This case related to the Provisional Certificate of Registry issued to the vessel Sita Devi by the Mercantile Marine Department pursuant to the Merchant Shipping Act 1958. Halliburton challenged the issuance of the certificate in writ petition 961/2016, however while the writ was pending the certificate was revoked by an order dated 13/04/2016. This order was then quashed by the High Court. The issues in the appeal were whether the requirements for obtaining a Provisional Certificate of Registry are the same as the requirements for obtaining permanent registration, and whether the Provisional Certificate of Registry is renewable or extendable after 6 months has expired.
Held: For a Provisional Certificate of Registry to be issued, the ship must be fully built and ready to be sea-going (which means that it can proceed to sea beyond inland waters) so that it can reach the Indian port for obtaining its certificate of final registry. The requirements for the grant of registration are the same for provisional registration. There is no provision for the extension of a Provisional Certificate of Registry. A Provisional Certificate of Registry is issued for a maximum of 6 months. Once the 6 month period has passed, the shipowner must apply for a new certificate.
R Banumathi J considered the origin of the Merchant Shipping Act 1958 and highlighted the importance of ship registration and maritime flag. His Honour explained that the maritime flag is the direct result of the registration of the ship. Customary law of the sea places a duty on every State having ships owned by itself or by its nationals to insist on the registration of all ocean-going ships and to provide by its domestic law, the conditions which are to be fulfilled before its vessels can be registered under its flag. The first provision made on the law of registration, flag and nationality of ships in a multilateral convention was in the Geneva Convention on the High Seas 1958. Article 5 emphasised the importance of a genuine link between the owners of a ship and its flag state. This principle was enshrined in art 91 of the United Nations Convention on the Law of the Sea 1994 (UNCLOS). 167 countries are party to UNCLOS. As such, the conditions prescribed by each State for ship registration are diverse. However, the requisites are broadly:
Some countries insist in a rigid law of registration whereby the ship is constructed in the country and crewed by its nationals. Other countries allow foreign nationals to register ships within their territory and impose no conditions on registration. Others, such as India, require the ownership to be in national hands on a majority basis but impose on conditions relating to the crew or captain.
By registration under the Merchant Shipping Act, the ship is recognised as an Indian ship and thus eligible to claim the benefits, privileges, advantages or protection afforded to Indian ships. Flag of the ship is the prima facie evidence of the registry. Under customary international law, ships are regarded as part of the territory of the flag state. Registration operates as a bridge between the ships and the mainland. Registration of a ship casts serious responsibilities on the registering state. For this reason it is important to ensure that all the requisites for ship registration are strictly complied with, be it an Indian ship or a ship built abroad entitled to become an Indian ship.