Kerala High Court Allows Arrest Of MSC Elsa 3's Sister Ship To Continue; Says Modification Order Only Upon Completion Of Pleadings

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

The senior counsel appearing for the 1st defendant ship argued that the suit was not maintainable since the vessel was not in the territorial waters of the State government.

He also submitted to the Court that there was no report of oil pollution caused as a result of the accident and that the oil sheen spread within one nautical mile in the sea was completely removed by the ship owner itself. It was also argued that the claim made was highly exaggerated.

He sought for a modification of the security in accordance with Section 11(2) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017.

The Advocate General, on the other hand, argued that there was a prima facie case and that was why the conditional arrest was ordered by the Court.

Noting that the respondent has not yet filed a counter affidavit, Justice M.A. Abdul Hakkim refused to modify the order.

The learned judge observed:

"In the light of the submissions made before me, I am of the view that this Court can consider the modification or continuance of the order of arrest only after completion of the pleadings in this Application."

Thus, the court permitted the conditional arrest to continue till the next hearing date and directed the parties to file counter-affidavit/rejoinder in the meantime.

The matter is next posted on August 6.

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 for 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 interests and costs.

As per 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 in the coast has been seriously affected due to the exposure of hazardous substances and micro plastics 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 collision, restoration of coastal life and marine environment, removal of 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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