Section 20 in The Merchant Shipping (Wrecks and Salvage) Rules, 1974
20. Salvage.
(1). Owner of any vessel in distress or master or any other person duly authorised by the owner in this behalf may enter into an agreement with any person for rendering salvage services to the vessel in distress. Any such agreement may provide for.(i)the amount payable to the salvor in the event of successful completion of the venture;(ii)the amount payable to the salvor in the event of partial success of the venture;(iii)the rights and responsibilities of the parties to the contract including the right of salvor for remuneration and remedies for its recovery;(iv)the manner in which any dispute arising out of"the agreement shall be settled; and(v)any other matter of particular importance or relevance to the subject matter of the agreement.(2)Where any vessel to which salvage services have been rendered constitutes a wreck, the owner thereof, if he claims the wreck, should be afforded an opportunity to settle all matters relating to salvage charges between him and the salvor. In any such case, the delivery of the wreck to the owner shall be withheld until the receiver is satisfied that all claims relating to salvage charges have been settled to the satisfaction of the parties concerned.(3)Where in any such case, the owner or the salvor reports to the receiver that matters relating to salvage could not be settled amicably between the parties and the dispute is sought to be settled in accordance with the provisions of sub-sections (4) and (5) of section 402 of the Act, the receiver shall withhold delivery of the wreck to the owner until the judgement of the competent court becomes available and on receipt of the judgement he shall cause the claim relating to salvage charges to be settled in accordance with the said judgement before making over delivery of the wreck to the owner.(4)Where any vessel to which salvage services are rendered constitutes a wreck but the owner does not claim the wreck, the receiver shall undertake responsibility for settling all matters, relating to salvage in accordance with the provisions of rule 21.
