(1) The registration of any Nepalese vessel will be canceled if it falls under the following circumstances:-
(a) In case of permanent withdrawal from maritime trade,
(b) if missing,
(c) if destroyed,
(d) if it cannot be used permanently, and
(e) Failure to comply with the conditions set forth in clauses 4 or 5.
(2) When a vessel falls into the condition referred to in sub-section (1), the owner of that vessel shall notify the registrar within 15 days from the date of becoming aware of the same.