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Section 49: Right of retention

Merchant Shipping Act · PART III: REGISTRATION OF SHIPS

consolidated text (as at 2011, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

49. Right of retention (1) There shall be a right of retention in respect of a ship in the possession of a ship builder for securing a claim for the building of the ship, or of a ship repairer for securing a claim for the repair or reconstruction of the ship, effected during that possession. (2) A right of retention shall be postponed to the maritime liens set out in section 47 (1) but shall take priority over any registered mortgage or other preferential right so long as the ship is in the possession of the shipbuilder or ship repairer. (3) Subject to subsection (4), the right of retention shall be extinguished when the ship ceases to be in the possession of the shipbuilder or ship repairer, otherwise than in consequence of an arrest or seizure of the ship. (4) Where at the time of the judicial sale of a ship it is in the possession of a ship builder or ship repairer, he shall be entitled to obtain satisfaction of his claim from the proceeds of sale of the ship, and his priority ranking under this section shall be preserved where he surrenders possession of the ship to the purchaser.

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