DGS Order No. 2 of 2002
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NO:SD-13/POL(5)2001 |
Dated: May 2, 2002 |
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Whereas Part V of the Merchant Shipping Act, 1958, and the
Merchant Shipping (Registration of Indian Ships) Rules, 1960 as amended in
1966, 1970, 1994 and 1997, by the Central Government provide for and
prescribe the procedure for registration and provisional registration of
Indian ships, Whereas a need is felt by the Shipping industry for detailed
guidelines in this regard including entry of mortgages easily and urgently on
the register book to enable and satisfy the Banks or financial institutions
in India and abroad, lending money for acquisition of Indian ships, Whereas the shipowners of today cannot afford to have vessels
delayed after their acquisition till registration formalities are completed,
and maritime administrations elsewhere in the world accord registration in
less than a few hours, thereby enabling the shipowners to choose their flag
and thus attract all the cascading benefits arising therefrom, Whereas our present practice has resulted sometimes in
registration of Indian ships being delayed, and the registration of a ship is
only the identification of the ship and of the owner, and is not related to
survey of the vessel and the statutory/convention requirements, and the ship
after registration can still be stopped from trading or sailing, if she does
not meet with the statutory requirements; Whereas many of the Indian Shipping companies have been finding
the registration formalities for ships in India to be long-drawn-out, and
therefore are tempted to acquire ships abroad through their foreign
subsidiaries and register them in countries which have liberalized procedure
for registration/ provisional registration/entry of mortgage; Whereas the Government of India, Ministry of Shipping issued
Office Memorandum No.SD-11018/1/97-MD dated 15 June 2001, and thereafter
dated 5 March 2002 requiring the Director General of Shipping to issue
detailed guidelines on registration of Indian Ships; And whereas the powers conferred by clause(1) of Section 456 of
the Merchant Shipping Act, 1958 on the Central Government, read with
notification issued by Government of India vide S.O. No.3144 dated 17th
December, 1960 have been delegated to him to enable him to order what ought
to be exempted or dispensed with in the circumstances of the case, Now, therefore, the Director General of Shipping and ex-Officio
Additional Secretary to the Government of India in the Ministry of Shipping
is hereby pleased to issue this order comprising some revised and new
guidelines for registration of Indian ships, provisional registration of
Indian ships and entry of mortgage:- 1. On receipt of all the documents required for registration of
the ship, the Registrar shall ensure grant of certificate of permanent
registration to the ship immediately, in any case within three working days. 2. Permission of the Director General of Shipping to register a
ship, if a ship is built in shipyard other than an Indian Shipyard, as
required vide clause (d) of Rule 3 shall no longer be necessary. 3. Tonnage measured in accordance with the Merchant Shipping
(Tonnage Measurement of Ships) Rules, 1987 as applicable or tonnage
certificate issued by the previous maritime administration shall be accepted
for the purpose of registration. 4. When the ship is acquired abroad, the present practice of
granting provisional registry to the ship by the Indian Consular Officer
shall continue. The Registrar of Ships shall send detailed message to Indian
High Commission/Embassy about the provisional registration. The sighting of
Carving and Marking on the ship and the endorsement of the Carving and
Marking note should be done by a Surveyor of Mercantile Marine Department or
of a Recognized Classification Society. 5. For the provisional registry of ship, the Registrar shall
open a page in the Register. Whenever the permanent registration is
conferred, the same page shall be used by replacing the word 'provisional'
with 'permanent' on the same page. While the serial number of the ship will
remain the same, the date of registry shall be in two parts, one date for
provisional and another for permanent registration. 6. Mortgage shall also be entered on provisional registry of
ships. The Registrar shall also issue a letter to the Bank/Financial
institution stating, that once the mortgage is entered on provisional
registration, the said mortgage will continue to remain in force even after
the said ship has been granted permanent registration. 7. On presentation of the mortgage instrument to the Registrar
of the ship's port of registry, the Registrar shall proceed to record the
mortgage transaction in the register book with the date and hour of
acceptance and shall also endorse on the mortgage instrument the fact of
recording and the date and hour of acceptance. The Registrar shall also issue
a letter stating that on permanent registry of the ship, the mortgage will be
automatically transferred on the permanent registry. 8. The second and any subsequent mortgage on a ship will be
recorded in the register of the ships only after No objection Certificate
(NoC) from the first or any existing mortgagee has been obtained. 9. When the registered mortgage is discharged, the Registrar
shall, on production of the mortgage deed with discharge duly signed, after
satisfying himself that the discharge on the mortgage instrument is in order
and that it is properly witnessed, make the entry relating to the discharge
in the register book. When a joint mortgage is created in favour of two or more
mortgagees and when the mortgage is released by one of the mortgagees, the
Registrar shall on production of evidence relating to release of mortgage,
make the entry relating to the discharge of the mortgage by one of the
mortgagees in the register book by way of modification of the mortgage. 10. The registration of creation, modification or discharge of
the mortgage with the Registrar of Companies shall not be a pre-requisite to
enter the mortgage in the Register. 11. The fees for entering every mortgage will be 10 paise for
every Rs.1000/- of the value of the mortgage for the entry of mortgage on the
first ship. If the loan amount involves creation of mortgage on more than one
vessel, the fee chargeable for entering the mortgage on second and subsequent
vessel would be Rs. 500/- only. In case of additional amount being sanctioned
by the same mortgagee leading to additional mortgage, the fee for
registration will be charged only for the additional amount. DGS
Order No. 6 of 2003
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