HALLIBURTON OFFSHORE SERVICES INC & ANR. versus PRINCIPAL OFFICER OF MERCANTILE MARINE  DEPARTMENT & ORS.
[2017] 6 S.C.R. 764, Supreme Court of India, 2017
Outcome: Directions issued
Segment: Ratio
[2017) 6 S.C.R. 764 
A 
HALLIBURTON OFFSHORE SERVICES INC & ANR. 
B 
v. 
PRINCIPAL OFFICER OF MERCANTILE MARINE 
DEPARTMENT & ORS. 
(Civil Appeal No. 5428 of2017) 
APRIL 20, 2017 
[DIPAK MISRA AND R. BANUMATHI, JJ.J 
Merchant Shipping Act, 1958 - s.40 - Interpretation of -
C Provisional certificate for ships becoming Indian ships abroad -
Requirements to get a Provisional Certificate of Registry (PCOR) 
uls.40 and its effect after expiry of six months - Held: Per Dipak 
Misra, J.: Requirement for grant of registration dnd provisional 
registration is the same S.40 has to be read with the preceding 
provisions contained in s.34 onwards till s.41 - The report of 
D 
surveyor and ownership are extremely significant - Conditions 
precedent to get a provisional certificate are that the surveyor has 
to see that the ship is completely built and thereafter being satisfied 
with regard to tonnage and other aspects, then give requisite 
certificate to make it sea going-According to s.40(2) the provisional 
E 
certificate shall be for six months or until the arrival of the ship at 
the port, where there is a registrar, whichever first happens - Once 
either of the events happens, the certificate of registration ceases 
to have effect - Thus, period of six months time is mandatory - Per 
R.Banumathi, J.: Title/ownership is very vital for Registration of 
ships - As per r.12 authorised officer on production of satisfactory 
F proof of ownership grant the provisional certificate of
Indian registry 
- Statutory mandates for permanent registry, uls.34 of the Act are 
to be satisfied even for obtaining the provisional certificate of 
registry uls.40 - Six months' time prescribed u/s.40 and sub-section 
(2) of s.40 as a validity period for PCOR, is only to ensure that a 
G ship in abroad, becoming Indian ship is able to travel and get itself 
permanently registered at the port of registry in India - Six months 
time is accepted as reasonable period for bringing the ship to the 
port of registry in India and complete other formalities requisite for 
final registration - Provisional certificate of registry will cease to 
have effect after six months of date of issuance or until the arrival 
H of the ship at a port where there is registrar whichever first happens 
764
HALLIBURTON OFFSHORE SERVICES INC v. PRINCIPAL 
765 
OFFICER OF MERCANTILE MARINE DEPT. 
- PCOR cannot be renewed nor its validity can be extended beyond A 
six months - Merchant Shipping (Registration of Indian Ships) Rules, 
1960 - r.12 - Interpretation of Statutes. 
Interpreting the provisions of the Act, the Court 
Per Dipak Misra, J. 
HELD: 1. The issue relating to law inasmuch as it is 
B 
fundamentally required to be dealt with what are the requirements 
to get a PCOR under Section 40 of the Merchant Shipping Act, 
1958. On a perusal of statutory provisions, the Rules and the 
instructions, it is abundantly clear that requirement for grant of 
registration and provisional registration is the same. The c 
Surveyor's report and the ownership are extremely significant. 
The language employed in various rules and the instructions 
clearly lay down that the certificate of survey has to convey that 
the ship was built. There is distinction between "being complete" 
and "complete" or "was built" and, therefore, unless the ship is 
completely built and ready sea-going, the owner cannot apply for D 
provisional registration certificate. 
[Paras 2, 39) [770-B; 787-
H; 788-A, BJ 
2, Section 40(2) of the said Act has another aspect. It 
stipulates the provisional certificate shall be for six months or 
until the arrival of the ship at the port, wherever there is a 
registrar, whichever first happens. Once either of the events 
happens, the certificate of registration ceases to
have effect. Thus 
understood, the period of six months time is mandatory. The 
peremptory facet clearly conveys that the ship has to be 
completely built and ready for sailing into the sea. Section 3(41) 
defines "sea-going" which means in relation to a vessel, which 
proceeds to sea beyond inland water or beyond waters declared 
to be smooth or partially smooth waters by the Central 
Government by notification in the Official Gazette. [Para 40) [788-
C-D] 
3.1 The legislative intendment, the rules framed by the 
department and the instructions which have been issued from 
time to time clearly support the interpretation that the ship has 
E 
F 
G 
to be completely built and ready for sea-going. If it cannot comply 
with Section 40 within six months, that is, arriving at the port 
where there is a registrar, the validity of PCOR shall cease to 
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[2017) 6 S.C.R. 
A exist. The words "shall cease to have effect" mean that it will 
have no validity in the eyes of law and, in fact, the document 
would be absolutely null and void. Section 40 has a mandate 
inherent in it and it has to be viewed from the holistic perspective. 
Interpretation of the provision in any other manner would dilute 
B 
the legislative intendment. [Para 42] [788-G-H; 789-A-B] 
3.2 In the case at hand, the provision is plain, clear and 
unambiguous. Section 40 does not come all of a sudden. It has a 
host of preceding provisions. Therefore, it has to be read with 
the preceding provisions contained in Section 34 onwards till 
Section 41. The said Chapter is a complete Code. The schematic 
C 
effect is that precautions have to be taken. Tbough surveyors 
have been chosen, they have to be extremely careful to see that 
the ship is completely built and thereafter being satisfied with 
regard to tonnage and other aspects, give the requisite certificate 
to make it sea-going. These are the conditions precedent to get 
D a provisional certificate. [Para 43] [789-C-E] 
E 
F 
Per R. Banumathi, J. (concurring): 
HELD: 1. The Law point is not yet ·clearly laid down, 
specifically on the requisites for obtaining a Provisional certificate 
of registry (PCOR) prescribed under Section 40 of the M.S. Act, 
1958 and its effect after expiry of six months. Title/ownership is 
very vital for Registration of Indian Ships. 'Ownership' is
central 
to the scheme for registration under the M.S. Act. For registration 
of a vessel the ownership is the first thing to be determined. In 
case of a second hand acquisition of a vessel by the intended 
Indian owner for registration in India (gaining Indian Flag), an 
'lnstr11ment of sale' of the vessel (as per Section 30 of Act) 
executed by the seller in favour of the Indian buyer and 
acceptance of the same as per applicable Rules of the losing Flag, 
is required. As per Rule 12, the authorised officer on production 
of satisfactory proof of ownership grants the provisional certificate 
G of Indian registry, which means that the ownership of the ship is 
to be satisfactorily established. Therefore, in order to apply for 
PCOR, as per the scheme of the Act, there is no concept of 
prospective ownership. Equally, for obtaining PCOR, there is no 
question of 'partially built' or 'almost built' ship. The statutory 
mandates for permanent registry, under Section 34 of the Act are 
H 
to be satisfied even for obtaining the provisional certificate of
HALLIBURTON OFFSHORE SERVICES INC v. PRINCIPAL. 
767 
OFFICER OF MERCANTILE MARINE DEPT. 
registry under Section 40. The language of Section 40 makes it A 
clear that the Provisional certificate of registry issued "shall have 
the effect of a certificate of registry until the expiration of six months 
from its date ...•.. " Since the PCOR shall have the same effect as 
that of certificate of registry issued under Section 34 of the Act, 
the essentials that are required for permanent registration (in 
case of a new ship) like (i) application for registry; (ii) builder's B 
certificate; and (iii) survey and measurement and all other 
requirements as stipulated under Sections 23 to 32 are to be 
strictly complied with. This could be said so even more firmly, in 
the light of important link established between the ship and the 
flag state, by virtue of registration. [Paras 3, 43] [790-C; 810-E-
C 
H; 811-A-B] 
2. The provisions relating to registration and safety of the 
ships goes to the very heart of the statute and failure on part of 
the authorities to strictly comply with the same may lead to 
disastrous consequences, gravely affecting national interest. Sub-
D 
section (2) of Section 40 of the Act lays down one such mandate 
which needs to be strictly complied with. If one considers Section 
40 and sub-section (2) of Section 40, objectively, six months' time 
prescribed as a validity period for PCOR, is only to ensure that a 
ship in abroad, becoming Indian ship is able to
travel and get 
itself permanently registered at the port of registry in India. Six 
E 
months' time is accepted as a reasonable period for bringing the 
ship to the port of registry in India and complete other formalities 
of obtaining various compliance certificates requisite for final 
registration. This is made explicit by the second part of sub-
section (2) of Section 40 which provides, " ..... or until the arrival 
F 
of the ship at a port where there is a registrar whichever first 
happens, and on either of those events happening shall cease to 
have effect". Section 40 and sub-section (2) of Section 40, the 
time of six months is stipulated only to enable the ships in abroad 
becoming Indian ships to travel on the high seas with the Indian 
registration/Indian flag unto complete statutory certificates G 
requisite for final registration are obtained, though in that course, 
the vessel may voyage to ports of other countries. [Para 45] [811-
D-G] 
3. As per sub-section (2) of Section 40, the provisional 
certificate issued under Section 40 shall have the effect of a final 
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A certificate of registry and it shall cease to have effect on expiration 
of six months from its date or on the arrival of the ship at the 
port. The clause says nothing more; there is no provision for 
renewal or extension of the provisional certificate contained either 
in Section 40 itself or in any other provision of the Act. The 
B 
necessary corollary is that the legislature intended to limit the 
validity of the provisional certificate of registration, obtained 
under Section 40 to six months or till the time the ship arrives at 
the port. It seems more logical in the light of purpose of issuing 
a provisional certificate of registration, which is to enable an Indian 
national to bring the ship built abroad to the Indian port for 
C 
completion of other requisites of obtaining statutory certificates 
for final registration. [Para 46] [811-H; 812-A-C] 
4. The intention of the legislature is clear and unambiguous 
in limiting the validity of provisional certificate of registration 
and not providing any provision for renewal of the certificate. 
D The only remedy which can probably be resorted to in case of 
expiration of provisional certificate is applying for a fresh 
provisional certificate of registry which may be considered by 
the authorities independently on its own merits. If the phnlse, 
"shall cease to have effect" in sub-section (2) of Section 40 is not 
E 
F 
interpreted in its letter and spirit and if the
provisional certificate 
is renewed again and again, the provisional certificate of 
registration will continue to have the effect of final certificate of 
registration for an indefinite period. This will frustrate the very 
purpose of granting a PCOR. Thus, the Provisional certificate of 
registry cannot be renewed nor its validity can be extended beyond 
six months. [Para 47] (812-C-E) 
In the Judgment of Dipak Misra, J. 
Sanjeev Coke Manufacturing Company v. Afls Bharat 
·Coking Coal Limited and another (1983) 1 SCC 147 : 
(1983] 1 SCR 1000; Yogendra Kumar Jaiswal and 
G 
others v. State of Bihar and others (2016) 3 SCC 183; 
Ponds India Ltd. v. Collector of Central Excise, Madras 
(1997) 2 SCC 577 : (1997] 1 SCR 541 - referred to. 
[1983] 1 SCR 1000 
H 
(2016) 3 sec 183 
Case Law Reference 
referred to 
referred to 
Para 25 · 
Para 25
HALLIBURTON OFFSHORE SERVICES INC v. PRINCIPAL 
769 
OFFICER OF MERCANTILE MARINE DEPT. 
[1997] 1 SCR 541 
referred to 
Para 42 
In the Judgment of R. Banumathi, J. 
Maritime Flag and International Law, 1978 Edition by 
Mr. Nagendra Singh, issued under the auspices of the 
Maritime Law Association of India and the Indian 
Society of International Law and published by 
Thomson Press (India) Limited; The Geneva 
Convention on the High Seas(1958); United Nations 
Convention on the Law of the Seas (UNCLOS) -
referred to. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5428 
of2017. 
From the Judgment and Order dated 25 .07.2016 of the High Court 
of Judicature at Bombay in Writ Petition No. 1668 of 2016. 
A 
B 
c 
Kapil Sibal, Sr. Adv., Dinesh Chandra Pandey, Dhritiman 
Bhattacharyya, Nizam Pasha, Piyush Sharma, Ms. Deeti Ojha, Raghav 
D 
Tankha, Tushar Sharma, Advs. for the Appellants. 
Mukul Rohatgi, AG., Ajit Kumar Sinha, C. A. Sundaram, Ajay 
Kumar Jha, Dr. Abhishek Manu Singhvi, Shyam Divan, Sr. Advs., Ajay 
Sharma, Ajay Kumar Singh, Ms. Meenakshi Grover, Gurmeet Singh 
Makker, D. S. Mahra, Piyush Sharma, K. R. Sasiprabhu, Krishnayan 
Sen, Ankit Jain, Prashant Asher, Gaurav Nair, Naishad Bhatia, Brenda.n 
E 
Pereira, Varun Singh, Mahesh Aggarwal, Ad vs. for the Respondents. 
The Judgments of the Court were delivered by 
DIPAK MISRA, J. I. Leave granted. 
2. The assail in the present appeal, by special leave, is to the 
judgment and order dated 25.07.2016 passed by the High
Court of F 
Judicature at Bombay in Writ Petition No. 1668of2016 whereby it has 
quashed the order dated 13.04.2016 passed by the Principal Officer, 
Mercantile Marine Department, the first respondent herein, revoking 
the Provisional Certificate of Registration (PCOR) dated 16.10.2015 
issued in respect of"Vessel Sita Devi" on the basis of materials coming 
G 
to its notice. It is necessary to state here that the 4th respondent, Oil 
and Natural Gas Corporation Limited (ONGC) had issued a tender inviting 
competitive bids for the charter hire of a stimulation vessel for Mumbai 
Offshore for three years on the terms and conditions set out in the tender. 
One of the terms and conditions basically related to get a PCOR. For 
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the present, I am not concerned with the tender conditions and compliance 
thereof, for this Court though heard the learned counsel appearing for 
the parties on facts as well as on law, but at the subsequent stage, it was 
thought apposite that the Court should answer the issue relating to law 
inasmuch as it is fundamentally required to be dealt with what are the 
B 
c 
requirements to get a PCOR under Section 40 of the Merchant Shipping 
Act, 1958 (for brevity, "the Act"). Therefore, I shall advert to the law in 
that regard and answer the same and, thereafter the controversy shall 
be dealt with on the basis of the judgment presently rendered and other 
facts, ifrequired. 
3. For the determination of the issue, I have heard Shri Kapil 
Sibal, learned senior counsel for the appellants, Shri Mukul Rohatgi, 
learned Attorney General for India and ShriAjit Kumar Sinha, learned 
senior counsel for the Union of India, Shri C.A. Sundaram, learned senior 
counsel for the respondent No. 5 and Dr. Abhishek Manu Singh vi, learned 
senior counsel for respondent No. 7. It is worthy to mention that Shri 
D 
Mukul Rohatgi has also addressed the Court on behalf of ONGC. 
4. To appreciate the controversy in proper perspective, it is 
necessitous to appreciate and interpret certain provisions of the Act 
commencing from Section 2 to Section 41. I shall also refer to other 
provisions of the Act as my attention has been drawn to some of them
E 
for scrutinizing the marrows of Section 40 of the Act and not merely to 
dissect it. I also make it clear that the provisions which are required to 
be focussed from Section 2 to Section 41 shall only be delved upon. 
F 
G 
H 
5. Prior to referring to the provisions, I think it pertinent to refer to 
statement of objects and reasons. It reads as follows:-
"An Act to foster the development and ensure the efficient 
maintenance of an Indian Mercantile marine in a manner best 
suited to serve the national interests and for that purpose to 
established a National Shipping Board to provide for the 
registration, certification, safety and security of Indian ships and 
generally to amend and consolidate the law relating to merchant 
shipping." 
6. Section 2 deals with application of the Act. It is as follows:-
"Section 2. Application of Act.-(!) Unless otherwise expressly 
provided, the provisions of this Act which apply to-
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
771 
OF MERCANTILE MARINE DEPT. [DIPAK MISRA, J.] 
(a) any vessel which is registered in India; or 
A 
(b) any vessel which is required by this Act to be so registered; or 
. ( c) any other vessel which is owned wholly by persons to each of 
whom apy of the descriptions specified in clause (a} or in clause 
. (b) or in clause (c ), as the case may be, of section 2.1 applies, 
· shall so ajJply wherever tqe vessel may be. · 
B 
(2) Unless otherwise expressly provided, the provisions of this 
Act which apply to vessels other than those referred to in sub-
section ( 1) shall so apply only while any such vessel is within 
India, including the territorial waters thereof." 
7. Section 3 is the dictionary provision. Sub-section (23) defines 
"owner" as follows:-
"(23) "owner" means-
(a) in relation to a ship, the person to whom the ship or a share in 
c 
~~~~p; 
D 
(b) in relation to a sailing vessel, the person to whom the sailing 
vessel belongs;" 
8. Sub-section (35) defines "registrar" means the registrar referred 
to in Section 24. Sub-section (39) defines ''sailing vessels" as under:-
"(39) "sailing vessel'', means any description of vessel provided 
with sufficient sail area for navigation under sails alone, whether 
or not fitted with mechanical means of propulsion, and includes.a 
rowing boat or canoe but does not i)1clude a pleasure craft;" 
9. Sub-section (41) defines "sea-going" in relation to a vessel. It 
reads as
follows:-
"(41) "sea-going", in relation to a vessel, means a vessel proceeding 
to sea beyond inland waters or beyond waters declared to be 
smooth or partially smooth waters by the Central Government by 
notification in the Official Gazette;" · 
10. Sub-section ( 45) defines "ship" does not include a sailing vessel. 
Sub-section (55) defines "vessel" in the following terms:-
"(55) "vessel" includes any ship, boat, sailing vessel, or other 
description of vessel used in navigation;" 
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F 
G 
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[2017] 6 S.C.R. 
A 
11. I have referred to the aforesaid definitions as the learned 
counsel for the parties have differently placed interpretation on the words 
used in the statute. Part II deals with National Shipping Board and Part 
III deals with General Administration. For the present, I am concerned 
with Section 9 that occurs in Part III. Section 9 is extracted below:-
B 
"Section 9. Surveyors. (I) The Central Government may, by 
notification in the Official Gazette, appoint at such ports as it may 
consider necessary as many persons as it may think fit to be 
surveyors for the purposes of this Act. 
IA. Without prejudice to the provisions of sub-section (1), the 
c 
Central Government, in the case of cargo ships, may, by 
notification in the Official Gazette authorise any person or body 
of persons, on such terms and conditions as may be specified 
therein, to be surveyor or surveyors for the purposes of this Act. 
(2) The surveyors may be nautical surveyors, ship surveyors or 
D 
engineer and ship surveyors. 
(3) At any port at which no surveyor appointed under this section 
is available, the Central Government may, by notification in the 
Official Gazette, appoint any qualified person to perform the 
functions of a surveyor under this Act. 
E 
(4) All acts done under this Act by a principal officer of the 
Mercantile Marine Department or a person appointed under sub-
section (3) relating to matters within the competence of a surveyor
shall have the same effect as if done by a surveyor for the purposes 
of this Act." 
F 
12. Part V deals with Registration of Indian Ships. Section 20 
provides that Part V applies only to sea-going ships fitted with mechanical 
means of propulsion. Section 21 provides for the purposes of the Act, a 
ship shall not be deemed to be an Indian ship unless owned wholly by 
persons to each of whom the descriptions mentioned therein applies. 
G 
Section 22 provides obligation for registration to the Indian ships. The 
said provision, being significant, is reproduced below:-
"Section 22. Obligation to register.-
(!) Every Indian ship, unless it is a ship which does not exceed 
fifteen tons net and is employed solely in navigation on the coasts 
H 
of India, shall be registered under this Act.
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
773 
OF MERCANTILE MARINE DEPT. [DIPAK MISRA, J.] 
(2) No ship required by sub-section (1) to be registered shall be 
A 
recognised as an Indian ship unless she has been registered under 
this Act: 
Provided that any ship registered at the commencement of 
this Act at any port in India under any enactment repealed by this 
Act, shall be deemed to have been registered under this Act and 
B 
shall be recognised as an Indian ship. 
(3) A ship required by this Act to be registered may be detained 
until the master of the ship, if so required, produces a certificate 
of registry in respect of the ship. 
Explanation.-For the purposes of this section, "ship" does not 
C 
include a fishing vessel". 
13. Section 23 to Section 33 come under the heading Procedure 
for Registration. Section 23(1) provides for that the ports of Bombay, 
Calcutta and Madras and such other ports in India as the Central 
Government may, by notification in the Official Gazette, declare to be 
D 
ports of registry under this Act shall be such ports where registration 
can be made. Sub-section (2) stipulates that the port at which the Indian 
ship is registered for the time being under the Act shall be deemed to be 
a port of registry and port to which she belongs. Section 24 deals with 
Registrars of Indian Ships. Section 25 states about the Register book. 
E 
The said provision reads as follows:-
"Section 25. Register book-Every registrar shall keep a book
to be called the register book and entries in that book shall be 
made in accordance with the following provisions:-=-
(a) the property in a ship shall be divided into ten shares; 
F 
(b) subject to the provisions of this Act with respect to joint owners 
or owners by transmission, not more than ten individuals shall be 
entitled to be registered at the same time as owners of any one 
ship; but this rule shall not affect the beneficial interest of any 
number of persons represented by or claiming under or through 
G 
any registered owner or joint owner; 
( c) a person shall not be entitled to be registered as owner of a 
fractional part of a share in a ship; but any number of persons not 
exceeding five may be registered as joint owners of a ship or of 
any share or shares therein; 
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(d) joint owners shall be considered as constituting one person 
and shall not be entitled to dispose in severalty of any interest in a 
ship or any share therein in respect of which they are registered; 
B 
(e) a company or a co-operative society may be registered as 
owner by its name." 
On a perusal of the aforesaid provision, it is quite clear the property 
in a ship has to be divided into ten shares and also deals with who can 
own a ship. 
14. Section 26 provides for an application to be submitted for the 
registry oflndian ship. Section 27( l) stipulates that the owner of every 
C 
Indian ship in respect of which an application for registry is made shall 
cause such ship to be surveyed by a surveyor and the tonnage of the 
ship ascertained in the prescribed manner. Sub-section (2) of the said 
provision mandates that the surveyor shall grant certificate specifying 
the ship's tonnage and build and such other particulars descriptive of the 
D 
identity of the ship to be prescribed and the certificate of the surveyor 
shall be delivered to the registrar before such registry. 
E 
F 
G 
H 
15. Section 28 deals with Marking of ship. I think it appropriate to 
reproduce the said provision:-
"Section 28. Marking of ship.-(1) The owner of an Indian 
ship who applies for registry under this Act shall, before registry, 
cause her to be marked permanently and conspicuously in the 
prescribed manner and to the satisfaction of the
registrar and any 
ship not so marked may be detained by the registrar. 
(2) Subject to any other provision contained in this Act and to the 
provisions of any rules made thereunder, the owner and the master 
of an Indian ship shall take all reasonable steps to ensure that the 
ship remains marked as required by this section, and the said owner 
or master shall not cause or permit any alterations of such marks 
to be made except in the event of any of the particulars thereby 
denoted being altered in the manner provided in this Act or except 
to evade capture by the enemy or by a foreign ship of war in the 
exercise of some belligerent right." 
The aforesaid provision lays stress on the marking of ship that 
brings identity to the ship.
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
775 
OF MERCANTILE MARINE DEPT. [DIPAK MISRA, J.] 
16. Section 29 deals with declaration of ownership on registry. It 
A 
lays down that a person shall not be registered as the owner of an Indian 
ship or of a share therein until he or, in the case of a company, or a co-
operative society the person authorized by the Act to make declarations 
on its behalf has made and signed a declaration of ownership in the 
prescribed form referring to the ship as described in the certificate of B 
the surveyor. The said provision requires that -the declarations should 
contain certain particulars. Sub-sections 29(a) to (e) deal with such 
particulars. They read as follows:-
"( a) a statement whether he is or is not a citizen of India; or in the 
case of a company, or a co-operative society, whether the company c 
or a co-operative society, satisfies the requirements specified in 
clause (b) or, as the case may be, clause ( c) of section 21; 
(b) a statement of the time when and the place where the ship 
was built or ifthe ship is built outside India and the time and place 
of building is not known, a statement to that effect; and in addition, 
in the case of a ship previously registered outside India, a statement 
D 
of the name by which she was so registered; 
( c) the name of her master; 
( d) the number of shares in the ship in respect of which he or the 
company, or the co-operative society], as the case may be, claims 
E 
to be
registered as owner; and 
( e) a declaration that the particulars stated arc true to the best of 
his knowledge and belief." 
· 
The aforesaid provision commands that a statement with regard 
to time and place where the ship was built has to be made. It is 
F 
imperative. 
17. Section 30 provides for evidence on first registry. It requires 
that on the first registry, of an Indian ship certain evidence have to be 
produced in addition to the declaration of ownership. Sub-section (b) of 
tiie said Section requires that in the case of a ship built outside India, the 
G 
same evidence as in the case of a ship built in India unless the declarant 
who makes the declaration of ownership declares that the time and place 
of her building are not known to him or that the builder's certificate 
cannot be produced and in that event, it shall be required only the 
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A 
instrument of sale under which the ship or a share therein has become 
vested in the applicant for registry. 
B 
c 
D 
18. Section 31 deals with the entry of particulars in register book. 
It is necessary to extract the said Section:-
"Section 31. Entry of particulars in register book. -As soon 
as the requirements of this Act preliminary to registry have been 
complied with, the registrar shall enter in the register book the 
following particulars in respect of the ship:-
(a) the name of the ship and the name of the port to which she 
belongs; 
(aa) the ship identification number; 
(b) the details contained in the surveyor's certificate; 
( c) the particulars respecting her origin stated in the declaration 
of ownership; and 
(d) the name and description of her registered owner or owners, 
and, if there are more owners than one, the number of shares 
owned by each of them." 
19. The said provision, as is demonstrable, requires the particulars 
contained in the surveyor's certificate, the ship identification number 
E 
and the name of the ship and name of the port to which it belongs, etc. 
F 
Section 32 enumerates that the documents, namely, the surveyor's 
certificate, the builder's certificate, any instrument of sale by which the 
ship was previously sold and all.declarations of ownership to be retained 
by the registrar in his custody on the registry of a ship. 
20. Section 34 to Section 41 come under the heading
"Certificate 
of registry". The grant of certificate of registry is controlled by Section 
34. It stipulates that on completion of the registry of an Indian ship, the 
registrar shall grant a certificate of registry containing the particulars 
respecting her as entered in the register book with the name of her 
G 
master. Section 35 provides for custody and use of certificate. Section 
36 deals with power to grant new certificate when original certificate is 
defaced, lost, etc. Section 37 makes provision for endorsement on 
certificate of change of master. Section 38 similarly deals with 
endorsement on certificate of change of ownership. 
H
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
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OF MERCANTILE MARINE DEPT. [DIPAK MISRA, J.] 
21. Section 40, which is the provision that calls for interpretation, 
A 
is extracted below:-
"Section 40. Provisional certificate for ships becoming Indian 
ships abroad.-( 1) If at any port outside India a ship becomes 
entitled to be registered as an Indian ship, the Indian consular 
officer there may grant to her master on his application a provisional 
B 
certificate containing such particulars as may be prescribed in 
relation to the ship and shall forward a copy of the certificate at 
the first convenient opportunity to the Director General. 
(2) Such a provisional certificate shall have the effect of a 
certificate of registry until the expiration of six months from its c 
date or until the arrival of the ship at a port where there is a 
registrar whichever first happens, and on either of those events 
happening shall cease to have effect." 
22. The question that arises for consideration in the interpretative 
process of the aforesaid provision basically pertains to requirements for 
D 
grant of provisional certificate for ships becoming Indian ships abroad. 
On a careful scrutiny of the said provision, it is discernible that any port 
outside can be a port to grant the provisjonal registration certificate. In 
this context, Section 23 becomes relevaht, for apart from domestic ports, 
the Central Government has been conferred the power by Parliament to 
issue
notification in the official gazette to declare the ports of registry 
under this Act. Sub-section (1) of Section 40 provides that if at any port 
that has been notified to register an Indian ship then the Indian Consular 
Officer is empowered to grant to the master of the ship, who is entitled 
to be registered as an Indian ship on an application being made, a 
provisional certificate containing such particulars as may be prescribed 
in relation to the ship and forward the copy of the certificate at the first 
convenient opportunity to the Director General. The key words of this 
provision are "entitled to be registered". 
E 
F 
23. Sub-section (2) of Section 40 provides that a provisional 
certificate shall have the effect of a certificate of registry until the 
G 
expiration of six months from its date or until the arrival of the ship at a 
port where there is a registrar whichever first happens, and on either of 
those events happening shall cease to have effect. Thus a provisional 
certificate has a maximum life span of six months. The submission on 
behalf of the appellants is that a ship has to be a completely built ship 
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SUPREME COURT REPORTS 
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A 
and it has to be fully compliant with the necessary documents as provided 
in the rules and the circulars. The Union of India had taken a different 
stand before the High Court. The affidavit filed by the Union of India 
before the High Court is quite different. 
24. The stand taken by the department before the High Court 
B 
need not detain me as my obligation is to interpret the provision regard 
being had to the language employed by the legislature. Mr. Mukul Rohtagi, 
learned Attorney General appearing for the Union of India as well as for 
ONGC would contend that Section 40 has to be understood in the context. 
Similar submissions have been advanced by Mr. Ajit Kumar Sinha, learned 
c senior counsel appearing for the Union of India. The argument by them 
is that sub-section (2) has to be interpreted with a purpose. It is urged 
by them that a provisional certificate is granted to the master on certain 
particulars being furnished and the said certificate remains in force for 
six months so that it is to be ready and travel to the identified port or a 
port in India. The submission of Mr. Rohatgi and Mr. Sinha is that from 
D 
the language employed, it cannot be construed that it refers to a ship 
which is built completely or ready for delivery. 
25. At this junction, I think it appropriate to state that when a 
legislation is made by Parliament, it is the duty of the courts to interpret 
it and this Court is the final
interpreter. It is because no one is a 
E 
spokesman for the Parliament. In this regard, a passage from Sanjeev 
Coke Manufacturing Company v. Mis Bharat Coking Coal Limited 
and another1 would be quite instructive:-
"25 .... Once a statute leaves Parliament House, the Court is the 
only authentic voice which may echo (interpret) the Parliament. 
p 
This the court will do with reference to the language of the statute 
and other permissible aids .... " 
Similar view has been expressed in Yogendra Kumar Jaiswa/ 
and others v. State of Bihar and others2. 
26. At this juncture, I may refer to the relevant rules of the 
G 
Merchant Shipping (Registration oflndian Ships) Rules, 1960 (for short, 
'the Rules'). Rule 11 provides that on completion of the preliminaries to 
registry, the registrar shall enter the particulars of the ship in the register 
book and issue to the owners a certificate of registry. 
1 (1983) 1 sec 147 
H 
2 (2016) 3 sec 183
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
779 
OF MERCANTILE MARINE DEPT. [DIPAK MISRA, J.] 
27. Rule 12 which provides to acquisition of ship abroad. It is as 
A 
follows:-
"( 1) If any ship is built or acquired out oflndia and becomes the 
property of persons qualified to own an Indian ship, the owner cir 
master of the ship shall apply to the Indian Consular Officer at 
the nearest port for the issue of a.provisional certificate of Indian 
B 
registry and such officer may, on.production of satisfactory proof 
of ownership, grant the same to the owner or master." 
28. Rule 38 provides for Forms. The said Rule, being relevant, is 
extracted below:-
"Forms-Every application, certificate, advertisement, declaration, 
C 
return report or any other documents referred to in these rules 
shall, if a form therefore has been prescribed in Schedule I to 
these rules, be in the appropriate form." 
29. The Schedule I to Rule 38 gave description of Forms and 
registry Form number. Registry Form No. 14 deals with provisional 
certificate of Indian Registry. Registry Form No. 17 deals with certificate 
D 
of survey. Registry Form No. 14 reads as follows:-
"Provisional Certificate oflndian Registry 
(Merchant Shipping Act, 19 58, Sections 40( 1)) 
Expiry on or before the ...... day of .... 19 ... . 
Issued by the Government of India 
Name of Ship (a) 
Where and when Built 
Steam or Motor 
how propelled 
Ship, 
Number of Decks ...... Framework and description of ship 
Number of
Masts .......... Number of bulkheads 
Rigged .................. . 
Steam ............... . 
Stem ............ Number of water ballast tanks and Their capacity 
in tons. 
Build .... 
E 
F 
G 
H

780 
SUPREME COURT REPORTS 
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A 
Measurements 
Feet 
Tenths 
Metres 
Length from the 
fore part of stem 
to the aft side 
Of the head of 
B 
the stern post 
'' 
Main breadth to 
outside 
of 
plating 
c 
Depth 
m hold 
from 
tonnage 
deck to celling 
amidships 
Length of engine 
D 
room 
Number of engines ................... . 
Combined Horse Power ................... . 
Name and address of engine maker ............... . 
E 
Particulars of Tonnage 
Gross Tonnage 
No. of Cubic 
Deductions 
No. 
of 
tons 
meters 
allowed 
tons 
Under 
tonnage 
On account of 
deck 
space 
or 
space required 
spaces 
between 
for 
propelling 
decks 
power 
F 
Turret or trunk 
On account of 
spaces 
provided 
by 
way 
of crew 
accommodatio 
n as follows: 
Forecastle 
G 
Bridee soace 
Poop or break 
(Number 
of 
seamen 
or 
apprentices for 
whom 
ace om modatio 
ns 
certified 
H 
...... )
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
781 
OF MERCANTILE MARINE DEPT. [DIPAK MISRA, J.] 
Side houses 
Deck houses 
Chart houses 
Spaces 
for 
machinery 
and 
light and air 
Excess 
of 
Other deductions: 
hatchways 
Gross 
tonnage 
Total 
Deductions, as per 
contra 
Register 
tonnage 
Note 1: The tonnage of the engine room spaces below the upper 
deck is ... Tons and the tonnage of the total spaces framed in 
above the upper deck for propelling machinery and for light and 
air is .... tons. 
A 
B 
c 
D 
Note 2 : The undermentioned spaces above the upper deck are 
not included in the cubical contents forming the ship's register 
tonnage-
Note 3: The location and tonnage of the boatswains store rooms 
are as follows ...................... .. 
1. That the ship, the description of which is prefixed to this my 
Provisional Certificate, has been duly surveyed, and that the above 
description is true (b) 
2. That. ........ of ......... is Master of the said Ship. 
3. That the person or persons whose names are hereunder written 
purchased at ...... on the ........ day of ..... 19 ... 
Or 
3. That the Ship was built at ............ On account of the persons 
or persons whose names are hereunder written. 
Name, Residence and 
Occupation of the owner 
Number of Tenth Shares 
E 
F 
G 
H
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SUPREME COURT REPORTS 
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A Dated at ....... the ........ day of. ...... one thousand nine hundred and 
B 
c 
D 
E 
F 
G 
H 
......... Indian Consul." 
[emphasis supplied] 
30. Registry Form No. 17 deals with surveyor certificates requires 
the surveyor to address the following aspects:-
Name of Ship 
Port 
of intended Name and Official 
Registry 
Number if there has 
been 
any 
former 
registry 
Whether Indian or Whether a Where 
When 
Name 
Foreign Built 
Steam 
or built 
Built 
and 
Motor 
address 
Ship; how 
of 
propelled 
Builders 
Number of Decks 
Length from fore part Meters 
of stem, to the aft side 
of the head of the stem 
post/fore side of ruder 
stock 
Number of Masts 
Main breadth to outside 
of plating 
Rigged 
Depth m hold from 
tonnage deck to ceiling 
amidships 
Stem 
Depth in hold from 
upper deck to ceiling 
amidships, in the case 
of two 
decks 
and 
upwards 
Stem 
Depth 
from top of 
upper deck at 
side 
amidships to bottom of 
keel 
. 
Build 
Round 
beam 
on 
upper/deck 
Framework 
and Length of engine-room 
description of ship 
(if anv) 
Number 
of 
Bulkheads
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
783 
OF MERCANTILE MARINE DEPT. [DIPAK MISRA, J.] 
Particulars of Tonnage 
A 
Gross 
With 
Without 
Deduction 
Cubic 
Tonnage 
exempted 
exempted 
allowed 
Meters 
Tween 
tween deck 
Deck 
Upper 
Cubic 
Meters 
On account 
B 
tonnage 
of 
space 
deck Spaces 
required 
or 
space 
for 
between 
propelling 
Decks. 
power .... 
c 
Turret 
or 
On account 
Trunk .. 
of 
spaces 
F orecastel.. 
provided 
Bridge 
by way of 
space .. 
crew 
Poop 
accommod 
D 
Break .. 
a ti on, 
as 
Side 
follows:-
Houses ... 
(Number of 
Deck 
seamen or 
Houses .. 
apprentices 
Chart 
for 
whom 
E 
Houses .. 
accommod 
Spaces 
for 
at ion 
is 
Machinery, 
certified 
and 
light, 
Other 
and air ... 
deductions: 
Excess 
of 
-
F 
Hatchwavs 
Gross 
Tonnage ... · 
Deductions, 
Tonnage 
Tonnage 
as per contra Mark 
not Mark 
G 
Register 
submerged 
submerged 
Tonnage ... 
Note 1 : The tonnage of the engine room spaces below the tonnage 
deck is ..... cubic meters and the tonnage of the total spaces 
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SUPREME COURT REPORTS 
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A 
framed in above the tonnage deck for propelling machinery and 
for light and air is .... Cubic meters. 
B 
c 
D 
Note 2: The undermentioned spaces above the tonnage deck are 
not included in the cubical contents forming the ship's register 
tonnage. 
Note 3: The location and cubic capacity of the boatswains store 
rooms are as follows: 
I, the undersigned Surveyor appointed under Section 9 of the 
Merchant Shipping Act, 1958, having surveyed the above named 
ship hereby certify that the above particulars are true and· that 
here name is marked on each of her bows and her name and the 
port ofregistry are properly marked on a conspicuous art of her 
stern and a scale of meters denoting her draft are marked on 
each side of her stem and of her stern post as prescribed. 
Date at ..................... . 
Surveyor ...... . 
This ..... day of.. ...... 19 ...... " 
31. It is seemly to note that a circular has been issued by the 
competent authority on August 28, 2008 prescribing the modified 
E 
procedure for Registration ofVessels under the Merchant Shipping Act. 
F 
G 
H 
It states thepurpose in the following terms:-
"IN ADHERENCE TO the fundamental tenet of Merchant 
Shipping Act 1958 as amended, and considering the reservations 
expressed by the shipping industry with regard to certain prevailing 
guidelines I practices; the Directorate General of Shipping (DGS) 
has identified areas to be addressed for expanding maritime sector
and encouraging the growth of"quality" Indian tonnage. 
REALISING the need of Shipping industry for detailed and 
modified guidelines on registration of vessels and regarding 
procedures on matters including technical clearance, survey prior 
registration, provisional registration, and mortgage entry. 
UNDERSTANDING the difficulties that ship owners face, due 
to the delay in processing the registration and other proceedings 
thereof, which extends from acquisition till registration formalities 
are completed.
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
785 
OF MERCANTILE MARINE DEPT. [DIPAK MISRA, J.] 
NOTING THAT Part V of the Merchant Shipping Act, 1958 and 
A 
the Merchant Shipping (Registration oflndian Ships) Rules, 1960 
as amended in 1966, 1970, 1994 and 1997, by the Central 
Government provide for and prescribe the procedure for 
registration and provisional registration oflndian Ships. 
WITH A VIEW to codify the existing guidelines on registration of B 
ships and REVIEWING therefore the procedures, current 
practices of survey and certification related thereto." 
32. Thus, it is manifest that the procedures have been amended 
and it is also meant to expanding the maritime sector and encouraging 
the growth of "quality" Indian tonnage. It also deals with procedures 
C 
pertaining to issues of Certificate of Survey and tonnage certificate for 
T<:chnical clearance/Survey prior to Registration. Para 2.1 provides as 
follows:-
"2.1 Application for allotment of name, Official number and Call 
Sign combined with the application for allotment ofMMSI number 
D 
will be made by the owner through the Registrar to DGS bx fax 
and approval by DGS would be made by return fax within 24 
hours. 
After applying for registration/name-approval of his vessel with a 
E 
Registrar in the prescribed format, the prospective ship-owner, 
shall put up the vessel for survey as required vi de Section 27(1) 
of the M.S. Act and Rule 5 of the M.S. (Registration of Indian 
Ships) Rules, 1960,
either by the Mercantile Marine Department 
(MMD) or the Indian Register of Shipping (IRS)." 
33. Para 2.2 deals with Certificate. It is as follows:-
"The survey as referred to in para "2.1" above, shall be carried 
out for the purpose of verifying the particulars to be included in 
F 
the Certificate of Survey as mentioned in Section 27(2) of the 
M.S. Act and not principally for assessing the compliance of the 
G 
applicable statutory rules. 
The attending Surveyor may issue a Certificate of Survey and a 
Provisional Certificate of Registry irrespective of the location of 
the vessel, if duly authorized by a Registrar of Ships." 
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SUPREME COURT REPORTS 
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A 
34. Para 2.3 reproduced as follows:-
"Issuance of the Certificate of Survey as stated in para. "2.2" 
above and/or the Certificate of Registry as stated in Section 34 of 
M.S. Act and Rule 11 of the Merchant Shipping (Registration of 
Indian Ships) Rules, 1960, does not entitle the vessel to ply, unless 
B 
she has in her possession, the required statutory certificates and 
valid documents." 
C 
D 
E 
G 
35. Para 3 deals with the procedure in regard to Surveys for 
issuance of Statutory Certificates. Para 4 deals with the issues pertaining 
to provisional registration, carving and marking etc., The said paragraph 
reads thus:-
"4. Issues pertaining to provisional registration, carving and marking 
etc. 
4.1 The ship owner, shall in his own interest make every endeavour 
to have his vessel registered on provisional or permanent basis at 
the very outset. 
4.2 The name of the vessel, her port ofregistry and other markings 
need only be painted as per specifications at the time of change 
of flag in line with global maritime practices. However, the IMO 
Number (Ship Identification Number) has. to be permanently 
marked as per Regulation 3( 4) of Chapter XI-I: Special measures 
to enhance maritime safety, of SOLAS, 1974 as amended. The 
Official Registration No. and registered net tonnage shall continue 
to be affixed on bridge as mentioned in Rule I 0 of the Merchant 
Shipping (Registration of Indian Ships) Rules, 1960, as
amended. 
4.3 The age of the vessel is to be computed from her date -of 
delivery from the shipyard as may be established by the ship owner, 
with documentary evidence. 
4.4 A provisional certificate of registry shall continue to remain 
valid till the date of its expiry, regardless of the location of the 
vessel." 
36. The check list No. l that has been brought on record provides 
for basic documents. Para 4 of the same deals with provisional registry. 
It is as follows:-
"Provisional Registry: On request of owner, the RoS can authorize 
H 
the Consular Officer/MMD/IRS to verify the required documents,
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
787 
OF MERCANTILE MARINE DEPT. [DIPAK MISRA, J.] 
witness the markings on board the vessel as per C&M Note and 
A 
issue provisional certificate of registry irrespective of age or 
location of the vessel." 
37. Para 6 deals with Permanent Registry. It reads as follows:-
"Owner to provide all documents for permanent registration as 
per check list. Every detail required to be filled up in the "Certificate 
B 
of Survey" and "Particulars of Ship" are to be made available 
and evidences for such data be given." 
38. Para 5 deals with Permanent/Provisional Registry. I think it 
appropriate to reproduce the same:-
"Permanent/Provisional Registry: 
• Application for Registry as per Checklist No. 1 (Available on 
MMD website) alongwith an online application in DGS and 
MMD site. 
• Alternatively a Provisional Certificate of Registry can be issued 
to the vessel for six months, if the vessel is abroad or if the 
documents are not complete as per the requirements. 
• For provisional Certificate of Registry, the documents required 
c 
D 
are i) An application, ii) Original Carving & Marking duly verified 
E 
by the Surveyor, iii) Certificate of Survey, iv) Original Board 
Resolution for a company or signed by all the .partners for 
Partnership Firm, v) Original Declaration of Ownership duly 
signed before Principal Officer, vi) Original Bill of Sale for a 
second hand vessel or Original Builder's certificate for a new 
ship. 
F 
•
When the vessel is abroad and a Provisional Certificate of 
Registry (PCOR) is to be issued for taking delivery, the owner 
has to apply for a blank Provisional Certificate of Registry ( onlirie 
& hard copy - Fees Rs.100/-). A separate application to be 
made to instruct the class for issuance of PCOR giving date 
and place of delivery and a copy of Memorandum of 
agreement." 
39. On a perusal of statutory provisions, the Rules and the 
instructions, it is abundantly clear that requirement for grant of registration 
G 
H
788 
SUPREME COURT REPORTS 
[2017] 6 S.C.R. 
A and provisional registration is the same. The Surveyor's report and the 
ownership are extremely significant. The language employed in various 
rules and the instructions clearly lay down that the certificate of survey 
has to convey that the ship was built. There ls distinction between "being 
complete" and "complete" or "was built" and, therefore, I am compelled 
B to construe that unless the ship is completely built and ready sea-going, 
the owner cannot apply for provisional registration certificate. 
40. Section 40(2) has another aspect. It stipulates the provisional 
certificate shall be for six months or until the arrival of the ship at the 
port, wherever there is a registrar, whichever first happens. Once either 
of the events happens, the certificate of registration ceases to have effect. 
C Thus understood, the period of six months time is mandatory. The 
peremptory facet clearly conveys that the ship has to be completely built 
and ready for sailing into the sea. I am compelled to so interpret that 
Section 3( 41 ), which I have reproduced hereinbefore, defines "sea-going" 
which means in relation to a vessel, which proceeds to sea beyond inland 
D water or beyond waters declared to be smooth or partially smooth w11ters 
by the Central Government by notification in the Official Gazette. 
E 
F 
41. Mr. Rohatgi, learned Attorney General has drawn my attention 
to various provisions of the Act that relate to safety. The
concept of 
safety occurs in Part IX of the Act. It is urged by him that unless Rules 
are followed, a ship cannot enter Indian sea. The aforesaid submission 
on a first blush looks quite attractive but on a keener scrutiny pales into 
insignificance. It is to be borne in mind that Section 20 that occurs in 
Part V of the Act which deals with registration oflndian ships applies 
only to sea-going ships fitted with mechanical means of propulsion. A 
ship that is granted certificate of registration under Section 34 has to 
satisfy the similar conditions for grant of PCOR. Unless such a 
construction is placed, it is likely to create incurable anomaly. 
42. The legislative intendment, the rules framed by the department 
and the instructions which have been issued from time to time clearly 
support the interpretation that the ship has to be completely built and 
G ready for sea-going. If it cannot comply with Section 40 within six months, 
that is, arriving at the port where there is a registrar, the validity of 
PCOR shall cease to exist. The words "shall cease to have effect" 
mean that it will have no validity in the eyes of law and, in fact, the 
document would be absolutely null and void. In this regard, the authority 
H
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
789 
OF MERCANTILE MARINE DEPT. 
in Ponds India Ltd. v. Collector of Central Excise, Madas3 would A 
be instructive. In the said case, while interpreting the terms of the Finance 
Act, it was held that special excise duty so levied would cease to have 
effect at the close of the financial year and, therefore, it was an annual 
levy and may or may Iiot be levied in the following year. Thus understood, 
after expiry of six months, PCOR gets extinct. Be it clarified, that Section 
B 
40 has a mandate inherent in it and it has to viewed from the holistic 
perspective. Interpretation of the provision in any other manner would 
dilute the legislative intendment. 
43. I will be failing in my duty ifl do not take note of the submission 
advanced by Mr. Rohatgi, learned Attorney General that Section 40 was 
drafted when India had not grown in the shipping arena and, therefore, 
C 
at that juncture, ships were booked in a different stage; In the case at 
hand, as I find, the provision is plain, clear and unambiguous. Section 40 
does not come all of a sudden. It has a host ~preceding provisions. 
Therefore, it has to be read with the preceding provisions contained in 
Section 34 onwards till Section 41. The said Chapter is a complete Code. 
D 
The schematic effect is that precautions have to be taken. Though 
surveyors have been chosen, they have to be extremely careful to see 
. that the ship is completely built and thereafter being
satisfied with regard 
to tonnage and other aspects, give the requisite certificate to make it 
sea-going. These are the. conditions precedent to get a provisional 
certificate, 
44. I had stated earlier that first I shall deal with the legal aspect 
and thereafter, if required, will deal with the issue that arises from the 
tender conditions by the ONGC. However, I may note that the ship in 
question has not arrived at the port within the mandatory period of six 
months. Therefore, the PCOR that had been granted in favour of "Vessel 
Sita Devi" has ceased to exist. It has lost its validity. Needless to say, 
the owner can apply for the fresh PCOR which can be considered keeping 
the judgment in view. 
E 
F 
R. BANUMATHI J. I. I have gone through the draft judgment: 
prepared by His Lordship Dipak Misra J. and I agree with the reasonings 
G 
recorded by His Lordship. However, in view of the importance of the 
questions involved and interpretation of the provisions of the Merchant 
Shipping Act, 1958, (For short 'the M.S. Act') I would prefer to give my 
own reasonings for my concurrence. 
'(\997) 2 sec sn 
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790 
SUPREME COURT REPORTS 
. [2017) 6 S.C.R. 
A 
2. The ~ssue relates to Provisional Certificate of Registry (PCOR) 
dated 16.10.2015 issued to vessel Sita Devi by the Mercantile M~rine 
Department (MMD). Issuance of PCOR was challenged by Halliburton 
Offshore in W.P. No. 961/2016. While the said Writ Petition was pending, 
PCOR ·issued to vessel Sita Devi was revoked by an order dated 
B 
13.04.2016 which became a subject matter of challenge in W,P. 1668/ 
2016 preferred by Sita Offshore India Private Limited. 
3. The counsel for the _parties, though elaborately argued the matter 
on facts as well as on law, after hearing the matter at length, vide 
proceeding dated 02.02.2017, it was thought apposite that this Court 
first answers the issues relating to law. It was realised that the law on 
C . the point is not yet clearly laid down, specifically the requisites for 
obtaining a Provisional certificate of registry (PCOR) prescribed under 
Section 40 of the M.S. Act, 1958 and its effect after expiry of six months. 
D 
. E 
F 
4. While dealing with the core issue, as stated above, what 
pertinently require to be dealt with are as under:-
(i) Whether the requisites for obtaining Provisional Certificate of 
Registry (PCOR)are the same as in the case of obtaining 
permanent registration, as stipulated under Sections 21 to 32 
of the Merchant ShippingAct, 1958, in terms of (i) Ownership 
(ii) Built/construction (iii) other requisites of permanent 
registration. 
(ii) When
sub-section (2) of Section 40 of the Merchant Shipping 
Act uses the language "provisional certificate shall have 
the effect of certificate of registration until the expiration 
of six months from its date ........... ", whether PCOR is 
statutorily renewable/ extendable after the expiry of six months 
of Provisional Certificate of Registry. 
5. Before considering the above issues in detail, in the light of the 
scheme of the M.S. Act, 1958, and allied rules and circulars, I would like 
to briefly refer to the origin of the Act and the importance ofregistration 
and maritime flag, so as to emphasize the establishment oflink between 
G 
the vessel and the country whose flag it flies, and the national interest 
involved therein. 
Importance of Registration and Maritime Flag:-
6. As the registration of a ship enables the ship to fly the flag of 
H 
the country where it is registered, registration and the maritime flag
- -
-.--.~------ .,,,-· 
.• 
. HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
791 
OF MERCANTILE MARINE DEPT. [R. BANUMATHI, J.] 
1 
assumes great importance. Every unit of transport, whether public or 
A 
private, such as motor vehicles while operating on.land or an aircraft 
operating in sky must bear some legal recognition for ascertainment of 
jurisdiction. Similarly, when the ship is in the high seas or in the ports 
and harbours or in the territorial water of maritime States, it is necessary 
that the ship bears the maritime flag. Importance of registration of ·a 
B 
ship and the identification marks in the case of a ship is succinctly dealt 
with in the book titled "Maritime Flag and International Law, I978 
Edition"- at page no.I authored by a well-renowned scholar and jurist 
Mr. Nagendra Singh, issued under the auspices of the Maritime 
Law Association of India and the Indian S()ciety of International 
Law and published by Thomson Press (India) Limited, as under:-
C 
"Every unit of transport whether a public carrier or a private one, 
irrespective of the fact whether it is operating on land such as a 
motor vehicle or on water such as a ship or in the skies such as an 
aircraft, has to bear an identification mark since an unidentifiable 
object of traffic would elude fixation ofresponsibility for its acts 
D 
of omission and commission and thus defy maintenance of law 
and order particularly in the context of the open sea which is not 
subject to the
jurisdiction of the sovereign States. If the rule of 
the road necessitates an identification mark for every carrier with 
a view to securing an orderly conduct of traffic, it becomes the 
responsibility of none other than the State itself both in the municipal 
and in the international sphere to register transport vehicles with 
a view to giving them the necessary distinguishing marks. Thus, 
registration of vehicles becomes an inescapable procedural agency 
once it is decided that the grant of identification marks is essential 
since a record has simultaneously to be kept of which mark has 
been assigned to which particular unit of transport. In the maritime 
sphere too, the position is not different since sovereign States, 
members of the family of nations, are themselves responsible for 
E 
F 
the maintenance oflaw and order on the open sea and hence the 
duty to register and give identification marks to carriers on the 
high seas falls on the sovereign State itself." 
G 
7. Maritime flag is the direct result of the registration of the ship. 
Law of seas, by custom, imposes a duty upon every State having ships 
owned by itself or by its nationals to: (i) insist on registration of all ocean-
going ships and (ii) to provide by its domestic law, the conditions to be 
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fulfilled before its vessels could.be registered to sail under its flag with 
the necessary distinguishing marks. The first provision ever made on 
the law of registration, flag and nationality of ships in a multilateral 
convention was the result of the deliberations of the Law of the Sea 
Conference held in Geneva in 1958. The Geneva Convention on the 
B High Seas (1958) scribes the importance of a genuine link between a 
ship's owners and its flag state in the following words:-
"Article. 5. 
1. Each State shall fix the conditions for the grant of its 
nationality to ships, for the registration of ships in its territory, and 
c 
for the right to fly its flag. Ships have the nationality of the State 
whose flag they are entitled to fly. There must exist a genuine 
link between the State and the ship; in particular, the State must 
effectively exercise its jurisdiction and control in administrative, 
technical and social matters over ships flying its flag. 
D 
2. Each State shall issue to ships to which it has granted the 
right to fly Hs flag documents to that effect." 
8. The principle enshrined in Article 5 of the Geneva Convention 
was re-emphasized i.nArti9Ie 91 of the United Nations Conventio.n on 
the Law. of the Seas (UNCLOS), 1994. 167 States of the world are 
E 
party to the said convention. Article 91 of UNCLOS reads as under:-
" Article 91.Nationality of ships:-
1. Every State shall fix the conditions for the grant
of its nationality 
to ships, for the registration of ships in its territory, and for the 
right to fly its flag. Ships have the nationality of the State 
F 
whose flag they are entitled to fly. There must exist a genuine 
link between the State and the ship. 
2. Every State shall issue to ships to which it has granted the 
right to fly its flag documents to that effect." 
9. There is diversification in the conditions prescribed by the States 
G 
for registration of ships at their ports. The important requisites are, 
however, broadly confined to following items, namely,:(i) construction 
and origin of ship; (ii) captain, officers and the crew; (iii) ownership of 
ships; and (iv) importance of registration and the maritime flag. Law of 
registration of ships differs from country to country though the act of 
H 
registration has far reaching legal consequences both nationally and
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
793 
OF MERCANTILE MARINE DEPT. [R. BANUMATHI, J.] 
internationally. The learned author Shri N agendra Singh in pages 17 
A 
to 21 of the above book refers to the above diversity in the conditions 
prescribed by the States for registration of ships, broadly under three 
categories, namely:-
(1) The National School 6 Countries which believe in a rigid 
law of registration which would firmly tie the ship to the registering 
B 
State not only by construction in its national shipyards and manned 
by captain and crew of its nationality but ownership also being 
national (Countries like Portugal); 
(2) The School of the Relaxed Law 6 Countries which believe 
in a relaxed law imposing no conditions on registration and c 
permitting foreign nationals to register ships within the national 
territories almost on the same basis as its own natiOnals (countries 
like Liberia and Panama); and 
(3) The Balanced School 6 In between the above two rival 
groups, there exists a middle of the road thinking on the subject 
D 
which insists on ownership being in national hands on a majority 
basis but imposes no other conditions such as relating to crew or 
captain (countries like United Kingdom and India). 
10. I have, in .detail, referred to the diversity in the conditions 
prescribed by the States in r~gistration of ships; only to emphasize upon 
E 
the importance of registration an~ grant of maritime flag consequent to 
the registration. Be
it the National School or Relaxed School or Balanced 
School, it is the act of the State to register a ship which is very vital. The 
significant consequence 'of registration is the establishment of a link 
between the ship and the flag state. This link is very vital for the purpose 
ofregulating iritei:-state intercoiirse, while a ship voyages from one national 
port to another national port and also while she voyages in the high seas. 
Registratfon also casts nationality rights on the ship, thereby conferring 
privileges upon the s1lip and responsibilities upon the flag state. If the 
nationality of the ship and that of its owner are the· same (as iii. the case 
of united Kingdom and' India), the respO!lSibility is indicated by the 
flag which would be decisive in every aspect. On the other hand, if the 
ship is registered at Flag' A' State and the owner is of 'B' State (like in 
the case of Liberia and Panama) then there arises complications which 
we do not like to elabora(e upon as the same is not relevant for the 
questions under consideration. 
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11. Registration of ship is a means of bestowing nationality upon 
the ship which is an age old practice in maritime industry. By registration 
under the M.S. Act, 1958, a ship is recognised as an Indian Ship and 
becomes entitled to fly Indian Flag and is thus eligible to claim the benefits, 
privileges, advantages or protection enjoyed by Indian Ships under the 
B 
Act. Flag of the ship is the prima facie or visible evidence of registry. 
Under customary international law, ships are regarded as part of the 
territory of the Flag State-an extension of the country or floating island. 
Registration, therefore, operates as a bridge between the ships and the 
mainland and extends nationality rights to the Ship; it serves as a legal 
institution linking the ship to a State. The flag-state or the State ofregistry, 
C 
has the right to exercise jurisdiction over the ship, is responsible for it 
and has the right to protect it. Therefore, there is no gainsaying that 
registration of a ship casts serious responsibilities on the registering State. 
For this very reason, it is important to ensure that all the requisites for 
registration of a ship are strictly complied with, be it an Indian ship or 
D 
ship built abroad entitled to become Indian ship. 
E 
F 
G 
H 
The Merchant Shipping Act, 1958 
12. The Merchant Shipping Act, 1958 is a comprehensive law 
dealing with regulation and control of ships, aiming at promotion of marine
mercantile in a manner best suited to serve the national interest. The 
distinguishing feature of the Merchant Shipping Act, 1958 is that it has 
consolidated and codified all laws concerning merchant shipping. One 
of the distinct purposes behind the M.S. Act, 1958, is that it laid down 
provisions for registration of sea-going ships. Earlier, there was no 
provision dealing with the registration of sea-going ships except the 
Coasting Vessels Act, 1838 and the Indian Registration of Ships Act, 
1841, under which only sailing vessels were being registered; other ships 
were registered only under the United Kingdom Merchant Shipping Act, · 
1894 and were technically regarded as British Ships. The preamble of 
the Act reads as under:-
"An Act to foster the development and ensure the efficient 
maintenance of an Indian Mercantile marine in a manner 
best s11{ted to serve the national interests and for that purpose 
to establish a National Shipping Board and a Shipping 
Development Fund, to provide for tlze registration of Indian 
ships and generally to amend and consolidate the law relating 
to mercl1ant shipping."
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
795 
. OF MERCANTILE MARINE OEPT. [R. BANUMATHI, J.] 
13. The M.S. Act opens by providing for estitblishment and powers 
A 
of National Shipping Board and other authorities, moving towards 
registration of ships, certificate of officers, safety mandates to be 
observed by ships, security of ships etc. and ends by laying down penalties 
in lieu of contravention ofany of the provisions of the Act. The Act also 
addresses situations of collisions, accidents at sea and liabilities thereof. 
B 
Provisions of ci vii liability for oil pollution damage and international oil 
pollution compensation fund are also not alien to the Act. This shows 
that the Act envisions to achieve a safe and regulated framework for 
carrying out trade through sea in India. For achieving the said objective, 
it is apposite to ensure that the mandate of the Act are strictly complied 
with. 
C 
14. Part V of the Merchant Shipping Act deals with registration 
of Indian ships. "Indian ship" as per Section 3(18) of the M.S. Act, 
essentially means a ship registered under the Act. Sub-section ( 18) of 
Section 3 reads as under:-
"3(18)."Indian ships" means a ship registered as such under 
D 
this Act and includes any ship registered at any port in India at the 
commencement of this Act which is recognized as an Indian ship 
under the proviso to sub-section (2) of section 22." 
Although the term 'ship' is not defined in its actual sense, sub-
section (55) of
Section 3 of the Act provides that a ship is included 
within the term 'vessel'. Sub-section ( 55) of Section 3 of the Act defines 
the term 'vessel' to include 'any ship', boat, sailing vessel, or other 
description of vessel used in navigation'. Further, Section 3( 45) of 
the Act provides that "ship" does not include a sailing vessel. 
15. Part V of the M.S. Act and Registration of Ships Rules, 1960 
as amended from time to time are concerned with the registration of 
Indian ships .. Part V begins with Section 20 of the Act which provides 
E 
F 
that Part V applies only to 'sea-going ships fitted with mechanical 
means of propulsion'. Interpretation of the term 'sea-going', therefore, 
becomes very important in the present case. The term 'sea going' is 
G 
defined in sub-section ( 41) of Section 3 of the Act in the following words: 
"3(41)."sea-going", in relation to a vessel, means a vessel 
proceeding to sea beyond inland waters or beyond waters declared 
to be smooth or partially smooth waters by the Central 
Government by notification in the Official Gazette." 
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16. Part V provides for compulsory registration of every Indian 
ship, unless it is a ship which does not exceed fifteen tons net and is 
employed solely in navigation on the coasts of India, Part V also lays 
down detailed procedure for getting a ship registered in India. Section 
21 deals with 'Indian ships'. Section 21 reads as under:-
B 
"21. Indian Ships.- For the purposes of this Act, a ship shall not 
be deemed to be an Indian ship unless owned wholly by persons 
to each of whom [any] of the following descriptions applies:-
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E 
F 
( a) a citizen of India; or 
(b) a company or a body established by or under any Central 
or State Act which has its principal place of business in 
India; or 
( c) a co-operative society which is registered or deemed to be 
registered under the Co-operative Societies Act, 1912, or 
any other law relating to co-operative societies for the time 
being in force in any State." 
Section 22 stipulates obligation to register every Indian ship. Every 
Indian ship must, unless exempted, be registered, and any ship which 
should be registered, but is not so registered, shall not be recognized as 
an Indian ship (Section 22 of the M.S. Act). 
17. Ships which qualify to be registered are required to be registered 
only at ports designated as ports of registry. Section 23 of the Act provides 
for 'Ports of registry'. As per Section23 oftheAct, Bombay, Calcutta 
and Madras and such ports in
India as the Central Government may, by 
notification in the official gazette declare to be ports of registry under 
the M.S. Act are the Ports at which registration of ships shall be made. 
Section 24 provides for 'Registrars of Indian ships' and Section 25 
provides for 'Register book' to be maintained by every registrar. In 
their capacity as registrar of Indian ships, the principal officers are 
required to maintain a complete record of ships on the register indicating 
G status of the ship on a particular date. A central register is maintained by 
the Director General of Shipping, which contains all the entries recorded 
in the register books kept by the registrar at the port of registry in India. 
H 
18. Section 26 deals with 'Application for registry of Indian 
ships'. Section 26 reads as under:-
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
797 
OF MERCANTILE MARINE DEPT. [R. BANUMATHI, J.] 
"26. Application for registry - An application for the registry 
A 
ofan Indian ship shall be made:-
(a) in the case of an individual, by the person requiring to be 
registered as owner or by his agent; 
(b) in the case of more than one individual requiring to be so 
registered, by some one or more of the persons so requiring 
B 
or by his or their agent; and 
(c) in the case of a company or a co-operative society requiring 
to be so registered, by its agent, 
and the authority of the agent shall be testified by writing, if c 
appointed by an individual, under the hand of the person appointing 
him and, if appointed by a company, or a co-operative society 
under its common seal." 
19. Rule 3 of Merchant Shipping (Registration of Indian Ships) 
Rules, 1960 deals with documents to accompany application for registry. 
D 
As per Section 26 and Rule 3, application for registry has to be 
accompanied by the following documents:-
"3. Documents to accompany application for Registry-
(a) the declaration of ownership; 
(b) the builder's certificate, that is to say, a certificate signed by 
E 
the builder of the ship and containing a true account of the 
proper denomination and ofthe tonnage of the ship as estimated 
by him and the time when and the place where she was built. 
( c) if the ship has been purchased, the instrument of sale under 
which the property in the ship was
transferred to the 
applicant. .. " 
20. Section 27 envisages survey and measurement of ships before 
registry. Section 27 reads as under:-
· 
· 
F 
"27. Survey and measurement of ships before registry- (1) 
0 
The owner of every Indian ship in respect of which an application 
for registry is made shall cause such ship to be surveyed by a 
surveyor and the tonnage of the ship ascertained in the prescribed 
manner. 
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(2) The surveyor shall grant a certificate specifying the ship's 
tonnage and build and such other particulars descriptive of the· 
identity of the ship as may be prescribed and the certificate of the 
surveyor shall be delivered to the registrar before registry." 
21. Section 28 provides for "Marking of ship" and Section 29 
B 
provides for "Declaration of ownership on registry". Sections 28 
c 
D 
E 
F 
G 
H 
and 29 read as under:-
"28. Marking of ship- (1) The owner of an Indian ship who 
applies for registry under this Act shall, before registry, cause her 
to be marked permanently and conspicuously in the prescribed 
manner and to the satisfaction of the registrar and any ship not so 
marked may be detained by the registrar. 
(2) Subject to any other provision contained in this Act and to that 
provisions of any rules made thereunder, the owner and the master 
of an Indian ship shall take all reasonable steps to ensure that the 
ship remains marked as required by this Section, and the said 
owner or master shall not cause or permit any alterations of such 
marks to be made except in the event of any of the particulars 
thereby denoted being altered in the manner provided in this Act 
or except to evade capture by the enemy or by a foreign ship of 
war in the exercise of some belligerent right. 
29. Declaration of ownership on registry-A person shall not 
be registered as the owner of an Indian ship or of a share therein
until he or, in the case of a company or a co-operative society, the 
person authorised by this Act to make declarations on its behalf 
has made and signed a declaration of ownership in the prescribed 
form referring to the ship as described in the certificate of the 
surveyor and containing the following particulars:-
( a) a statement whether he is or is not a citizen of India; [or in 
the case of a company or a co-operative society, whether the 
company or the co-operative society satisfies· the 
requirements specified in clause(b) or, as the case may be, 
clause ( c) of Section 21 ]; 
(b) a statement of the time when and the place where the ship 
was built or ifthe ship is built outside India and the time and 
place of building is not known, a statement to that effect; and
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
799 
OF MERCANTILE MARINE DEPT. [R. BANUMATHI, J.] 
in addition, in the case of a ship previously registered outside 
A 
India a statement of the name by which she was so registered; 
( c) the name of her master; 
( d) the number of shares in the ship in respect of which he or the 
company [or the co-operative society], as the case may be; 
claims to be registered as owner; and 
( e) a declaration that the particulars stated are true to the best of 
his knowledge and belief. 
Explanation- In respect of a ship or share owned by more than 
B 
one person, a declaration may be made by such one of them as 
C 
may be authorised by them." 
22. As per Rule 5, after the Registrar has satisfied himself as to 
the evidence of ownership, he shall cause the ship to be surveyed. 
Rule 6 deals with 'Survey of Ships outside India'. Rules 5 and 6 read 
as under:-
"5.Survey and Measurement - After the registrar has satisfied 
himself as to the evidence of ownership he shall cause the ship to 
be surveyed by a surveyor and her tonnage ascertained in 
accordance with the Merchant Shipping (Tonnage Measurement 
D 
of Ships) Rules, 1960. Thereafter, the surveyor shall grant a 
E 
certificate of survey in respect of the ship. 
6. Survey Qf ships at ports outside India - Where it becomes 
necessary for a ship to be surveyed for purposes of registration at 
a port outside India, the Director General may depute a surveyor 
or request the government
of the country where the ship is lying 
F 
to appoint a qualified surveyor to survey the ship for the issue of 
a certificate of survey." 
23. Rules 9 and 10 deal with 'Carving and Marking Note' and 
'Marking of ships' which read as under:-
"9. Carving and Marking Note - Where in respect of a ship 
G 
an official number has been allotted and the name approved by 
the Director General and the certificate of survey granted by the 
surveyor, the registrar i;hall issue to the owners a Carving and 
Marking Note which shall be returned to the registrar after the 
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carving and marking have been duly carried out and certified by a 
surveyor. 
B 
c 
10. Marking of ships - Every ship shall, before registry, be 
marked permanently and conspicuously to the satisfaction of the 
registrar as follows -
(a) her name shall be marked on each of her bows, and her name 
and the name of her intended port of registry shall be marked 
on her stern, on a dark background in white or yellow letters 
or on a light background in black letter which shall be not 
less than one decimeter or four inches in height and 1.3 
centimeters or half an inch in breadth. 
(b) her official number and the number denoting her registered 
tonnage shall be cut in on her main beam. 
( c) Her scale of draught marks shall be cut or welded in feet and 
inches and in metres and decimeters in two columns side by 
D 
side both forward and aft on the port and star board side 
respectively. The relative position of the two rows of markings 
should be separated by a reasonable distance in order to avoid 
errors in reading them. 
In the case of modern type of ships having a raked soft stem and 
E 
cruiser stern, the marks shall be cut in or welded as close and aft 
of the stem as possible following the contour of the stem. The 
marks aft or at the stern shall be cut a few feet forward of the 
after perpendicular in two columns parallel to each other. " 
24. Section 30 deals with production of evidence on the first registry 
F 
of an
Indian ship in addition to declaration of ownership. Section 30 
G 
H 
reads as under:-
, "30. Evidence on first registry :-- On the first registry of an 
Illdian ship, the following evidences.hall be produced in addition 
to the declaration of ownership:-
{ a) in the case ofa ship built in India, a builder's certificate, that 
is to say, a certificate signed by the builder of the ship and 
containing a true account of the proper denomination and the 
tonnage of the ship as estimated by him and the time when 
and the place where she was built, and the name of the person, 
if any, on whose account the ship was built; and if there has
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
801 
OF MERCANTILE MARINE DEPT. [R. BANUMATHI, J.] 
been any sale, the instmment of sale under which the ship or 
A 
the share therein has become vested in the applicant for 
registry; 
(b) in the case o.f a ship built outside India, the same evidence as 
in the case of a ship built in India unless the declarant who 
·makes the declaration of ownership declares that the time 
B 
and place of her building are not known to him, or that the 
builder's certificate cannot be procured, in which case there 
shall be required only the instniment of sale under which the 
ship or a share therein has become vested in the applicant for 
. registry." 
25. Registration of a ship built in India: Section 26 authorises 
C 
the owner of the ship or his agent to move an application for the 
registration of an Indian ship. By a combined reading of Section 26, 
Rule 3 all.d other provisions for registration and Checklist-I issued by 
MMD, it emerges that, for registration of a ship built in India, an applicant 
has to submit following documents to the concerned registry:-
D 
(a)A declaration of ownership - As per Rule 4, every 
declaration of ownership shall be made before a registrar, a 
Justice of the Peace, a Commissioner of Oaths, oran Indian 
Consular Officer in one or the other prescribed forms, as 
may be applicable, depending upon whether he is a sole 
E 
proprietor, joint owner or a company; 
(b )Builder's Certificate - A certificate
signed by the builder 
() of the ship containing a true account of the proper 
denomination and of the tonnage of the ship as estimated by 
him and the time, when and the place where the ship was 
built, (for new ship as per Forms 3, 4 and 5); 
(c)Secondhand Ships 6 If the ship has been purchased, the 
instmment of sale under which the property of the ship was 
transferred to the applicant, who requires it to be registered 
in his name; 
(d)Name proposed for the ship 6 To give a minimum of 14 
days notice to the registrar of the name proposed for the 
ship. The registrar before registering the vessel in the name 
of the applicant shall obtain prior approval of the name from 
the Director General of Shipping who will also allot an official 
number for the ship." (Rule 7) 
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802 
A 
B 
c 
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SUPREME COURT REPORTS 
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. 
. 
26. Title/ownership of the ship is very vital for registration.oflndian 
ship. Section 33 deals with "Power of Central Governmentto inquire 
into the title of Indian ship to be so registered". Section 33 reads 
as under:-
"33. Power of Central Government to inquire into title of 
Indian ship to be so registered- ( 1 )Where it appears to the 
Central Government that there is any doubt as to the title of any 
Indian ship to be registered as an Indian ship, it may direct the 
registrar of her port ofregistry to require evidence to be given to 
his satisfaction within such time, not being less than thirty days as 
the Central Government may fix, that the ship is entitled to be 
registered as an Indian ship. 
(2) If within such time as maybe fixed by the Central Government 
under sub-section ( 1) evidence to .the satisfaction of the registrar 
that the ship is entitled to be registered as an Indian ship is not 
given, the ship shall be liaqle to forfeiture." 
Section 33 makes it clear that the title/ownership of Indian ship is 
very vital. As per Section 33(2), if the evidence is not given to the 
satisfaction of the registrar within the time fixed by the Central 
Goverruilent, the ship shall be liable to forfeiture. 
27. Section 34 deals with Grant of Certificate of registry of 
an Indian ship, which reads as under:-
"Grant of certificate of registry. 6 On completion of the registry 
of an Indian ship, the
registrar shall grant a certificate of registry 
containing the particulars respecting her as entered in the register 
book with the name of her master." 
28. Rule 11 deals with issuance of certificate of registry which 
reads as under:-
"11. Issue of Certificate of Registry - On completion of the 
preliminaries to registry, the registrar shall enter the particulars of 
G 
the ship in the register book and issue to the owners a certificate 
of registry." 
H 
29. The purpose of registration is to keep the vessel identified 
throughout its operational life. Registration of a ship acts as a proof of 
the following:-
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
803 
OF MERCANTILE MARINE DEPT. [R. BANUMATHI, J.] 
(a) The ownership of the vessel; 
(b) The exact type of the vessel with its dimension and 
specifications for which the vessel is surveyed and measured 
and any alterations in engine or hull; 
A 
·( c) distinguishing marks of the vessel by way of its name, number 
so that identity of the ship is fixed and known. 
B 
30. Ifwe carefully analyse the provisions of Part V of the Act, in 
the context of the definitions of important terms contained in Section 3 
of the Act, ~e find that "ownership" of the ship is central to the scheme .. 
As per Section 21 oft.he Act for the purpose of this Act, a ship shall 
not be deemed to be an Indian ship unless owned wholly by persons. 
C 
to each of whom the description in Section 21 clauses (a) to (c) applies. 
The inevitable corollary is that the ship shall be deemed to be an fudian 
ship, if it is Wholly owned by the persons who are the citizens offudia or 
qualify under clause (b) or ( c) of Section 21. However, such a proposition 
· Cannot hold good as status of an fudian ship can be obtained only by 
D 
cqmplying with the procedure for registration of ship, laid down in the 
Act and Rules. Therefore, 'ownership by an Indian' is a pre-requisite of 
provisional as well as final registration. Forms 3 to 5 contained in Schedule 
I to 1'960 Rules deal with Declaration of Ownership by fudividuals, 
Declaration of Ownership by Joint Owners
and Declaration of Ownership 
on behalf of a company respectively. As per Section 27, 'the owner of E 
every Indian ship' in respect of which an application for registry is 
made shall cause such ship to be surveyed by a surveyor. 'The owner 
of an Indian ship' who applies for registry under the Act shall, before 
registry, under Section 28 mandate marking of the ship permanently. 
Section 29 directs the owner of the vessel to furnish a declaration of 
F 
ownership of the ship containing, inter alia, specification of the time 
and place where the ship was built. Section 30 mandates filing of a 
builder's certificate with the particulars of the ship, like proper 
denomination, tonnage etc. as indicated in Section 30. A careful analysis 
of the provisions of Part V of the Act, in particular Section 20 to Section 
32, makes it clear that ownership of the ship and completion of G 
construction of the ship i.e. the ship being 'fully built' are central to 
Part V. 
31. The upshot of the above discussion is that the essentials of 
permanent certificate of registry are as under:-
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(i) The ownership of the ship in terms of Section 21 of the Act; 
(ii) The ship must be fully built; and 
B 
c 
D 
E 
F 
(iii) Other requireinents as stipulated under Sections 23 to 32. 
As discussed earlier, title of the ship must be pertinently looked 
into while registering it. As per Section 33, where it appears to the 
Central Government that there is any doubt as to the title of a ship to be 
registered as an Indian Ship, after inquiry, the Central Government shall 
direct that the title document to be produced before the Registrar of port 
ofregistry and if not furnished within the stipulated time, the ship shall 
be liable to forfeiture. 
32. Registration of an Indian ship acquired abroad:- Section 
40 of the Act provides for provisional registration of the ship which shall 
have the effect of certificate ofregistry of the ship until the expiration of 
six months or until the arrival of the ship at the port. Section 40 has 
been borrowed from Section 22 of the English Merchant Shipping Act, 
1894 with a little modification. Section 40 reads as under:-
"40. Provisional certificate for ships becoming Indian ships 
abroad - ( 1) If at any port outside India a ship becomes entitled 
to be registered as an Indian ship, the Indian consular officer there 
may grant to her master on his application a provisional certificate 
containing such particulars as may be prescribed in relation to the 
ship and shall forward a copy of
the certificate at the first 
convenient opportunity to the Director General. 
(2) Such a provisional certificate shall have the effect of a 
certificate of registry until the expiration of six months from its 
date or until the arrival of the ship at a port where there is a 
registrar whichever first happens, and on either of those events 
happening shall cease to have effect." 
' 
33. If a ship is built or acquired abroad and becomes the property 
of persons qualified to own an Indian ship, Rule 12 of 1960 comes into 
play. Rule 12 reads as under:-
G 
"12. Acquisition of ships abroad - ( 1) If any ship is built or 
acquired out oflndia and becomes the property of persons qualified 
to own an Indian ship, the owner or master of the ship shall apply 
to the Indian Consular Officer at the nearest port for the issue of 
a provisional certificate oflndian registry and such officer may, 
on production of satisfactory proof of ownership, grant the same 
H 
to the owner or master."
HALLIBURTON OFFSHORE SER. INC v. PRINCWAL OFFICER 
805 
OF MERCANTILE MARINE DEPT. [R. BANUMATHI, J.] 
34. Section 40 and Rule 12 go hand-in-hand for grant of A 
"Provisional certificate for ships becoming Indian ships abroad". 
As per Section 40 of the Act, a vessel entitled to become an Indian ship· 
is issued a Provisional certificate of registration, valid for six months. An 
analysis of Section 40 of the Act in consonance with other provisions of 
the Act and the Rules made thereunder and the circular issued would 
bring forth the requisites for validly obtaining a PCOR for ship acquired 
abroad, for registering as an Indian ship under the Act. 
In order to 
acquire a provisional certificate ofregistration for ships becoming Indian 
Ships abroad, following conditions must be satisfied: 
(a) The ship is built or acquired out of India; 
(b) The ship becomes property of persons qualified to own an · 
Indian ship and is entitled to be registered as an Indian 
ship. 
B 
c 
(c) The owner or master of the ship applies to the Indian Consular 
Officer at the nearest port for the issue of a provisional D 
certificate oflndian registry. 
(d) The ship is sea-going, fitted with mechanical means of 
propulsion. [Ref: Section20 of the Act] 
On production of satisfactory proof of ownership and of other 
requisites, the Indian Consular Officer may grant the Provisional 
E 
certificate of registry to the owner or master of the ship. 
· 
35. Section 40 provides for grant of permanent
certificate ofregistry 
(PCOR) for ships becoming Indian ships abroad. Section 40 occurs in 
Part V of the Act. Part V of the Act deals with "Rf!gistration of Indian 
Ships". As noticed earlier, Part V applies only to "sea-going ships" 
F 
fitted with mechanical means of propulsion. The term "sea going" is 
defined in Section 3 ( 41) as under:-
"sea-going", in relation to a vessel, means a vessel proceeding to 
sea beyond inland waters or beyond waters declared to be smooth 
or partially smooth waters by the Central Government by 
G 
notification in the Official Gazette." 
Thus, as per sub-section (41) of Section 3, for obtaining PCOR 
for ships becoming Indian Ship, the ship must be 'sea-going' that is 
proceeding to sea beyond inland waters or beyond waters declared to 
be smooth or partially smooth waters by the Central Government. In 
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A other words, to proceed into the sea beyond inland waters or beyond 
waters declared to be smooth, the ship must be fully built. 
36. Checklist-I for Registration of Merchant Ships issued by 
MMD, Serial No.4 deals with Provisional registry which reads as under:-
"4. Provisional Registry: On request of owner, the RoS can 
B 
authorise the Consular Officer/MMD/IRS to verify the required 
documents, witness the markings on board the vessel as per C & 
M Note and issue provisional certificate ofregistry irrespective 
of age or location of the vessel." 
37. The circular issued by the Marine Department (MMD) on 
C 28.08.2008 deals with the modified procedure for registration of a vessel 
under the Act. Para 5 of the said circular deals with permanent/ provisional 
D 
E 
F 
registry. Para 5 reads as under:-
· 
"Permanent/ Provisional Registry: 
Application for Registry as per Checklist No. 1 (Available on 
MMD website) alongwith an online application in DGS and 
MMD site. 
• Alternatively a provisional Certificate of Registry can be issued 
to the vessel for six months, if the vessel is abroad or if the 
documents are not complete as per the requirements. 
• 
For provisional Certificate ofRegistry, the documents required 
are i) An application, ii) Original Carving & Marking duly 
verified by the Surveyor, iii) Certificate of Survey, iv) Original 
Board Resolution for a company or signed by all the partners 
for Partnership Firm, v)
Original Declaration of Ownership 
duly signed before Principal Officer, vi) Original Bill of Sale 
for a second hand vessel or Original Builder's certificate for 
a new ship. 
• 
When the Vessel is abroad and a Provisional certificate of 
Registry (PCOR) is to be issued for taking delivery, the owner 
has to apply for a blank Provisional Certificate of Registry 
G 
( online & hard copy- Fees Rs. I 00/-. A separate application 
to be made to instruct the class for issuance of PCOR giving 
date and place of delivery and a copy of Memorandum of 
agreement." 
On a perusal of the above guidelines/instructions, it is clear that PCOR 
H is issued for a ship fully built. Unless, a ship is fully built, it may not be
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
807 
OF MERCANTILE MARINE DEPT. [R. BANUMATHI, J.] 
possible to produce original Builder's Certificate, because Section 30 of A 
the Act requires that Builder's Certificate must contain particulars of 
the ship like proper denomination, tonnage etc. 
38. Sub-section (2) of Section 40 provides that a provisional 
certificate obtained under sub-section ( l) of Section 40 shall have the 
effect of a certificate of registry until the expiration of six months 
B 
from its date or until the arrival of the ship at a port where there is 
a registrar whichever first happens. Section 40(2) of the Act thus 
provides for Provisional registration of the ship which shall have the 
effect of final registration of the ship until the expiration of six months 
or until the arrival of the Ship at the port where there is a registrar, 
whichever happens first. Therefore, it becomes very important to ensure 
C 
that all the requisites for obtaining a permanent registration under the 
Act are mandatorily satisfied in case of provisional registration as well. 
It is unconceivable how a ship can be provisionally registered,_ conferring 
status of a permanently registered ship, even though for a limited period 
of time, without ensuring that the owner of the ship is an Indian and the 
D 
ship is fully built and ready for delivery so as to sail from foreign port to 
Indian port. In terms of sub-section (2) of Section 40 of the Provisional
certificate of registry has the effect of Certificate of registry, the requisites 
for permanent registration of a ship must be fulfilled for provisional 
registration also. 
39. The sole purpose of getting a provisional registration for a 
E 
ship built abroad, is to enable it to travel to port of registry in India and 
obtain permanent registration in India after completion of other statutory 
formalities. Suppose, if the ship is owned by a foreign national and the 
ship is not fully built to navigate and sail to Indian port through High 
Seas, and still a PCOR is granted under the Act, the ship would not be 
F 
able to voyage to Indian port of registry and acquire all the necessary 
certificates for obtaining a permanent registration within the requisite 
period of six months. In such a case, the Provisional certificate of registry 
shall cease to have effect. If PCOR is to be granted even to a ship not 
fully built, then the mandatory prescription of six months period will be 
meaningless. 
G 
40. If PCOR is granted to a partially built ship or incomplete ship, 
consequences will be serious. In such a state of affairs, the ship will 
enjoy the status of an Indian Ship with all the privileges, like claiming 
preference for contracts/tenders etc. That apart, for all the mishaps either 
on the high seas or in ports concerning the said ship, Indian Government 
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will be responsible. In no case, the legislature could have intended to lay 
down such a law as envisaged in the above proposition. While enacting 
Section 40, clearly the intent of the legislature was to enable an Indian 
Ship to reach safely at Indian port and thereafter obtain a permanent 
certificate of registration by complying with other statutory requirement 
as prescribed under the Act, within six months. 
41. The above view i.e. for obtaining PCOR the ship must be 
fully built, is also fortified by the provisions made in the Rules with respect 
to details to be furnished for PCOR. Form 14 contained in Schedule I 
of 1960 Rules which deals with Provisional certificate of Indian 
registry, reads as under:-
"Registry Form No.14 
PROVISIONAL CERTIFICATE OF INDIAN REGISTRY 
(Merchant Shipping Act, 1958, Section 40 (1)) 
D 
Expiry on or before the ...... day of ......... 19 ..... (see footnote) 
Issued by the 
Government oflndia 
Name of ship (a) 
Number of Decks ........... . 
Number of Masts 
Rigged 
Stem 
Stern 
Build 
·where and when Built 
Steam or Motor 
how propelled, 
Framework and description of ship 
Number of Bulkheads 
Number of water ballast tanks and 
Their capacity in tons. 
Ship, 
MEASUREMENI'S 
FEET 
TENTHS 
METRES 
length from the fore part of stem to the aft side of the head 
of the stem post 
Main breadth to outside of planting 
Depth in hold from tonnage deck to celling amidships
Length of engine room 
Number of engines .................................. . 
Combined Horse Power ..................... . 
H 
Name and address of engine maker ................ .
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
809 
OF MERCANTILE MARINE DEPT. (R. BANUMATHI, J.] 
PARTICULARSOFTONNAGE 
A 
Gross Tonnage 
No. of 
Cubic 
Deductions Allowed 
No. of 
Tons 
Metres 
Tons 
Under tonnage deck space or 
On 
account 
of space 
spaces between decks 
required 
for 
propelling 
Turret or trunk 
power 
Forecastle 
B 
Bridge space 
Poop or break 
Side houses 
Deck houses 
Chart Houses 
Spaces 
for 
machinery 
and light and air 
Excess of hatchways 
Other 
c 
deductions 
Gross tonnage 
} 
Deductions, as per cdntra Register 
tonnage 
Total 
NOTE I: The tonnage of the engine room spaces below the upper deck is ........... Tons 
D 
and the tonnage of the total spaces framed in above the upper deck for propelling 
machinery and for light and air is .......... tons. 
NOTE 2: The undermentioned spaces above the upper deck are not included in the 
cubical contents forming the ship's registel'tonnage-
NOTE3: The location and tonnage of the boatswains store rooms are as 
follows ..................................................................................... . 
I, undersigned ........................ .Indian Council at the Port of ................ . 
.. .. ..... .. .. .. . .. .. . hereby certify:-
!. That the ship, the description of which is prefixed to this my Provisional 
Certificate, has been duly surveyed, and that the above description is true(b) 
2.That.. ............ of.. ........... .is Master of the said Ship. 
E 
3. That the peraon or persons
whose names are hereunder written purchased at 
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........... on the ................ dayof .......... 19 ....... . 
. or 
3.That the ship was built at ............ on account of the person or peraons 
whose names are hereunder written. 
Name. Residence and Occu ation of the owner 
N um bcr of Tenth Shares 
G 
Dated at.. ........ the ........ day of.. .......... one thousand nine hundred 
and ...................... .Indian Consul. 
NOTE ..... This Provisional Certificate ofRegistry, issued under the provisions of Section 
40(1) of the Merchant Shipping Act, 1958, continues in force only until the ........... day 
of.. ..... 19 ........ or until the Ship completes her voyage form ......... To some port 
where there is a Registrar oflndian Ships, whichever first happens. 
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A 
(a) 
The name of the Ship to be inserted should be the existing foreign name unless a 
charge ofname has ~een authorized by the Director General of Shipping. (b) If this ship 
has not been surveyed for the purpose, the Consul must insert the description as fully 
and accurately as he can, stating how he has procured it, *Strike out inapplicable 
works. Here insert the date six months from the date of issue of this certificate. " 
B 
c 
D 
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F 
The above requisites mentioned in Form N o.14, like measurements, 
gross tonnage, spaces etc. could be given only if the ship is fully built. 
42. After applying for registration, Section 27(1) of the M.S. Act 
and Rule 5 of the Merchant Shipping (Registration of Indian Ships) Rules, 
1960, requires the owner of the Indian ship to cause such ship to be surveyed 
by a surveyor and the tonnage of the ship ascertained in the prescribed 
manner. Form No.17 deals with certificate of survey. The details as 
stated in Form No.17 and the particulars of tonnage etc. coupled with 
other particulars to be supplied by the builders, owners or engineers also 
show that before applying for registration, the ship must be fully built. If 
we compare the requisites mentioned in Form 1 which deals with 
"Certificate oflndian registry" (In terms of Section 34 of the Act) with 
the requisites mentioned in Form No.14 (PCOR), we find that the requisites 
for both PCOR and final registry of the ship are almost
the same and that 
the ship is mandatorily required to be fully built. 
43. I am not impressed with the contention that Section 40 is a 
stand-alone provision. Title/ownership is very vital for Registration of 
Indian Ships. As discussed earlier, 'ownership' is central to the scheme 
for registration under the M.S.Act. For registration ofa vessel the ownership 
is the first thing to.be determined. In case of a second hand acquisition of 
a vessel by the intended Indian owner for registration in India (gaining 
Indian Flag), an 'Instrument of sale' of the vessel (as per Section 30 of 
Act) executed by the seller in favour of the Indian buyer and acceptance of 
the same as per applicable Rules of the losing Flag, is required. As per 
Rule 12, the authorised officer on production of satisfactory proof of 
ownership grant the provisional certificate oflndian registry, which means 
that the ownership of the ship is to be satisfactorily established. Therefore, 
in order to apply for PCOR, as per the scheme of the Act, there is no 
concept of prospective ownership. Equally, for obtaining PCOR, there is 
G 
no question of'partially built' or 'almost built' ship. In my view, the statiltory 
mandates for permanent registry, under Section 34 of the Act are to be 
satisfied even for obtaining the provisional certificate of registry under 
Section 40. The language ofSection 40 makes it clear that the Provisional 
certificate ofregistry issued "shall have the effect of a certificate of
registry 
H 
until the expiration of six months from its date .....• " Since the PCOR 
shall have the same effect as that of certificate of registry issued under
HALLIBURTON OFFSHORE SER. INC v. PRINCIPAL OFFICER 
811 
OF MERCANTILE MARINE DEPT. [R. BANUMATHI, J.] 
Section 34 of the Act, in my view, the essentials that are required for 
A 
permanent registration (in case of a new ship) like (i) application for registry; 
(ii) builder's certificate; and (iii) survey and measurement and all other 
requirements as stipulated under Sections 23 to 32 are to be strictly complied 
with. I say so even more firmly, in the light of important link established 
between the ship and the flag state, by virtue of registration. 
44. Let us take a hypothetical situation to analyse the effect of 
granting a PCOR to a partially built ship or to a ship whose ownership is 
either disputed or not clearly established by a registered title deed. After a 
ship obtains a PCOR, the ship becomes entitled to all the benefits ofbeing 
an Indian Ship. The Indian Government gives preference to Indian Ships 
in· forming contracts, either for moving cargo on domestic routes, or for 
carrying out other marine-related activities in its territorial waters, contiguous 
zone, or Exclusive Economic Zone (EEZ). While inviting such tenders, 
preference is given to Indian Ships. If the ship is not completely built, then 
execution of the tender becomes difficult. In grant of PCOR, the legislature 
could not have intended such consequences. 
B 
c 
45. The provisions relating to registration and safety of the ships 
D 
goes to the very heart of the statute and failure on part
of the authorities to 
strictly comply with the same may lead to disastrous consequences, gravely 
affecting national interest. Sub-section (2) of Section 40 of the Act lays 
down one such mandate which needs to be strictly complied with. Ifwe 
consider Section 40 and sub-section (2) of Section 40, objectively, six 
months' time prescribed as a validity period for PCOR, is only to ensure 
E 
that a ship in abroad, becoming Indian ship is able to travel and get itself 
permanently registered at the port of registry in India. Six months' time is 
accepted as a reasonable period for bringing the ship to the port of registry 
in India and complete other formalities of obtaining various compliance 
certificates requisite for final registration. This is made explicit by the second 
part of sub-section (2) of Section 40 which provides, " ..... or until the 
arrival of the ship at a port where there is a registrar whichever first 
happens, and on .either of those events happening shall cease to have 
effect". Ifwe consider Section 40 and sub-section (2) of Section 40, the 
time of six months is stipulated only to enable the ships in abroad becoming 
Indian ships to travel on the high seas with the Indian registration/Indian 
flag unto complete statutory certificates requisite for final registration are 
obtained, though in that course, the vessel may voyage to ports of other 
countries. 
F 
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46. As per sub-section (2) of Section 40, the provisional certificate 
issued under
Section 40 shall have the effect of a final certificate of registry 
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SUPREME COURT REPORTS 
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and it shall cease to have effect on expiration of six months from its date 
or on the arrival of the ship at the port. The clause says nothing more; 
there is no provision for renewal or extension of the provisional certificate 
contained either in Section 40 itselfor in any other provision of the Act. 
The necessary corollary is that the legislature intended to limit the validity 
of the provisional certificate of registration, obtained under Section 40 to 
six months or till the time the ship arrives at the port. It seems more logical 
in the light of purpose of issuing a provisional certificate of registration, 
which is to enable an Indian national to bring the ship buil• t abroad to the 
Indian port for completion of other requisites of obtaining statutory 
certificates fo~ final registration. 
· 
47. The intent of the legislature is clear and unambiguous in limiting 
the validity of provisional certificate ofregistration and not providing any 
provision for renewal of the certificate. The only remedy which can probably 
be resorted to in case of expiration of provisional certificate is applying for 
a fresh provisional certificate of registry which may be considered by the 
authorities independently on its own merits. If the phrase, "shall cease to 
D 
have effecf' in sub-section (2) of Section 4o is not interpreted in its letter 
and spirit and ifthe provisional certificate is renewed again and again, the
provisional certificate of registration will continue to have the effect of 
final certificate of registration for an indefinite period. This will frustrate 
the very purpose of granting a PCOR. I, thus hold that the Provisional 
E 
certificate of registry cannot be renewed nor its validity can be extended 
beyond six months. 
48. I sum up my conclusions as under:-
• 
For grant of PCOR to a ship becoming Indian ship abroad, all 
the requisite conditions for obtaining final registration must be 
F 
satisfied viz.:(i) satisfaction of ownership of ship in terms of 
Section 21 of the M.S. Act; (ii) the ship must be fully built and 
sea-going so that it can reach the Indian port for obtaining 
certificate of final registry and (iii) satisfaction of other 
requirements contained in Sections 23 to 32 of the M.S. Act. 
G 
• 
As per sub-section (2) of Section 40 of the M.S. Act, the 
Ankit Gyan 
Provisional certificate of registry will cease to have effect after 
six months of the date ofissuance oruntil the arrival of the-ship 
at a port where there is a registrar whichever first happens. The 
Provisional certificate of registry cannot be renewed nor its 
validity can be extended beyond six months. 
Matter to be considered on merits.