Section 265

When a deposit is made with the wharfinger or warehouseman, the person making the deposit may, within 15 days after making it, give to the wharfinger or warehouseman notice in writing to retain it, stating in the notice the sums, if any, which he admits to be payable to the shipowner, or, as the case may be, that he does not admit any sum to be so payable, but if no such notice is given the wharfinger or warehouseman may, at the expiration of the 15 days, pay the sum deposited over to the shipowner.

If a notice is given as aforesaid, the wharfinger or warehouseman shall immediately apprise the shipowner of it, and shall pay or tender to him out of the sum deposited the sum, if any, admitted by the notice to be payable, and shall retain the balance, or if no sum is admitted to be payable the whole of the sum deposited, for 30 days from the date of the notice.

At the expiration of those 30 days, unless legal proceedings have in the meantime been instituted by the shipowner against the owner of the goods to recover the said balance or sum, or otherwise for the settlement of any disputes which have arisen between them concerning the freight or other charges as aforesaid, and notice in writing of those proceedings has been served on the wharfinger or warehouseman, the wharfinger or warehouseman shall pay the balance or sum to the owner of the goods.

A wharfinger or warehouseman shall by any payment under this section be discharged from all liability in respect thereof.

For the purposes of this section, “legal proceedings” shall be deemed to include arbitration and an arbitration shall be deemed to be commenced by the service of a notice of a kind and in the manner specified in section 30 of the Limitation Act [Cap. 163].[288