Section 23
Transfer of Indian vessel or shares.
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) No person shall transfer or acquire any Indian vessel or any share or interest therein at any time during which the security of India or any part of the territory thereof is threatened by sanction, war or external aggression and a proclamation of emergency issued under clause (1) of article 352 of the Constitution is in operation, without the previous approval of the Central Government and any transaction effected in contravention of this provision shall be void and unenforceable.
(2) The Central Government may, if it considers necessary or expedient so to do for the purpose of conserving the tonnage of Indian shipping, by order, refuse to give its approval to any such transfer or acquisition in the circumstances referred under sub-section (1).
(3) No transfer or acquisition of any Indian vessel shall be valid unless,—
(a) all mortgages entered in its register are satisfied or the mortgagee has given his consent in writing for the transfer of the vessel;
(b) all wages and other amounts due to seafarers in connection with their employment on that vessel have been paid in accordance with the provisions of this Act;
(c) any subsisting entry has been made of any court order prohibiting transfer or any dealing with that vessel;
(d) any unpaid statutory fees that may be levied on the vessel has been paid and informed in writing to the Registrar.
(4) Subject to the provisions contained in this section, an Indian vessel or a share therein shall be transferred, only by an instrument, in such form and manner as may be prescribed.
(5) The instrument for the transfer of an Indian vessel or of a share therein shall be registered by the Registrar in accordance with such procedure as may be prescribed.
(2) The Central Government may, if it considers necessary or expedient so to do for the purpose of conserving the tonnage of Indian shipping, by order, refuse to give its approval to any such transfer or acquisition in the circumstances referred under sub-section (1).
(3) No transfer or acquisition of any Indian vessel shall be valid unless,—
(a) all mortgages entered in its register are satisfied or the mortgagee has given his consent in writing for the transfer of the vessel;
(b) all wages and other amounts due to seafarers in connection with their employment on that vessel have been paid in accordance with the provisions of this Act;
(c) any subsisting entry has been made of any court order prohibiting transfer or any dealing with that vessel;
(d) any unpaid statutory fees that may be levied on the vessel has been paid and informed in writing to the Registrar.
(4) Subject to the provisions contained in this section, an Indian vessel or a share therein shall be transferred, only by an instrument, in such form and manner as may be prescribed.
(5) The instrument for the transfer of an Indian vessel or of a share therein shall be registered by the Registrar in accordance with such procedure as may be prescribed.