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Module 2 Regulatory Requirements and Legal Issues
Module 2 Regulatory Requirements and Legal Issues
Module 2 Regulatory Requirements and Legal Issues
REQUIREMENTS AND
LEGAL ISSUES
BY
MOHIUDDIN ABDUL KADIR
MSC (WALES), LL.B, LL.M (SOTON), FNI FCILT FCIArb MASTER MARINER
ADVOCATE SUPREME COURT OF BANGLADESH
• Marine Court.
• Civil Courts.
LAW OF ADMIRALTY SUITS
• Admiralty Court Act, 2000.
• It is a single Bench.
To be Continued
d) Any claim for damage done by a ship;
f) Any claim for loss of life or personal injury sustained in consequence of any defect in a ship
or in her apparel or equipment, or of any wrongful act, neglect or default of the owners,
charterers or persons in possession or control of a ship or of the master or crew thereof or any
other persons for whose wrongful acts, neglects or defaults the owners, charterers or persons
in possession or control of ship are responsible, being an act, neglect or default in the
navigation or management of the ship, in the loading, carriage or discharge of goods on, in or
from the ship or in the embarkation, carriage or disembarkation of persons on, in or from the
ship.
To be Continued
(g) any claim for loss of or damage to goods carried in a ship;
(h) any claim arising out of any agreement relating to the carriage of goods in
a ship or to the use or hire of a ship;
(i) any claim in the nature of salvage of life from a ship or cargo or any
property on board a ship or the ship itself or its apparel, whether services
were rendered on the high sea or within territorial waters or inland waters or
in a port, including any claim arising by virtue of the application by or under
section 12 of the Civil Aviation Ordinance, 1960, (Ordinance XXXII of 1960) of
the law relating to salvage to aircraft and their apparel and cargo;
To be Continued
(j) Any claim in respect of towage of a ship or an aircraft;
(l) Any claim in respect of goods or materials supplied to a ship for her operation or
maintenance;
(m) Any claim in respect of construction, repair or equipment of a ship or dock charges or dues;
(n) Any claim for wages by a master or member of the crew of a ship or any claim for any
money or property recoverable as wages of master or member of the crew under the Merchant
Shipping Ordinance, 1983, hereinafter referred to as the Ordinance, or in the Court;
(o) Any claim for disbursements made on account of or for the purpose of a ship by the Master,
shipper, charterer or agent of the ship;
To be Continued
(p) Any claim arising out of an act which is or is claimed to be a general average act;
(r) Any claim for forfeiture or condemnation of a ship or of goods which are being or
have been carried, or have been attempted to be carried, or for the restoration of a
ship or any such goods after seizure, or for droits of admiralty together with any other
jurisdiction to grant reliefs as are provided under the provisions of the said Ordinance
or any other jurisdiction which was vested in the High Court Division as a Court of
Admiralty immediately before the commencement of this Act and any other
jurisdiction as to any matter in connection with ships or aircraft which has by custom
been exercised by the High Court Division as a Court of Admiralty.
To be Continued
The preceding provisions of this section shall apply :
(a) in relation to all ship or aircraft, whether Bangladeshi or not and whether
registered or not and wherever the residence or domicile of their owners may
be;
(b) in relation to all claims, irrespective of the place of claim, claims relating
to salvage or cargo or wreck or cargo or wreck found on the ground; and
(c) in relation to mortgage and charge, to all legal and equitable mortgages or
charges, including mortgages and charges created under foreign law whether
registered or not.
To be Continued
4) In relation to the claims mentioned in clauses (d) to (q) of sub section 2 of section 3,
relating to any ship, the person who would be liable for the claim in an action
in personam was, when the cause of action arose, as the owner or charterer of, or person in
possession or in control of, the ship, whether the claim gives rise to a maritime lien on the ship
or not, an action in rem can be brought before the Admiralty Jurisdiction of the High Court
Division as the Court of Admiralty against the following ships, namely-
(a) if at the time when action is brought, the person has beneficial ownership over all
the shares of the ship; or
(b) if at the time when action is brought, any other ship is under the beneficial
ownership of the said person.
To be Continued
(5) In case of a claim for fee for towage or pilotage of any aircraft the Admiralty
Jurisdiction of the High Court Division as the Court of Admiralty may be invoked by
an action in rem against the aircraft if at the time when the action is brought it is
beneficially owned by the person who would be liable for the claim in an action in
personam.
(6) Notwithstanding anything contained in the preceding clauses of the aforesaid
section, an action in rem shall not be brought in the Admiralty Jurisdiction of the
High Court Division as the Court of Admiralty for any claim mentioned in clause
(n) of sub section (2) of section 3 unless the claim relates wholly or partly to
wages.
To be Continued
(7) When the High Court Division exercising its jurisdiction as the Court
of Admiralty orders any ship, aircraft or any other property to be sold,
the said Division exercising the same jurisdiction can hear and
determine any question as to the priority of title or claim in the
proceeds of sale.
(8) For the purpose of sub sections (4) and (5) to determine as to
whether a person would be liable in an action in personam it shall be
assumed that the said person ordinarily resides in Bangladesh or his
place of business is situated in Bangladesh.
SECTION-9: INDEMNITY
Nothing in this Act shall give any right to bring an
action in rem for any claim against the Republic or
to arrest, detain or sale any ship or aircraft of the
Army, Navy, Air force of the Republic, Bangladesh
Rifles, Bangladesh Police or Coast Guard.
Types of Lien
❑Possessory Lien.
❑Statutory Lien.
❑Maritime Lien.
Maritime Liens
A maritime lien “adheres to the ship from the time that the facts
happened which gave the maritime lien, and then continues binding on
the ship until it is discharged either by being satisfied or from the
laches of the owner, or in any other way which by law it may be
discharged. It commences and there it continues binding on the ship
until it comes to an end”.
1 (1) Where, by the fault of two or more ships, damage or loss is caused
to one or more of those ships, to their cargoes or freight, or to any
property on board, the liability to make good the damage or loss shall
be in proportion to the degree in which each ship was in fault, except
that if, having regard to all the circumstances of the case, it is not
possible to establish different degrees of fault, the liability shall be
apportioned equally
Maritime Conventions Act 1912
(2) Nothing in this section shall operate so as to render any ship liable for any loss or
damage to which her fault has not contributed
(3) Nothing in this section shall affect the liability of any person under a contract of
carriage or any contract, or shall be construed as imposing any liability upon any
person from which he is exempted by any contract or by any provision of law, or as
affecting the right of any person to limit his liability in the manner provided by law.
4. For the purposes of this Act, “freight” includes passage money and hire, and
references to damage or loss caused by the fault of a ship shall be construed as
including references to any salvage or other expenses, consequent upon that fault,
recoverable at law by way of damages.
8. Limitation of actions
• All other ships while in port or place in or within the territorial waters
of Bangladesh except:
• Any ship of, or commissioned for service in, the Bangladesh Navy or,
while employed otherwise than for service in the service of
Government.
Section 2: Definitions
Bangladesh Merchant Shipping Ordinance 1983
SEC-376 (Cont’d)
(c) Nothing in this section shall affect the liability of any person under any
contract or shall be construed as imposing any liability upon any person from
which he is exempted by any contract or by any provision of law or as
affecting the right of any person to limit his liability in the manner provided by
law.
(2) For the purposes of this Chapter, references to damage or loss by the fault
of a ship shall be construed as including references to any salvage or other
expenses, consequent upon that fault, recoverable in law by way of damages.
(a) if no claim for damages in respect of loss of, or damage to, property or rights
arises, be liable for damages in respect of loss of life or personal injury to an
aggregate amount exceeding five thousand Taka for each ton of the ship's tonnage; or
(b) if no claim for damages in respect of loss of life or personal injury arises, be
liable for damages in respect of loss of, or damage to, property or rights to an
aggregate amount exceeding fifteen hundred Taka for each ton of the ship's tonnage; or
Sec-471 (Cont’d)
(2) The provisions of this section shall extend and apply to the owners, builders or
other persons interested in any ship built at any port or place in Bangladesh, from and
including the launching of such ship until the registration thereof under the provisions
of this Ordinance.
(3) The limits set by sub section (1) to the liabilities mentioned therein shall apply to
the aggregate of such liabilities which are incurred on any distinct occasion, and shall
so apply in respect of each distinct occasion without regard to any liability incurred on
any other occasion.
(4) For the purposes of this section, a ship's tonnage shall be the gross tonnage of the
ship.
➢Additional payment may be claimed for risk if good value more than 100
taka.
➢In case of loss or damage of value more than 100 taka value of goods plus
carriage charge may be recovered.
➢Liability of common carrier cannot be limited by public notice but may limit
by special contract.
➢Owner of railroad and tram cannot limit liability.
2. Not To Affect Right of Stoppage In Transitu or
Claims for Freight
Nothing herein contained shall prejudice or affect any right to
stoppage in transitu, or any right to claim freight against the
original shipper or owner, or any liability of the consignee or
endorsee by reason or in consequence of his being such
consignee or endorsee, or of his receipt of the goods by reason
or in consequence of such consignment or endorsement
3.Bill of Lading in the hand of consignee, etc, conclusive
evidence of the shipment against the Master etc.
❑Every bill of lading in the hands of a consignee or endorsee for valuable
consideration, representing goods to have been shipped on board a
vessel, shall be conclusive evidence of such shipment as against the
master or other person signing the same, notwithstanding that such goods
or some part thereof may not have been so shipped, unless such holder of
the bill of lading shall have had actual notice at the time of receiving the
same that the goods had not in fact been laden on board.
3. To be Continued
❑Provided that the master or other person so signing may
exonerate himself, in respect of such misrepresentation, by
showing that it was caused without any default on his part, and
wholly by the fraud of the shipper or of the holder, or some
person under whom the holder claims.
Right of Stoppage in Transitu
SALE OF GOODS ACT 1930
Section 50. Subject to the provisions of this Act, when the buyer of
goods becomes insolvent, the unpaid seller who has parted with the
possession of the goods has the right of stopping them in transit, that is
to say, he may resume possession of the goods as long as they are in the
course of transit, and may retain them until payment or tender of the
price.
51.(1) Goods are deemed to be in course of transit from the time when
they are delivered to a carrier or other bailee for the purpose of
transmission to the buyer, until the buyer or his agent in that behalf
takes delivery of them from such carrier or other bailee.
(2) If the buyer or his agent in that behalf obtains delivery of the goods
before their arrival at the appointed destination, the transit is at an
end.
51 (3) If, after the arrival of the goods at the appointed destination, the
carrier or other bailee acknowledges to the buyer or his agent that he
holds the goods on his behalf and continues in possession of them as
bailee for the buyer or his agent, the transit is at an end and it is
immaterial that a further destination for the goods may have been
indicated by the buyer.
(4) If the goods are rejected by the buyer and the carrier or other bailee
continues in possession of them, the transit is not deemed to be at end,
even if the seller has refused to receive them back.
(6) Where the carrier or other bailee wrongfully refuses to deliver the goods to the
buyer or his agent in that behalf, the transit is deemed to be at an end.
(7) Where part delivery of the goods has been made to the buyer or his agent in that
behalf, the remainder of the goods may be stopped in transit, unless such part
delivery has been given in such circumstances as to show an agreement to give up
possession of the whole of the goods.
• 52.(1) The unpaid seller may exercise his right of stoppage in transit
either by taking actual possession of the goods, or by giving notice of
his claim to the carrier or other bailee in whose possession the goods
are. Such notice may be given either to the person in actual possession
of the goods or to his principal. In the latter case the notice, to be
effectual, shall be given at such time and in such circumstances that
the principal, by the exercise of reasonable diligence, may
communicate it to his servant or agent in time to prevent a delivery to
the buyer.
Carriage Of Goods By Sea Act 1925
2. APPLICATION:
Subject to the provisions of this Act, the rules set out in the Schedule
(hereinafter referred to as " the Rules") shall have effect in relation to
and in connection with the carriage of goods by sea in ships carrying
goods from any port in Bangladesh to any other port whether in or
outside Bangladesh.
If the contract expressly incorporates the Carriage of Goods by Sea Act
1925 (Hague Rules) the court will apply the rules to the contract.
1. The carrier shall be bound before and at the beginning of the voyage to
exercise due diligence to:
(a) Make the ship seaworthy.
(b) Properly man, equip and supply the ship.
(c) Make the holds, refrigerating and cool chambers, and all other parts
of the ship in which goods are carried, fit and safe for their reception,
carriage and preservation.
2. Subject to the provisions of Article 4, the carrier shall properly and
carefully load, handle, stow, carry, keep, care for, and discharge the goods
carried.
3. After receiving the goods into his charge the carrier or the master or agent of the
carrier shall, on demand of the shipper, issue to the shipper a bill of lading showing
among other things:
(a) The leading marks necessary for identification of the goods as the same
are furnished in writing by the shipper before the loading of such goods starts,
provided such marks are stamped or otherwise shown clearly upon the goods if
uncovered, or on the cases or coverings in which such goods are contained, in such a
manner as should ordinarily remain legible until the end of the voyage.
Rules relating to Bills of Lading (Cont’d)
a) The leading marks necessary for identification of the goods as the same are
furnished in writing by the shipper before the loading of such goods starts,
provided such marks are stamped or otherwise shown clearly upon the goods if
uncovered, or on the cases or coverings in which such goods are contained, in
such a manner as should ordinarily remain legible until the end of the voyage.
(b) Either the number of packages or pieces, or the quantity, or weight, as the
case may be, as furnished in writing by the shipper.
6. Unless notice of loss or damage and the general nature of such loss or
damage be given in writing to the carrier or his agent at the port of discharge
before or at the time of the removal of the goods into the custody of the
person entitled to delivery thereof under the contract of carriage, or, if the
loss or damage be not apparent, within three days, such removal shall
be prima facie evidence of the delivery by the carrier of the goods as
described in the bill of lading.
➢If the loss or damage is not apparent, the notice must be given within three days of
the delivery of the goods.
➢The notice in writing need not be given if the state of the goods has, at the time of
their receipt, been the subject of joint survey or inspection.
Bills of Lading (Cont’d)
• In any event the carrier and the ship shall be discharged from
all liability in respect of loss or damage unless suit is brought
within one year after delivery of the goods or the date when
the goods should have been delivered.
(i) Act or omission of the shipper or owner of the goods, his agent or representative.
(j) Strikes or lockouts or stoppage or restraint of labour from whatever cause, whether
partial or general.
(k) Riots and civil commotions.
(m) Wastage in bulk or weight or any other loss or damage arising from inherent
defect, quality or vice of the goods.
(q) Any other cause arising without the actual fault or privity of the carrier, or
without the actual fault or neglect of the agents or servants of the carrier, but
the burden of proof shall be on the person claiming the benefit of this
exception to show that neither the actual fault or privity of the carrier nor the
fault or neglect of the agents or servants of the carrier contributed to the loss
or damage.
(Cont’d)
5. Neither the carrier nor the ship shall in any event be or
become liable for any loss or damage to or in connexion with
goods in an amount exceeding 100 l per package or unit, or the
equivalent of that sum in other currency unless the nature and
value of such goods have been declared by the shipper before
shipment and inserted in the bill of lading.
Flag Vessel Protection Act 2019
• Therefore, Bangladesh had acceded to the Liner convention on the 24th July,
1975 and enacted the Bangladesh Flag Vessels (Protection) Ordinance, 1982.
• The Ordinance was aimed to provide protection for the Bangladesh flag
vessels.
• After a prolonged period, this Ordinance has been amended and replaced
with ‘The Bangladesh Flag Vessels (Protection) Act 2019 [Act No.18 of 2019]
Continued…
❑ The Ordinance (that has been repealed) contained 10 Provisions in total.
• Among those Article 3 which entails the ‘Limitation on carriage of cargoes of sea-borne
trade’ is the cornerstone provision as to reserve at least 40% of the sea-borne cargoes
relating to foreign trade in Bangladesh shall be carried by Bangladesh flag vessels. However,
the section has a proviso which relaxes the limitation in three cases.
The Act of 2019 prescribes at least 50% instead of present 40 per cent
of the seaborne cargoes relating to the country's foreign trade will have
to be carried by vessels of Bangladesh Shipping Corporation (BSC).
Flag Vessel Protection Act 2019
➢Section-6 of the Ordinance 1982 contained provisions for
‘Prohibition to join Liner conference without license’ which has
been repealed.
➢No such provision has been inserted in the Present Act of 2019.
➢The Ordinance 1982 did have mentioned about fine for offences
committed by the Companies in Section-9 . However, in the Act of
2019, pecuniary punishment has been prescribed under Section
7(2) of the Act.
➢Port Competitiveness.
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