Section 15 in The Merchant Shipping (Wrecks and Salvage) Rules, 1974
15. Procedure for the sale of a wreck.
(1)A receiver shall not sell any wreck otherwise than by public auction. Every such sale shall be made on as is where is basis with purchaser assuming full responsibility for any taxes payable to Government or port authorities and for encumberance on the wreck such as maritime lines.(2)A notice for sale of a wreck shall be published not less than fourteen days in advance of the appointed date of sale, in three consecutive issues of at least two daily news papers having a wide circulation in the Mercantile Marine Department District concerned. Every such notice shall include"(a)the description of the wreck under sale, its site and other known details, if any;(b)the percentage of the auction price that shall have to be paid as down-payment immediately after the conclusion of the auction;(c)the period within which the balance amount shall be payable by the successful bidder;(d)any other details as may be deemed necessary depending upon the nature of the wreck being sold and the circum stances under which it is being sold;(e)a provision reserving right in the receiver to reject highest bid or to postpone or cancel the sale without assigning any reason there for;(f)a provision to the effect that amount of down-payment referred to in clause (b) shall be liable to forefeiture, should the successful bidder fail to effect full and final payment of the balance amount the period stipulated in clause (c)(3)Where a receiver does not accept. highest bid or postpones or cancels any auction he shall record in writing the reasons therefore and make a report to the Central Government.(4)Where any auction is frustrated by reason of receiver having rejected the highest bid, or having cancelled the auction or by reason of failure on the part of the highest bidder to effect full and final payment of the price within the stipulated period, the receiver shall organise a fresh sale of the wreck.
