Cap. 234 Art. 37CPriority of claims on ship over all other debts of owner.  

(1) All registered mortgages, any special privileges and all actions and claims to which a vessel may be subject shall not be affected by the bankruptcy of the mortgagor or shipowner happening after the date on which the mortgage was created or the  special privilege, action or claim arose, notwithstanding that the owner at the commencement of the bankruptcy had the ship in his possession, order or disposition, or was the reputed owner thereof, and such mortgage, privilege, action or claim shall have preference, on the said vessel, over all other debts, claims or interests of any other creditor of the bankrupt or of any curator, trustee or receiver, acting on behalf of any other creditors.

(1a) Any finance charter instrument to which a vessel may be subject shall not be affected by the bankruptcy of the finance charterer occurring after the registration date of the finance charter interest, notwithstanding that the finance charterer at the commencement of the bankruptcy had the ship in his possession, order or disposition, and such finance charter interest shall have preference on the said vessel, over all other debts, claims or interests of any other creditor of the bankrupt or of any curator, trustee or receiver, acting on behalf of any other creditors, save for those claims which would rank in preference of a finance charter interest in accordance with the provisions of this Act.

(2) Any judicial sale proceedings instituted by any registered mortgagee or privileged creditor shall not be interrupted or in any way hindered by any curator in bankruptcy, whether voluntary or compulsory, or any liquidator or receiver of the shipowner for any cause other than a cause that could be set up by the owner.

(3) For the avoidance of doubt, the provisions of the

Companies Act relating to insolvency shall not apply insofar as inconsistent with this Act.