Maritime lien is a kind of charge that is applied to a ship, in order to secure specific kinds of claims. It grants rights against a ship that survives the ship’s sale and has priority over registered mortgages. Even in cases when a charterer or a vessel manager creates the lien, it may still grant rights against the vessel.
The idea that a ship is a legal entity in itself, independent of its ownership, is the foundation for the creation of a maritime lien. A lien is an obligation owed by the ship itself that may be violated rather than a security interest resulting from the owner or operator of the ship’s own obligation under a contract.
Notwithstanding any changes in ownership, registration, or flag, the maritime lien will remain on the vessel and will be terminated after a year, unless the vessel has been arrested or seized and the High Court has ordered a forced sale as a result of the arrest or seizure. It is stipulated that a claim for unpaid wages and other amounts owed to the master, officers, and other crew members must be made within two years of the date the wage, amount, cost of repatriation, or social insurance payment becomes due or payable.
Done By: Nithyaparvathy R.G, B.Com LL.B (Hons.), Junior Legal Consultant
For Origin Law Labs
