(1) Every fine imposed on a seafarer for any act of misconduct under his agreement shall be deducted and paid as follows, namely:---
(a) if the offender is discharged at any port or place in India and the offence and such entries in respect thereof are proved to the satisfaction of the shipping master, the master or ship owner or his agent shall deduct such fine from the wages of the offender and pay the same to such shipping master; and
(b) if the seafarer is discharged at any port or place outside India and the offence and such entries are proved to the satisfaction of the Indian ambassador by whose sanction he is so discharged, the fine shall thereupon be deducted, and an entry of such deduction shall then be made in the official logbook, if any, and signed by such officer and on the return of the vessel to India, the master or ship owner shall pay such fine to the shipping master.
(2) An act of misconduct for which any such fine was imposed and paid shall not be otherwise punishable under this Act.
(3) The proceeds of all fines received by a shipping master under this section shall be utilised for the welfare of seafarers in such manner as the Central Government may direct.