be, under sub-section (4) of section 3.14.Absence of Chairman and Deputy Chairman.

14. Absence of Chairman and Deputy Chairman. If the Chairman or the Deputy Chairman is, by infirmity or otherwise, rendered incapable of carrying out his duties or is absent on leave or otherwise, in circumstances not involving the vacation of his appointment, or is sent on deputation outside India for any of the purposes of this Act, the Central Government may appoint another person to act in his place during his absence:

Provided that the Chairman or the Deputy Chairman, while on deputation outside India may, if the Central Government by order so directs and subject to such conditions and restrictions as may be specified in that order, exercise such of the powers and perform such of the duties conferred or imposed on the Chairman or the Deputy
Chairman, as the case may be, by or under this Act as he may deem necessary, and the Chairman or Deputy Chairman while exercising such powers and performing such duties shall be deemed to be a Trustee notwithstanding anything to the contrary contained in this Act.

14A.

Acting Chairman or Deputy Chairman.

1*[14A. Acting Chairman or Deputy Chairman. The Central
Government may, pending the consideration of the question as to who may be appointed as Chairman or Deputy Chairman of a Board under section 3 or section 4, appoint a person to be the acting Chairman or
Deputy Chairman thereof and notify his name in the Official Gazette and the person so appointed shall, until the Central Government by notification in the Official Gazette otherwise directs, be deemed for the purposes of this Act to be the Chairman or Deputy Chairman of such
Board appointed under section 3 or section 4, as the case may be.]

15.Conditions of service of Chairman and Deputy Chairman.

15. Conditions of service of Chairman and Deputy Chairman. The
Chairman and the Deputy Chairman shall be paid such salary and be governed by such terms and conditions of service as may, from time to time, be determined by the Central Government.

16.Meetings of Board.

16. Meetings of Board. (1) A Board shall meet at such times and places and shall, subject to the provisions of sub-sections (2), (3)
and (4), observe such rules of procedure in regard to the transaction of business at its meetings as may be provided by rules made under this Act.

(2) The Chairman or, in his absence, the Deputy Chairman, and in the absence of both, any person chosen by the Trustees present from among themselves, shall preside at meetings of the Board.

(3) All questions at a meeting of the Board shall be decided by a majority of the votes of the Trustees present and voting and, in the case of an equality of votes, the person presiding shall have a second or casting vote.

(4) No business shall be transacted at any meeting of the Board unless not less than five Trustees are present throughout such meeting.
———————————————————————-
1. Ins. by Act 17 of 1982, s. 4 (w.e.f. 31.5.1982).

652.17.Committees of Board.

17. Committees of Board. (1) A Board may, from time to time, constitute from amongst the Trustees one or more committees, each consisting of such number as the Board may consider necessary, for the purpose of discharging such of its functions as may be delegated to such committee or committees by the Board.

1*[(1A) Notwithstanding anything contained in sub-section (1) or any other provision of this Act, the Board may appoint a person who is not a Trustee to be a member of any committee constituted under that sub-section and a person so appointed shall, for the purpose of the discharge of his functions as such member, be deemed to be a
Trustee.]

(2) A committee constituted under this section shall meet at such times and at such places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum) as may be provided by regulations made under this Act.

18.Fees and allowances payable to Trustees.

18. Fees and allowances payable to Trustees. 2*[(1)]. The
Trustees shall be paid by the Board such fees and allowances for attending the meetings of the Board or of any of its committees and for attending to any other work of the Board as may be provided by rules made under this Act:

Provided that no fees shall be payable to the Chairman, Deputy
Chairman or any other Trustee who is a servant of the Government.

3*[(2) A member of a committee appointed under sub-section (1A)
of section 17 shall be paid the same fees and allowances for attending the meetings of the committee and for attending to any other work of the Board as are payable to a trustee under sub-section (1):

Provided that the Board may, with the prior approval of the
Central Government, pay to any such member fees and allowances at a rate higher than that provided in the case of Trustees.]

19.Restriction of power of Trustees to vote in certain cases.

19. Restriction of power of Trustees to vote in certain cases. No
Trustee shall vote or take part in the discussion of any matter coming up for consideration at a meeting of the Board or any of its committees if the matter is one in which he has any direct or indirect pecuniary interest by himself or his partner, or in which he is interested professionally on behalf of a client or as agent for any person other than the Government 4*[or an undertaking owned or controlled by the Government] or a local authority or a trade union registered under 1*[the Trade Unions Act, 1926 (16 of 1926), or other than as officer or member of an association formed for the purpose of promoting the interests or welfare of any class of employees of the Board.]

20.Defects in appointments or election not to invalidate acts, etc.

20. Defects in appointments or election not to invalidate acts, etc. No act or proceeding of a Board or of any of its committees shall be invalid merely by reason of–

(a) any vacancy therein or any defect in the constitution thereof, or

(b) any defect in the election or appointment of a person as a member thereof, or

(c) any Trustee having acted or taken part in any proceedings in contravention of section 19, or

(d) any irregularity in its procedure not affecting the merits of the case.

21.Delegation of powers.

21. Delegation of powers. A Board may, with the approval of the
Central Government, specify–

(a) the powers and duties conferred or imposed upon the
Board by or under this Act, which may also be exercised or performed by the Chairman; and
———————————————————————-
1. Ins. by Act 17 of 1982, s. 5 (w.e.f. 31.5.1982).
2. S. 18 re-numbered as sub-section (1) by s. 6, ibid. (w.e.f.
31.5.1982).
3. Ins. by s.6, ibid. (w.e.f. 31.5.1982).
4. Ins. by subs. by Act 29 of 1974, s. 8 (w.e.f. 1.2.1975)
5. Subs. by s. 8, ibid., for certain words (w.e.f. 1.2.1975).

653.(b) the powers and duties conferred or imposed on the
Chairman by or under this Act, which may also be exercised or performed by the Deputy Chairman or any officer of the Board and the conditions and restrictions, if any, subject to which such powers and duties may be exercised and performed:

Provided that any powers and duties conferred or imposed upon the Deputy Chairman or any officer of the Board under clause (b) shall be exercised and performed by him subject to the supervision and control of the
Chairman.

22.Duties of Chairman and Deputy Chairman.

22. Duties of Chairman and Deputy Chairman. (1) It shall be the duty of the Chairman and the Deputy Chairman to attend every meeting of the Board unless prevented by sickness or other reasonable cause.

(2) The Chairman shall, as soon as possible, transmit to the
Central Government a copy of the minutes of every meeting of the Board and shall furnish to that Government such reports, returns, documents or other information as it may, from time to time, call for.

(3) The Chairman shall exercise supervision and control over the acts of all employees of the Board in matters of executive administration and in matters concerning the accounts and records of the Board.

CHAPTER IIISTAFF OF THE BOARD

23. Schedule of Boards staff. A Board shall, from time to time, prepare and sanction a Schedule of the employees of the Board whom it deems necessary and proper to maintain for the purposes of this Act and such Schedule shall indicate therein the designations and grades of employees and the salaries, fees and allowances which are proposed to be paid to them:

1*[Provided that the previous sanction of the Central Government shall be obtained for the inclusion in the said Schedule of those designations and grades of employees and the salaries, fees and allowances payable to them which the Central Government may, by order, specify, and where no such order is made, of such posts (including the salaries and allowances attached thereto) which are required to be created by the Central Government, or for the creation of which the previous sanction of the Central Government is required, under this
Act.]

24.Power to make appointments.

24. Power to make appointments. (1) Subject to the provisions of the Schedule for the time being in force sanctioned by a Board under section 23, the power of appointing any person to any post, whether temporary or permanent, shall–

2*[(a) in the case of a post--

(i) the incumbent of which is to be regarded as the
Head of a department; or

(ii) to which such incumbent is to be appointed; or

3*[(iii) the maximum of the pay scale of which
(exclusive of allowances) exceeds such amount as the Central
Government may, by notification in the Official Gazette, fix;]
———————————————————————-
1. Added by Act 29 of 1974, s. 9 (w.e.f. 1.2.1975).
2. Subs. by s.10, ibid., for cl. (a) (w.e.f. 1.2.1975).
3. Subs. by Act 17 of 1982, s. 7 (w.e.f. 31.5.1982).

654.be exercisable by the Central government after consultation with the
Chairman;

1*[(b) in the case of any other post, be exercisable by the
Chairman or by such authority as may be prescribed by regulations:]

Provided that no person shall be appointed as a pilot at any port, who is not for the time being authorised by the Central
Government under the provisions of the Indian Ports Act to pilot vessels 2*[at that or any other port].

(2) The Central Government may, by order, specify any post the incumbent of which shall, for the purposes of this Act, be regarded as the Head of a department.

25.Power to promote, grant leave, etc., to employees of Board.

25. Power to promote, grant leave, etc., to employees of Board.
(1) Subject to any regulations made under section 28, the power of
3*** granting extension of service to, granting leave to, suspending, reducing, 4*[compulsorily retiring,] removing or dismissing or of disposing of any other question relating to the services of, the employees of a Board, including the power of dispensing with the services of any such employee otherwise than by reason of the misconduct of such employee, shall be exercised–

5*[(a) in the case of an employee holding a post referred to in clause (a) of sub-section (1) of section 24, by the
Chairman;

(b) in any other case, by the Chairman or by such authority as may be prescribed by regulations:]

Provided that no such order, so far as the same involves extension of service, suspension, reduction in rank,
4*[compulsory retirements] removal or dismissal of
2*[an employee referred to in clause (a)] shall have effect until it is approved by the Central Government.

(2) Any employee of a Board 3*** aggrieved by an order involving his reduction in rank, 4*[compulsory retirement,] removal or dismissal may, within such time and in such manner as may be provided for by regulations, prefer an appeal–

6*[(a) to the Central Government, where such order is passed by the Chairman;

(b) to the Chairman, where such order is passed by any such authority as is prescribed by regulations under clause
(b) of sub-section (1):]
———————————————————————-
1. Subs. by Act 29 of 1974, s. 10, for cls. (b) and (c) (w.e.f.
1.2.1975).
2. Subs. by Act 17 of 1982, s. 7, for “at that part ” (w.e.f.
31.5.1982).
3. Omitted by Act 29 of 1974, s. 10 (w.e.f. 1.2.1975).
4. Ins. by Act. 17 of 1982, s. 8 (w.e.f. 31.5.1982).
5. Subs. by Act 29 of 1974, s. 11, for cls. (a) and (b) (w.e.f.
1.2.1975).
6. Subs. by s. 11, ibid., for cls. (a), (b) and (c) (w.e.f.
1.2.1975).

655.Provided that where the person who passed the order becomes, by virtue of his subsequent appointment as the
Chairman, the appellate authority in respect of the appeal against the order, such person shall forward the appeal to 1*[the Central Government] in relation to that appeal shall be deemed to be the appellate authority for the purposes of this section.

26.Consulting Engineer to Board.

26. Consulting Engineer to Board. A Board may appoint any person as Consulting Engineer to the Board otherwise than on the basis of payment of a monthly salary, but every such appointment shall be subject to the sanction of the Central Government.

27.Power to create posts.

2*[27. Power to create posts. Notwithstanding anything contained in section 23, the power to create any post, whether temporary or permanent, shall,--

(a) in the case of a post the holder of which is to be regarded as the Head of a department or in the case of a post the maximum of the pay-scale of which (exclusive of allowances) 3*["exceeds such amount as the Central
Government may, by notification in the Official
Gazette, fix, be exercisable by that Government;"]

(b) in the case of a post [other than a post referred to in clause (a)], the maximum of the pay-scale of which exceeds such amount as the Central Government may, from time to time, by order fix in this behalf, or where no such amount has been fixed, is not less than one thousand rupees, be exercisable by the Board with the previous sanction of the Central Government;

(c) in the case of any other post, be exercisable by the
Chairman.]

28.Power to make regulations.

28. Power to make regulations. A Board may make regulations, not inconsistent with this Act, to provide for any one or more of the following matters, namely:–

(a) the appointment, promotion, suspension, 4*[reduction in rank, compulsory retirement,] removal and dismissal of its employees;

(b) their leave, leave allowances, pensions, gratuities, compassionate allowances and travelling allowances and the establishment and maintenance of a Provident Fund or any other fund for their welfare;

(c) the terms and conditions of service of persons who become employees of the Board under clause (f) of sub-
section (1) of section 29;

(d) the time and manner in which appeals may be preferred under sub-section (2) of section 25 and the procedure for deciding such appeals;

(e) any other matter which is incidental to, or necessary for, the purpose of regulating the appointment and conditions of service of its employees.
———————————————————————-
1. Subs. by Act 29 of 1974, s. 11, for ” the Board” (w.e.f.
1.2.1975).
2. Subs. by s.12, ibid., for s. 27.3. Subs. by Act 17 of 1982, s. 9, for certain words (w.e.f.
31.5.1982).
4. Ins. by s. 10, ibid. (w.e.f. 31.5.1982).

CHAPTER IVPROPERTY AND CONTRACTS

29. Transfer of assets and liabilities of Central Government, etc., to Board. (1) As from the appointed day in relation to any port-
-

(a) all property, assets and funds 1*[and all rights to levy rates] vested in the Central Government or, as the case may be, any other authority for the purposes of the port immediately before such day, shall vest in the
Board;

(b) all debts, obligations and liabilities incurred, all contracts entered into and all matters and things engaged to be done, by, with or for the Central
Government or, as the case may be, the other authority immediately before such day, for or in connection with the purposes of the port, shall be deemed to have been incurred, entered into and engaged to be done by, with or for the Board;

(c) all non-recurring expenditure incurred by the Central
Government or any State Government for or in connection with the purposes of the port up to such day and declared to be capital expenditure by the Central
Government shall be treated as the capital provided by the Central Government or, as the case may be, the
State Government to the Board;

(d) all rates, fees, rents and other sums of money due to the Central Government or, as the case may be, the other authority in relation to the port immediately before such day shall be deemed to be due to the Board;

(e) all suits and other legal proceedings instituted by or against the Central Government or, as the case may be, the other authority immediately before such day for any matter in relation to the port may be continued by or against the Board;

(f) every employee serving under the Central Government or, as the case may be, the other authority immediately before such day solely or mainly for or in connection with the affairs of the port shall become an employee of the Board, shall hold his office or service therein by the same tenure and upon the same terms and conditions of service as he would have held the same if the Board had not been established and shall continue to do so unless and until his employment in the Board is terminated or
———————————————————————-
1. Ins. by Act 29 of 1974, s. 13 (w.e.f. 1.2.1975).

657.until his tenure, remuneration or terms and conditions of service are duly altered by the Board:

Provided that the tenure, remuneration and terms and conditions of service of any such employee shall not be altered to his disadvantage without the previous sanction of the Central Government.

(2) Notwithstanding anything contained in the Industrial Disputes
Act, 1947, (14 of 1947.), or in any other law for the time being in force, the transfer of the services of any employee under this section to the Board shall not entitle such employee to any compensation under that Act or other law, and no such claim shall be entertained by any
Court, Tribunal or other authority.

30.

Existing rates, etc., to continue until altered by Board.

30. Existing rates, etc., to continue until altered by Board. As from the appointed day, all rates, fees and other charges in relation to any port, shall, unless and until they are varied by the competent authority in accordance with the provisions of this Act, continue to be levied and collected at the same rate at which they were being levied and collected by the Central Government or, as the case may be, any other authority immediately before such day.

31.Repayment of capital with interest.

31. Repayment of capital with interest. A Board shall repay, at such intervals and on such terms and conditions as the Central
Government may determine, the amount of capital provided under clause
(c) of sub-section (1) of section 29 with interest at such rate as may be fixed by that Government and such repayment of capital or payment of interest shall be deemed to be part of the expenditure of the
Board.

32.Aquisition of immovable property for the Board.

32. Acquisition of immovable property for the Board. 1*[ When any immovable property is required for the purposes of the Board], the
Central Government may, at the request of the Board, procure the acquisition thereof under the provisions of the Land Acquisition Act,
1894, (1 of 1894.), and on payment by the Board of the compensation awarded under that Act and of the charges incurred by the Government in connection with the proceedings, the land shall vest in the Board.

33.Contracts by Board.

33. Contracts by Board. Subject to the provisions of section 34, a Board shall be competent to enter into and perform any contract necessary for the performance of its functions under this Act.

34.Mode of executing contracts on behalf of Board.

34. Mode of executing contracts on behalf of Board. (1) Every contract shall, on behalf of a Board, be made by the Chairman 2*[ or by any such officer of the Board not below the rank of the Head of a department as the Chairman may, by general or special order, authorise in this behalf] and shall be sealed with the common seal of the
Board:
———————————————————————-
1. Subs. by Act 29 of 1974, s. 14, for certain words (w.e.f.
1.2.1975).
2. Ins. by Act 17 of 1982, s. 11 (w.e.f. 31.5.1982).

658.Provided that no contract whereof the value or amount exceeds such value or amount as the Central Government may from time to time fix in this behalf shall be made unless it has been previously approved by the Board:

Provided further that no contract for the acquisition or sale of immovable property or for the lease of any such property for a term exceeding thirty years, and no other contract whereof the value or amount exceeds such value or amount as the Central Government may from time to time fix in this behalf, shall be made unless it has been previously approved by the Central Government.

(2) Subject to the provisions of sub-section (1), the form and manner in which any contract shall be made under this Act shall be such as may be prescribed by regulations made in this behalf.

(3) No contract which is not made in accordance with the provisions of this Act and the regulations made thereunder shall be binding on the Board.

CHAPTER VWORKS AND SERVICES TO BE PROVIDED AT PORTS

35.Power of Board to execute works and provide appliances.

35. Power of Board to execute works and provide appliances. (1) A
Board may execute such works within or without the limits of the port and provide such appliances as it may deem necessary or expedient.

(2) Such works and appliances may include–

(a) wharves, quays, docks, stages, jetties, piers and other works within the port or port approaches or on the foreshore of the port or port approaches, with all such convenient arches, drains, landing places, stairs, fences, roads, railways, bridges, tunnels and approaches and buildings required for the residence of the employees of the Board as the Board may consider necessary;

(b) buses, railways, locomotives, rolling stock, sheds, hotels, warehouses and other accommodation for passengers and goods and other appliances for carrying passengers and for conveying, receiving and storing goods landed, or to be shipped or otherwise;

(c) moorings and cranes, scales and all other necessary means and appliances for loading and unloading vessels;

659.(d) reclaiming, excavating, enclosing and raising any part of the foreshore of the port or port approaches which may be necessary for the execution of the works authorised by this Act, or otherwise for the purposes of this Act;

(e) such breakwaters and other works as may be expedient for the protection of the port;

(f) dredgers and other machines for cleaning, deepening and improving any portion of the port or port approaches or of the foreshore of the port or port approaches;

(g) lighthouses, lightships, beacons, buoys, pilot boats and other appliances necessary for the safe navigation of the port and of the port approaches;

(h) vessels, tugs or other boats for use within the limits of the port or beyond those limits, whether in territorial waters or otherwise, for the purpose of towing or rendering assistance to any vessel, whether entering or leaving the port or bound elsewhere, and for the purpose of saving or protecting life or property and for the purpose of landing, shipping or transhipping passengers or goods under section 42;

(i) sinking of tube-wells, and equipment, maintenance and use of boats, barges and other appliances for the purpose of the supply of water at the port;

(j) engines and other appliances necessary for the extingushing of fires;

1*[(k) construction of models and plans for carrying out hydraulic studies;

(l) dry docks, slipways, boat basins and workshops to carry out repairs or overhauling of vessels, tugs, boats, machinery or other appliances.]

35A.

Power with respect to landing places and bathing ghats.

2*[35A. Power with respect to landing places and bathing ghats.
Without prejudice to the powers exercisable under section 35, the
Board of Trustees for the port of Calcutta may, if it considers it necessary so to do for the purposes of this Act,--

(i) provide for sufficient number of public landing places from and upon which the public shall be permitted to embark and to land free of charge;

(ii) occupy any bathing ghat, or remove any landing place, within the port and thereafter prohibit the public from resorting to or using the same:

Provided that the Board shall not exercise any power under this section unless it reserves, sets out, makes and provides for the use of the public, such number of bathing ghats within the port as the
Central Government may direct.]

36.Power of Board to undertake certain works.

36. Power of Board to undertake certain works. 3*[(1)]. A Board may undertake to carry out on behalf of any person any works or services or any class of works or services, on such terms and conditions as may be agreed upon between the Board and the person concerned.

3*[(2) A Board may, if it considers it necessary or expedient in the public interest so to do, lend any of its vessels or appliances or the services of any of its employees to any person for such period not exceeding three months and on such terms and conditions as may be agreed upon between the Board and the person concerned.]

37.Power of Board to order sea-going vessels to use docks, wharves, etc.

37. Power of Board to order sea-going vessels to use docks, wharves, etc. (1) When any dock, berth, wharf, quay, stage, jetty or pier erected at any port or port approaches under the provisions of this Act has been completed with sufficient warehouses, sheds and appliances for receiving, landing or shipping goods or passengers from and upon sea-going vessels, the Board may, after obtaining the approval of the Collector of Customs and by notification published in three consecutive issues of the Official Gazette, declare that such dock, berth, wharf, quay, stage, jetty or pier is ready for receiving, landing and shipping or for landing or for shipping goods or passengers from and upon sea-going vessels.
———————————————————————-
1. Ins. by Act 29 of 1974, s. 15 (w.e.f. 1.2.1975).
2. Ins. by s. 16, ibid. (w.e.f. 1.2.1975).
3. S. 36 re-numbered as sub-section (1) by s. 17, ibid. (w.e.f.
1.2.1975).

660

(2) As from the date of the publication of such notification for the third time, it shall be lawful for the Board, from time to time, when there is room at such dock berth, wharf, quay, stage, jetty or pier, to order to come alongside of such dock, berth, wharf, quay, stage, jetty or pier for the purpose of landing and shipping goods or passengers or for landing or for shipping the same, any sea-going vessel within the port or port approaches which has not commenced to discharge goods or passengers, or which being about to take in goods or passengers, has not commenced to do so:

Provided that before making such order, the Board shall have regard, as far as possible, to the convenience of such vessel and of the shippers, in respect of the use of any particular dock, berth, wharf, quay, stage, jetty or pier:

Provided further that if the Board is not the conservator of the port, the Board shall not itself make the order as aforesaid but shall require the conservator of the port, or other person exercising the rights, powers, and authorities of the conservator of the port, to make such order.

38.If accommodation sufficient, all sea-going vessels compelled to usedocks, wharves, etc.

38. If accommodation sufficient, all sea-going vessels compelled to use docks, wharves, etc. When a sufficient number of docks, berths, wharves, quays, stages, jetties or piers have been provided at any port or port approaches as aforesaid, the Board may, after obtaining the approval of the Collector of Customs and by notification published in three consecutive issues of the Official Gazette, direct that no goods or passengers shall be landed or shipped from or upon any sea-
going vessel within the port or port approaches otherwise than at such docks, berths, wharves, quays, stages, jetties or piers, except with the sanction of the Board and in accordance with such conditions as the Board may specify.

39.Power to order vessels not to come alongside of or to be removed fromdocks, wharves, etc.

39. Power to order vessels not to come alongside of or to be removed from docks, wharves, etc. Any officer appointed by the Board in this behalf may, in cases of emergency or for any reason which appears to him sufficient, by notice in writing, order the master or owner or agent of any sea-going vessel not to bring such vessel alongside of, or to remove such vessel from, any dock, berth, wharf, quay, stage, jetty or pier belonging to or under the control of the
Board, and, if such notice is not complied with 1*[the Board may charge, by way of penalty, in respect of such vessel such sum as it thinks fit, not exceeding ten thousand rupees] for each day of twenty-
four hours, or portion of such day, during which such vessel remains at such dock, berth, wharf, quay, stage, jetty or pier:

Provided that in the case of a vessel ordered to be removed, such charge shall not commence to be made till after the expiry of twelve
———————————————————————-
1. Subs. by Act 17 of 1982, s. 12, for certain words (w.e.f.
31.5.1982).

661.hours from the service of such notice as aforesaid on the master or owner or agent of the vessel.

40.

Power of Central Government to exempt from obligation to use dockswharves, etc.

40. Power of Central Government to exempt from obligation to use docks wharves, etc. Notwithstanding anything contained in sections 37.and 38, the Central Government may, if in its opinion it is necessary in the public interest so to do, by general or special order, from time to time, permit certain specified vessels or classes of vessels to discharge or ship goods or certain specified goods or classes of goods, at such place in a port or within the port approaches, in such manner, during such period and subject to such payments to the Board and on such conditions as the Central Government may think fit.

41.Board to declare when vessels other than sea-going vessels compelledto use docks, wharves etc.

41. Board to declare when vessels other than sea-going vessels compelled to use docks, wharves etc. (1) When any dock, berth, wharf, quay, stage, jetty or pier for receiving, landing or shipment of goods or passengers from or upon vessels, not being sea-going vessels, has been made and completed with all proper appliances in that behalf, the
Board may, after obtaining the approval of the Collector of Customs, by order published in three consecutive issues of the Official
Gazette,–

(i) declare that such dock, berth, wharf, quay, stage, jetty or pier is ready for receiving, landing or shipment or shipment of goods or passengers from or on vessels, not being sea-going vessels, and

(ii) direct that within certain limits to be specified therein it shall not be lawful, without the express sanction of the Board, to land or ship any goods or passengers out of, or into, any vessel, not being a sea-going vessel, of any class specified in such order, except at such dock, berth, wharf, quay, stage, jetty or pier.

(2) As from the date of the publication of the order mentioned in sub-section (1) for the third time, it shall not be lawful, without the consent of the Board, for any vessel of such class,–

(i) to land or ship any goods or passengers at any place within the limits so specified except at such dock, berth, wharf, quay, stage, jetty or pier; or

(ii) while within such limits, to anchor, fasten or lie within fifty yards of the ordinary low-water mark.

(3) If after the publication of such order, any such vessel shall, while within the limits so specified, so anchor, fasten or lie, it shall be lawful for the Board to cause the same to be removed out of the said limits at the expense of the master or owner or agent of the vessel.

662.42.Performance of services by Board or other person.

42. Performance of services by Board or other person. (1) A Board shall have power to under take the following services:–

(a) landing, shipping or transhipping passengers and goods between vessels in the port and the wharves, piers, quays or docks belonging to or in the possession of the
Board;

(b) receiving, removing, shifting, transporting, storing or delivering goods brought within the Boards premises;

(c) carrying passengers by rail or by other means within the limits of the port or port approaches, subject to such restrictions and conditions as the Central Government may think fit to impose; 1***

(d) receiving and delivering, transporting and booking and despatching goods originating in the vessels in the port and intended for carriage by the neighbouring railways, or vice versa, as a railway administration under the Indian Railways Act, 1890; 9 of 1890 [and]*1.2*[(e) piloting, hauling, mooring, remooring, hooking, or measuring of vessels or any other service in respect of vessels]

(2) A Board may, if so requested by the owner, take charge of the goods for the purpose of performing the service or services and shall give a receipt in such form as the Board may specify.

(3) Notwithstanding anything contained in this section, the Board may, with the previous sanction of the Central Government, authorise any person to perform any of the services mentioned in sub-section (1)
on such terms and conditions as may be agreed upon.

(4) No person authorised under sub-section (3) shall charge or recover for such service any sum in excess of the amount leviable according to the scale framed under section 48 or section 49 or section 50.

(5) Any such person shall, if so required by the owner, perform in respect of goods any of the said services and for that purpose take charge of the goods and give a receipt in such form as the Board may specify.

(6) The responsibility of any such person for the loss, destruction or deterioration of goods of which he has taken charge shall, subject to the other provisions of this Act, be that of a bailee under section 151, 152 and 161 of the Indian Contract Act,
1872. 9 of 1872.(7) After any goods have been taken charge of and a receipt given for them under this section, no liability for any loss or damage which may occur to them shall attach to any person to whom a receipt has been given or to the master or owner of the vessel from which the goods have been landed or transhipped.
———————————————————————-
1. The word ” and ” omitted by Act 29 of 1974, s. 18 (w.e.f.
1.2.1975).
2. Ins. by s. 18, ibid. (w.e.f. 1.2.1975).

663.43.Responsibility of Board for loss, etc., of goods.

43. Responsibility of Board for loss, etc., of goods. (1) Subject to the provisions of this Act, the responsibility of any Board for the loss, destruction or deterioration of goods of which it has taken charge shall,–

(i) in the case of goods received for carriage by railway, be governed by the provisions of the Indian Railways
Act, 1890; (9 of 1890) and

(ii) in other cases, be that of a bailee under sections 151,
152 and 161 of the Indian Contract Act, 1872 (9 of
1872), omitting the words “in the absence of any special contract” in section 152 of that Act:

1*[Provided that no responsibility under this section shall attach to the Board-

(a) until a receipt mentioned in sub-section (2) of section
42 is given by the Board; and

(b) after the expiry of such period as may be prescribed by regulations from the date of taking charge of such goods by the Board]

(2) A Board shall not be in any way responsible for the loss, destruction or deterioration of, or damage to, goods of which it has taken charge, unless notice of such loss or damage has been given within such period as may prescribed by regulations made in this behalf 1*[from the date of taking charge of such goods by the Board]
under sub-section (2) of section 42.44.Accommodation to be provided for customs officers in wharves, etc.,appointed under Customs Act.

44. Accommodation to be provided for customs officers in wharves, etc., appointed under Customs Act. Where the Collector of Customs has, under the provisions of any Act for the levy of duties of customs, appointed any dock, berth, wharf, quay, stage, jetty, pier warehouse or shed or a portion of any warehouse or shed provided at any port under the provisions of this Act for the use of sea-going vessels to be an approved place for the landing or shipping of goods or a warehouse for the storing of dutiable goods on the first importation thereof without payment of duty, within the meaning of the first-
mentioned Act, the Board shall set apart and maintain such place on or adjoining such dock wharf, quay, stage, jetty or pier, or in such warehouse or shed or portion thereof, for the use of officers of customs as may be necessary.

45.Dues at customs wharves, etc.

45. Dues at customs wharves, etc. Notwithstanding that any dock, berth, wharf, quay, stage, jetty, pier, warehouse or shed or portion thereof at any port has, under the provisions of section 44, been set apart for the use of the officers of customs at the port, all rates and other charges payable under this Act in respect thereof, or for the storage of goods therein, shall be payable to the Board, or to such person or persons as may be appointed by the Board to receive the same.

46.Power to permit erection of private wharves, etc., within a portsubject to conditions.

46. Power to permit erection of private wharves, etc., within a port subject to conditions. (1) No person shall make, erect or fix within the limits of a port or port approaches any wharf, dock, quay, stage, jetty, pier,
———————————————————————-
1. Subs. by Act 29 of 1974, s. 19, for former previso (w.e.f.
1.2.1975).

664.erection or mooring 1*[or undertake any reclamation of foreshore within the said limits] except with the previous permission in writing of the Board and subject to such conditions, if any, as the Board may specify.

(2) If any person makes, erects or fixes any wharf, dock, quay, stage, jetty, pier, erection or mooring 1*[or undertakes any reclamation of foreshore] in contravention of sub-section (1), the
Board may, by notice, require such person to remove it within such time as may be speczlied in the notice and if the person fails so to remove it, the Board may cause it to be removed at the expense of that person.

47.Compensation payable in certain cases where use of any private wharf,etc., rendered unlawful.

47. Compensation payable in certain cases where use of any private wharf, etc., rendered unlawful. (1) Where, as a result of an order published under section 38 or section 41, the use of any wharf, dock, berth, quay, stage, jetty or pier, made, fixed or erected by any person is rendered unlawful, the Board may, after hearing the person concerned, by order, close, remove, fill up or destroy such wharf, dock, berth, quay, stage, jetty or pier, or permit the use thereof to such person on payment of such rates and charges as the Board may, with the previous sanction of the Central Government, determine.

(2) Save as otherwise provided under sub-section (3) no person shall be entitled to claim compensation for any injury, damage or loss caused or alleged to have been caused by an order made under sub-
section (1).

(3) If it is proved to the satisfaction of the Board that any such wharf, dock, berth, quay, stage, jetty or pier, was made, fixed or erected by any person with the previous permission of the authority competent to grant such permission, he shall be paid by the Board compensation the amount of which shall be determined in the manner and in accordance with the principles hereinafter set out, that is to say-
-

(a) in computing the compensation, there shall not be taken into account any rates or other charges which such person shall be liable to pay for using any wharf, dock, berth, quay, stage, jetty or pier provided by the
Board;

(b) the amount of compensation shall be calculated with reference to the cost of construction of such wharf, dock, berth, quay, stage, jetty or pier;

(c) where the amount of compensation can be fixed by agreement, it shall be paid in accordance with such agreement;

(d) where no such agreement can be reached, the Central
Government shall appoint as arbitrator, a person who is,
———————————————————————-
1. Ins. by Act 29 of 1974, s. 20 (w.e.f. 1.2.1975).

665.or has been, or is qualified for appointment as, a
Judge of a High Court;

(e) the Central Government may, in any particular case, nominate a person possessing special knowledge of any matter relating to any case under inquiry to assist the arbitrator in determining any question which has to be decided by him under this section, and where such nomination is made the person to be compensated may also nominate an assessor for the same purpose;

(f) at the commencement of the proceeding before the arbitrator, the Board and the person to be compensated shall state what in their respective opinion is a fair amount of compensation;

(g) the arbitrator shall, after hearing the dispute, make an award determining the amount of compensation which appears to him to be just and specify the person or persons to whom such compensation shall be paid;

(h) where there is a dispute as to the person or persons who are entitled to the compensation, the arbitrator shall decide such dispute and if the arbitrator finds that more persons than one are entitled to compensation, he shall apportion the amount thereof among such persons;

(i) nothing in the Arbitration Act, 1940 (10 of 1940) shall apply to arbitrations under this section;

(j) the arbitrator appointed under this section, while holding arbitration proceedings under this Act, shall have all the powers of a Civil Court while trying a suit under the Code of Civil Procedure, 1908 (5 of
1908.) in respect of the following matters, namely:–

(i) summoning and enforcing the attendance of any person and examining him on oath;

(ii) requiring the discovery and production of documents;

(iii) receiving evidence on affidavits;

(iv) issuing commissions for examination of witnesses or documents;

(k) every award shall also state the amount of costs incurred in the arbitration proceedings under this section and by what persons and in what proportions they are to be paid;

666.(l) any person aggrieved by an award of the arbitrator made under this section may, within thirty days from the date of the award, prefer an appeal to the High Court within whose jurisdiction the port is situated:

Provided that the High Court may entertain the appeal after the expiry of the said period of thirty days if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

48.Scales of rates for services performed by Board or other person.

48. Scales of rates for services performed by Board or other person. (1) Every Board shall from time to time frame a scale of rates at which, and a statement of the conditions under which, any of the services specified hereunder shall be performed by itself or any person authorised under section 42 at or in relation to the port or port approaches–

(a) transhipping of passengers or goods between vessels in the port or port approaches;

(b) landing and shipping of passengers or goods from or to such vessels to or from any wharf, quay, jetty, pier, dock, berth, mooring, stage or erection, land or building in the possession or occupation of the Board or at any place within the limits of the port or port approaches;

(c) cranage or porterage of goods on any such place;

(d) wharfage, storage or demurrage of goods on any such place;

(e) any other service in respect of vessels, passengers or goods, excepting the services in respect of vessels for which fees are chargeable under the Indian Ports Act.

(2) Different scales and conditions may be framed for different classes of goods and vessels.

49.Scale of rates and statement of conditions for use of propertybelonging to Board.

49. Scale of rates and statement of conditions for use of property belonging to Board. (1) Every Board shall, from time to time, also frame a scale of rates on payment of which, and a statement of conditions under which, any property belonging to, or in the possession or occupation of, the Board, or any place within the limits of the port or the port approaches may be used for the purposes specified hereunder:–

(a) approaching or lying at or alongside any buoy, mooring, wharf, quay, pier, dock, land, building or place as aforesaid by vessels;

667.(b) entering upon or plying for hire at or on any wharf, quay, pier, dock, land, building, road, bridge or place as aforesaid by animals or vehicles carrying passengers or goods;

(c) leasing of land or sheds by owners of goods imported or intended for export or by steamer agents;

(d) any other use of any land, building, works, vessels or appliances belonging to or provided by the Board.

(2) Different scales and conditions may be framed for different classes of goods and vessels.

1*[(3) Notwithstanding anything contained in sub-section (1), the Board may, by auction or by inviting tenders, lease any land or shed belonging to it or in its possession or occupation at a rate higher than that provided under sub-section (1).]

50.

Consolidated rates for combination of services.

50. Consolidated rates for combination of services. A Board may, from time to time, frame a consolidated scale of rates for any combination of the services specified in section 48 or for any combination of such service or services with any user or permission to use any property belonging to or in the possession or occupation of the Board, as specified in section 49.51.Power to levy concessional rates in certain cases.

51. Power to levy concessional rates in certain cases. In framing scales under any of the foregoing provisions of this Chapter, the
Board may prescribe a lower rate in respect of,–

(a) costal goods, that is to say, goods, other than imported goods as defined in the Customs Act, 1962, (52 of
1962.) carried in a vessel from one Indian port to another Indian port:

Provided that the Board shall not make any discrimination between one Indian port and another such port in prescribing a lower rate under this section;

(b) other goods, in special cases.

52.Prior sanction of Central Government to rates and conditions.

52. Prior sanction of Central Government to rates and conditions.
Every scale of rates and every statement of conditions framed by a
Board under the foregoing provisions of this Chapter shall be submitted to the Central Government for sanction and shall have effect when so sanctioned and published by the Board in the Official Gazette.

53.Exemption from, and remission of, rates or charges.

53. Exemption from, and remission of, rates or charges. A Board may, in special cases and for reasons to be recorded in writing, exempt either wholly or partially any goods or vessels or class of goods or vessels from the payment of any rate or of any charge leviable in respect thereof according to any scale in force under this
Act or remit the whole or any portion of such rate or charge so levied.

54.Power of Central Government to require modification or cancellation ofrates.

54. Power of Central Government to require modification or cancellation of rates. (1) Whenever the Central Government considers it necessary in the public interest so to do, it may, by order in writing together with a statement of reasons therefor, direct any
Board to cancel
———————————————————————-
1. Ins. by Act 17 of 1982, s. 13 (w.e.f. 31.5.1982).

668.any of the scales in force or modify the same, within such period as that Government may specify in the order.

(2) If any Board against whom a direction is made under sub-
section (1) fails or neglects to comply with such direction within the specified period, the Central Government may cancel any of such scales or make such modifications therein as it may think fit:

Provided that before so cancelling or modifying any scale the
Central Government shall consider any objection or suggestion which may be made by the Board during the specified period.

(3) When in pursuance of this section any of the scales has been cancelled or modified, such cancellation or modification shall be published by the Central Government in the Official Gazette and shall thereupon have effect accordingly.

55.Refund of overcharges.

55. Refund of overcharges. No person shall be entitled to a refund of an overcharge made by a Board unless his claim to the refund has been preferred in writing by him or on his behalf to the Board within six months from the date of payment duly supported by all relevant documents:

Provided that a Board may of its own motion remit overcharges made in its bills at any time.

56.Notice of payment of charges short-levied or erroneously refunded.

56. Notice of payment of charges short-levied or erroneously refunded. (1) When any Board is satisfied that any charge leviable under this Chapter has been short-levied or erroneously refunded, it may issue a notice to the person who is liable to pay such charge or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice:

Provided that no such notice shall be issued after the expiry of two years,–

(a) when the charge is short-levied, from the date of the payment of the charge;

(b) where a charge has been erroneously refunded, from the date of the refund.

(2) The Board may, after considering the representation, if any, made by the person to whom notice is issued under sub-section (1), determine the amount due from such person and thereupon such person shall pay the amount so determined.

57.Board not to lease rates without sanction.

57. Board not to lease rates without sanction. A Board shall not lease, farm, sell or alienate any power vested in it under this Act of levying rates without the prior sanction of the Central Government.

669.58.Time for payment of rates on goods.

58. Time for payment of rates on goods. Rates in respect of goods to be landed shall be payable immediately on the landing of the goods and rates in respect of goods to be removed from the premises of a
Board, or to be shipped for export, or to be transhipped, shall be payable before the goods are so removed or shipped or transhipped.

59.Boards lien for rates.

59. Boards lien for rates. (1) For the amount of all rates leviable by a Board under this Act in respect of any goods, and for the rent due to the Board for any buildings, plinths, stacking areas, or other premises on or in which any goods may have been placed, the
Board shall have a lien on such goods and may seize and detain the same until such rates and rents are fully paid.

(2) Such lien shall have priority over all other liens and claims, except for general average and for the ship-owners lien upon the said goods for freight and other charges where such lien exists and has been preserved in the manner provided in sub-section (1) of section 60, and for money payable to the Central Government 1*["under any law for the time being in force relating to customs, other than by way of penalty or fine"].

60.

Ship-owners lien for freight and other charges.

60. Ship-owners lien for freight and other charges. (1) If the master or owner of any vessel or his agent, at or before the time of landing from such vessel any goods at any dock, wharf, quay, stage, jetty, berth, mooring or pier belonging to or in the occupation of a
Board, gives to the Board a notice in writing that such goods are to remain subject to a lien for freight or other charges payable to the ship-owner, to an amount to be mentioned in such notice, such goods shall continue to be liable to such lien to such amount.

(2) The goods shall be retained in the custody of the Board at the risk and expense of the owners of the goods until such lien is discharged as hereinafter mentioned; and godown or storage rent shall be payable by the party entitled to such goods for the time during which they may be so retained.

(3) Upon the production before any officer appointed by the Board in that behalf of a document purporting to be a receipt for, or release from, the amount of such lien, executed by the person by whom or on whose behalf such notice has been given, the Board may permit such goods to be removed without regard to such lien, provided that the Board shall have used reasonable care in respect to the authenticity of such document.

61.Sale of goods after two months if rates or rent are not paid or lienfor freight is not discharged.

61. Sale of goods after two months if rates or rent are not paid or lien for freight is not discharged. (1) A Board may, after the expiry of two months from the time when any goods have passed into its custody, or in the case of animals and perishable or hazardous goods after the expiry of such
———————————————————————-
1. Subs. by Act 29 of 1974, s. 21, for certain words (w.e.f.
1.2.1975).

670

shorter period not being less than twenty-four hours after the landing of the animals or goods as the Board may think fit, sell by public auction 1*[or in such case as the Board considers it necessary so to do, for reasons to be recorded in writing, sell by tender, private agreement or in any other manner], such goods or so much thereof as, in the opinion of the Board, may be necessary–

(a) if any rates payable to the Board in respect of such goods have not been paid, or

(b) if any rent payable to the Board in respect of any place on or in which such goods have been stored has not been paid, or

(c) if any lien of any ship-owner for freight or other charges of which notice has been given has not been discharged and if the person claiming such lien for freight or other charges has made to the Board an application for such sale.

(2) Before making such sale, the Board shall give ten days
notice of the same by publication thereof in 1*[ the Port Gazette, or where there is no Port Gazette, in the Official Gazette] and also in at least one of the principal local daily newspapers:

Provided that in the case of animals and perishable or hazardous goods, the Board may give such shorter notice and in such manner as, in the opinion of the Board, the urgency of the case admits of.

(3) If the address of the owner of the goods has been stated on the manifest of the goods or in any of the documents which have come into the hands of the Board, or is otherwise known, notice shall also be given to him by letter delivered at such address, or sent by post, but the title of a bona fide purchaser of such goods shall not be invalidated by reason of the omission to send such notice, nor shall any such purchaser be bound to inquire whether such notice has been sent.

(4) Notwithstanding anything contained in this section, arms and ammunition and controlled goods may be sold at such time and in such manner as the Central Government may direct.

Explanation.–In this section and section 62–

(a) “arms and ammunition” have the meanings respectively assigned to them in the Arms Act, 1959; (54 of 1959.)

(b) “controlled goods” means goods the price or disposal of which is regulated under any law for the time being in force.

62.Disposal of goods not removed. from premisies of within time limit.

62. Disposal of goods not removed for premisies of within time limit. (1) Notwithstanding anything contained in this Act, where any goods placed in the custody of the Board upon the landing thereof are not removed by the owner or other person entitled thereto
———————————————————————-
1. Ins. by Act 29 of 1974, s. 22 (w.e.f. 1.2.1975).
2. Subs. by s. 22 ibid., for “the official gazette”(w.e.f.
1.2.1975).

671.from the premises of the Board within one month from the date on which such goods were placed in their custody, the Board may, if the address of such owner or person is known, cause a notice to be served upon him by letter delivered at such address or sent by post, or if the notice cannot be so served upon him or his address is not known, cause a notice to be published in 1*[the Port Gazette or where there is no
Port Gazette, in the Official Gazette] and also in at least one of the principal local daily newspapers, requiring him to remove the goods forthwith and stating that in default of compliance therewith the goods are liable to be sold by public auction 2*[or by tender, private agreement or in any other manner]:

Provided that where all the rates and charges payable under this
Act in respect of any such goods have been paid, no notice of removal shall be so served or published under this sub-section unless two months have expired from the date on which the goods were placed in the custody of the Board.

(2) The notice referred to in sub-section (1) may also be served on the agents of the vessel by which such goods were landed.

(3) If such owner or person does not comply with the requisition in the notice served upon him or published under sub-section (1), the
Board may, at any time after the expiration of two months from the date on which such goods were placed in its custody, sell the goods by public auction 2*[or in such cases as the Board considers it necessary so to do, for reasons to be recorded in writing sell by tender, private agreement or in any other manner] after giving notice of the sale in the manner specified in sub-sections (2) and (3) of section
61.(4) Notwithstanding anything contained in sub-section (1) or sub-
section (3)–

(a) the Board may, in the case of animals and perishable or hazardous goods, give notice of removal of such goods although the period of one month or, as the case may be, of two months specified in sub-section (1) has not expired or give such shorter notice of sale and in such manner as, in the opinion of the Board, the urgency of the case requires;

(b) arms and ammunition and controlled goods may be sold in accordance with the provisions of sub-section (4) of section 61.(5) The Central Government may, if it deems necessary so to do in the public interest, by notification in the Official Gazette, exempt any goods or classes of goods from the operation of this section.

63.Application of sale proceeds.

63. Application of sale proceeds. (1) The proceeds of every sale under section 61 or section 62 shall be applied in the following order–

(a) in payment of the expenses of the sale;
———————————————————————-
1. Subs. by Act 29 of 1974, s. 23, for “the official gazette”
(w.e.f. 1.2.1975)
2. Ins. by s. 23, ibid. (w.e.f. 1.2.1975).

672.(b) in payment, according to their respective priorities, of the liens and claims excepted in sub-section (2) of section 59 from the priority of the lien of the Board;

(c) in payment of the rates and expenses of landing, removing, storing or warehousing the same, and of all other charges due to the Board in respect thereof
1*[including demurrage (other than penal demurrage)
payable in respect of such goods for a period of four months from the date of landing];

1*[(d) in payment of any penalty or fine due to the Central
Government under any law for the time being in force relating to customs;

(e) in payment of any other sum due to the Board.]

2*[(2) The surplus, if any, shall be paid to the importer, owner or consignee of the goods or to his agent, on an application made by him in this behalf within six months from the date of the sale of the goods.

(3) Where no application has been made under sub-section (2), the surplus shall be applied by the Board for the purposes of this Act.]

64.Recovery of rates and charges by distraint of vessel.

64. Recovery of rates and charges by distraint of vessel. (1) If the master of any vessel in respect of which any rates or penalties are payable under this Act, or under any regulations or orders made in pursuance thereof, refuses or neglects to pay the same or any part thereof on demand, the Board may distrain or arrest such vessel and the tackle, apparel and furniture belonging thereto, or any part thereof, and detain the same until the amount so due to the Board, together with such further amount as may accrue for any period during which the vessel is under distraint or arrest, is paid.

(2) In case any part of the said rates or penalties, or of the cost of the distress or arrest, or of the keeping of the same, remains unpaid for the space of five days next after any such distress or arrest has been so made, the Board may cause the vessel or other things so distrained or arrested to be sold, and, with the proceeds of such sale, shall satisfy such rates or penalties and costs, including the costs of sale remaining unpaid, rendering the surplus (if any) to the master of such vessel on demand.

65.Grant of port-clearance after payment of rates and realisation ofdamages, etc.

3*[65. Grant of port-clearance after payment of rates and realisation of damages, etc. If a Board gives to the officer of the
Central Government whose duty it is to grant the port-clearance to any vessel at the port, a notice stating,--

(i) that an amount specified therein is due in respect of rates, fines, penalties or expenses chargeable under this Act or under any regulations or orders made in pursuance thereof, against such vessel, or by the owner or master of such vessel in respect thereof, or against or in respect of any goods on board such vessel; or

(ii) that an amount specified therein is due in respect of any damage referred to in section 116 and such amount together with the cost of the proceedings for the recovery thereof before a Magistrate under that section has not been realised,

such officer shall not grant such port-clearance until the amount so chargeable or due has been paid or, as the case may be, the damage and cost have been realised.]

CHAPTER VIIBORROWING POWERS OF BOARD

66. Power to raise loans. (1) A Board may, with the previous sanction of the Central Government and after due notification in the
Official Gazette, raise loans for the purposes of this Act:
———————————————————————-
1. Ins. by Act 29 of 1974, s. 24 (w.e.f. 1.2.1975).
2. Subs. by s. 24, ibid., for sub-section (2) (w.e.f. 1.2.1975).
3. Subs. by s. 25, ibid.. for s. 65.673.Provided that no such notification shall be necessary if a loan is obtained from the Central Government or a State Government.

(2) Loans may be raised by a Board in the open market on Port
Trust securities issued by it or may be obtained from the Central
Government or a State Government.

(3) The terms of all loans shall be subject to the approval of the Central Government.

67.Port Trust securities.

67. Port Trust securities. (1) A Board may, with the sanction of the Central Government, prescribe the form in which Port Trust securities shall be issued by it and the mode in which, and the conditions subject to which, they may be transferred.

(2) The holder of any Port Trust security in any form may obtain in exchange therefor, upon such terms as the Board may from time to time determine a Port Trust security in any other form prescribed by regulations.

(3) The right to sue in respect of moneys secured by Port Trust securities shall be exercisable by the holders thereof for the time being without preference in respect of priority of date.

68.Right of survivors of joint or several payees of securities.

68. Right of survivors of joint or several payees of securities.
(1) Notwithstanding anything contained in section 45 of the Indian
Contract Act, 1872 (9 of 1872)–

(a) when any Port Trust security is payable to two or more persons jointly, and either or any of them dies, the
Port Trust security shall be payable to the survivor or survivors of those persons, and

(b) when any such security is payable to two or more persons severally and either or any of them dies, the security shall be payable to the survivor or survivors of those persons, or to the representatives of the deceased, or to any of them.

(2) This section shall apply whether such death occurred or occurs before or after the appointed day.

(3) Nothing herein contained shall affect any claim which any representative of a deceased person may have against the survivor or survivors under or in respect of any security to which sub-section (1)
applies.

(4) For the purposes of this section, a body incorporated or deemed to be incorporated under the Companies Act, 1956, (1 of 1956)
or the Co-operative Societies Act, 1912 (2 of 1912) or any other enactment for the time being in

674.force, whether within or without India, shall be deemed to die when it is dissolved.

69.Power of one or two or more joint holders to grant receipts.

69. Power of one or two or more joint holders to grant receipts.
Where two or more persons are joint holders of any Port Trust security, any one of those persons may give an effectual receipt for any interest payable in respect of such security unless notice to the contrary has been given to the Board by any other of the holders.

70.

Indorsements to be made on security itself.

70. Indorsements to be made on security itself. Notwithstanding anything in section 15 of the Negotiable Instruments Act, 1881, (26 of
1881) no indorsement of a Port Trust security, which is transferable by indorsement, shall be valid unless made by the signature of the holder inscribed on the back of the security itself.

71.Indorser of security not liable for amount thereof.

71. Indorser of security not liable for amount thereof.
Notwithstanding anything in the Negotiable Instruments Act 1881, (26.of 1881) a person shall not by reason only of his having indorsed any
Port Trust security be liable to pay any money due, either as principal or as interest, thereunder.

72.Impression of signature on securities.

72. Impression of signature on securities. (1) The signature of the person authorised to sign Port Trust securities on behalf of the
Board may be printed, engraved or lithographed or impressed by such other mechanical process, as the Board may direct on such securities.

(2) A signature so printed, engraved, lithographed or otherwise impressed shall be as valid as if it had been inscribed in the proper handwriting of the person so authorised.

73.Issue of duplicate securities.

73. Issue of duplicate securities. (1) When any Port Trust security is alleged to have been lost, stolen or destroyed either wholly or in part, and a person claims to be the person to whom but for the loss, theft or destruction it would be payable, he may, on application to the Board and on producing proof to its satisfaction of the loss, theft or destruction and of the justice of the claim and on payment of such fee, if any, as may be prescribed by regulations, obtain from the Board an order for–

(a) the payment of interest in respect of the security said to be lost, stolen or destroyed, pending the issue of a duplicate security; and

(b) the issue of a duplicate security payable to the applicant.

(2) An order shall not be passed under sub-section (1) until after the issue by the Board of the prescribed notification of the loss, theft or destruction.

675.(3) A list of the securities in respect of which an order is passed under sub-section (1) shall be published in such manner as the
Board may prescribe.

(4) If at any time before the Board becomes discharged under the provisions of this Act from liability in respect of any security the whole of which is alleged to have been lost, stolen or destroyed, such security is found, any order passed in respect thereof under this section shall be cancelled.

74.Issue of converted, etc., securities.

74. Issue of converted, etc., securities. (1) A Board may, subject to such conditions as it may prescribe, on the application of a person claiming to be entitled to a Port Trust security or securities issued by it, on being satisfied of the justice of the claim and on delivery of the security or securities receipted in such manner and on payment of such fee, if any, as it may prescribe, convert, consolidate or sub-divide the security or securities, and issue to the applicant a new security or securities accordingly.

(2) The conversion, consolidation or sub-division referred to in sub-section (1) may be into a security or securities of the same, or different classes or of the same or different loans.

74A.

Recognition as holder of Port Trust securities in certain cases.

1*[74A. Recognition as holder of Port Trust securities in certain cases. The person to whom a duplicate security has been issued under section 73 or a new security or securities has or have been issued under section 74 shall be deemed for the purposes of section 74B to have been recognised by the Board as the holder of the security or securities; and a duplicate security or a new security or securities so issued to any person shall be deemed to constitute a new contract between the Board and such person and all persons deriving title thereafter through him.

74B.

Legal effect of recognition by the Board under section 74A.

74B. Legal effect of recognition by the Board under section 74A.
No recognition by the Board of a person as the holder of a Port Trust security or securities shall be called in question by any court so far as such recognition affects the relations of the Board with the person recognised by it as the holder of a Port Trust security or securities or with any person claiming an interest in such security or securities; and any such recognition by the Board of any person shall operate to confer on that person a title to the security or securities subject only to a personal liability to the rightful owner of the security or securities for money had and received on his account.]

75.Discharge in certain cases.

75. Discharge in certain cases. Notwithstanding anything contained in 2*[the limitation Act, 1963 (36 of 1963)]–

(i) on payment of the amount due on a Port Trust security on or after the date on which payment becomes due, or

(ii) when a duplicate security has been issued under section
73, or

(iii) when a new security or securities has or have been issued upon conversion, consolidation or sub-division under section 74,

the Board shall be discharged from all liability in respect of the security or securities so paid or in place of which a duplicate or new security or securities has or have been issued–

(a) in the case of payment– after the lapse of six years from the date on which payment was due;

(b) in the case of a duplicate security– after the lapse of six years from the date of the publication under sub-
section (3) of section 73 of the list in which the security is first mentioned or from the date of the last payment of interest on the original security, whichever date is later;
———————————————————————-
1. Ins. by Act 29 of 1974, s. 26 (w.e.f. 1-2-1975).
2. Subs. by s. 27, ibid., for “the indian limitation Act, 1908 (9 of
1908)”, (w.e.f. 1.2.1975).

676.(c) in the case of a new security issued upon conversion, consolidation or sub-division–after the lapse of six years from the date of the issue thereof.

76.Power of Board to make regulations.

76. Power of Board to make regulations. A Board may, from time to time, make regulations to provide for all or any of the following matters, namely:–

(a) the person, if any, authorised to sign, and the mode of affixing the corporate seal and of attestation of documents relating to Port Trust securities issued or to be issued by the Board;

(b) the manner in which payment of interest in respect of such Port Trust securities is to be made, recorded and acknowledged;

(c) the circumstances and the manner in which such Port
Trust securities may be renewed;

(d) the circumstances in which such securities must be renewed before further payment of interest thereon can be claimed;

(e) the form in which such securities delivered for renewal, conversion, consolidation or sub-division are to be receipted;

(f) the proof which is to be produced by a person applying for duplicate securities;

(g) the form and manner of publication of the notification mentioned in sub-section (2) of section 73 and the manner of publication of the list mentioned in sub-
section (3) of that section;

(h) the nature and amount of indemnity to be given by a person applying for the payment of interest on Port
Trust securities alleged to have been wholly or partly lost, stolen or destroyed, or for the issue of duplicate Port Trust securities;

(i) the conditions subject to which Port Trust securities may be converted, consolidated or sub-divided;

(j) the amounts for which stock certificate may be issued;

(k) generally, all matters connected with the grant of duplicate, renewed, converted, consolidated and sub-
divided securities;

677.(l) the fees to be paid in respect of the issue of duplicate securities and of the renewal, conversion, consolidation and sub-division of Port Trust securities;

(m) the fees to be levied in respect of the issue of stock certificates.

77.Place and currency of loans raised by Board.

77. Place and currency of loans raised by Board. All loans contracted by a Board under this Act shall be raised in India, and in
Indian currency, unless the Central Government, by notification in the
Official Gazette, otherwise directs.

78.Security for loans taken out by Board.

78. Security for loans taken out by Board. All loans raised by a
Board under this Act shall be a first charge on–

(a) the property vested, or which may hereafter during the currency of the loans become vested, in the Board
1*[other than--

(i) any sum set apart by the Board--

(1) as the sinking fund for the purpose of paying off any loan; or

(2) for the payment of pension to its employees;
or

(ii) the provident or pension fund established by the
Board; and]

(b) the rates leviable by the Board under this Act.

79.Remedies of Government in respect of loans made to Boards.

79. Remedies of Government in respect of loans made to Boards.
The Central Government or a State Government shall have in respect of loans made by it to a Board, or of loans made to any other authority for the repayment of which the Board is legally liable, the same remedies as holders of Port Trust securities issued by the Board; and such Government shall not be deemed to possess any prior or greater rights in respect of such loans than holders of such Port Trust securities:

Provided that where the terms of any such loan made before the appointed day expressly provide that the loan shall have priority over all other loans in the matter of repayment by the Board, such loan shall have priority.

80.

Power of Board to repay loans before due date.

80. Power of Board to repay loans before due date. A Board may, with the previous sanction of the Central Government, apply any sums, out of moneys which may come into its hands under the provisions of this Act and which can be so applied without prejudicing the security of the other holders of Port Trust securities, in repaying to the
Government any sum which may remain due to it in respect of the principal of any loan although the time fixed for the repayment of the same may not have arrived:

Provided that no such repayment shall be made of any sum less than ten thousand rupees; and that, if such repayment is made, the amount of interest in each succeeding instalment shall be so adjusted as to represent exactly the interest due on the outstanding principal.
———————————————————————-
1. Subs. by Act 29 of 1974, s. 28, for certain words (w.e.f.
1-2-1975).

678.81.Establishment of sinking fund.

81. Establishment of sinking fund. (1) In respect of every loan raised by a Board under this Act, which is not repayable before the expiration of one year from the date of the loan, the Board shall set apart half-yearly out of its income as a sinking fund a sum sufficient to liquidate the loan within a period which shall not in any case, unless the previous consent of the Central Government has been obtained, exceed thirty years; but the maximum period shall not in any case exceed sixty years:

Provided that a sinking fund need not in the absence of any stipulation to that effect be established in the case of loans taken by the Board from the Central Government or any State Government.

(2) Where any sinking fund has, before the appointed day, been established by any authority in respect of a loan raised by it for which loan the Board is liable under this Act, the sinking fund so established by that authority shall be deemed to have been established by the Board under this section.

82.Investment and application of sinking fund.

82. Investment and application of sinking fund. (1) The sums so set apart by a Board under sub-section (1) of section 81 and the sums forming part of any sinking fund referred to in sub-section (2) of that section shall be invested in public securities or in such other securities as the Central Government may approve in this behalf, and shall be held in trust for the purposes of this Act 1*[by the Board].

(2) A Board may apply the whole or any part of the sums accumulated in any sinking fund in or towards the discharge of the moneys for the repayment of which the fund has been established:

Provided that it pays into the fund in each year, and accumulates until the whole of the moneys borrowed are discharged, a sum equivalent to the interest which would have been produced by the sinking fund, or the part of the sinking fund so applied.

83.Examination of sinking fund.

83. Examination of sinking fund. (1) A sinking fund established for the liquidation of any loan shall be subject to annual examination by such person as may be appointed by the Central Government in this behalf, and the person so appointed shall ascertain whether the cash and the current market value of the securities at the credit of the fund are actually equal to the amount which would have been accumulated had investments been regularly made and had the rate of interest as originally estimated been obtained thereon.

(2) A Board shall pay forthwith into the sinking fund any amount which the person appointed under sub-section (1) to conduct the
———————————————————————-
1. Subs. by Act 29 of 1974, s. 29, for certain words (w.e.f.
1-2-1975).

679.annual examination of the fund may certify to be deficient, unless the
Central Government specifically sanctions a gradual readjustment.

(3) If the cash and the current market value of the securities at the credit of a sinking fund are in excess of the amount which should be at its credit, the person appointed under sub-section (1) shall certify the amount of this excess, and the Board may, with the previous sanction of the Central Government,–

(a) withdraw the whole or any part of the certified excess in which case the Trustees in whose names the sinking fund is invested under sub-section (1) of section 82, shall forthwith transfer securities of the requisite current market value, or cash and securities of the requisite current market value, to the Board, or

(b) reduce or discontinue the half-yearly contributions to the sinking fund required under section 81, or

(c) adopt a combination of these measures.

84.Power of Board to raise loans on short-term bills.

84. Power of Board to raise loans on short-term bills. Nothing contained in this Act shall be deemed to affect the power of the Board to raise loans under the Local Authorities Loans Act, 1914 (9 of
1914).

85.Power of Board to take temporary loans or overdrafts.

85. Power of Board to take temporary loans or overdrafts.
Notwithstanding anything contained in this Act, a Board may borrow moneys by means of temporary overdraft or otherwise by pledging the securities held by the Board in its reserve funds or on the security of the fixed deposits of the Board in its banks:

Provided that such temporary overdrafts or other loans–

(a) shall not at any time have a longer currency than six months; and

(b) shall not be taken, without the previous sanction of the
Central Government, if at any time in any year the amount of such overdrafts or other loans exceeds
1*[such amount as the Central Government may fix in this behalf and different amounts may be fixed with respect to different Boards]:

Provided further that all moneys so borrowed by temporary overdrafts or otherwise shall be expended for the purposes of this
Act.

86.Power of Board to borrow money from International Bank forReconstruction and Development or other foreign institutions.

86. Power of Board to borrow money from International Bank for
Reconstruction and Development or other foreign institutions.
Notwithstanding anything contained in this Act or any other law for the time being in force, a Board may, with the previous sanction of the Central Government and on such terms and conditions as may be approved by that Government, raise for the purposes
———————————————————————-
1. Subs. by Act 17 of 1982, s. 14, for certain words (w.e.f.
31.5.1982).

680

of this Act loans in any currency or currencies from the International
Bank for Reconstruction and Development or from any other bank or institution in any country outside India; and no other provision of this Chapter shall apply to or in relation to any such loan unless the terms and conditions of the loan or the approval thereof by the
Central Government otherwise provide.

CHAPTER VIIIREVENUE AND EXPENDITURE

87. General account of port. All moneys received by or on behalf of a Board under the provisions of this Act, and all moneys received by it as the Conservator of the port and of the port approaches or as the body appointed under sub-section (1) of section 36 of the Indian
Ports Act 1*** shall be credited to a fund called the general account of the port.88.Application of moneys in general account.

88. Application of moneys in general account. (1) The moneys credited to the general account under section 87, shall, subject to the provisions of section 89 of this Act and of section 36 of the
Indian Ports Act, be applied by the Board in payment of the following charges, namely:–

(a) the interest and instalments of principal due in respect of any loan that may have been raised or obtained by the Board or for the repayment of which the Board may be liable, and payments to the sinking fund established for such loan;

(b) the salaries, fees, allowances, pensions, gratuities, compassionate allowances or other moneys due to–

(i) the Chairman, Deputy Chairman and other
Trustees;

(ii) the employees of the Board; and

(iii) the surviving relatives, if any, of such employees;

(c) the contributions, if any, payable to the Central
Government or any State Government on account of the pension and leave allowance of any officer lent to the
Board by such Government;
———————————————————————-
1. Certain word omitted by Act 23 of 1992, s. 8 (w.e.f. 12.8.1992).

681.(d) the cost and expenses, if any, incurred by the Board in the conduct and administration of any provident or welfare fund or loan or special fund established by the
Board;

(e) the contributions, if any, duly authorised to be made by regulations made under this Act to any such fund as is referred to in clause (d)

(f) any charges for which the Board may be liable under section 108 or section 109;

1*[(g) such sums as may, from time to time, be agreed upon by the Board and a State Government or the Central
Government or any other authority, as a reasonable contribution payable by the Board towards the expenses in connection with the watch and ward functions of the police force or the Central Industrial Security Force or any other force which the State Government or the
Central Government or the other authority, as the case may be, may establish and maintain for the protection of the port and the docks, warehouses and other property of the Board;]

(h) the cost of repairs and maintenance of the property belonging to or vested in the Board and all charges upon the same and all working expenses;

(i) the cost of the execution and provision of any new work or appliance specified in section 35 which the Board may determine to charge to revenue;

(j) any expenditure incurred under section 36;

(k) any other expenditure which may be incurred by the Board generally for the purposes of this Act;

(l) any other charge which may on the application of the
Board 1*[or otherwise] be specially sanctioned by the
Central Government or for which the Board may be legally liable.

(2) 3*[Subject to such general or special directions as the Central
Government may, for the purpose of maintenance or development of major ports in the country or generally for the development of shipping and navigation, give in this behalf, all moneys standing at the credit of the Board] which cannot immediately be applied in the manner or for the purposes specified in sub-section (1) shall–

(a) be deposited in the State Bank of India or in such
3*[corresponding new bank or banks], and subject to such conditions as may, from time to time, be specified by the Central Government; or

(b) be invested in public securities or in such other securities as the Central Government may approve in this behalf; and the said securities shall be held in trust by the Board for the purposes of this Act4*[or].

5*[(c) be given as a loan to the Board of another port for the development of that port.

Explanation.--For the purposes of this sub-section,
"corresponding new bank" means a corresponding new bank as defined in the Banking Companies (Acquisition and Transfer of Undertakings) Act,
1970 or the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980.]

2*[(3) Every direction issued by the Central Government under sub-section (2) shall be complied with by the Board and shall not be called in question in any court on any ground.

(4) No suit or other legal proceeding shall lie against the
Central Government, the Board or any officer or other employee of the
Board authorised by it in this behalf for any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of any direction issued under sub-
section (2).]
———————————————————————-
1. Subs. by Act 29 of 1974, s. 30, for cls. (g) (w.e.f. 1-2-1975).
2. Ins. by s. 30, ibid. (w.e.f. 1.2.1975).
3. Subs. by Act 12 of 1988, s. 2, for certain words (w.e.f. 28.1.88)
4. Added by s.2, ibid. (w.e.f. 28.1.1988).
5. Ins. by s. 2, ibid. (w.e.f. 28.1.1988).

682.1* * * * *

90.

Establishment of reserve funds.

90. Establishment of reserve funds. (1) A Board may, from time to time, set apart such sums out of its surplus income as it thinks fit, as a reserve fund or funds for the purpose of expanding existing facilities or creating new facilities at the port or for the purpose of providing against any temporary decrease of revenue or increase of expenditure from transient causes or for purposes of replacement or for meeting expenditure arising from loss or damage from fire, cyclones, shipwreck or other accident or for any other emergency arising in the ordinary conduct of its work under this Act:

Provided that the sums set apart annually in respect of, and the aggregate at any time of, any such reserve fund or funds shall not exceed such amounts as may, from time to time, be fixed in that behalf by the Central Government.

(2) Any such reserve fund or funds may be invested in public securities or in such other securities as the Central Government may approve in this behalf.

91.Power to reserve Port Trust securities for Boards own investments.

91. Power to reserve Port Trust securities for Boards own investments. (1) For the purposes of any investment which a Board is authorised to make by this Act, it shall be lawful for every Board to reserve and set apart any securities to be issued by it on account of any loan to which the consent of the Central Government has been given, provided that the intention to so reserve and set apart such securities has been notified as a condition to the issue of the loan.

(2) The issue by any Board of any such securities direct to and in the name of the Board shall not operate to extinguish or cancel such securities, but every security so issued shall be valid in all respects as if issued to, and in the name of, any other person.

(3) The purchase by a Board, or the transfer, assignment or indorsement to a Board or to the Trustees of the sinking fund set up by a Board, of any security issued by the Board, shall not operate to extinguish or cancel any such security but the same shall be valid and negotiable in the same manner and to the same extent as if held by, or transferred or assigned or indorsed to, any other person.
———————————————————————-
1. S. 89 omitted by Act 23 of 1992, s. 8 (w.e.f. 12.8.1992)

683.92.Prior sanction of Central Government to charge expenditure to capital.

92. Prior sanction of Central Government to charge expenditure to capital. (1) No expenditure shall be charged by a Board to capital without the previous sanction of the Central Government:

Provided that a Board may without such sanction charge to capital expenditure not exceeding such limit as may be specified, and subject to such conditions as may be imposed, by the Central Government.

(2) Nothing in sub-section (1) shall be deemed to require the further sanction of the Central Government in any case where the actual expenditure incurred as a charge to capital exceeds the expenditure sanctioned in this behalf by the Central Government unless the excess is more than ten per cent of the expenditure so sanctioned.

93.Works requiring sanction of Board or Central Government.

93. Works requiring sanction of Board or Central Government. (1)
No new work or appliance, the estimated cost of which exceeds such amount as may be fixed by the Central Government in this behalf, shall be commenced or provided by a Board, nor shall any contract be entered into by a Board in respect of any such new work or appliance until a plan of and estimate for, such works or appliance has been submittted to and approved by, the Board; and, in case the estimated cost of any such new work or appliance exceeds such amount as may, from time to time, be fixed by the Central Government in this behalf, the sanction of the Central Government to the plan and estimate shall be obtained before such work is commenced or appliance provided.

(2) Nothing in sub-section (1) shall be deemed to require the further sanction of the Central Government in any case where the actual expenditure incurred does not exceed by more than ten per cent., the estimated cost so sanctioned.

94.Powers of Chairman as to execution of works.

94. Powers of Chairman as to execution of works. Notwithstanding anything contained in section 93, the Chairman may direct the execution of any work the cost of which does not exceed such maximum limit as may be fixed by the Central Government in this behalf, and may enter into contracts for the execution of such works but in every such case the Chairman shall, as soon as possible, make a report to the Board of any such directions given or contracts entered into by him.

95.Power of Board to compound or compromise claims.

95. Power of Board to compound or compromise claims. Every Board may compound or compromise any claim or demand or any action or suit instituted by or against it for such sum of money or other compensation as it deems sufficient:

684.Provided that no settlement shall be made under this section without the previous sanction of the Central Government if such settlement involves the payment by the Board of a sum exceeding such amount as may be specified by the Central Government in this behalf.

96.Writing off of losses.

96. Writing off of losses. (1) Subject to such conditions as may be specified by the Central Government, where a Board is of opinion that any amount due to or any loss, whether of money or of property, incurred by, the Board is irrecoverable, the Board may, with the previous approval of the Central Government, sanction the writing off finally of the said amount or loss:

1*[Provided that no such approval of the Central Government shall be necessary where such irrecoverable amount or loss does not exceed, in any individual case and in the aggregate in any year, such amounts as the Central Government may, from time to time, by order, fix and different amounts may be fixed with respect to different Boards.]

(2) Notwithstanding anything contained in sub-section (1), where the Chairman is of opinion that any amount due to, or any loss, whether of money or of property, incurred by the Board is irrecoverable, the Chairman may sanction the writing off finally of such amount or loss provided that 1*[such amount or loss does not exceed, in any individual case and in the aggregate in any year, such amounts as the Central Government may, from time to time, by order, fix and different amounts may be fixed with respect to different
Boards.]

1*[(3) In every case in which the Chairman sanctions the writting off of any amount or loss under sub-section (2), he shall make a report to the Board giving reasons for such sanction.]

97.Powers, etc., of Board as Conservator or Body appointed under section36 of
Indian Ports Act.

97. Powers, etc., of Board as Conservator or Body appointed under section 36 of Indian Ports Act. All the powers, authorities and restrictions contained in this Act in respect of the works by this Act authorised, shall apply to the works which may be executed by the
Board as the Conservator of the port or as the body appointed under sub-section (1) of section 36 of the Indian Ports Act 2*xxx and also to the sanction of such works, the estimates therefor, and the expenditure thereunder.

98.Budget estimates.

98. Budget estimates. (1) A Board shall, on or before the thirty-
first day of January in each year, hold a special meeting at which the
Chairman of the Board shall submit an estimate of the income and expenditure of the Board for the next financial year, in such form as the Central Government may specify.
———————————————————————-
1. Subs. by Act 17 of 1982, s. 15, for the former proviso (w.e.f.
31.5.1982).
2. Subs. by s. 15, ibid. for certain words (w.e.f. 31.5.1982).
3. Ins. by s. 15, ibid. (w.e.f. 31.5.1982).
4. Certain words omitted by Act 23 of 1992, s. 8 (w.e.f. 12.8.1992)

685.(2) A copy of such estimates shall be sent by post or otherwise to each Trustee so as to reach him not less than ten clear days prior to the date appointed for the special meeting referred to in sub-
section (1).

(3) The Board shall consider the estimate at such meeting and may provisionally approve of it with or without modifications.

(4) The Board shall, on or before the tenth day of February, cause a copy of such estimate as provisionally approved by it, to be sent to the Central Government.

(5) The Central Government may sanction the estimate or may return it with remarks and may call for such additional information as it may deem necessary.

(6) When an estimate is returned under sub-section (5), the Board shall proceed to reconsider the estimate with reference to such remarks and shall furnish such additional information as the Central
Government may call for and shall, if necessary, modify or alter the estimate and resubmit it to the Central Government.

(7) The Central Government shall sanction the estimate with or without modifications.

(8) Where any such estimate is not sanctioned by the Central
Government before the commencement of the financial year to which it relates, the Central Government may authorise the Board to incur such expenditure as may be necessary in the opinion of the Central
Government until such time as the approval of the estimate by the
Central Government is communicated to the Board.

99.Preparation of supplemental estimate.

99. Preparation of supplemental estimate. A Board may in the course of any year for which an estimate has been sanctioned by the
Central Government cause one or more supplemental estimates for the residue of such year to be prepared, and the provisions of section 98.shall, so far as may be, apply to such estimate as if it were an original annual estimate.

100.

Re-appropriation of amounts in estimate.

100. Re-appropriation of amounts in estimate. Subject to any directions which the Central Government may give in this behalf, any sum of money or part thereof of which the expenditure has been authorised in an estimate for the time being in force sanctioned by the Central Government and which has not been so spent, may at any time be reappropriated by the Board to meet any excess in any other expenditure authorised in the said estimate:

686.Provided that no such reappropriation shall be made from one major head of expenditure to another such head without the previous sanction of the Central Government.

101.Adherence to estimate except in emergency.

101. Adherence to estimate except in emergency. (1) Subject to the provisions of section 100, no sum exceeding such amount as the
Central Government may fix in this behalf shall, save in cases of pressing emergency, be expended by, or on behalf of, any Board unless such sum is included in some estimate of the Board at the time in force which has been finally sanctioned by the Central Government.

(2) If any sum exceeding such limit as may have been fixed in this behalf under sub-section (1) is so expended by any Board on a pressing emergency, the circumstances shall be forthwith reported by the Chairman to the Central Government, together with an explanation of the way in which it is proposed by the Board to cover such extra expenditure.

102.Accounts and audit.

102. Accounts and audit. (1) A Board shall maintain proper accounts and other relevant records and prepare the annual statement of accounts including the balance-sheet in such form as may be specified by the Central Government in consultation with the
Comptroller and Auditor-General of India.

1*[(2) The accounts of the Board shall be audited--

(i) once in every year; and

(ii) if so required by the Comptroller and Auditor-General of India, concurrently with the compilation of such accounts, by the Comptroller and Auditor-General of India or such other persons as may be appointed by him in this behalf and any amount payable to him by the Board in respect of such audit shall be debitable to the general account of the Board.]

(3) The Comptroller and Auditor-General of India or any person appointed by him in connection with the audit of the accounts of a
Board shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of
India has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books of accounts, connected vouchers and other documents of the Board.

103.Publication of audit report.

103. Publication of audit report. (1) Within fourteen days after the audit and examination of the accounts of a Board have been completed, the Comptroller and Auditor-General of India shall forward copies of the audit report to the Central Government and to the Board.
———————————————————————-
1. Subs. by Act 29 of 1974, s. 31, for sub-section (2) (w.e.f.
1.2.1975).

687.(2) The Central Government shall cause every audit report to be laid for not less than thirty days before each House of Parliament as soon as may be after such report is received by that Government.

104.Board to remedy defects and irregularities pointed out in auditreport.

104. Board to remedy defects and irregularities pointed out in audit report. Every Board shall forthwith take into consideration any defects or irregularities that may be pointed out by the Comptroller and Auditor-General of India in the audit report on the income and expenditure of the Board and shall take such action thereon as the
Board may think fit and shall also send a report of the action so taken to the Central Government.

105.Central Government to decide difference between Board and auditors.

105. Central Government to decide difference between Board and auditors. If there is a difference of opinion between any Board and the Comptroller and Auditor-General of India on any point included in the audit report, and the Board is unable to accept and implement the recommendations, if any, made by him on such point, the matter shall forthwith be referred to the Central Government which shall pass final orders thereon and the Board shall be bound to give effect to such orders.

CHAPTER IXSUPERVISION AND CONTROL OF CENTRAL GOVERNMENT

106.Administration report.

106. Administration report. As soon as may be after the first day of April in every year and not later than such date as may be fixed in this behalf by the Central Government, every Board shall submit to the
Central Government a detailed report of the administration of the port during the preceding year ending on the thirty-first day of March, in such form as the Central Government may direct.

107.Submission of statements of income and expenditure to CentralGovernment.

107. Submission of statements of income and expenditure to
Central Government. (1) Every Board shall annually, or oftener if directed by the Central Government so to do, submit statements of its income and expenditure in such form and at such time as that
Government may direct.

(2) A copy of all such statements shall be open to the inspection of the public at the office of the Board during office hours on payment of such fee for each inspection as may from time to time be fixed by the Board.

108.Power of Central Government to order survey or examination of works ofBoard.

108. Power of Central Government to order survey or examination of works of Board. The Central Government may, at any time, order a local survey or examination of any works of a Board, or the intended site

688.thereof and the cost of such survey and examination shall be borne and paid by the Board from and out of the moneys credited to the general account of the port.

109.Power of Central Government to restore or complete works at the costof Board.

109. Power of Central Government to restore or complete works at the cost of Board. If, at any time, any Board–

(a) allows any work or appliance constructed or provided by, or vested in, the Board to fall into disrepair; or

(b) does not, within a reasonable time, complete any work commenced by the Board or included in any estimate sanctioned by the Central Government; or

(c) does not, after due notice in writing, proceed to carry out effectually any work or repair or to provide any appliance which is necessary in the opinion of the
Central Government for the purposes of this Act,

the Central Government may cause such work to be restored or completed or carried out, or such repairs to be carried out or such appliance to be provided, and the cost of any such restoration, completion, construction, repair or provision shall be paid by the Board from and out of the moneys credited to the general account of the port.

110.Power of Central Government to supersede Board.

110. Power of Central Government to supersede Board. (1) If, at any time, the Central Government is of opinion–

(a) that on account of a grave emergency, any Board is unable to perform the duties imposed on it by or under the provisions of this Act or of any other law, or

(b) that the Board has persistently made default in the performance of the duties imposed upon it by or under the provisions of this Act or of any other law and as a result of such default, the financial position of the
Board or the administration of the port has greatly deteriorated,

the Central Government, may, by notification in the Official Gazette supersede the Board for such period, not exceeding six months at a time, as may be specified in the notification:

Provided that before issuing a notification under this sub-
section for the reasons mentioned in clause (b), the Central
Government shall give a reasonable time of not less than three months to the Board to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Board.

689.(2) Upon the publication of a notification under sub-section (1)
superseding the Board,–

(a) all the Trustees shall, as from the date of supersession, vacate their offices as such Trustees;

(b) all the powers and duties which may, by or under the provisions of this Act or of any other law, be exercised or performed by or on behalf of the Board, shall until the Board is reconstituted under clause (b)
or clause (c) of sub-section (3) be exercised and performed by such person or persons as the Central
Government may direct;

(c) all property vested in the Board shall, until the Board is reconstituted under clause (b) or clause (c) of sub-
section (3), vest in the Central Government.

(3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may–

(a) extend the period of supersession for such further term, not exceeding six months, as it may consider necessary, or

(b) reconstitute the Board by fresh appointment and fresh election, and in such case, any persons who vacated their offices under clause (a) of sub-section (2) shall not be deemed disqualified for appointment or election, as the case may be, or

(c) reconstitute the Board by appointment only for such period as it may consider necessary and in such a case, the persons who vacated their offices under clause (a)
of sub-section (2) shall not be deemed disqualified for such appointment merely because they were Trustees when the Board was superseded:

Provided that the Central Government may, at any time before the expiration of the period of supersession, whether as originally specified under sub-section (1) or as extended under this sub-section, take action under clause (b) or clause (c) of this sub-section.

(4) The Central Government shall cause a notification issued under sub-section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before each House of Parliament at the earliest possible opportunity

111.Power of Central Government to issue directions to Board.

111. Power of Central Government to issue directions to Board.
(1) Without prejudice to the foregoing provisions of this Chapter, every Board shall, in the discharge of its functions under

690

this Act, be bound by such directions on questions of policy as the
Central Government may give in writing to it from time to time:

Provided that the Board shall be given opportunity to express its views before any direction is given under this sub-section.
3.(2) The decision of the Central Government whether a question is one of policy or not shall be final.

CHAPTER XPENALTIES

112. Persons employed under this Act to be public servants for certain purposes. Every person employed by a Board under this Act shall, for the purposes of sections 161 to 171 (both inclusive), 184,
185 and 409 of the Indian Penal Code (45 of 1860) and for the purposes of the Prevention of Corruption Act, 1947 (2 of 1947) be deemed to be a public servant within the meaning of section 21 of the said Code.

113.Penalty for contravention of sections 37,38,40 and 41.113. Penalty for contravention of sections 37,38,40 and 41.Whoever contravenes the provisions of any order issued under section
37 or section 38 or section 41 or fails to comply with any condition imposed under section 40 shall be punishable with fine which may extend to 1*[ten thousand rupees], and where the contravention or failure is a continuing one, with further fine which may extend to
1*[one thousand rupees] for every day after the first during which such contravention or failure continues.

114.Penalty for setting up wharves, quays, etc., without permission.

114. Penalty for setting up wharves, quays, etc., without permission. Any person who contravenes the provisions of section 46.shall be punishable with fine which may extend to 1*[ten thousand rupees] for the first contravention, and with a further fine which may extend to 2*[one thousand rupees] for every day after the first during which the contravention continues.

115.Penalty for evading rates, etc.

115. Penalty for evading rates, etc. Any person who, with the intention of evading payment of the rates lawfully due, in respect of any goods or vessel carrying any goods, to the Board–

(a) understates or incorrectly gives the weight, quantity, value or description of such goods or the tonnage of such vessel in any document presented to any employee of the Board for the purpose of enabling him to determine such rates; or

(b) removes or attempts to remove or abets the removal of such goods or such vessel;
———————————————————————-
1. Subs. by Act 17 of 1982, s. 16, for “one thousand rupees” (w.e.f.
31.5.1982).
2. Subs. by s. 16, ibid., for “one hundred rupees” (w.e.f. 31.5.1982).

3. Subs. by s. 17, ibid., for “one thousand rupees” (w.e.f. 31.5.1982).

691.shall be punishable with fine which may extend to 1*[ten times] the amount of rates so due subject to a minimum of 2*[five hundred rupees].

116.Recovery of value of damage to property of Board.

116. Recovery of value of damage to property of Board. If, through the negligence of any person having the guidance or command of any vessel, or of any of the mariners or persons employed on such vessel, any damage is caused to any dock, wharf, quay, mooring, stage, jetty, pier or other work in the possession of any Board 3*[or any movable property belonging to any Board] the amount of such damage shall, on the application of the Board be recoverable, together with the cost of such recovery, by distress and sale, under a Magistrates warrant, of a sufficient portion of the boats, masts, spares, ropes, cables, anchors or stores belonging to such vessel:

Provided that no Magistrate shall issue such a warrant until the master of the vessel has been duly summoned to appear before him and, if he appears, until he has been heard; and provided also that no such warrant shall issue if the vessel was at the time under the orders of a duly authorised employee of the Board and the damage caused was attributable to the order, act or improper omission of such employee.

117.Other offences.

117. Other offences. Any person who contravenes any of the provisions of this Act or of any rule, regulation or order made thereunder, for the contravention of which no penalty is expressly provided thereunder, shall be punishable with fine which may extend to
4*[two thousand rupees].

117A

Person interested in contracts, etc., with the Board to be deemed tohave committed an offence under section 168 of the Indian Penal Code.

5*[117A. Person interested in contracts, etc., with the Board to be deemed to have committed an offence under section 168 of the Indian
Penal Code. Any person who, being a Trustee or an employee of the
Board, acquires, directly or indirectly, any share or interest in any contract or employment with, by or on behalf of, any Board, shall be deemed to have committed an offence under section 168 of the Indian
Penal Code:

Provided that nothing in this section shall apply to a person who is deemed not to have a share or interest in any contract or employment under the proviso to clause (d) of section 6].

118.Cognizance of offences.

118. Cognizance of offences. No court inferior to that of a
6*[Metropolitan Magistrate or Judicial Magistrate of the first class]
shall try any offence punishable under this Act or any rule or regulation made thereunder.

119.Offences by companies.

119. Offences by companies. (1) If the person committing an offence under this Act is a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to such punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
———————————————————————-
1. Subs. by Act 17 of 1982, s. 18, for “twice” (w.e.f. 31.5.1982).
2. Subs. by s. 18, ibid., for “fifty rupees” (w.e.f. 31.5.1982)
3. Ins. by Act 29 of 1974, s. 32 (w.e.f. 1.2.1975).
4. subs. by Act 17 of 1982, s. 19, for ” two hundred rupees” (w.e.f.
31.5.1982).
5. Ins. by Act 29 of 1974, s. 33 (w.e.f. 1.2.1975).
6. Subs. by s. 34, ibid., for “magistarte of the first class” (w.e.f.
1.2.1975).

692.(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any negligence on the part of, any director, manager, secretary, or other officer of the company, such director, manager, secretary, or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.-For the purposes of this section,–

(a) “company” means a body corporate and includes a firm or other association of individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.

CHAPTER XIMISCELLANEOUS

120. Limitation of proceedings in respect of things done under the Act. No suit or other proceeding shall be commenced against a
Board or any member or employee thereof for anything done, or purporting to have been done, in pursuance of this Act until the expiration of one month after notice in writing has been given to the
Board or him stating the cause of action, or after six months after the accrual of the cause of action.

121.Protection of acts done in good faith.

121. Protection of acts done in good faith. No suit or other legal proceeding shall lie against a Board or any member or employee thereof in respect of anything which is in good faith done or intended to be done under this Act or any rule or regulation made thereunder, or for any damage sustained by any vessel in consequence of any defect in any of the moorings, hawsers or other things belonging to or under the control of the Board.

122.Power of Central Government to make rules.

122. Power of Central Government to make rules. (1) The Central
Government may, by notification in the Official Gazette, make rules for all or any of the following purposes, namely:–

(a) the times and places of the meetings of a Board and the procedure to be followed for the transaction of business at such meetings;

(b) the fees and allowances payable to the members of a
Board or of its committees;

693.(c) any other matter in respect of which rules may be made by the Central Government.

(2) The power to make rules under this section is subject to the condition of the rules being made after previous publication.

(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if before the expiry of the session 1*[immediately following the session] or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

123.General power of Board to make regulations.

123. General power of Board to make regulations. Without prejudice to any power to make regulations contained elsewhere in this
Act, a Board may make regulations consistent with this Act for all or any of the following purposes, namely:–

(a) for the times and places of the meetings of its committees and for the procedure to be followed for the transaction of business at such meetings;

(b) for the form and manner in which contracts shall be made by the Board;

(c) for the form of receipt to be given under sub-section
(2) of section 42;

(d) for the period within which notice may be given under sub-section (2) of section 43;

(e) for the guidance of persons employed by the Board under this Act;

3*[(f) for the safe, efficient and convenient use, management and control of the docks, wharves, quays, jetties, railways, tramways, buildings and other works constructed or acquired by, or vested in, the Board, or of any land or foreshore acquired by, or vested in, the
Board under this Act];

(g) for the reception, porterage, storage and removal of goods brought within the premises of the Board, for the exclusive conduct of these operations by the Board or persons employed by the Board; and for declaring the procedure to be followed for taking charge of goods which may
———————————————————————-
1. Subs. by Act 29 of 1974, s. 35, for “in which it is so laid”
(w.e.f. 1.2.1975).
2. Subs. by s. 36, ibid., for cl. (f).

694.have been damaged before landing, or may be alleged to have been so damaged;

(h) for keeping clean the port, river or basins or the bank of the river and the works of the Board, and for preventing filth or rubbish being thrown therein or thereon;

(i) for the mode of payment of rates leviable by the Board under this Act;

(j) for regulating, declaring and defining the docks, wharves, quays, jetties, stages and piers vested in the
Board on which goods shall be landed from vessels and shipped on board vessels;

(k) for regulating the manner in which, and the conditions under which, the loading and unloading of all vessels within the port or port approaches shall be carried out;

(l) for regulating the lighterage of cargo between ships or between ships and shore or between shore and ships;

(m) for the exclusion from the premises of the Board of disorderly or other undesirable persons and of trespassers;

(n) for ensuring the safety of the port;

(o) generally, for the efficient and proper administration of the port.

124.Provisions with respect to regulations.

124. Provisions with respect to regulations. (1) No regulation made by the Board under this Act 1*[other than a regulation made under sub-section (2) of section 17] shall have effect until it has been approved by the Central Government and until such approval has been published in the Official Gazette.

(2) No such regulation 2*[other than a regulation made under section 28,] shall be approved by the Central Government until the same has been published by the Board for two weeks successively in the
Official Gazette and until fourteen days have expired from the date on which the same had been first published in that Gazette.

(3) Any regulation made under this Act other than a regulation made under section 28 may provide that a breach thereof shall be punishable with fine which may extend to 3*[two thousand rupees] and where the breach is a continuing one, with further fine which may extend to 4*[five hundred rupees] for every day after the first during which such breach continues.

2*[(4) Every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expirey of the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation].

125.Power of Central Government to direct regulations to be made or tomake regulations.

125. Power of Central Government to direct regulations to be made or to make regulations. (1) Whenever the Central Government considers necessary in the public interest so to do, it may, by order in writing together
———————————————————————-
1. Ins. by Act 29 of 1974, s. 37 (w.e.f. 1.2.1975).
2. Ins. by Act 17 of 1982, s. 20 (w.e.f. 31.5.1982).
3. Subs. by s. 20, ibid., for “two hundred rupees” (w.e.f. 31.5.1982)
4. Subs. by s. 20, ibid., for “fifty rupees” (w.e.f. 31.5.1982).

695.with a statement of reasons therefor, direct any Board to make any regulations for all or any of the matters specified in section 28 or section 76 or section 123 or to amend any regulations, within such period as the Central Government may specify in this behalf:

Provided that the Central Government may extend the period specified by it by such period or periods as it may consider necessary.

(2) If any Board, against whom a direction is issued by the
Central Government under sub-section (1), fails or neglects to comply with such direction within the period allowed under sub-section (1), that Government may make the regulations or amend the regulations, as the case may be, either in the form specified in the direction or with such modifications thereof as the Central Government may think fit:

Provided that before so making or amending the regulations the
Central Government shall consider any objection or suggestion made by the Board within the said period.

(3) Where in pursuance of sub-section (2), any regulations have been made or amended, the regulations so made or amended shall be published by the Central Government in the Official Gazette and shall thereupon have effect accordingly.

126.Power of Central Government to make first regulations.

126. Power of Central Government to make first regulations.
Notwithstanding anything contained in this Act, the first regulations under this Act shall be made by the Central Government and shall have effect on being published in the Official Gazette.

127.Posting of certain regulations, etc.

127. Posting of certain regulations, etc. The text of the regulations made under clauses (e) to (n) of section 123 and the scale of rates together with a statement of conditions framed by any Board under Chapter VI shall be prominently posted by the Board in English, in Hindi and in the regional language on special boards to be maintained for the purpose at the wharves, docks, piers and other convenient places on the premises of the Board.

128.Saving of right of Central Government and Municipalities to usewharves, etc., for collecting duties and of power of Customs Officers.

128. Saving of right of Central Government and Municipalities to use wharves, etc., for collecting duties and of power of Customs
Officers. Nothing in this Act shall affect–

(1) the right of the Central Government to collect customs duties or of any municipality to collect town duties at any dock, berth, wharf, quay, stage, jetty or pier in the possession of a Board, or

(2) any power or authority vested in the customs authorities under any law for the time being in force.

696.129.Application of certain provisions of the Act to aircraft.

129. Application of certain provisions of the Act to aircraft.
The provisions of sections 35, 37, 38, 39, 40, 41, 42, 48, 49, 50, 64,
65, 115, 121, 123 and 124 shall apply in relation to all aircraft making use of any port while on water as they apply in relation to vessels.

130.

Power to evict certain persons from the premises of Board.

130. Power to evict certain persons from the premises of Board.
(1) Notwithstanding anything contained in any other law for the time being in force, if a Board in exercise of the powers conferred on it by regulations made under this Act cancel the allotment of any premises made to any employee of the Board, the Board may, by notice in writing, order such allottee or any other person who may be in occupation of the whole or any part of the premises to surrender or deliver possession thereof to the Board or a person appointed by the
Board in that behalf within such period as may be specified in the notice.

Explanation.–For the purposes of this section, “premises” means any building or part of a building and includes–

(i) the gardens, grounds and out-houses, if any, appertaining to such building or part of a building;

(ii) any fittings affixed to such building or part of a building for the more beneficial enjoyment thereof; and

(iii) any furniture, books or other things belonging to the
Board and found in such building or part of a building.

(2) If any allottee or other person refuses or fails to comply with an order made under sub-section (1), any magistrate of the first class may, on application made by or on behalf of the Board, order any police officer, with proper assistance, to enter into the premises and evict any person from, and take possession of, the premises and to deliver the same to the Board or a person appointed by the Board in that behalf and the police officer may, for the purpose, use such force as may be necessary.

(3) Any such notice as is referred to in sub-section (1) may be served–

(a) by delivering or tendering it to the allottee or any other person who may be in occupation of the whole or any part of the premises, or

(b) if it cannot be so delivered or tendered, by affixing it on the outer door or some other conspicuous part of the premises, or

(c) by registered post.

697.131.Alternative remedy by suit.

131. Alternative remedy by suit. Without prejudice to any other action that may be taken under this Act, a Board may recover by suit any rates, damages, expenses, costs, or in the case of sale the balance thereof, when the proceeds of sale are insufficient, or any penalties payable to, or recoverable by, the Board under this Act or under any regulations made in pursuance thereof.

132.Requirements as to publication of notifications, orders, etc., in theOfficial
Gazette.

132. Requirements as to publication of notifications, orders, etc., in the Official Gazette. (1) Any requirement in this Act that a notification, order, rule or regulation issued or made by a Board or by the Central Government shall be published in the Official Gazette, shall, unless otherwise expressly provided in this Act, be construed as a requirement that the notification, order, rule or regulation shall–

(a) where it is issued or made by the Board, be published in the Official Gazette of the State in which the port is situated, and

(b) where it is issued or made by the Central Government, be published in the Gazette of India.

(2) Any notification, order, rule or regulation issued or made by the Central Government shall, for general information, be also republished in the Official Gazette of the State in which the port is situated.

133.Repeal.

133. Repeal. (1) On the application of this Act to the port of
Kandla, the Bombay Landing and Wharfage Fees Act, 1882 [Bombay Act of
1882] shall cease to have force in relation to that port.

(2) On the application of this Act to the ports of Cochin and
Vishakhapatnam, the Madras Outputs Landing and Shipping Fees Act, 1885.(Madras Act 3 of 1885) shall cease to have force in relation to those ports.

1*[(2A) On the application of this Act to the port of Bombay, the
Bombay Port Trust Act, 1879, (Bombay Act 6 of 1879) except the provisions thereof relating to municipal assessment of the properties of the port of Bombay and matters connected therewith, shall cease to have force in relation to that port.

(2B) On the application of this Act to the port of Calcutta, the
Calcutta Port Act, 1890, (Bengal Act 3 of 1890) except the provisions thereof relating to municipal assessment of the properties of the port of Calcutta and matters connected therewith, shall cease to have force in relation to that port.

(2C) On the application of this Act to the port of Madras, the
Madras Port Trust Act, 1905, (Madras Act 2 of 1905) shall cease to have force in relation to that port.

(2D) Notwithstanding anything contained in sub-sections (2A),
(2B) and (2C),-

(a) every Trustee of the Board of Trustees of the port of
Bombay or Madras holding office as such immediately before the application of this Act to the port of Bombay or Madras, as the case may be, shall be deemed to have been appointed or elected as such under this Act and shall continue to hold such office after such application until a Board of Trustees in respect of that port is constituted under the provisions of this Act;

(b) every Commissioner of the port of Calcutta holding office as such immediately before the application of this Act to that port shall be deemed to have been appointed or elected as a
Trustee under the provisions of this Act and shall continue to hold such office after such application until a Board of Trustees in respect of that port is constituted under the provisions of this Act;

(c) anything done or any action taken or purported to have been done or taken (including any rule, regulation, bye-law, notification, order or notice made or issued or any resolution passed or any appointment or declaration made or any licence, permission or exemption granted or any rates, charges or duties levied or any penalty or fine imposed) under the Acts referred to in sub-sections (2A), (2B) and (2C) shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this
Act.

(2E) Upon the cesser of operation of the provisions of the Acts referred to in sub-section (2A), (2B) and (2C), the provisions of section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply as if the provisions first-mentioned were provisions contained in a
Central Act and such cesser of operation were a repeal; and the mention of particular matters in sub-section (2D) shall not be held to prejudice or affect the general application of the said section 6 with regard to the effect of repeals].”

(3) If immediately before the application of this Act to any other port, there is in force in that port any law which corresponds to this Act or to any provision thereof, that corresponding law shall, on such application, cease to have force in relation to that port
2*[and section 6 of the General Clauses Act, 1897, shall apply as if such corresponding law were a Central Act and such cesser of operation were a repeal].

134.Power to remove difficulties.

134. Power to remove difficulties. If any difficulty arises in giving effect to the provisions of this Act, particularly in relation to the transition from the enactments repealed by this Act to the provisions of this Act, the Central Government may, by general or special order, do anything not inconsistent with such provisions which appears to it to be necessary or expedient for the purpose of removing the difficulty:

3*[Provided that no such order shall be made in respect of a port alter the expiry of a period of two years from the appointed day.]
———————————————————————-
1. Ins. by Act 29 of 1974, s. 38 (w.e.f. 1-2-1975).
2. Ins. by Act 17 of 1978, s. 3.3. Added by Act 29 of 1974, s. 39 (w.e.f. 1-2-1975).

BE it enacted by Parliament in the Twenty-third Year of the
Republic of India as follows:–

CHAPTER IPRELIMINARY

1. Short title, extent and commencement. (1) This Act may be called the Marine Products Export Development Authority Act, 1972.(2) It extends to the whole of India.

(3) It shall come into force on such date 1* as the Central
Government may, by notification in the Official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Act.

2. Declaration as to expediency of control by the Union. It is hereby declared that it is expedient in the public interest that the
Union should take under its control the marine products industry.

3. Definitions. In this Act, unless the context otherwise requires,–

(a) “Authority” means the Marine Products Export Development
Authority established under section 4;

(b) “Chairman” means the Chairman of the Authority;

(c) “conveyance” includes a carrier vessel or a vehicle;

(d) “dealer” means a dealer in any of the marine products;
———————————————————————
1. The provisions of sections 11 to 19 (both inclusive) shall come into force w.e.f. 15-1-1973; vide Notifin. No. G.S.R. 8(E), dated 10-
1-1973, Gazette of India, Extraordinary, Pt. II, Sec. 3(i), p. 15.The provisions of sections other than sections 11 to 19 (both inclusive) shall come into force w.e.f. 12-7-1972; vide Notifin. No.
G.S.R. 338(E), dated 12-7-1972, Gazette of India, Extraordinary, Pt.
II, Sec. 3(i), p. 377.368.(e) “Director” means the Director of Marine Products Export
Development appointed under section 7;

(f) “export” and “import” mean respectively taking out of, or bringing into, India by land, sea or air;

(g) “fishing vessel” means a ship or boat fitted with mechanical means of propulsion which is exclusively engaged in sea-fishing for profit;

(h) “marine products” includes all varieties of fishery products known commercially as shrimp, prawn, lobster, crab, fish, shell-fish, other aquatic animals or plants or part thereof and any other products which the
Authority may, by notification in the Gazette of India, declare to be marine products for the purposes of this
Act;

(i) “member” means a member of the Authority;

(j) “owner”, in relation to any fishing vessel or in relation to any processing plant or storage premises for marine products or in relation to any conveyance used for the transport of marine products, includes–

(i) any agent of the owner; and

(ii) a mortgagee, lessee or other person in actual possession of the fishing vessel, processing plant, storage premises or conveyance;

(k) “prescribed” means prescribed by rules made under this
Act;

(l) “processing”, in relation to marine products, includes the preservation of such products such as canning, freezing, drying, salting, smoking, peeling or filleting and any other method of processing which the
Authority may, by notification in the Gazette of India, specify in this behalf.

CHAPTER IIMARINE PRODUCTS EXPORT DEVELOPMENT AUTHORITY

4. Establishment and constitution of the Authority. (1) With effect from such date as the Central Government may, by notification in the Official Gazette, specify in this behalf, there shall be established for the purposes of this Act, an Authority to be called the marine Products Export Development Authority.

369.(2) The Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by the said name sue and be sued.

(3) The Authority shall consist of the following members, namely:–

(a) a Chairman to be appointed by the Central Government;

(b) the Director of Marine Products Export Development, ex-
officio;

(c) three members of Parliament of whom two shall be elected by the House of the People and one by the Council of
States:

(d) five members to represent respectively the Ministries of the Central Government dealing with–

(i) agriculture,

(ii) finance,

(iii) foreign trade,

(iv) industry, and

(v) shipping and transport;

(e) such number of other members not exceeding twenty as the
Central Government may think expedient, to be appointed by that Government by notification in the Official
Gazette from among persons who are in its opinion capable of representing–

(i) the Governments of the States or Union territories having a sea-coast;

(ii) the interests of owners of fishing vessels, processing plants or storage premises for marine products and conveyances used for the transport of marine products;

(iii) the interests of dealers;

(iv) the interests of persons employed in the marine products industry;

(v) the interests of persons employed in research institutions engaged in the researches connected with the said industry; and

(vi) such other persons or class of persons who, in the opinion of the Central Government, ought to be represented on the Authority.

370

(4) The number of persons to be appointed as members from each of the categories specified in clause (e) of sub-section (3), the term of office of the members other than the member referred to in clause (b)
of that sub-section, and the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by the members shall be such as may be prescribed.

(5) Any officer of the Central Government, not being a member of the Authority, when deputed by that Government in this behalf, shall have the right to attend meetings of the Authority and take part in the proceedings thereof but shall not be entitled to vote.

(6) The Authority shall elect from among its members a Vice-
Chairman who shall exercise such of the powers and perform such of the functions of the Chairman as may be prescribed or as may be delegated to him by the Chairman.

5.Acts or proceedings of Authority or its Committees not to beinvalidated.

5. Acts or proceedings of Authority or its Committees not to be invalidated. No act or proceeding of the Authority or any Committee appointed by it under section 8, shall be invalidated merely by reason of–

(a) any vacancy in, or any defect in the constitution of, the Authority or such Committee; or

(b) any defect in the appointment of a person acting as a member of the Authority or such Committee; or

(c) any irregularity in the procedure of the Authority or such Committee not affecting the merits of the case.

6.Salary and allowances of Chairman.

6. Salary and allowances of Chairman. The Chairman shall be entitled to such salary and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may, from time to time, be fixed by the Central Government.

7.Executive officers of the Authority and other staff.

7. Executive officers of the Authority and other staff. (1) The
Central Government shall appoint a Director of Marine Products Export
Development to exercise such powers and perform such duties under the
Chairman as may be prescribed or as may be delegated to him by the
Chairman.

(2) The Central Government shall appoint a Secretary to the
Authority to exercise such powers and perform such duties under the
Chairman as may be prescribed or as may be delegated to him by the
Chairman.

(3) The Director and the Secretary to the Authority shall be entitled to such salaries and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may be fixed by the Central Government.

371.(4) Subject to such control and restrictions as may be prescribed, the Authority may appoint such other officers and employees as may be necessary for the efficient performance of its functions and pay them such salaries and allowances as it may determine from time to time.

(5) The Chairman, the Director, the Secretary and other employees of the Authority shall not undertake any work unconnected with their duties under this Act except with the permission of the Central
Government.

8.Committees of the Authority.

8. Committees of the Authority. (1) The Authority may appoint such Committees as may be necessary for the efficient discharge of its duties and performance of its functions under this Act.

(2) The Authority shall have the power to co-opt as members of any Committee appointed under sub-section (1) such other number of persons who are not members of the Authority, as it may think fit.

9.Functions of the Authority.

9. Functions of the Authority. (1) It shall be the duty of the
Authority to promote, by such measures as it thinks fit, the development under the control of the Central Government of the marine products industry with special reference to exports.

(2) Without prejudice to the generality of the provisions of sub-
section (1), the measures referred to therein may provide for–

(a) developing and regulating off-shore and deep-sea fishing and undertaking measures for the conservation and management of off-shore and deep-sea fisheries;

(b) registering fishing vessel, processing plants or storage premises for marine products and conveyances used for the transport of marine products;

(c) fixing of standards and specifications for marine products for purposes of export;

(d) rendering of financial or other assistance to owners of fishing vessels engaged in off-shore and deep-sea fishing and owners of processing plants or storage premises for marine products and conveyances used for the transport of marine products, and acting as an agency for such relief and subsidy schemes as may be entrusted to the Authority;

(e) carrying out inspection of marine products in any fishing vessel, processing plant, storage premises, conveyance or other place where such products are kept or handled, for the purpose of ensuring the quality of such products;

(f) regulating the export of marine products;

372.(g) improving the marketing of marine products outside
India;

(h) registering of exporters of marine products on payment of such fees as may be prescribed;

(i) collecting statistics from persons engaged in the catching of fish or other marine products, owners of processing plants or storage premises for marine products or conveyances used for the transport of marine products, exporters of such products and such other persons as may be prescribed on any matter relating to the marine products industry and the publishing of statistics so collected. or portions thereof or extracts therefrom;

(j) training in various aspects of the marine products industry; and

(k) such other matters as may be prescribed.

(3) The Authority shall perform its functions under this section in accordance with and subject to such rules as may be made by the
Central Government.

10.Dissolution of the Authority.

10. Dissolution of the Authority. (1) The Central Government may, by notification in the Official Gazette and for reasons to be specified therein, direct that the Authority shall be dissolved from such date and for such period as may be specified in the notification:

Provided that before issuing any such notification, the Central
Government shall give a reasonable opportunity to the Authority to make representations against the proposed dissolution and shall consider the representations, if any, of the Authority.

(2) When the Authority is dissolved under the provisions of sub-
section (1),–

(a) all members notwithstanding that their term of office has not expired, shall, from the date of dissolution, vacate their offices as such members;

(b) all powers and duties of the Authority shall, during the period of dissolution, be exercised and performed by such person or persons as the Central Government may appoint in this behalf;

(c) all funds and other property vested in the Authority shall, during the period of dissolution, vest in the
Central Government; and

(d) as soon as the period of dissolution expires, the
Authority shall be reconstituted in accordance with the provisions of this Act.

CHAPTER IIIREGISTRATION

11. Registration of fishing vessel, processing plant, etc. (1)
Every owner of a fishing vessel, processing plant or storage premises for marine products or conveyance used for the transport of marine products shall, before the expiration of one month from the date on which he first became owner of such fishing vessel, processing plant, storage premises or conveyance, or before the expiration of three months from the date of coming into force of this section, whichever is later, apply to the Authority for registration under this Act of every such fishing vessel, processing plant, storage premises, or conveyance owned by him:

Provided that the Authority may, for sufficient reason, extend the time-limit for registration by such period as it thinks fit.

(2) Registration once made shall continue to be in force until it is cancelled by the Authority.

12.Application, cancellation, fee payable and other matters relating toregistration.

12. Application, cancellation, fee payable and other matters relating to registration. The form of application for registration under section 11 and for the cancellation of such registration, the fee payable on such applications, the particulars to be included in such applications, the procedure to be followed in granting and cancelling registration and the registers to be kept by the Authority shall be such as may be prescribed.

13.Returns to be made by owners.

13. Returns to be made by owners. (1) Every owner referred to in sub-section (1) of section 11 shall furnish to the Authority at the prescribed time and in the prescribed manner such returns as may be prescribed.

(2) The Authority may authorise a member or any of its officers to inspect any fishing vessel, processing plant, storage premises or conveyance at any time to verify the accuracy of any return made under this section.

CHAPTER IVFINANCE, ACCOUNTS AND AUDIT

14. lmposition of a cess on marine products exported. (1) There shall be levied on all marine products which are exported, a cess for the purposes of this Act at such rate not exceeding three per cent. ad valorem as the Central Government may, by notification in the Official
Gazette, fix.

374.(2) The cess levied under sub-section (1) shall be in addition to any cess or duty leviable on marine products under any other law for the time being in force.

(3) The provisions of the Customs Act, 1962 (52 of 1962), and the rules and regulations made thereunder, including those relating to refunds and exemptions from duty, shall, as far as may be, apply in relation to the levy and collection of the cess leviable under sub-
section (1) as they apply in relation to the levy and collection of a duty of customs under that Act or those rules and regulations.

15.Payment of proceeds of cess to the Authority.

15. Payment of proceeds of cess to the Authority. The proceeds of the cess levied under section 14 shall first be credited to the
Consolidated Fund of India and the Central Government may, if
Parliament by appropriation made by law in this behalf so provides, pay to the Authority, from time to time from out of such proceeds, after deducting the expenses of collection, such sums of money as it may think fit for being utilised for the purposes of this Act.

16.Grants and loans by the Central Government.

16. Grants and loans by the Central Government. The Central
Government may, after due appropriation made by Parliament by law in this behalf, pay to the Authority by way of grants or loans such sums of money as the Central Government may consider necessary.

17.Constitution of the Fund.

17. Constitution of the Fund. (1) There shall be formed a Fund to be called the Marine Products Export Development Fund and there shall be credited thereto–

(a) the proceeds of the cess made over to the Authority by the Central Government;

(b) all fees levied and collected in respect of registration made under this Act;

(c) any other fee that may be levied and collected by the
Authority under this Act or the rules made thereunder;

(d) any grants or loans that may be made by the Central
Government for the purposes of this Act;

(e) any grants or loans that may be made by any institution for the purposes of this Act: and

(f) all sums realised by the Authority in carrying out the measures referred to in section 9.(2) The Fund shall be applied–

(a) for meeting the salaries, allowances and other remuneration of the officers and other employees of the
Authority;

(b) for meeting the other administrative expenses of the
Authority;

375.(c) for meeting the cost of the measures referred to in section 9; and

(d) for repayment of any loans from the Central Government or from any institution.

18.Borrowing powers of the Authority.

18. Borrowing powers of the Authority. Subject to such rules as may be made in this behalf, the Authority shall have power to borrow on the security of the Marine Products Export Development Fund or any other asset for carrying out the purposes of this Act.

19.Accounts and audit.

19. Accounts and audit. (1) The Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the profit and loss account and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Authority shall be audited by the
Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and
Auditor-General.

(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the
Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority.

(4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.

CHAPTER VCONTROL BY CENTRAL GOVERNMENT

z20. Power to prohibit or control imports and exports of marine products. (1) The Central Government may, by order published in the
Official Gazette, make provision for prohibiting, restricting or otherwise controlling the import or export of marine products, either generally or in specified classes of cases.

(2) All marine products to which any order under sub-section (1)
applies, shall be deemed to be goods of which the import or export has been prohibited under section 11 of the Customs Act, 1962 (52 of
1962), and all the provisions of that Act shall have effect accordingly.

376.(3) If any person contravenes any order made under sub-section
(1) he shall, without prejudice to any confiscation or penalty to which he may be liable under the provisions of the Customs Act, 1962.(52 of 1962), as applied by sub-section (2), be punishable with imprisonment for a term which may extend to one year, or with fine, or with both.

21.Directions by Central Government.

21. Directions by Central Government. The Authority shall carry out such directions as may be issued to it from time to time by the
Central Government for the efficient administration of this Act.

22.Returns and reports.

22. Returns and reports. (1) The Authority shall furnish to the
Central Government, at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of the marine products industry, as the Central Government may, from time to time, require.

(2) Without prejudice to the provisions of sub-section (1), the
Authority shall, as soon as possible after the end of each financial year, submit to the Central Government a report in such form and before such date, as may be prescribed, giving a true and full account of its activities, policy and programmes during the previous financial year.

(3) A copy of the report received under sub-section (2) shall be laid before each House of Parliament.

CHAPTER VIMISCELLANEOUS

23. Penalty for making false returns. Any person who being required by or under this Act to furnish any return fails to furnish such return or furnishes a return containing any particular which is false and which he knows to be false or does not believe to be true shall be punishable with fine which may extend to five hundred rupees.

24.Penalties for obstructing a member or officer of the Authority in thedischarge of his duties and for failure to produce books and records.

24. Penalties for obstructing a member or officer of the
Authority in the discharge of his duties and for failure to produce books and records. Any person who–

(a) obstructs any member authorised by the Chairman in writing or any officer or other employee of the
Authority authorised by it in this behalf or any person authorised in this behalf by the Central Government or by the Authority, in the exercise of any power conferred, or in the discharge of any duty imposed, on him by or under this Act; or

(b) having control over or custody of any account book or other record, fails to produce such book or record when required to do so by or under this Act,

377.shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

25.Other penalties.

25. Other penalties. Whoever contravenes or attempts to contravene or abets the contravention of the provisions of this Act or of any rules made thereunder other than the provisions, punishment for the contravention whereof has been provided for in sections 20,23 and
24, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both, and in the case of a continuing contravention with an additional fine which may extend to fifty rupees for every day during which such contravention continues after conviction for the first such contravention.

26.Offences by companies.

26. Offences by companies. (1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.–For the purposes of this section–

(a) “company” means any body corporate and includes a firm or other association of individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.

27.Jurisdiction of court.

27. Jurisdiction of court. No court inferior to that of a
Presidency magistrate or a Magistrate of the first class shall try any offence punishable under this Act.

28.Previous sanction of Central Government.

28. Previous sanction of Central Government. No prosecution for any offence punishable under this Act shall be instituted except with the previous sanction of the Central Government.

378.29.Protection of action taken in good faith.

29. Protection of action taken in good faith. No suit, prosecution or other legal proceedings shall lie against the
Government, or the Authority or any Committee appointed by it, or any member of the Authority or such Committee, or any officer or other employee of the Government or of the Authority or any other person authorised by the Government or the Authority, for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.

30.

Power to delegate.

30. Power to delegate. The Central Government may, by order notified in the Official Gazette, direct that any power exercisable by it under this Act (not being the power to make rules under section 33)
may also be exercised, in such cases and subject to such conditions, if any, as may be specified in the order, by such officer or authority as may be specified therein.

31.Suspension of operation of Act.

31. Suspension of operation of Act. (1) If the Central Government is satisfied that circumstances have arisen rendering it necessary that certain of the restrictions imposed by this Act should cease to be imposed or if it considers necessary or expedient so to do in the public interest, the Central Government may, by notification in the
Official Gazette, suspend or relax to a specified extent, either indefinitely or for such period as may be specified in the notification, the operation of all or any of the provisions of this
Act.

(2) Where the operation of any provision of this Act has under sub-section (1) been suspended or relaxed indefinitely, such suspension or relaxation may at any time while this Act remains in force be removed by the Central Government by notification in the
Official Gazette.

32.Application of other laws not barred.

32. Application of other laws not barred. The provisions of this
Act shall be in addition to and not in derogation of the provisions of any other law for the time being in force.

33.Power of Central Government to make rules.

33. Power of Central Government to make rules. (1) The Central
Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:–

(a) the number of persons to be appointed as members from each of the categories specified in clause (e) of sub-
section (3) of section 4, the term of office and other conditions of service of members, the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by, such members;

379.(b) the circumstances in which and the authority by which a member may be removed;

(c) the holding of a minimum number of meetings of the
Authority every year;

(d) the procedure to be followed at meetings of the
Authority for the conduct of business and the number of members which shall form a quorum at a meeting;

(e) the maintenance by the Authority of records of business transacted by the Authority and the submission of copies thereof to the Central Government;

(f) the powers of the Authority, its Chairman, the Director and Committees of the Authority with respect to the incurring of expenditure;

(g) the conditions subject to which the Authority may incur expenditure outside India;

(h) the preparation of budget estimates of receipts and expenditure of the Authority and the authority by which the estimates are to be sanctioned;

(i) the form and manner in which the accounts should be kept by the Authority;

(j) the deposit of the funds of the Authority in banks and the investment of such funds;

(k) the conditions subject to which the Authority may borrow;

(l) the conditions subject to which and the manner in which contracts may be entered into by or on behalf of the
Authority;

(m) the additional matters in respect of which the Authority may undertake measures in the discharge of its functions;

(n) the remuneration and other allowances payable to the person or persons referred to in clause (b) of sub-
section (2) of section 10;

(o) the form of, and the particulars to be contained in, any returns or reports to be made to the Authority under this Act;

(p) the form of, and the manner of making applications for registration and for its cancellation by the Authority, the fee payable on such applications and the procedure to be followed in granting and cancelling registration and the conditions governing such registration;

380

(q) the collection of any information or statistics in respect of marine products;

(r) any other matter which is to be or may be prescribed by, or provided for by rules under, this Act.

(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

34.Power to make regulations.

34. Power to make regulations. (1) The Authority may make regulations not inconsistent with this Act and the rules made thereunder, for enabling it to discharge its functions under this Act.

(2) Without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:–

(a) the procedure to be followed at meetings of the
Committees appointed by the Authority and the number of members which shall form a quorum at a meeting;

(b) the delegation to the Chairman, members, Director, Secretary or other officers of the Authority of any of the powers and duties of the Authority under this Act;

(c) the travelling and other allowances of members of the
Authority and of Committees thereof;

(d) the pay and allowances and leave and other conditions of service of officers (other than those appointed by the
Central Government) and other employees of the
Authority;

(e) the maintenance of its accounts;

(f) the maintenance of the registers and other records of the Authority and its various Committees;

(g) the appointment by the Authority of agents to discharge on its behalf any of its functions;

(h) the persons by whom, and the manner in which, payments, deposits and investments may be made on behalf of the
Authority.

381.(3) No regulation made by the Authority shall have effect until it has been approved by the Central Government and published in the
Official Gazette, and the Central Government, in confirming a regulation, may make any change therein which appears to it to be necessary.

(4) The Central Government may, by notification in the Official
Gazette, cancel any regulation which it has confirmed and thereupon the regulation shall cease to have effect.

1*["(5) Every regulation made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive session, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation."]
———————————————————————
1. Ins. by Act 4 of 1986, s. 2 and Sch. (w.e.f. 15-5-1986).

CHAPTER IPRELIMINARY

1. Short title and commencement.-(1) This Act may be called the
Merchant Shipping (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 IIAMENDMENT OF THE MERCHANT SHIPPING ACT, 1958

.
2. Substitution of new section for section 76.-For section 76 of the
Merchant Shipping Act, 1958 (44 of 1958) (hereinafter referred to as the principal Act), the following section shall be substituted, namely:-

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

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 .”.

3.Amendment of section 87.
3. Amendment of section 87.-In section 87 of the principal Act, in sub-section (2), in clause (b), for the words “by a ship”, the words
“by different types of ships” shall be substituted.

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

(i) in sub-section (1), for clauses (a) and (b), the following clause 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 seamens employment office;

(c) the issue of directions by the Central Government to any seamens 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) the circumstances and conditions under which licence to be suspended or withdrawn;

(cc) the 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.Substitution of new section for section 97.
5. Substitution of new section for section 97.-For section 97 of the principal Act, the following section shall be substituted, namely:-

“97. Receipt of remuneration, donation, fees, etc., for shipping them prohibited.-(1) A person or company or organisation including a union purporting to represent the interests of seamen shall not demand or receive, either directly or indirectly, from a y seaman or person seeking employment as seaman or any person on his behalf, any remuneration or donation or fees or compulsory subscription of any kind attributable from such seaman or persons employment as seaman, other than the fees authorised by thi Act.

(2) It shall be the duty of the company employing or proposing to employ person as seaman to ensure that no money has been demanded or received by any person or company or organisation including the union remuneration or donation or fees or compulsory subscription of any kind attributable to employment of such person as seaman.”.
purporting to represent the interests of seamen b way of any

6.Insertion of new section 97A.

6. Insertion of new section 97A.-After section 97 of the principal
Act, the following section shall be inserted, namely:-

“97A. Prohibition against discrimination.-There shall be no discrimination between seamen,-

(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.Substitution of new sub-heading for sub-heading above section 299.
7. Substitution of new sub-heading for sub-heading above section
299.-For the sub-heading “Safety certificates, safety equipment certificates, safety radio telegraphy certificates, safety radio telephony certificates, exemption certificates, etc.” above ection 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.Amendment of section 299.
8. Amendment of section 299.-In section 299 of the principal Act,-

(a) in sub-section (1), for the words “radio telegraphy or radio telephony installation and radio direction finder”, the words “radio installation” shall be substituted;

(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.Amendment of section 299A.

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

(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 “that
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 “that
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 s rveyed 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.Substitution of new section for section 300.

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

“300. Cargo ship safety equipment and cargo ship equipment certificates for ships other than passenger ships.-(1) Where in respect of an Indian cargo ship the Central Government or any person with the provisions of this Act and the rules made thereunder relating to life saving and fire appliances applicable to such ship and is provided with lights and shapes and the means of making fog and distress signals required by the collision regul authorised by it in this behalf is satisfied that the ship com lies tions, that 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, that Government or the authorised person may issue a certificate in the prescribed form to be called a qualified cargo ship safety equipm nt certificate or a qualified cargo ship equipment certificate, as the case may be.”.

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

“301. Cargo ship safety radio certificate and qualified cargo ship safety radio certificate, etc.-The owner or master of any Indian cargo ship, which is required by the provisions of section 291 to be provided with a radio installation shall, if the Cent al Government or any person authorised by it in this behalf is 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 certific te; and

(c) in other cases, a certificate in the prescribed form to be called a cargo ship radio certificate.”.

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

“303. Duration of certificates.-(1) A passenger ship safety certificate, a 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 saf ty 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 th s 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 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 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 compl te 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 ships 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 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 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 p riod 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 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 certi icate 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 than 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.”.

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

(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) in clause (a), for the words and figures “equipment certificate issued under section 300″, the words, figures and letter “safety construction certificate or cargo ship construction certificate issued under section 299A” shall be substituted;

(ii) in clause (b), in the opening portion, after the word “a”, the words “cargo ship equipment certificate or a” shall be inserted;

(iii) in clause (c), for the words “radio telegraphy certificate or a cargo ship radio telephony certificate”, the words “safety radio certificate or a qualified cargo ship safety radio certificate, if the ship operates between ports or places in India a d is between five hundred to three thousand tons gross,” shall be substituted.

14.Amendment of section 317.14. Amendment of section 317.-In section 317 of the principal Act,-

(i) in sub-section (1), after the existing proviso, the following proviso shall be inserted, namely:-

“Provided further that when the 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 com letion of such survey to a date not exceeding five years from the date of expiry of the existing certificate.”;

(ii) in sub-section (3), for the portion beginning with the words
“shall cease and ending with the words Indian ship”, the following shall be substituted, namely:-

“shall cease to be valid when-

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

(b) material alterations such as would necessitate the 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 crews 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 portion beginning with the words
“once at least in each year” and ending with the words “caused to be so surveyed”, the following 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 lines;

(b) the fittings and the appliances for the protection of openings, the guard rails, freeing ports, or the means of access to the crews 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 g anted 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 not 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 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 nd when the 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 su vey.”.

15.Amendment of section 344.
15. Amendment of section 344.-In section 344 of the principal Act, in sub-section (2), 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;”.

16.Amendment of section 352.
16. Amendment of section 352.-In section 352 of the principal Act,-

(i) for clause (b), the following clause shall be substituted, namely:-

(b) “Convention” means the Convention on Limitation of Liability for
Maritime Claims, 1976 as amended from time to time;;

(ii) after clause (g), the following clauses shall be inserted, namely:-

(h) “salvor” means any person rendering services in direct connection with salvage operations.

Explanation.-For the purpose of this clause, “salvage operations”
includes-

(i) 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;

(ii) the removal, destruction or rendering the cargo of a ship harmless; and

(iii) the measures taken to avert or minimise loss to a ship or its cargo or both;

(i) “ship owner” means owner, charterer, manager and operator of a sea-going ship;

(j) “Special Drawing Rights” means Special Drawing Rights as determined by the International Monetary Fund..

17.Substitution of new section for section 352A.

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

“352A. Limitation of liability for damages in respect of certain claims.-(1) The ship owner, salvor, any person for whose act, neglect or default the ship owner or salvor, as the case may be, is responsible, and an insurer of liability for claims to the ame 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 o with salvage operations, and consequential loss resulting therefrom;

(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 rescribe, 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 s rvice 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 f r in 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.”.

18.Substitution of new section for section 352B.

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

“352B. Limitation of liability.-The amount to which any person referred to in 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 applicab e, the limit shall be in accordance with the rules made in this behalf prescribe.”.

19.Amendment of section 352C.

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

(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 uch 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 ogether 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 s tisfactory 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 rovisions 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).”.

20.Amendment of section 352D.

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

(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 other property referred to 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 (6) 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.”.

21.Substitution of new section for section 352E.

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

“352E. Scope of application.-(1) The provisions of this Part shall apply whenever any person referred to in sub-section (1) of section
352A seeks to limit his liability before the Court or seeks to procure 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 the release of a ship or other property or the d scharge of any ndia 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 flag of the State, which is a party to he Convention, 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.Insertion of new section 352FA.

22. Insertion of new section 352FA.-After section 352F of the principal Act, the following section shall be inserted, namely:-

“352FA. Power to make rules.-The Central Government may make rules to carry out the purposes of this Part:

Provided that the rules under this Part shall be made having regard to the provisions of the Convention.”.

23.Substitution of new section for section 352H.

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

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

(a) “incident” means any occurrence, or series of occurrences having the same origin, which causes pollution damage or creates a grave and imminent threat of causing such damage;

(b) “Liability Convention” means the International Convention on Civil
Liability for Oil Pollution Damage, 1992 as amended from time to time;

(c) “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;

(d) “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;

(e) “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;

(f) “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 s ch 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;

(g) “preventive measures” means any reasonable measures taken by any person after the incident to prevent or minimise pollution damage;

(h) “ship” means any sea-going 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 a tually 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;

(i) “State of the ships 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;.

24.Amendment of section 352-I.

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

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

(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 made with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result.”.

25.Substitution of new section for section 352J.

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

“352J. Limitation of liability.-(1) The owner shall be entitled to limit his 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 made with the intent to cause such damage, or recklessly and with kno ledge that such damage would probably result.”.

26.Amendment of section 352R.

26. Amendment of section 352R.-In section 352R of the principal Act, after clause (b), the 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.”.

27.Insertion of new Part XC.

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

PART XC

INTERNATIONAL OIL POLLUTION COMPENSATION FUND

352S. Definitions.-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 d stillate 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 Nu ber 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 from 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 owners 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.

352T. Contribution to the Fund.-(1) Contributions to the Fund, in respect of 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 Conven ion 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 tho sand tonnes or as may be specified from time to time in the Fund Convention.

352U. Contribution payable by persons to the Fund.-(1) The contributions payable to the Fund by a person for any year shall be,-

(a) such amount as may be determined by the Assembly of the Fund under
Articles 10 and 12 of the Fund Convention;

(b) in such instalments, becoming due at such dates,

as may be notified 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.

352V. Power to call for information.-(1) The Central Government may, for the purpose of transmitting to the Fund the names and addresses of the persons who under section 352T are liable to make contributions to the Fund every year and the quantity of con ributing 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, such notice 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 ac urate 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. Liability of the Fund.-Where 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 Conventi n, the Fund shall be liable for pollution damage in accordance with the provisions of the Fund Convention.

352X. Jurisdiction of Courts.-(1) Any action for a claim against the
Fund 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 dis uted by the Fund on the ground that it has not intervened in the proceedings.

352Y. Extinguishment of claims.-Notwithstanding anything contained in any 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 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.

352Z. Subrogation and right to recourse.-In respect of any sum paid by a public 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 compensat d would have enjoyed under the Fund Convention.

352ZA. Power to make rules.-The Central Government may make such rules as may be required to carry out the purposes of the Fund
Convention..

CHAPTER IIIAMENDMENT OF THE MAJOR PORT TRUSTS ACT, 1963

.
28. Amendment of section 116 of Act 38 of 1963.-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 omiss on of such employee”, the words, letters and figures “such recovery in accordance with the provisions of Part XA of the Merchant Shipping Act, 1958 (44.of 1958)” shall be substituted.

BE it enacted by Parliament in the Fifty-fourth Year of the Republic of

India as follows:-

1. Short title and commencement.-(1) This Act may be called the

Merchant Shipping (Amendment) Act, 2003.

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

may, by notification in the Official Gazette, appoint.

2.

Substitution of new sections for sections 356A to 356H.

2. Substitution of new sections for sections 356A to 356H.-For sections

356A to 356H of the Merchant Shipping Act, 1958 (44 of 1958)

(hereinafter referred to as the principal Act), the following sections

shall be substituted , namely:-

Application.

356A. Application.-(1) 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 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.

(2) This Part shall not apply to any war ships or other ships owned or

operated by the Government and used for the time being on Government

non-commercial service.

Definitions.

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

(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 ships stores and fuel;

(c) “coasts” has the meaning assigned to it in section 357;

(d) “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 Act, 1976 (80 of 1976), or any

other law for the time being in force;

(e) “Convention” means the International Convention for the Prevention

of Pollution from Ships, 1973, including its Protocol of 1978, as

amended from time to time in the manner specified therein;

(f) “international pollution prevention certificate” means any

certificate issued in accordance with the provisions of Pollution

Prevention Conventions and Protocols thereto which are acceded to by

India;

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

(h) “noxious liquid substance” means any substance which has been

designated as such by rules made under this Part;

(i) “off-shore installation” means an installation, whether mobile or

fixed, which is used or is intended to be used for under-water

exploration or exploitation of crude oil, petroleum or other similar

mineral oils, under lease, licence or any other form of contractual

arrangement and includes-

(a) any installation which could be moved from place to place under its

own motive power or otherwise; and

(b) a pipe-line;

(j) “oil” means petroleum in any form including crude oil, fuel oil,

sludge, oil refuse and refined products;

(k) “oily mixture” means a mixture with any oil content;

(l) “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;

(m) “reception facilities”, in relation to a port, means facilities for

enabling tankers or ships using the port to discharge or deposit

residue or mixture of any substance subject to control by the

Convention;

(n) “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.

Issue of pollution prevention certificate.

356C. Issue of pollution prevention certificate.-(1) No Indian oil

tanker or other Indian ship shall proceed to sea unless there is in

force, in respect of that ship, a certificate issued by the Central

Government, to be called an international oil pollution prevention

certificate, in such form, for such duration and subject to such

conditions as may be prescribed.

(2) No Indian oil tanker or other Indian ship carrying noxious liquid

substances in bulk shall proceed to sea except with a certificate

issued by the Central Government, to be called an international

pollution prevention certificate, in such form, for such duration and

subject to such conditions as may be prescribed for the carriage of

noxious liquid substances in bulk.

(3) No Indian oil tanker or other Indian ship to which Annexure IV of

the Convention applies shall proceed to sea except with a certificate

issued by the Central Government, to be called an international sewage

pollution prevention certificate, in such form, for such duration and

subject to such conditions as may be prescribed.

Explanation.-For the purposes of this sub-section, “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 waste water when mixed with the drainages specified above.

(4) A valid international pollution prevention certificate issued in

respect of an oil tanker or 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 has under this Part.

Issue of certificates for foreign ships in India and Indian ships in

foreign countries.

356D. Issue of certificates for foreign ships in India and Indian ships

in foreign countries.-(1) The Central Government may, at the request of

the Government of a country to which the Convention applies, cause

any international pollution prevention certificate to be issued in

accordance with the Convention in respect of an oil tanker or other

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 request.

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

which the Convention applies, to issue any international pollution

prevention certificate 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 for construction and equipment in ships to prevent

pollution.

356E. Requirement for construction and equipment in ships to prevent

pollution.-For the purpose of preventing or reducing discharges of

harmful substances or mixtures containing such substances from the

oil tankers or other ships, the Central Government may make rules

requiring Indian oil tankers and other Indian ships to be fitted

with such equipment and to comply with such requirements for

construction, survey of equipment and structure of such oil tankers or

other ships and specifying conditions for making of surveys of all oil

tankers or other ships, as may be prescribed, prior to issuing an

international pollution prevention certificate.

Explanation.-For the purposes of this section, “harmful substance”

means any substance which, if introduced into the sea, is liable to

create hazards to human health, harm living resources and marine life,

damage amenities or interfere with other legitimate uses of the sea,

and includes any substance subject to control by the Convention.

Record books.

356F. Record books.-(1) Every Indian oil tanker or other Indian ship

which carries a substance subject to control by the Convention shall

maintain, as may be required, record books in the prescribed forms, on

board the oil tanker or other ship.

(2) The manner in which record books shall be maintained, the nature

of entries to be made therein, 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 control of oil tankers and other ships to which the Part

applies.

356G. Inspection and control of oil tankers and other ships to which

the Part applies.-(1) A surveyor or any person authorised in this

behalf may go, at any reasonable time, on board an oil tanker or other

ship to which any of the provisions of this Part applies, for the

purposes of-

(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

a substance which is subject to control by the Convention from the oil

tanker or 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 pollution prevention

certificate.

(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 tanker or ship to certify the copy to be a true copy and such

copy shall be admissible as evidence of the facts stated therein.

Information regarding contravention of provisions of Convention.

356H. Information regarding contravention of provisions of Convention.-

(1) If, on report from a surveyor or other person authorised to inspect

an oil tanker or other ship under section 356G, the Director-General is

satisfied that any provision of the Convention has been contravened by

such oil tanker or other ship within the coastal waters, the Director-

General or any officer authorised by him in this behalf, may-

(a) detain the oil tanker or other ship until the causes of such

contravention are removed to the satisfaction of the Director-General

or the officer authorised by him; and

(b) proceed against such oil tanker or other ship for recovery of

cost of pollution damage, if any, and the cost of prevention of

pollution damage and cleaning of such pollution:

Provided that where the Director-General deems it necessary, he may

request the Indian Navy or the Coast Guard for preventing the oil

tanker or other ship from proceeding to sea, and the Indian Navy or the

Coast Guard, as the case may be, shall take action as requested by the

Director-General.

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

which the Convention applies that an Indian oil tanker or other

ship has contravened any provision 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 the rules made

thereunder, take appropriate action against the owner or master of the

concerned oil tanker or other ship and intimate the reporting

Government of the action so taken..

3.

Amendment of section 356-I.

3. Amendment of section 356-I.-In section 356-I of the principal Act,

for the words “oil reception facilities”, wherever they occur, the

words “reception facilities” shall be substituted.

4.

Amendment of section 356J.

4. Amendment of section 356J.-In section 356J of the principal Act,

for the word “oil”, wherever it occurs, the words “oil or noxious

liquid substance” shall be substituted.

5.

Amendment of section 356K.

5. Amendment of section 356K.-In section 356K of the principal Act, for

the word “oil”, wherever it occurs, the words “oil or noxious liquid

substance” shall be substituted.

6.

Amendment of section 356-O.

6. Amendment of section 356-O.-In section 356-O of the principal Act,

in sub-section (2),-

(i) for clauses (a) and (b), the following clauses shall be

substituted, namely:-

“(a) prescribe the limits of ballast, and designate noxious liquid

substances, under clauses (a) and (h), respectively, of section 356B;

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

conditions subject to which, various international pollution prevention

certificates shall be issued under section 356C;

(bb) prescribe the period within which, the manner in which and the

conditions for making surveys of oil tankers or other ships prior to

issuing

an international pollution prevention certificate and 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

required under the Convention” shall be substituted;

(iv) after clause (e), the following clause shall be inserted, namely:-

“(ee) any other matter which, for the implementation of the

Convention, has to be or may be prescribed.”.