Section 185
Consolidation of claims and 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) The High Court or the Central Government shall consolidate all claims against the fund including those arising out of subrogation under section 184.
(2) Any claim in respect of expenses reasonably incurred or sacrifices reasonably made by the ship owner voluntarily to prevent or minimise pollution damage shall rank equally with other claims against the fund.
(3) Subject to the right of subrogation under section 184, the High Court or the Central Government shall distribute the amount in the fund among all claimants in proportion to their established claims.
(4) If the ship owner, insurer or other financial security holder has failed to establish a fund under this Chapter, the High Court shall make an order for compensation against such party to be payable within such period as may be specified in the order.
(2) Any claim in respect of expenses reasonably incurred or sacrifices reasonably made by the ship owner voluntarily to prevent or minimise pollution damage shall rank equally with other claims against the fund.
(3) Subject to the right of subrogation under section 184, the High Court or the Central Government shall distribute the amount in the fund among all claimants in proportion to their established claims.
(4) If the ship owner, insurer or other financial security holder has failed to establish a fund under this Chapter, the High Court shall make an order for compensation against such party to be payable within such period as may be specified in the order.