MERCHANT SHIPPING ACT

Arrangement of Sections

PART I

INTRODUCTORY

1. Short title.

2. Extension and application of Act.

3. Appointment of Director of Merchant Shipping.

4. Power of Minister to give directions.

5. Appointment of officers and servants.

6. Powers of Minister.

7. Appointment and duties of Shipping Officers.

8. Designation of Shipping Offices.

9. Power of Director to dispense with transaction of certain matters at Shipping office.

10. Appointment of Surveyors.

11. Chief Registrar and Registrars of Sri Lanka Ships.

12. Minister may delegate certain duties.

13. Appointment of Registrar of Seamen.

PART II

CONTROL OF SHIPPING

14. Application of this Part.

15. Restriction on chartering of ships.

16. Licenses to take ships to sea.

17. Revocation of licence.

18. Unlicensed ships.

19. No port clearance until licence is produced.

20. Power to give directions.

21. Shipping Allocation Board.

22. Powers to fix shipping rates.

23. Shipping Rates Advisory Board.

24. Power to call for information.

25. Submission of schedule of fares in respect of certain ships.

26. Power of Director to enter ships.

27. Penalty.

28. Restrictive practices in relation to the carriage of goods by sea.

29. Power to make rules.

PART III

REGISTRY

CHAPTER 1

REGISTRATION OF SRI LANKA SHIPS

30. Qualification for owning Sri Lanka ship.

31. Obligation to register Sri Lanka ships.

32. Exemptions from registry.

33. Register book.

34. Application for registry.

35. Declaration of ownership.

36. Ship's names.

37. Evidence on first registry.

38. Survey.

39. Marking of ship.

40. Entry of particulars in register book.

41. Documents to be retained by Registrar.

42. Application to Government ships.

43. Port of registry.

44. Regulations.

45. Power of Chief Registrar to inquire into title of Sri Lanka ship to be registered as such.

46. Exemption.

CHAPTER 2

CERTIFICATE OF REGISTRY

47. Certificate of registry.

48. Provisional certificate.

49. Custody and use of certificate.

50. Improper use of certificate.

51. Grant of new certificate.

52. Provision for loss of certificate.

53. Change of master.

54. Change of owner.

55. Delivery of certificate of ship lost or ceasing to be Sri Lanka ship.

CHAPTER 3

TRANSFER OF OWNERSHIP

56. Transfer of ship or share.

57. Declaration of transfer.

58. Registry of transfer.

59. Transmission of property in ship on bankruptcy death.

60. Order for sale on transmission to an unqualified person.

61. Transfer of ship or sale by order of Court.

62. Power of court to prohibit transfer.

CHAPTER 4

MORTGAGES

63. Rules of English law applicable except where they are inconsistent or in conflict with this Act.

64. Mortgage of ship or share.

65. Entry of discharge of mortgage.

66. Priority of mortgages.

67. Mortgagee not treated as owner.

68. Mortgagee to have power of sale.

69. Mortgage not affected by bankruptcy.

70. Transfer of mortgages.

71. Transmission of interest in mortgage on bankruptcy.

72. Powers of mortgage and sale to be exercised outside Sri Lanka may be conferred by certificate.

73. Requisites for certificates of mortgage and sale.

74. Restrictions on certificates of mortgage and sale.

75. Contents of certificates of mortgage and sale.

76. Rules as to certificates of mortgage.

77. Rules as to certificates of sale.

78. Power of Chief Registrar in case of loss of certificate.

79. Revocation of certificates of mortgage and sale.

CHAPTER 5

MARITIME LIENS

80. Application.

81. Restriction on cancellation registration.

82. Restriction on registration.

83. Maritime liens.

84. Priority of liens.

85. Order of priority of liens.

86. Rights of shipbuilders and ship, repairers.

87. Overriding nature of maritime liens.

88. Saving in relation to claims arising from radioactive products.

89. Limitation period.

90. When limitation period is interrupted.

91. Notice of sale to be given to mortgages, register.

92. Effect of sale on mortgages.

93. Disposition of proceeds of sale.

94. When a certificate that a ship is sold free of mortgages, liens, shall issue.

95. Action by Registrar on receipt of certificate.

CHAPTER 6

ALTERATIONS IN SHIPS AND REGISTRY

96. Registry of alterations.

97. Regulations for registry of alterations.

98. Registry anew on change of ownership.

99. Procedure for registry anew.

100. Provisional certificate and endorsement where a ship is to be registered anew.

101. Transfer of registry.

102. Restriction on re-registration of abandoned, ships.

CHAPTER 7

MISCELLANEOUS PROVISIONS

103. Provision for case of incapacity.

104. Notice of trusts not received.

105. Liability of owners.

106. Definition of beneficial interest.

107. Managing owner.

108. Power to dispense with declarations.

109. Mode of making declarations.

110. Returns to be made by Registrars.

111. Evidence of register book, certificate of registry and other documents.

112. Forgery of documents.

113. False declarations.

CHAPTER 8

RIGHTS AND OBLIGATIONS OF SRI LANKA AND OTHER SHIPS

114. Trade in Sri Lanka waters.

115. National character of ship to be declared on clearance.

116. Penalty for unduty assuming Sri Lanka character.

117. Penalty for concealment of Sri Lanka or assumption of foreign character.

118. Penalty for acquiring ownership if unqualified.

119. Liabilities of ship not recognised as Sri Lanka ship.

120. National colours.

121. Showing of National Ensign.

122. Proceedings on forfeiture of ship.

123. Protection of officers.

PART IIIA

PARALLEL REGISTRATION

123A. Interpretations.

123B. This Part to apply to parallel registration.

123C. Parallel registration of ships.

123D. Requirements registration.

123E. Procedure for parallel registration.

123F. Ship to fly Sri Lanka flag.

123G. Mortgages in the case of parallel registration.

123H. Cancellation of registration.

123J. Section 116 or 118 not to apply.

123K. Regulations.

PART IV

MASTERS AND SEAMEN

CHAPTER 1

PRELIMINARY

124. Application.

125. Interpretation.

CHAPTER 2

QUALIFICATIONS AND MANNING

126. Regulations relating to qualifications of officers and seamen, the manning of ship.

CHAPTER 3

CONDITIONS OF SERVICE

127. Regulations relating to conditions of service.

CHAPTER 4

DOCUMENTATION AND RETURNS

128. Regulations relating to official logbooks.

129. Regulations relating to returns of births and deaths in Sri Lanka ships.

130. Regulations relating to returns of births and deaths of citizens in ships not registered in Sri Lanka.

131. Handing over of documents on change of master.

CHAPTER 5

GENERAL

132. Stowaways.

133. Unauthorised presence on board ship.

134. Master's power of arrest.

135. Unregistered Sri Lanka ship.

136. National Welfare Board for seamen.

137. Prohibition of the maintenance of a seamen's lodging house without a licence.

PART V

CONSTRUCTION, EQUIPMENT, AND SURVEY

CHAPTER 1

PRELIMINARY

138. Interpretation.

CHAPTER 2

POWERS OF MINISTER

139. Regulations relating to safety at sea.

140. Savings.

141. Power of Minister to exempt.

142. Saving relating to ships taking refuge from weather.

CHAPTER 3

CERTIFICATES AND SURVEY

143. Prohibition on Passenger ship sailing without certificates.

144. Prohibition on cargo ship sailing without certificates.

145. Variation of certificates on amendment, of Convention.

146. Production of certificates.

147. Surveys and declarations of Survey.

148. Issue of certificates.

149. Minister may approve organisations to survey ships and issue certificates.

150. Period of validity of certificate.

151. Cancellation or suspension of certificates.

152. Surrender of certificates.

153. Recognition of certificates issued outside Sri Lanka.

154. Issue of certificates to foreign ships in Sri Lanka and to Sri Lanka ships in foreign countries.

155. Penalty for alteration in ship after certificate has been issued.

156. Penalty for forgery of certificate or declaration.

CHAPTER 4

GENERAL

157. Information about ship's stability.

158. Signaling lamps.

PART VI

LOAD LINES

CHAPTER 1

PRELIMINARY

159. Interpretation.

160. Application.

161. Definition of "international voyage”.

162. Definition of "new ship”.

163. Definition of "valid Convention certificate”.

164. Regulations relating to load lines.

165. Regulations relating to deck cargo.

CHAPTER 2

SHIPS REGISTERED IN SRI LANKA

166. Prohibition on sailing without certificates.

167. Prohibition in excess loading.

168. Penalties concerning marking of ships.

169. Issue of certificates.

170. Presumptions arising on issue of certificates.

171. Certificate to be produced prior to clearance.

172. Duties of owner and master on issue of certificate.

CHAPTER 3

SHIPS NOT REGISTERED IN SRI LANKA

173. Issue of certificate to ship not registered in Sri Lanka.

174. Prohibition on sailing without survey.

175. Prohibition on excess loading.

176. Issue of Sri Lanka Load Line Certificate.

177. Certificates to produced prior to clearance.

178. Power of inspection.

CHAPTER 4

EXEMPTIONS

179. Power of exemption in relation to ships on certain international voyages.

180. Power of exemption in relation to ships under eighty tons.

181. Power of exemption in relation to ships with novel features.

182. Power of exemption in relation to ships in Sri Lanka.

183. Power of exemption in relation to single voyage.

184. Power to impose condition.

185. Exemption certificate.

PART VII

SAFETY OF NAVIGATION

CHAPTER 1

PREVENTION OF COLLISIONS

186. Collision regulation.

187. Observance of collision regulations.

188. Local rules for navigation in ports.

189. Inspection as to lights and fog signals.

190. Method of giving helm orders.

CHAPTER 2

REPORTS OF ACCIDENTS AND LOSSES OF SHIPS

191. Reports of accidents to ships.

192. Notice of loss of Sri Lanka ship to be given to the Director.

CHAPTER 3

LIGHT HOUSES

193. Interpretation.

194. Injury to lighthouses.

195. Prevention of false lights.

196. Notice under section 195.

197. Penalty.

198. Powers of Director and failure to extinguish false light.

CHAPTER 4

ASSISTANCE

199. Obligation to assist ships in distress.

200. Right to requisition ships when in distress.

201. General duty to render assistance to persons in danger at sea.

202. Duty of ship to assist the other in case of collision.

203. Assistance to persons in danger.

204. Salvage rights not affected.

CHAPTER 5

UNSEAWORTHY SHIPS

205. Sending unseaworthy ship to sea an offence.

206. Obligation of ship owner to crew with respect to sea worthiness.

207. Power to detain unsafe ships.

208. Method of detention of unsafe ships.

209. Supplementary provisions relating to detention.

210. Exercise of Powers.

211. Liability for costs and damages.

212. Power to require complainant to give security for costs.

213. Survey of ship alleged by seamen to be unseaworthy.

214. Appointment of Surveyor.

215. Costs of survey.

PART VIII

COURTS OF SURVEY

216. Interpretation.

217. Constitution of Court of Survey.

218. Power and procedure of Courts of Survey.

219. Report of the court of Survey.

220. Rules of procedure.

221. Reference in difficult cases to scientific referees.

222. Payments to officers of Courts.

223. Indemnity.

PART IX

WRECK AND SALVAGE

CHAPTER 1

PRELIMINARY

224. Interpretation.

225. Appointment of Principal receiver of Wrecks and receivers.

226. Fees of receiver of wrecks.

CHAPTER 2

VESSELS IN DISTRESS

227. Duty of receiver where vessel is in distress.

228. Power of receiver in case of vessels in distress.

229. Powers to pass over adjoining lands.

230. Power of receiver to suppress plunder and disorder by force.

231. Exercise of powers of receiver in his absence.

232. Examination in respect of ships in distress.

CHAPTER 3

DEALING WITH WRECK

233. Rules to be observed by persons finding wreck.

234. Penalty for taking wreck at the time of casualty.

235. Notice of wreck to be given by receiver.

236. Claims of owners to wreck.

237. Immediate sale of wreck by receiver in certain cases.

238. Provisions as to duties, on wrecked goods.

CHAPTER 4

UNCLAIMED WRECK

239. Right to unclaimed wreck.

240. Disposal of unclaimed wreck.

241. Delivery of unclaimed wreck by receiver not to prejudice title.

CHAPTER 5

REMOVAL OF WRECKS

242. Removal of wreck by harbour or conservancy authority.

243. Prohibition of the receipt wrecks by Admiralty Courts.

244. Breaking and removal of wrecks.

245. Powers of removal to extend to tackle, cargo.

246. Powers to be cumulative.

CHAPTER 6

OFFENCES IN RESPECT OF WRECK

247. Taking wreck to a foreign port.

248. Boarding wreck.

249. Interfering with wreck.

250. Summary procedure for concealment of wreck.

251. Salvage of life.

252. Salvage of cargo.

253. Services to which sections 251 and 252 do not apply.

254. Where both vessels belong to the same.

255. Determination of salvage disputes.

256. Power of High Court in relation to salvage agreements.

257. Summary determination of salvage disputes.

258. Appeal in case of salvage disputes.

259. Valuation of property by receiver.

260. Detention of property liable to salvage by receiver.

261. Sale of detained property.

262. Apportionment of salvage amongst owners, of foreign vessel.

263. Apportionment of salvage not exceeding two thousand rupees by receiver.

264. Apportionment of salvage by High court.

265. Application to the Government.

PART X

LEGAL PROCEEDINGS

CHAPTER 1

CASUALTIES

266. Shipping casualties.

267. Preliminary inquiry into shipping or casualties.

268. Formal investigation as to shipping casualties.

269. Power of Court of Investigation to inquire into charges against masters, mates and engineers.

270. Power of Director to direct inquiry into charges of incompetency or misconduct.

271. Power to arrest witnesses and enter ships.

272. Power to commit for trial and bind over witnesses.

273. Power of Courts as to certificates.

274. Power of Court to censure master, male or engineer of a ship.

275. Power of Court to remove master of a ship and appoint new master.

276. The delivery of certificate cancelled or suspended.

277. Effect of cancellation or suspension of certificates.

278. Suspended certificate not to be endorsed.

279. Re-hearing of an appeal from inquiries and investigations.

280. Rules relating to inquiries and investigations.

281. Powers of Director to cancel, suspend, certificate of master, mate, or engineer of a ship.

282. Limitation of time for summary proceedings.

283. Liability of ship owners.

284. Offences by bodies of servants and agents.

285. Who may prosecute.

286. Compounding of offences.

CHAPTER 2

JURISDICTION

287. Jurisdiction of Magistrates' court.

288. Provision as to jurisdiction over offences.

289. Jurisdiction over ships lying off the coast.

290. Jurisdiction in case of offences on board ship.

291. Application of Fines.

292. Conviction under other law.

CHAPTER 3

DETENTION OF AND DISTRESS ON SHIP

293. Power to arrest foreign ship that has occasioned damage.

294. Enforcing detention of ship.

295. Proper officer of customs to be informed detention of ship.

296. Cost of detaining ship.

297. Notice to Consular officer on detention of foreign ship.

298. Sums ordered to be paid leviable by distress on ship.

CHAPTER 4

INQUIRIES INTO DEATHS

299. Inquiries into deaths of crew members and others.

CHAPTER 5

EVIDENCE AND SERVICE OF DOCUMENTS

300. Depositions to be received in evidence where witness cannot be produced.

301. Proof of attestation not required.

302. Admissibility of documents in evidence.

303. Notices to be in writing.

304. Service of documents.

CHAPTER 6

PROTECTION OF OFFICERS

305. All officers to be public servants.

306. Protection of public servants.

PART XI

SUPPLEMENTAL

CHAPTER 1

ENFORCEMENT OF ACT

307. Interpretation of certain terms in this Chapter.

308. Powers of authorised officers to under board ships.

309. Power of requiring production of documents.

310. Inspections.

311. Power of arrest.

312. Returns by Surveyors.

CHAPTER 2

INSPECTORS

313. Appointment of inspectors.

314. Powers of inspectors.

315. Witnesses.

316. Obstruction of inspector.

CHAPTER 3

DOCUMENTS AND FORMS

317. Power of Director to prescribe forms.

318. Exemption from stamp duty.

319. Offences in respect of use of forms.

CHAPTER 4

GENERAL

320. Power to apply Act to ships of countries, and to exempt such ships.

321. General power to make regulations.

322. Indemnity to Government.

323. General power of exemption.

324. Interpretation.

PART XII

REPEAL AND TRANSITIONAL

325. Repeal.

326. Transitional provisions registered ships.

327. Provision relating to tonnage measurement.

328. Provision relating ship name's.

329. Provision relating to forms and bills of sale.

330. Application of safety and load line regulations.

331. Act to override certain other legislation.

332. Temporary continuance of certain rules.

333. Regulations for resolving transitional difficulties.

SCHEDULE

52 of 1971,

36 of 1988,

3 of 2006.

AN ACT to amend and consolidate the law relating to Merchant Shipping in force in Sri Lanka, and to make provision for matters connected therewith or incidental thereto.

[Date of Commencement: 25th January, 1972; Part II not in operation on 1st December, 1980]

PART I

INTRODUCTORY

1. Short title.

This Act may be cited as the Merchant Shipping Act, and shall come into operation on such date as the Minister may appoint by Order published in the Gazette. Different dates may be so appointed for the purposes of the different Parts or provisions of this Act.

2. Extension and application of Act.

This Act shall extend to the whole of Sri Lanka, and save as otherwise specifically provided, shall also apply to:

(a) all Sri Lanka ships wherever they may be;

(b) all ships registered or deemed to be registered under this Act wherever they may be;

(c) all ships, not being Sri Lanka ships, licensed under this Act to engage in the coasting trade, while engaged in such trade; and

(d) all other ships while in a port or place in, or within the territorial waters of, Sri Lanka:

Provided, however, that this Act shall not apply to any ships of, or commissioned for service in, the Sri Lanka Navy or, while employed otherwise than for profit in the service of Government, any other ships belonging to Government.

3. Appointment of Director of Merchant Shipping.

(1) There may be appointed, for the purposes of this Act, a Director of Merchant Shipping who shall have the general superintendence of this Act and the general supervision of all matters relating to shipping and seamen throughout Sri Lanka, and is authorised to carry the provisions of this Act into execution.

(2) Any officer generally or specially authorised in that behalf by the Director may exercise, perform or discharge any power, duty or function vested in, or imposed or conferred upon, the Director under this Act, and any act done by, to or before any such officer shall be as valid for the purposes of this Act as if it were done by, to or before the Director.

4. Power of Minister to give directions.

The Minister may, from time to time, give the Director-General directions, not inconsistent with the provisions of this Act or any other written law, on the policy to be pursued in the administration of this Act, and the Director shall forthwith take such steps as are necessary or expedient to give effect thereto.

5. Appointment of officers and servants.

(1) There may be appointed, for the purposes of this Act, such deputies and assistants to the Director, and such other officers as may be necessary.

(2) It shall be lawful for the Director to assign to such deputies or assistants and other officers as are referred to in subsection (1) the functions and duties to be carried out by them and every such officer discharging and performing any functions and duties under this Act shall be deemed, until the contrary is proved, to be the proper officer for the performance of that function or duty.

(3) Such officers as are referred to in subsection (1) may exercise, perform or discharge all or any of the powers, duties or functions conferred or imposed on or assigned to them under this Act.

(4) In the exercise, performance and discharge of the powers, duties or functions conferred or imposed on or assigned to them under this Act, the officers referred to in subsection (1) shall be subject to the directions and control of the Director.

6. Powers of Minister.

The Minister may assign any functions or duties under this Act to any person, by name or by office, and any such person shall, while discharging or performing any such functions or duties so assigned, be deemed to be a proper officer for the purposes of this Act. All such persons in discharging or performing any functions or duties assigned to them under this section shall be subject to the direction and control of the Director.

7. Appointment and duties of Shipping Officers.

(1) There may be appointed, for the purposes of this Act, such number of Shipping Officers (which term shall include Deputy or Assistant Shipping Officers) for each port in Sri Lanka as may be necessary.

(2) It shall be the duty of a Shipping Officer for a port—

(a) to afford facilities for engaging seamen by keeping registers of their names, sea service, and such other particulars as are prescribed by the Director;

(b) to supervise and facilitate the engagement and discharge of seamen in the manner required under this Act;

(c) to facilitate the making of apprenticeships to the sea service;

(d) to perform such other duties relating to seamen, apprentices and ships as under this Act, or any other law for the time being in force relating to merchant shipping, are committed to such Officer.

(3) Any act done by, to or before a Shipping Officer shall be valid and effectual for the purposes of this Act, and shall be deemed to have been done for and on behalf of the Director.

(4) The fees prescribed under this Act shall be payable by the masters, agents or owners of ships to Shipping Officers in respect of the matters so prescribed.

8. Designation of Shipping Offices.

The Minister may, by Notification published in the Gazette, designate any place at any port at which a person has been appointed under this Act to be Shipping Officer, to be a Shipping Office for the transaction of business under this Act.

9. Power of Director to dispense with transaction of certain matters at Shipping office.

The Director may in his discretion dispense with the transaction in a Shipping Office, or before a Shipping Officer, of any matters required under this Act to be so transacted, and thereupon such matters (if otherwise duly transacted) shall be as valid as if they were transacted in such office or before a Shipping Officer.

10. Appointment of Surveyors.

(1) There may be appointed, for the purposes of this Act, a Chief Surveyor of Ships for Sri Lanka. There may be appointed, either generally or for special purposes or on special occasions, any person to be a Surveyor of Ships, an Engineer and Ship Surveyor, a Nautical Surveyor, or a Radio Surveyor.

(2) The Chief Surveyor of Ships and every Surveyor of Ships shall have and perform the powers, functions and duties conferred or imposed under this Act.

(3) The Chief Surveyor of Ships may delegate the exercise of any powers conferred on him under this Act to such persons as he may think fit.

(4) The duties of a Surveyor shall be performed under the direction of the Chief Surveyor of Ships, and in accordance with any rules made under this Act.

11. Chief Registrar and Registrars of Sri Lanka Ships.

(1) The Director shall be the Chief Registrar of Sri Lanka Ships.

(2) There may be appointed at any such port as is considered necessary a person to be a Registrar of Sri Lanka Ships.

(3) A Registrar of Sri Lanka Ships shall perform his duties under the direction of the Chief Registrar of Sri Lanka Ships.

(4) A Registrar of Sri Lanka Ships shall not be liable to damages or otherwise for any loss accruing to any person by reason of any act or omission by him in the exercise of his duties as Registrar.

12. Minister may delegate certain duties.

The Minister may, by Notification published in the Gazette, delegate to the powers and Director or the Chief Surveyor of Ships, or any other officer appointed under this Act and specified in such Notification, the exercise of any powers (other than the power to make any subsidiary legislation) or the performance of any duties conferred or imposed on him under this Act, subject to such conditions and restrictions as may be specified in such Notification. No such delegation shall affect the exercise of such power or the performance of such duty by the Minister; and every officer purporting to act pursuant to any delegation under this section shall, in the absence of proof to the contrary, be presumed to be acting in accordance with the terms of the delegation.

13. Appointment of Registrar of Seamen.

(1) There may be appointed, for the purposes of this Act, a Registrar of Seamen.

(2) The Registrar of Seamen shall by means of documents transmitted to him in pursuance of this Act and by any other means in his power, keep at his office a register—

(a) of all persons who serve in Sri Lanka ships; and

(b) of all seamen (being citizens of Sri Lanka) who produce continuous discharge certificates in proof of service in foreign or Sri Lank a ships.

(3) The Registrar of Seamen shall cause copies of the certificates produced under paragraph (b) of subsection (2) to be kept at his office.

PART II

CONTROL OF SHIPPING.

14. Application of this Part.

This Part, other than sections 28 and 29, shall apply only to such sea-going ships as the Minister may fix by Notification published in the Gazette. Such Notification shall come into force on such date as may be specified therein.

15. Restriction on chartering of ships.

(1) No person shall charter any ship, whether a Sri Lanka ship or not, or being the owner of any Sri Lanka ship, or the agent of such owner, give or offer to give on charter any such ship to any other person, except with the previous permission in writing of the Director, or otherwise than in accordance with the conditions subject to which such permission is so granted—

(2) Any person who contravenes or attempts to contravene the provisions of subsection (1) shall be guilty of an offence and on conviction thereof shall be liable to imprisonment of either description for a term not exceeding three years, or to a fine not exceeding ten thousand rupees, or to both such imprisonment and fine.

16. Licenses to take ships to sea.

(1) No Sri Lanka ship, or ship chartered by any person shall be taken to sea from a port or place within or outside Sri Lanka except under the authority of a licence granted in that behalf by the Director, or otherwise than in accordance, with the conditions of such licence.

(2) A licence granted under subsection (1) may, in the discretion of the Director, be—

(a) a general licence; or

(b) a licence for a specified period or a specified voyage.

(3) Subject to the provisions of section 17, a general licence shall remain valid until it is revoked or cancelled, and a licence for a specified period or a specified voyage shall be valid only for the period or voyage for which it is granted, unless the period is extended by the Director.

(4) A licence granted under subsection (1) may contain such conditions as the Director may think fit to impose with respect to the trades in which the ship may engage and the voyages which it may undertake, and such conditions may be imposed so as to apply to the ship wherever it may be or while in such waters, or engaged in such trades, or on such voyages, as may be specified.

(5) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence and on conviction thereof shall be liable to imprisonment of either description for a term not exceeding one year, or to a fine not exceeding three thousand rupees, or to both such imprisonment and fine.

17. Revocation of licence.

(1) Any licence granted under this Part may be modified, suspended, revoked or cancelled by the Director, but no such licence shall be revoked or cancelled, unless the licensee has been given an opportunity of making representations against such revocation or cancellation:

Provided that any applicant for registration dissatisfied with the decision of the Director may appeal to the Minister in the prescribed manner.

(2) Where a licence granted under this Part is revoked or cancelled or otherwise ceases to be valid, the licensee shall, within sixty days after such revocation, cancellation or cessation, return it or cause it to be returned to the Director.

(3) Any person who contravenes the provisions of subsection (2) shall be guilty of an offence and on conviction thereof shall be liable to a fine not exceeding one thousand rupees.

18. Unlicensed ships.

(1) Where, in respect of any such ship as is referred to in section 16 no licence has been granted or is in force, the Director, if satisfied that it is necessary or expedient in the public interest or in the interest of shipping in general so to do, may by order in writing, direct the owner or charterers thereof to operate the ship, on any assigned route on such terms and conditions as may be determined by the Director, and the provisions of this Part shall, so far as may be, apply in relation to such ship as if the direction were a licence issued under this Part.

(2) Any person who fails to comply with an order made under subsection (1) shall be guilty of an offence and on conviction thereof shall be liable to imprisonment of either description for a term not exceeding one year, or to a fine not exceeding three thousand rupees, or to both such imprisonment and fine.

19. No port clearance until licence is produced.

(1) An officer of customs shall not grant a port clearance to a ship required to take a licence under this Part, until the owner or master thereof has produced the requisite licence and a certificate from the Director to the effect that the conditions of the licence have been duly fulfilled.

(2) If a ship attempts to proceed to sea without a port clearance, she may be detained until the licence and certificate are produced as required by subsection 1.

20. Power to give directions.

(1) The Director may, if satisfied that it is necessary or expedient in the public interest or in the interest of shipping in general so to do, and shall, where so directed by the Minister, by order in writing give, to a ship which has been granted a licence under this Part, directions with respect to all or any of the following matters:

(i) the ports or places, whether in or outside Sri Lanka, to which, and the routes by which, the ship shall proceed for any particular purpose;

(ii) the diversion of the ship from one route to another for any particular purpose;

(iii) the dates, if any, of arrival and departure of the ship at or from any port or place;

(iv) the classes of passengers which may be carried in the ship;

(v) the kind of cargo which may be carried in the ship and the quantity in which such cargo may be put on board by any shipper specified in the order;

(vi) the order or priority in which passengers or cargo may be taken on or put off the ship at any port or place, whether in or outside Sri Lanka; and

(vii) the person or persons to whom passages may be given.

(2) Any person who fails to comply with any direction given under subsection 1 shall be guilty of an offence and on conviction thereof shall be liable to imprisonment of either description for a term not exceeding one year, or to a fine not exceeding three thousand rupees, or to both such imprisonment and fine.

21. Shipping Allocation Board.

The Minister may, by Notification published in the Gazette, constitute a Shipping Allocation Board to advise him on the matters enumerated in section 20.

22. Powers to fix shipping rates.

(1) The Minister may, from time to time, by Order published in the Gazette, fix the rates at which any Sri Lanka ship may be hired, and the rates which may be charged for carriage of passengers or cargo by any such ship, or by any ship, other than a Sri Lanka ship, engaged in the coasting trade.

(2) Where an Order fixing the rates to be charged for hire, or for the carriage of passengers or cargo, has been published under subsection 1, no rates, other than the rates so fixed, shall be charged for such hire or carriage.

(3) The owner, master, or agent of the owner, of a ship in respect of which the provisions of subsection (2) are contravened shall be guilty of an offence and on conviction thereof shall be liable to imprisonment of either description for a term not exceeding one year, or to a fine not exceeding three thousand rupees, or to both such imprisonment and fine.

23. Shipping Rates Advisory Board.

The Minister may, by Notification published in the Gazette, constitute a Shipping Rates Advisory Board to advise him on matters referred to in section 22.

24. Power to call for information.

(1) The Director may, by notice served personally or by post, require the master or owner of any ship in respect of which a licence granted under this Part is in force, to furnish within the period specified in the notice, information regarding all or any of the following matters:

(i) the classes of passengers and cargo which the ship is about to carry or is capable of carrying or has carried during any period specified in that behalf in the notice;

(ii) the rates of passenger fares and freight charges applicable to the ship; and

(iii) any other matter relating to the aforesaid matters which may be specified by rules made by the Minister,

(2) If any person on whom a notice has been served under subsection 1 fails to furnish the information required within the specified time or in furnishing such information, makes any statement which he knows to be false in any material particular, he shall be guilty of an offence and on conviction thereof shall be liable to imprisonment of either description for a term not exceeding one year, or to a fine not exceeding three thousand rupees, or to both such imprisonment and fine.

25. Submission of schedule of fares in respect of certain ships.

(1) The master or the agent in Sri Lanka of the owner of any ship, not being a ship referred to in section 20, which engages or is engaged in the carriage of passengers or cargo from any port or place in Sri Lanka to any port or place outside Sri Lanka shall file a schedule of passenger fares and freight charges applicable to that ship with the Director for the approval of the Minister in so far as the fares and charges relate to such carriage, and in so approving the Minister may fix rates or charges reducing or enhancing any such fares or charges.

(2) No fares and charges other than those approved under subsection 1, shall be charged in respect of any carriage to which the fares and charges so approved relate.

26. Power of Director to enter ships.

Where in respect of any ship to which a licence has been granted under this Part the Director has reason to suspect that any of the provisions of this Part is not being complied with, he may enter, or authorise any other person to enter, on board the ship and ask for the relevant documents for examination.

27. Penalty.

If any of the conditions contained in a licence granted under this Part is contravened, the master and the owner, or, in the case of a ship other than a Sri Lanka ship, the agent in Sri Lanka of the owner, of the ship in respect of which the contravention has taken place, shall be guilty of an offence and on conviction thereof shall be liable to imprisonment of either description for a term not exceeding one year, or to a fine not exceeding three thousand rupees, or to both such imprisonment and fine.

28. Restrictive practices in relation to the carriage of goods by sea.

(1) The Minister may, in accordance with the provisions of subsection (2), if he deems fit—

(a) declare it an offence for any person either as principal or agent to enter into a contract or to be or continue to be a member of or engaged in any combination in relation to the carriage of goods by sea to and from Sri Lanka in restraint of or with intent to restrain such carriage of goods by sea, and prescribe penalties and other punishments for such offence;

(b) declare it an offence for any person to monopolies, or to combine or conspire with any other person to monopolies, any part of the trade in relation to the carriage of goods by sea to and from Sri Lanka, and prescribe penalties and other punishments for such offence;

(c) declare it an offence for any person in relation to the carriage of goods by sea to and from Sri Lanka either as principal or agent, in respect of dealings in respect of such carriage of goods by sea, to offer or promise to any other person any rebate, refund, discount, concession or reward for the reason or upon conditions expressed or implied which the Minister may declare unlawful, and prescribe penalties and other punishments for such offence;

(d) declare it an offence for any person to refuse, either absolutely or except upon disadvantageous conditions, to undertake the carriage of goods by sea to and from Sri Lanka to any other person for any reason declared by the Minister to be unlawful, and prescribe penalties and other punishments for such offence;

(e) declare any contracts entered into in contravention of any declarations under the preceding paragraphs (a), (b), (c) and (d) as illegal and void.

(2) The Minister may make regulations for giving effect to the provisions of this section and related matters.

29. Power to make rules.

(1) The Minister may make rules for carrying out the purposes of this Part.

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

(a) the forms of licenses;

(b) the procedure to be followed by Boards constituted under sections 21 and 23;

(c) the manner in which rates shall be fixed under section 22;

(d) the matters regarding which information may be required to be furnished under section 24;

(e) any other matters relating thereto for which it is necessary to make provision.

PART III

REGISTRY

CHAPTER 1

REGISTRATION OF SRI LANKA SHIPS

30. Qualification for owning Sri Lanka ship.

A ship shall not be deemed to be a Sri Lanka ship, unless it is owned wholly by—

(a) a natural person who is a citizen of Sri Lanka; or

(b) the Ceylon Shipping Corporation, or any Government-Sponsored Shipping Company or Corporation; or

(c) any body corporate as may be determined by the Minister.

31. Obligation to register Sri Lanka ships.

(1) Every Sri Lanka ship shall, unless exempted from registration, be registered under this Act.

(2) If a ship required by this Act to be registered is not so registered, such ship shall not be recognised as a Sri Lanka ship.

(3) A ship required by this Act to be registered may be detained until the master of the ship, if so required, produces the certificates of the registry of the ship.

(4) The Minister may prescribe the manner in which ships or classes of ships belonging to the Government of Sri Lanka or any statutory body therein may be registered under this Act.

32. Exemptions from registry.

The following ships are exempted from registration under this Act—

(a) any ship not exceeding fifteen tons net;

(b) any boat licensed under the Boats Ordinance;

(c) any ship referred to in any order made under section 46, to such extent as may be specified in such order.

33. Register book.

Every Registrar of Sri Lanka Ships shall keep a book (to be called the register book) and entries in that book shall be made in accordance with the following provisions:

(a) the property in a ship shall be divided into sixty-four shares;

(b) subject to the provisions of this Act with respect to joint owners or owners by transmission, not more than sixty-four individuals shall be entitled to be registered at the same time as owners of any one ship:

Provided, however, that the preceding provisions of this paragraph shall not affect the beneficial interest of any number of persons or of any company represented by or claiming under or through any registered owner or joint owner;

(c) a person shall not be entitled to be registered as owner of a fractional part of a share in a ship, but any number of persons not exceeding five may be registered as joint owners of a ship or of any share or shares therein;

(d) joint owners shall be considered as constituting one person only as regards the persons entitled to be registered, and shall not be entitled to dispose in severally of any interest in a ship, or in any share therein in respect of which they are registered; and

(e) a body corporate may be registered as owner by its corporate name.

34. Application for registry.

(1) An application for the registry of a ship shall be made—

(a) in the case of natural persons, by the person applying to be registered as owner, or by some one or more persons so applying if more than one, or by his or their agent;

(b) in the case of the Ceylon Shipping Corporation, or any Government-sponsored Shipping Company or Corporation, by their agent; and

(c) in the case of other bodies corporate, by their agent, and the authority of the agent shall be testified by writing, if appointed by natural persons, under the hands of the appointers, and if appointed by a body corporate, under the common seal of that body.

(2) The Registrar may demand proof of ownership to his satisfaction before proceeding with the registry of a ship.

35. Declaration of ownership.

(1) A person shall not be registered as the owner of a Sri Lanka ship or of a share therein until he, or in the case of the Ceylon Shipping Corporation, or a Government-Sponsored Shipping Company or Corporation or any other body corporate, the person authorised by this Act to make declarations on its behalf, has made and signed a declaration of ownership in the prescribed form referring to the ship as described in the certificate of a Surveyor and containing the following particulars:

(a) a statement whether he is or is not a citizen of Sri Lanka, or in the case of the Ceylon Shipping Corporation, a statement specifying that it was incorporated under the Ceylon Shipping Corporation Act, or in the case of a Government-Sponsored Shipping Company or Corporation a statement setting out the interest of the Government and also that it has been incorporated in Sri Lanka, or in the case of any other body corporate a statement incorporating the Order made by the Minister;

(b) a statement of the time when and the place where the ship was built, or if the ship is built outside Sri Lanka and the time and place of building is not known, a statement to that effect; and in addition in the case of a ship previously registered outside Sri Lanka a statement of the name by which she was so registered, or in the case of a ship condemned a statement of the time, place and court at and by which she was condemned;

(c) a statement of the name of the master and his citizenship;

(d) a statement of the number of shares in the ship in respect of which he or the Ceylon Shipping Corporation, or a Government-Sponsored Shipping Company or Corporation, or any other body corporate, as the case may be, is entitled to be registered as owner; and

(e) a declaration that to the best of his knowledge and belief no unqualified person or body of persons is entitled as owner to any legal or beneficial interest in the ship or any share therein.

(2) For the purpose of this section, the expression "beneficial interest” has the meaning assigned to it by section 106.

36. Ship's names.

(1) A Sri Lanka ship shall not be described by any name, other than that by which she is for the time being registered.

(2) A change shall not be made in the name of a Sri Lanka ship except in the prescribed manner.

(3) A Registrar may, in accordance with the provisions of any regulations made under this Act, refuse the registry of any ship by the name by which it is proposed to register that ship if it is already the name of a registered Sri Lanka ship or a name so similar as is calculated or likely to deceive.

(4) If the registry of a ship by the name by which it is proposed to register that ship is refused by a Registrar, or if any requirements of the regulations are not complied with in the case of any ship which it is proposed to register, that ship shall not be registered under the name proposed, or until the regulations are complied with, as the case may be.

(5) If any person acts or suffers any other person under his control to act in contravention of this section or omits to do or suffers any other person under his control to omit to do, anything required by this section, the ship may be detained until the provisions of this section are complied with.

37. Evidence on first registry.

On the first registry of a ship the following evidence shall be produced in addition to the declaration of ownership:

(a) in the case of a Sri Lanka built ship, a builder's certificate, that is to say, a certificate signed by the builder of the ship and containing a true account of the proper denomination and of the tonnage of the ship as estimated by him and of the time when and the place where she was built and of the name of the person, if any, on whose account the ship was built and, if there has been any sale, the bill of sale under which the ship or a share therein has become vested in the applicant for registry;

(b) in the case of a foreign built ship, the same evidence as in the case of a Sri Lanka built ship, unless the declarant who makes the declaration of ownership declares that the time and place of her building are unknown to him or that the builder's certificate cannot be procured, in which case there shall be registered only the bill of sale under which the ship, or a share therein, became vested in the applicant for registry; and

(c) in the case of a ship condemned by a competent authority, the official copy of the condemnation.

38. Survey.

(1) Every ship shall before registry be surveyed by a Surveyor and the tonnage of the ship ascertained in accordance with the provisions of any regulations made under this Part.

(2) The Surveyor shall grant a certificate specifying the ship's tonnage and build, and such other particulars descriptive of the identity of the ship as may for the time being be required by the Registrar.

(3) The certificate of the Surveyor shall be delivered to the Registrar before registry.

39. Marking of ship.

(1) Every Sri Lanka ship shall before registry be marked permanently and conspicuously to the satisfaction of the Registrar as follows—

(a) the name of the ship shall be marked on each of the bows of the ship, and the name of the ship and the name of the port of registry of such ship shall be marked on the stern of the ship, on a dark ground in white or yellow letters, or on a light ground in black letters, such letters to be of a length not less than four inches, and of proportionate breadth;

(b) the official number and the number denoting the registered tonnage of the ship shall be cut in on the main beam of the ship;

(c) a scale of feet denoting the draught of water of the ship shall be marked on each side of the stem and of the stern post of the ship in Roman capital letters or in figures, not less than six inches in length, the lower line of such letters or figures to coincide with the draught line denoted thereby, and those letters or figures shall be marked by being cut in and painted white or yellow on a dark ground, or in such other way as the Registrar approves.

(2) The Chief Registrar may exempt any class of ships from all or any of the requirements of this section.

(3) If the scale of feet showing the ship's draught of water is in any respect inaccurate, so as to be likely to mislead, the owner of the ship shall be guilty of an offence and on conviction thereof shall be liable to a fine not exceeding one thousand rupees.

(4) The marks required by this section shall be permanently continued, and no alteration shall be made therein, except in the event of any of the particulars thereby denoted being altered in the manner provided by this Act.

(5) If any owner or master of a Sri Lanka ship neglects to cause his ship to be marked as required by this section, or to keep her so marked, or if any person conceals, removes, alters, defaces or obliterates or suffers any other person under his control to conceal, remove, alter, deface or obliterate any of the said marks, except in the event aforesaid, or except for the purpose of escaping capture by an enemy, that owner, master or other person shall be guilty of an offence and on conviction thereof shall be liable to a fine not exceeding two thousand rupees; and on a certificate from a Surveyor that a ship is insufficiently or inaccurately marked the ship may be detained until the insufficiency or inaccuracy has been remedied.

40. Entry of particulars in register book.

As soon as the requirements of this Act preliminary to registry of a ship have been complied with, a Registrar shall enter in the register book the following particulars respecting the ship—

(a) the name of the ship and the name of the port to which the ship belongs;

(b) the details comprised in the Surveyor's certificate;

(c) the particulars respecting the origin of the ship stated in the declaration of ownership; and

(d) the name and description of the registered owner or owners of the ship, and if there are more owners than one, the proportions in which they are interested in the ship.

41. Documents to be retained by Registrar.

On the registry of a ship a Registrar shall retain in his possession—

(a) the Surveyor's certificate;

(b) the builder's certificate;

(c) any bill of sale of the ship previously made;

(d) the copy of the condemnation, if any; and

(e) all declarations of ownership.

42. Application to Government ships.

The Minister may, by Notification published in the Gazette, direct that, subject to such rules as may be made in that behalf, ships belonging to the Government, other than ships of the Sri Lanka Navy, may be registered as Sri Lanka ships under this Act and thereupon this Act, subject to any exceptions and modifications which may be made in the Notification, either generally or with respect to any class of ships belonging to Government, shall apply to ships belonging to Government registered in accordance with the rules as they apply to Sri Lanka ships registered in the manner provided by this Act.

43. Port of registry.

The port at which a Sri Lanka ship is registered for the time being shall be deemed to be the port of registry of the ship and the port to which the ship belongs.

44. Regulations.

(1) The Minister may make regulations to carry out the purposes of this Part.

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

(a) the manner in which the tonnage of any ship shall be ascertained, whether for the purpose of registration or otherwise, including the mode of measurement;

(b) the recognition, for the purpose of ascertaining the tonnage of any ship or for any other purpose, of any tonnage certificate granted in respect of any ship in any country outside Sri Lanka, the tonnage regulations of which are substantially the same as the tonnage regulations made under this Act, including the conditions and restrictions subject to which such recognition may be granted;

(c) the manner in which surveys of ships shall be conducted and the form of certificates of surveying officers;

(d) the form in which any document required by this Part shall be prepared and the particulars which it should contain;

(e) the persons by whom and the authority before which any declaration required by this Part shall be made and the circumstances in which any such declaration may be waived and other evidence accepted;

(f) the procedure for the registration, marking or alteration of the names of Sri Lanka ships;

(g) the fees that may be levied under this Part and the manner in which such fees shall be collected;

(h) the manner in which Registrars and other authorities may exercise their powers under this Part or maintain their books and other registers;

(i) the manner in which ships belonging to the Government, to which the provisions of this Act may be made applicable under section 42, may be registered;

(j) any other matter which may be or is to be prescribed.

(3) The Director, with the consent of the Minister, may also for the purpose of carrying into effect this Part, give such instructions to his officers as to the manner of making entries in the register book, as to the execution and attestation of powers of attorney, as to any evidence required for identifying any person, as to the referring to himself of any question involving doubt or difficulty, and generally as to any act or thing to be done in pursuance of this Act as he thinks fit.

45. Power of Chief Registrar to inquire into title of Sri Lanka ship to be registered as such.

(1) Where it appears to the Chief Registrar that there is any doubt as to the title of any ship registered as a Sri Lanka ship to be so registered, he may direct the Registrar of the port of registry of the ship to require evidence to his satisfaction that the ship is entitled to be registered as a Sri Lanka ship.

(2) If within such time, not less than thirty days as the Chief Registrar may fix, satisfactory evidence of the title of the ship to be registered is not given, the ship shall be subject to forfeiture.

46. Exemption.

The Minister may, from time to time, by order and either generally or for any period stated in such order, and subject to such conditions as may be specified in such order, exempt from the provisions of this Part and any regulations made thereunder any person or class of persons or any ship or class or description of ships.

CHAPTER 2

CERTIFICATE OF REGISTRY

47. Certificate of registry.

On the completion of the registration of a Sri Lanka ship, a Registrar shall grant a certificate of registry comprising the particulars in respect of the ship entered in the register book.

48. Provisional certificate.

(1) If at any port outside Sri Lanka a ship becomes the property of a person qualified to own a Sri Lanka ship, a Sri Lanka Consular Officer or such other person as may be appointed by the Minister may grant to the master of the ship on his application, a provisional certificate, stating:

(a) the name of the ship

(b) the time and place of her purchase and the names of the purchasers of the ship;

(c) the name of the master of the ship;

(d) the best particulars regarding her tonnage, build, and description of the ship which he is able to obtain, and shall forward a copy of the certificate at the first convenient opportunity to the Chief Registrar.

(2) Such a provisional certificate shall have the effect of a certificate of registry until the expiration of six months from the date of its issue or until the ship's arrival at a port where there is a Registrar, whichever is earlier, and if either of these events happens shall cease to have effect.

49. Custody and use of certificate.

(1) The certificate of registry shall be used only for the lawful navigation of the ship, and shall not be subject to detention by reason of any title, lien, charge or interest whatsoever had or claimed by any owner, mortgagee or other person to, on or in the ship.

(2) No person, whether interested in a ship or not, who has in his possession or under his control the certificate of registry of the ship, shall refuse or omit without reasonable cause to deliver such certificate on demand to the person entitled to the custody thereof for the purposes of the lawful navigation of the ship, or to any Registrar, officer of customs, or other person entitled by law to require such delivery.

(3) Any person refusing or omitting to deliver the certificate as required by subsection (2) may by order, be summoned by any Magistrate to appear before him and to be examined touching such refusal, and unless it is proved to the satisfaction of the Magistrate that there was reasonable cause for such refusal the offender shall be guilty of an offence and on conviction thereof shall be liable to a fine not exceeding one thousand rupees.

(4) If the person so refusing is proved to have absconded so that the warrant of a Magistrate or process of a Court cannot be served on him, or if he persists in not delivering up the certificate, the Magistrate shall certify the fact and the same proceedings may then be taken as in the case of a certificate mislaid, lost or destroyed, or as near thereto as circumstances permit,

50. Improper use of certificate.

If the master or owner of a Sri Lanka ship uses or attempts to use for the navigation of such ship a certificate of registry not legally granted in respect of the ship he shall, in respect of each offence, be guilty of an offence and on conviction thereof shall be liable to imprisonment of either description for a term not exceeding one year or to a fine not exceeding two thousand rupees, or to both such imprisonment and fine, and the ship shall be subject to forfeiture under this Act.

51. Grant of new certificate.

The Registrar of the port of registry of a Sri Lanka ship may, with the approval of the Chief Registrar, and on the delivery to him of the certificate of registry of a ship, grant a new certificate in lieu thereof.

52. Provision for loss of certificate.

In the event of the certificate of registry of a Sri Lanka ship being mislaid, lost or destroyed, the Registrar of the port of registry of the ship shall grant a certificate of registry in lieu of the original certificate of such ship.

53. Change of master.

Where the master of a registered Sri Lanka ship is changed a Registrar or, if there is none, the Sri Lanka Consular officer at or for the port or the nearest Sri Lanka Consular officer to the port where the change occurs shall endorse and sign on the certificate of registry a memorandum of the change, and, in the case of a Consular officer, shall forthwith report the change to the Chief Registrar; and any officer of customs at any port in Sri Lanka may refuse to admit any person to do any act there as master of a Sri Lanka ship unless his name is inserted in or endorsed on the certificate of registry of the ship as the last appointed master of such ship.

54. Change of owner.

(1) Whenever a change occurs in the registered ownership of a ship, the change of ownership shall be endorsed on the certificate of registry of the ship either by—

(a) the Registrar of the ship's port of registry; or

(b) the Registrar of any port at which the ship arrives who has been advised of the change by the Registrar of the ship's port of registry.

(2) The master shall, for the purpose of such endorsement by the Registrar of the ship's port of registry, deliver the certificate of registry to the Registrar—

(a) forthwith after the change, if the change occurs when the ship is at the port of registry of such ship; and

(b) if the change occurs during the absence of the ship from the port of registry thereof, and the endorsement under this section is not made before the return of such ship, then, upon the first return of such ship to that port.

(3) The Registrar of any port, not being the ship's port of registry, who is required to make an endorsement under this section may for that purpose require the master of the ship to deliver to him the ship's certificate of registry so that the ship be not thereby detained, and the master shall deliver the same accordingly.

(4) If the master fails to deliver to the Registrar the certificate of registry as required by this section he shall be guilty of an offence and on conviction thereof shall be liable to a fine not exceeding two thousand rupees.

55. Delivery of certificate of ship lost or ceasing to be Sri Lanka ship.

(1) In the event of a registered ship being either actually or constructively lost, taken by the enemy, burnt, or broken up or ceasing, by reason of a transfer to persons not qualified to be owners of a Sri Lanka ship, or otherwise, to be a Sri Lanka ship, every owner of the ship or any share in the ship shall, immediately on obtaining knowledge of the event, if no notice thereof has already been given to a Registrar, give notice thereof to the Registrar at the port of registry of such ship.

(2) A Registrar shall, on receiving any notice given to him under subsection (1), make an entry thereof in the register book, and the registry of the ship in that book shall be considered as closed except in so far as relates to any unsatisfied mortgages or existing certificates of mortgage entered therein.

(3) In any event referred to in subsection (1) (except where the ship's certificate of registry is lost or destroyed) the master of the ship shall—

(a) if the event occurs in port, immediately;

(b) if the event occurs elsewhere, then, within ten days after his arrival in port, deliver the certificate to the Registrar or, if there is none, to the Sri Lanka Consular officer there; and the Registrar, if he is not himself the Registrar of the port of registry, or, as the case may be, the Sri Lanka Consular officer, shall forthwith forward the certificate delivered to him to the Registrar of the port of registry of such ship.

(4) Any owner or master of a ship who fails, without reasonable cause, to comply with this section, shall be guilty of an offence and on conviction thereof shall be liable to a fine not exceeding two thousand rupees.

CHAPTER 3

TRANSFER OF OWNERSHIP

56. Transfer of ship or share.

(1) A registered ship or a share therein (when disposed of to a person qualified to own a Sri Lanka ship) shall be transferred by a bill of sale.

(2) The bill of sale shall—

(a) be in the prescribed form;

(b) contain such description of the ship as is contained in the certificate of registry; and

(c) be executed by the transferor in the presence of, and be attested by, two witnesses.

57. Declaration of transfer.

Where a registered ship or a share therein is transferred, the transferee shall not be entitled to be registered as owner thereof until he, or, in the case of a body corporate the person authorised by this Act to make declarations on behalf of the body corporate, has made and signed a declaration (in this Act referred to as a "declaration of transfer”) referring to the ship and containing—

(a) a statement of the qualification of the transferee to own a Sri Lanka ship or, if the transferee is a body corporate, of such circumstances of the constitution and business thereof as prove it to be qualified to own a Sri Lanka ship; and

(b) a declaration that, to the best of his knowledge and belief, no unqualified person or body of persons is entitled as owner to any legal or beneficial interest in the ship or any share therein.

58. Registry of transfer.

(1) Every bill of sale for the transfer of a registered ship or of a share therein, when duly executed, shall be produced to the Registrar of the port of registry of the ship with the declaration of transfer, and the Registrar—

(a) shall thereupon enter in the register book the name of the transferee as owner of the ship or share; and

(b) shall endorse on the bill of sale the fact of that entry having been made, with the day, date and hour thereof.

(2) Bills of sale of a ship or of a share therein shall be entered in the register book in the order of their production to the Registrar.

59. Transmission of property in ship on bankruptcy death.

(1) Where the property in a registered ship or share therein is transmitted to a person qualified to own a Sri Lanka ship on the bankruptcy or death of any registered owner, or by any lawful means, other than by a transfer under this Part—

(a) that person shall authenticate the transmission by making and signing a declaration (in this Act referred to as a "declaration of transmission”) identifying the ship and containing the several statements hereinbefore required to be contained in a declaration of transfer, or as near thereto as circumstances admit, and also a statement of the manner in which and the person to whom the property has been transmitted;

(b) if the transmission is consequent on bankruptcy, the declaration of transmission shall be accompanied by such evidence as is for the time being receivable in Courts of Justice as proof of the title of persons claiming under a bankruptcy; and

(c) if the transmission is consequent on death, the declaration of transmission shall be accompanied by the instrument of representation, or an official extract therefrom.

(2) The Registrar, on receipt of the declaration of transmission so accompanied, shall enter in the register book the name of the person entitled under the transmission as owner of the ship or share the property in which has been transmitted and, where there is more than one such person, shall enter the names of all those persons, but those persons, however numerous, shall for the purpose of the provisions of this Act with respect to the number of persons entitled to be registered as owners, be considered as one person.

60. Order for sale on transmission to an unqualified person.

(1) Where the property in a registered ship or share therein is transmitted on bankruptcy, death or otherwise to a person not qualified to own a Sri Lanka ship the High Court may, on application by or on behalf of the unqualified person, order a sale of the property so transmitted, and direct that the proceeds of the sale, after deducting the expenses thereof, be paid to the person entitled under such transmission or otherwise as the Court may direct.

(2) The High Court may require any evidence in support of the application as it thinks requisite, and may make the order on any terms and conditions it thinks just, or may refuse to make the order, and generally may act in the case as the justice of the case requires.

(3) Every such application for sale must be made within four weeks after the occurrence of the event on which the transmission has taken place, or within such further time (not exceeding in the whole one year from the date of the occurrence) as the High Court may allow.

(4) If such an application is not made within the time aforesaid, or if the High Court refuses an order for sale, the ship or share transmitted shall thereupon be subject to forfeiture under this Act.

(5) In this section "High Court” includes the High Court having admiralty jurisdiction under section 13 of the Judicature Act.

61. Transfer of ship or sale by order of Court.

(1) Where any Court, whether under the preceding sections of this Act or otherwise, orders the sale of any ship or any share therein, the order of the Court shall contain a declaration vesting in some person named by the Court the right to transfer that ship or share.

(2) On having been named by the Court, such person shall be entitled to transfer the ship or share in the same manner and to the same extent as if he were the registered owner thereof.

(3) Every Registrar shall obey the requisition of the person so named by the Court in respect of any such transfer to the same extent as if such person were the registered owner.

62. Power of court to prohibit transfer.

(1) The High Court may if it thinks fit (without prejudice to the exercise of any other power of the Court), on the application of any interested person, make an order prohibiting for a specified time any dealing with a ship or any share therein.

(2) The High Court may make an order under subsection (1) on any terms or conditions it thinks just, or may refuse to make the order or may discharge the order when made, with or without costs, and generally may act in the case as the justice of the case requires.

(3) Every Registrar, without being made a party to the proceedings, shall on being served with the order of the High Court or an official copy thereof obey the same.

CHAPTER 4

MORTGAGES

63. Rules of English law applicable except where they are inconsistent or in conflict with this Act.

The rules of law applicable in the case of mortgages of ships shall be the rules of law applicable in that behalf in the United Kingdom, except in so far as they are inconsistent or in conflict with the express provisions of this Act.

64. Mortgage of ship or share.

(1) A registered ship, or a share therein, may be made a security for a loan or other valuable consideration, and the instrument creating such security (in this Chapter referred to as a "mortgage”) shall be in the prescribed form, or as near thereto as circumstances permit.

(2) On production to him of an instrument of mortgage, the Registrar of the ship's port of registry shall—

(a) record such instrument in the register book;

(b) when there are more mortgages than one, record them in the order in time in which they are produced to him for that purpose;

(c) by memorandum under his hand notify on each mortgage that it has been recorded by him, stating the day, date and hour of that record.

65. Entry of discharge of mortgage.

(1) Where a registered mortgage is discharged the Registrar shall, on production of the mortgage deed with a receipt for the mortgage money endorsed thereon, duly signed and attested, make an entry in the register book to the effect that the mortgage has been discharged.

(2) On the entry referred to in subsection (1) being made, the estate (if any) which passed to the mortgagee shall vest in the person in whom (having regard to intervening acts and circumstances, if any) it would have vested if the mortgage had not been made.

66. Priority of mortgages.

If there are more mortgages than one registered in respect of the same ship or share, the mortgages shall, notwithstanding any express, implied or constructive notice, be entitled in priority, one over the other, according to the date at which each mortgage is recorded in the register book and not according to the date of each mortgage itself.

67. Mortgagee not treated as owner.

Except as far as may be necessary for making a mortgaged ship or share available as a security for the mortgage debt, the mortgagee shall not by reason of the mortgage be deemed the owner of the ship or share, nor shall the mortgagor be deemed to have ceased to be the owner thereof.

68. Mortgagee to have power of sale.

(1) Every registered mortgagee shall subject to subsection (2), have power—

(a) absolutely to dispose of the ship or share in respect of which he is registered; and

(b) to give effectual receipts for the purchase money.

(2) Where there are more persons than one registered as mortgagees of the same ship or share a subsequent mortgagee shall not, except under the order of a court of competent jurisdiction, sell the ship or share without the concurrence of every prior mortgagee.

69. Mortgage not affected by bankruptcy.

A registered mortgage of a ship or share shall not be affected by any act of bankruptcy committed by the mortgagor after the date of the record of the mortgage, notwithstanding that the mortgagor at the commencement of his bankruptcy had the ship or share in. his possession, order or disposition, or was reputed owner thereof; and the mortgage shall be preferred to any right, claim or interest therein of the other creditors of the bankrupt, or any trustee or assignee on their behalf.

70. Transfer of mortgages.

(1) A registered mortgage of a ship or share.may be transferred to any person, and the instrument effecting the transfer shall be in the prescribed form, or as near thereto as circumstances permit.

(2) On production to him of an instrument of transfer, the Registrar of the ship's port of registry shall—

(a) record such instrument by entering in the register book the name of the transferee as mortgagee of the ship or share; and

(b) by memorandum under his hand notify on the instrument of transfer that it has been recorded by him, stating the day, date and hour of that record.

(3) The person to whom any such mortgage has been transferred shall enjoy the same right of preference as was enjoyed by the transferor.

71. Transmission of interest in mortgage on bankruptcy.

(1) Where the interest of a mortgagee in a ship or share is transmitted by bankruptcy, death, or by any lawful means, other than by a transfer under this Part, the transmission shall—

(a) be authenticated by a declaration of the person to whom the interest is transmitted, containing a statement of the manner in which and the person to whom the property has been transmitted; and

(b) be accompanied by the like evidence as is by this Part required in the case of a corresponding transmission of the ownership of a ship or share.

(2) The Registrar, on the receipt of the declaration and the production of the evidence referred to in subsection (1), shall enter the name of the person entitled under the transmission in the register book as mortgagee of the ship or share.

72. Powers of mortgage and sale to be exercised outside Sri Lanka may be conferred by certificate.

Where a registered owner of a ship or share wishes to dispose by way of mortgage or sale of such ship or share at any place outside Sri Lanka, he may apply to the Registrar of the ship's port of registry, and the Registrar shall thereupon enable him to do so by granting a certificate of mortgage or a certificate of sale.

73. Requisites for certificates of mortgage and sale.

Before a certificate of mortgage or sale is granted, the applicant shall state to the Registrar, and the Registrar shall enter in the register book, the following particulars:

(a) the name of the person by whom the power mentioned in the certificate is to be exercised;

(b) in the case of a mortgage, the maximum amount of charge to be created, if it is intended to fix any such maximum;

(c) in the case of a sale, the minimum price at which a sale is to be made, if it is intended to fix any such minimum;

(d) the place where the power is to be exercised or, if no place is specified, a declaration that it may be exercised anywhere, subject to the provisions of this Act; and

(e) the limit of time within which the power may be exercised.

74. Restrictions on certificates of mortgage and sale.

A certificate of mortgage or sale, as is referred to in section 72, shall not be granted so as to authorise any mortgage or and sale to be made—

(a) at any place within Sri Lanka; or

(b) by any person not named in the certificate.

75. Contents of certificates of mortgage and sale.

A certificate of mortgage certificate of sale shall contain—

(a) a statement of the several particulars directed by this Act to be entered in the register book on the application for the certificate; and

(b) an enumeration of any registered mortgages or certificates of mortgage or sale affecting the ship or share in respect of which the certificate is given.

76. Rules as to certificates of mortgage.

The following rules shall observed as to certificates of mortgage—

(a) the power shall be exercised in conformity with the directions contained in the certificate;

(b) every mortgage made thereunder shall be registered by the endorsement of a record thereof on the certificate by a Registrar or Sri Lanka Consular officer;

(c) a mortgage made in good faith thereunder shall not be impeached by reason of the person by whom the power was given dying before the making of the mortgage;

(d) whenever the certificate contains a specification of the place at which, and a limit of time not exceeding twelve months within which, the power is to be exercised, a mortgage made in good faith to a mortgagee without notice shall not be impeached by reason of the bankruptcy of the person by whom the power was given;

(e) every mortgage which is so registered as aforesaid on the certificate shall have priority over all mortgages of the same ship or share created subsequently to the dale of the entry of the certificate in the register book; and, if there are more mortgages than one so registered, the respective mortgagees claiming thereunder shall, notwithstanding any express, implied or constructive notice, be entitled one before the other according to the date at which each mortgage is registered on the certificate, and not according to the date of the mortgage;

(f) subject to the foregoing rules, every mortgagee whose mortgage is registered on the certificate shall have the same rights and powers and be subject to the same liabilities as he would have had and been subject to if his mortgage had been registered in the register book instead of on the certificate;

(g) the discharge of any mortgage so registered on the certificate may be endorsed on the certificate by any Registrar or Sri Lanka Consular officer, on the production of such evidence as is by this Act required to be produced to the Registrar on the entry of the discharge of a mortgage in the register book; and on that endorsement being made the interest, if any, which passed to the mortgagee shall vest in the same person or persons in whom it would (having regard to intervening acts and circumstances, if any) have vested, if the mortgage had not been made;

(h) on the delivery of any certificate of mortgage to the Registrar by whom it was granted he shall, after recording in the register book, in such manner as to preserve its priority, any unsatisfied mortgage registered thereon, cancel the certificate, and enter the fact of the cancellation in the register book; and every certificate so cancelled shall be void to all intents.

77. Rules as to certificates of sale.

The following rules shall be observed as to certificates of sale:

(a) a certificate of sale shall not be granted except for the sale of an entire ship;

(b) the power shall be exercised in conformity with the directions contained in the certificate;

(c) a sale made in good faith thereunder to a purchaser for valuable consideration shall not be impeached by reason of the person by whom the power was given dying before the making of such sale;

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