If
it appears that there was not reasonable and probable cause, by reason of the condition of the ship or
the act or default of the owner or the master, for the provisional detention of a ship, the Central
Government shall be liable to pay to the owner of the ship his costs of and incidental to the detention
and survey of the ship, and also compensation for any loss or damage sustained by him by reason of
the detention or survey.
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Section 337
Liability of Central Government for Costs and Damage When Ship Wrongly Detained.
The Merchant Shipping Act, 1958