(1) Subsection (2) applies to the court in any of the following proceedings -

(a) any proceedings on an application under section 38 in respect of a decision mentioned in section 38(1)(a), (b) or (c) ("a relevant application");

(b) any proceedings on a claim arising from any matter to which a relevant application relates;

(c) if -

(i) a designation made under a designation power contained in regulations under section 1 is revoked without an application under section 38 being made,

(ii) a ship specification (within the meaning of section 38) is revoked without such an application being made, or

(iii) a corrective direction is given under section 34(3)(b) without such an application being made,

any proceedings on a relevant claim.

(2) If the court would, in the absence of this subsection, have power to award damages, the court may not award damages unless -

(a) [deleted]