General Average
- The lien on cargo for general average charges can be exercised only by
the shipowner in possession of the goods and, where necessary. it is his
duty to other cargo owners to protect their interests by retaining
possession of any goods in respect of which a contribution in G/A is
outstanding. However, owing to the difficulty of assessing the amount of
such contributions and the time required for general average adjustment,
it is not usual for shipowners to avail themselves of the right of lien in
these circumstances. The customary procedure is for the goods to be
delivered in exchange for the security afforded by a general average bond,
a general average deposit, or both.
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- Article 1 of the Brussel Arrest Convention and also of the Geneva
Arrest Convention deals with the above subject maritime claim although the
conventions has not been adopted by legislation, the principles
incorporated are applicable as per Supreme Court of India judgments to
invoke admiralty jurisdiction for ship arrest in India.
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- York–Antwerp Rules of 1974 established the standard basis for
adjusting general average and stated the rules for adjusting claims.
- In order to constitute a general average the sacrifice or
expenditure made or incurred and in respect of which contribution in
general average is sought must have been extraordinary; have been made
intentionally or voluntarily; in time of peril; for the common adventure;
have been reasonable.
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- There is no maritime lien in respect of a claim for general average.
However, at common law, a shipowner has a possessory lien over the cargo
for cargo owners proportion of general average which is enforceable
against the consignee of the cargo even though the consignee is under no
personal liability to contribute in general average, not being the owner
of the cargo when the general average act occurred.
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- BCAS: 2102-1013
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