Section 50: Judicial sale of ships

50. Judicial sale of ships (1) Notwithstanding any other enactment, this section shall apply to the judicial sale of a ship following its arrest or seizure for the purpose of enforcement of a mortgage or a maritime lien. (2) The Court shall, by written notice issued at least 30 days before the judicial sale of a ship, inform the owner and every mortgagee, holder of a charge or of a maritime lien who has notified the Court of his claim, of the pending sale. (3) The notice referred to in subsection (2) shall contain— (a) the time and place of the sale, if they are certain, or if they are not certain, the approximate time and anticipated place followed by confirmation, at least 7 days in advance of the sale, of the actual time and place; and (b) such particulars concerning the sale as the Court determines are sufficient to protect the interests of persons entitled to notice. (4) Where a ship is sold by judicial sale, every mortgage or other charge, except those assumed by the purchaser with the consent of the holder, and every lien or other encumbrance shall cease to attach to the ship when the ship is within the physical jurisdiction of the Court conducting the sale and the sale is conducted in accordance with this Act. (5) The proceeds of sale shall be disposed of by the Court in the following order— (a) costs and expenses arising out of the arrest or seizure and the subsequent sale of the ship, including costs and expenses relating [Issue 2] M62 – 32 Revised Laws of Mauritius to the maintenance of the ship, crew wages and other sums referred to in section 47 (1) (a) incurred from the time of arrest or seizure; (b) costs of removal of a wrecked, stranded or sunken ship within the jurisdiction of Mauritius where the wreck has been removed by or under the direction of the Director in the interests of safe navigation or protection of the marine environment; (c) maritime liens, mortgages, charges and other rights and claims provided for in this Sub-Part ranked in priority according to the relevant provisions in this Sub-Part; and (d) the balance, which shall be freely transferable, payable to the owner. (6) Following a judicial sale, the Court may, at the request of the purchaser, issue a certificate stating that the ship has been sold free of all encumbrances except those assumed by the purchaser, provided there has been compliance with subsection (4). (7) Where there has been a judicial sale of a Mauritius ship, the Registrar shall, on production to him of the certificate referred to in subsection (6), delete all mortgages from the Register except those assumed by the purchaser, and register the ship in the name of the new owner or issue a certificate of deletion for the purpose of registration anew of the ship, as the case may be. Sub-Part IV – Bareboat Charter Ships