In a landmark decision for maritime law and environmental responsibility, Kerala High Court has issued a conditional arrest of the Liberian vessel MSC Akiteta-II. The move comes following the disastrous sinking of its similar kind of vessel, MSC Elsa-3, which supposedly led to immense environmental, economic, and public health damage on the Kerala coastline. The case, State of Kerala Vs. MV MSC Akiteta II & Ors, has received national attention because of the magnitude of the disaster and the record damages claim of ₹9,531 crore which the Kerala government has claimed out before the Court.
MSCElsa -3 Sinking Background
The Incident
- Dates: May 24-25, 2025
- Coordinates: About 13 nautical miles away from the coast of Kerala
- Vessel: MSC Elsa-3, a container ship registered in Liberia
More than 643 containers onboard the MSC Elsa-3 were hauling hazardous goods and ‘nurdles’, plastic pellets. The ship suffered a precarious starboard list, to the right, with subsequent internal flooding on May 24. By the following morning, the ship had sunk, releasing its cargo, along with hazardous materials into the Arabian Sea.
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Environmental and Economic Fallout
- Marine Pollution: The accident created oil slicks, which polluted the entire Kerala coast.
- Biodiversity Impact: There was news of death of marine animals, dolphins and a whale died due to toxic chemicals and micro- plastics released during the spill.
- Economic Impact: The coastal fishing community was severely affected and thousands of fishing families, whose livelihoods depend on fishing, were affected due to the disaster.
- Public health: There were major public health risks associated.
The Legal Wrangle: Kerala’s Payment Claim of Compensation
Invoking the Admiralty Act
This was followed by an admiralty suit under Section 4 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 by the Kerala government. The claim sought compensation for:
CategoryAmount (₹ crore)
- Pollution Damage – 8,626.12
- Environmental Restoration – 378. 48
- Economic Losses (Fisherfolk & Communities) – 526.51
Total – 9,531.11
The government’s complaint alleged that the claim was founded on:
- Environmental damage from the spill.
- Economic suffering for fisher-people and coastal villages.
- Public spending on containment and cleaning the shorelines.
- Relief payments, free rations for 1 lakh affected families.
Arrest of the Sister-Ship Wanted
And with MSC Elsa-3 lost in the sea, the government sought the arrest of the MSC Akiteta-II, another vessel owned by the same shipping group, the MSC Mediterranean Shipping Company SA (MSC). The ship was also anchored at Vizhinjam Port, Kerala and within the jurisdiction of the High Court. The State submitted that there was an imminent danger of the ship leaving the Indian waters and thus the court needs to ensure that in the eventuality of a decree being passed, there should be no difficulty in executing it.
The Court’s Reasoning and Order
Prima Facie Case Established
The investigating judge MA Abdul Hakhim who was hearing the case ruled that the evidence on record showed a prima facie case:
- MSC Akiteta-II and MSC Elsa-3 were “sister ships” in law owned by different companies, each managed by MSC Mediterranean Shipping Company SA.
- The fact that MSC Akiteta-II was in the jurisdiction was sufficient to give the Court in personam jurisdiction to order for its arrest under Sections 4 and 5 of the Admiralty Act.
Conditional Arrest
The court observed:
“I am happy that a defendable maritime claim is established by the Applicant justifying the issuance of a conditional order of arrest of the 1st respondent vessel pending which the 1st respondent deposit your sum in the plaint”.
Thus, the High Court directed arrest of MSC Akiteta-II provisionally subject to deposit made by the owners of ₹9,531 crores or furnishing of such sufficient security equivalent thereto to the claim of the State.
- Execution: The arrest was assigned to Adani Vizhinjam Port Pvt Ltd, to carry out the arrest and to ensure safe custody of the vessel.
- Cargo Operations: The directive had also said that loading and unloading of cargo would be unaffected.
- Next Appearance: The case is set for another hearing on July 10, 2025.
Precedent and Wider Implications
Multiple Vessel Arrests
This is the third MSC ship arrested by the Kerala High Court for the MSC Elsa-3 case. Earlier, the Court had detained two other sister vessels MSC Manasa-F and MSC Polo-II, during pendency of suits filed by private parties for getting compensation for loss of cargo.
Legal Significance
- Sister Ship Arrest: The case is an example of the broad power of India courts in rem proceedings under the Admiralty Act to arrest “sister ships” as security for maritime claims even if the offending vessel is absent.
- Responsibility for the environment: The level of compensation being sought is indicative of an increasing judicial awareness of the requirement for substantial remedies for environmental harm from activities at sea.
- Relief for the Affected Communities: The government’s aggressive efforts to seek the relief to affected 1 lakh plus families underscore the deployment of legal processes to secure social and economic justice following environmental mishaps.
Key Legal Provisions
- Section 4, Admiralty Act: Provides that the court shall have jurisdiction to try and determine any cause in in personam whether it arises or not, and whether any ship or boats is or are arrested or not, cause in personam if the action is one for damage by ship.
- Section 5(1)(b) & 5(2): Provide for the arrest of a ship which is within the limits of Indian territory in connection with any Maritime claim, including the claims against sister ships.
Conclusion
The Kerala HC’s order to detain MSC Akiteta-II is a landmark development in Indian Maritime Environmental Jurisprudence. Through the Admiralty Act, the State has established an important precedent for liability of shipping Companies like Palmali for environmental catastrophe. The decision is likely to be felt on future maritime litigations, not only in India but in other jurisdictions that are dealing with the fallout from marine pollution and economic damages.
The case is under its next hearing and will be keenly watched by legal experts, environmentalists and the global shipping industry for its potential to reshape the contours of maritime liability and environmental justice in India.
Sources
- ‘Kerala High Court orders arrest of MSC Elsa-3 sister ship after State seeks ₹9,531 cr. compensation’ (Bar & Bench, 5 July 2025)
- ‘Kerala High Court Orders Arrest of MSC Elsa-3 Sister Ship after State Seeks Rs9,531 Crore Compensation’ (LiveLaw, 5 July 2025)
- ‘Kerala HC Orders Conditional Arrest of MSC Elsa 3’s Sister Ship in Suit by Govt to Secure Maritime Claims Over ₹9500 Crores’ (The Hindu, 6 July 2025)
- ‘Kerala High Court Orders Arrest of an MSC Boxship Over Elsa 3 Sinking’ (The Maritime Executive, 6 July 2025)
- ‘Kerala HC orders arrest of MSC Elsa 3 sister ship over ₹9,531 cr. compensation claim’ (Times of India, 5 July 2025)
