(1) An action shall not be instituted in respect of any salvage services unless the proceedings are commenced within two years after the date of completion of the salvage operations.

(2) The person against whom the claim is made may at any time during the period of two years referred to in sub-section (1) extend the period by a declaration to the claimant and may in the same manner further extend the period.

(3) An action for indemnity by a person liable under this Part may be instituted within two years after the date of termination of the salvage operations, but the court may on justifiable grounds extend the limitation period to such extent and on such conditions as it considers fit.