Part 5
Other commercial matters
Power for shipowner to enter and land goods, and lien for freight
335Course to be taken if notice to retain is given
This section applies if—
- a deposit is made with the wharf owner or the warehouse owner (A) under section 333; and
- the person who makes the deposit (B) gives to A a notice as referred to in section 334 within 15 days after making the deposit.
A must—
- immediately inform the shipowner of the notice; and
- pay or tender to the shipowner out of the deposited sum the sum admitted by the notice to be payable (if any); and
- retain the balance or, if B does not admit that a sum is payable, retain the whole of the deposited sum for 30 days from the date of the notice.
A must, at the expiry of the 30-day period referred to in subsection (2)(c), pay the balance or the whole of the deposited sum referred to in that paragraph to the owner of the goods.
However, subsection (3) does not apply if, before the expiry of the 30-day period referred to in subsection (2)(c),—
- legal or arbitral proceedings are commenced by the shipowner against the owner of the goods to recover the balance or sum referred to in subsection (2)(c) or otherwise for the settlement of any disputes between them concerning the freight or other charges; and
- written notice of those proceedings is served on A.
A is discharged from all liability in respect of the balance or sum by making the payment in accordance with subsection (3) (subject to subsection (4)).