Kerala HC Orders Conditional Arrest Of MSC Elsa 3's Sister Ship In Suit By Govt To Secure Maritime Claims Over ₹9500 Crores

The suit filed under Section 4 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 has arrayed Mediterranean Shipping Company (MSC) as the 2^nd defendant. As per the suit, though MSC Akitteta II is registered under the ownership of Mandjet Oceanway Ltd., the same operates under the same address as the 2^nd defendant. Therefore, both the vessels are owned by and under the control of MSC, it is stated.

When the case came up for consideration before the Court on Monday (July 7) for consideration, Justice M.A. Hakim passed a conditional order for the arrest of the 1^st defendant ship until an amount of Rs. 9,531 Crores is deposited before the Court.

The Court also ordered the 5^th defendant, Adani Vizhinjam Port Pvt., to execute the warrant and effect the arrest, seizure and detention of the vessel, including her hull, tackle, engines, machinery, boards, bunkers, equipment, peripherals and other appurtenances.

It was also made clear by the Court that its order would not affect the loading and unloading of the cargo of the vessel.

The matter is next posted on July 10.

Background

The Liberian-flagged vessel MSC Elsa 3 sank off the coast of Kerala on May 25, 2025, causing grave environmental, ecological and economic damages. This has caused enormous damage to the State, its fishermen and marine life.

The maritime claims were made under three heads, namely, (i) environmental pollution and damage, including oil pollution and pollution by cargo (₹8626.12 crores), (ii) economic loss caused to the State's fishing community (₹378.48 crores) and (iii) mitigation expenses incurred by the State (₹526.51 crores).

In the plaint, the plaintiff has submitted that it would be irreparably prejudiced if MSC Akiteta II is allowed to leave Indian waters and sought an arrest of the vessel. It is also prayed that the vessel be condemned and sold upon arrest, with the net sale proceeds deposited before the High Court. The plaintiff further prays that this be applied to satisfy its claim with interest and costs.

As per the plaint, the State has stated that it has cleared 14,302 metric tons of waste discharged from the vessel. Moreover, the Disaster Management department of the government has ordered an interim financial assistance and disbursement of Rs. 1000/- per head and free ration of 6 kg rice per person for 78,498 fishermen families and 27,020 allied families in the districts of Thiruvananthapuram, Kollam, Alappuzha and Ernakulam.

The State has also stated in its plaint that the marine life on the coast has been seriously affected due to the exposure of hazardous substances and microplastics discharged from MSC Elsa 3. The total casualty as of now includes 1 whale and 5 dolphins.

Another bench of the Kerala High Court is also considering a Public Interest Litigation seeking a direction to the State to publish details about the aftereffects of the sinking of MSC Elsa 3. Therein, the State had expressed its intention to file an admiralty suit against Mediterranean Shipping Company (MSC).

The State had constituted a committee for negotiation to determine the compensation for damage caused due to the collision, restoration of coastal life and marine environment, removal of the wreck, and economic loss caused to the fishermen. However, raising transparency concerns, the High Court had stayed the negotiation process initiated by the State with MSC.

Case Title: State of Kerala v. MV MSC Akiteta II and others.

Case No: Adml. S. 12/2025

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