Section 170
Distribution of fund.
The Merchant Shipping Act, 2025
About this Act
An Act to consolidate and amend the law relating to merchant shipping to ensure compliance with India's obligation under the maritime treaties and international instruments to which India is a party and also to ensure the development of Indian shipping and efficient maintenance of Indian mercantile marine in a manner best suited to serve the national interest and for matters connected therewith or incidental thereto.
(1) Subject to the limits of liability under sections 165 and 166, the fund shall be distributed among the claimants in proportion to their established claims.
(2) No lien or other right in respect of any vessel or property shall affect the proportions in which the fund is distributed among several claimants under this section.
(3) If before the fund is distributed, the person liable or his insurer has settled a claim against the fund, such person shall, up to the amount he has paid, acquire by subrogation the rights which the person so compensated would have enjoyed under this Chapter.
(4) The right of subrogation under sub-section (3) may also be exercised by any person other than the person liable or his insurers in respect of any amount of compensation which such person may have paid.
(5) Where the person liable or any other person establishes that he may be compelled to pay at a later date, in whole or in part any such amount of compensation with regard to which such person would have enjoyed a right of subrogation under this section had the compensation been paid before the fund was distributed, the High Court or the Central Government where the fund is constituted may order that a sufficient sum be provisionally set aside to enable such person to enforce his claim against the fund at such later date.
(2) No lien or other right in respect of any vessel or property shall affect the proportions in which the fund is distributed among several claimants under this section.
(3) If before the fund is distributed, the person liable or his insurer has settled a claim against the fund, such person shall, up to the amount he has paid, acquire by subrogation the rights which the person so compensated would have enjoyed under this Chapter.
(4) The right of subrogation under sub-section (3) may also be exercised by any person other than the person liable or his insurers in respect of any amount of compensation which such person may have paid.
(5) Where the person liable or any other person establishes that he may be compelled to pay at a later date, in whole or in part any such amount of compensation with regard to which such person would have enjoyed a right of subrogation under this section had the compensation been paid before the fund was distributed, the High Court or the Central Government where the fund is constituted may order that a sufficient sum be provisionally set aside to enable such person to enforce his claim against the fund at such later date.