Kerala High Court orders arrest of MSC Elsa-3 sister ship after State seeks ₹9,531 cr. compensation

The Kerala High Court on Monday ordered the conditional arrest of Liberian ship MSC Akiteta-II over compensation claims arising from the sinking of its sister ship MSC Elsa-3, which had allegedly caused widespread environmental and economic damage [State of Kerala v MV MSC Akiteta II & ors].Justice MA Abdul Hakhim passed the interim order on an admiralty suit filed by the Kerala government seeking a compensation of ₹9,531 crore for the damages caused due to the sinking of MSC Elsa-3 off Kerala coast.MSC Akiteta II operated by the same shipping group, MSC Mediterranean Shipping Company SA, is currently anchored at Kerala's Vizhinjam and within the jurisdiction of the High Court.The State sought arrest of the same to secure its claims over the sinking of MSC Elsa."I am satisfied that an arguable maritime claim is made out by the Applicant warranting a conditional order of arrest of the 1st respondent vessel till the 1st respondent furnishes security for the plaint claim," the Court said in its order..According to the State, MSC Elsa-3, a Liberian-flagged container vessel, was carrying over 643 containers, including hazardous cargo and plastic pellets known as 'nurdles', when it developed a dangerous tilt to its right side (starboard list) on May 24.This sudden loss of balance likely led to internal flooding and the vessel ultimately sank the next morning, about 13 nautical miles off Kerala coast.The incident triggered widespread marine pollution, oil slicks and contamination of the Kerala coastline, severely impacting the environment, fisheries, and public health.According to the State, the impact also led to the death of marine animals including dolphins and a whale, suspected to have died from exposure to toxic substances and microplastics released during the spill.In its plaint, the State invoked Section 4 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, to seek compensation, including ₹8,626.12 crores for pollution damage, ₹378.48 crores for environmental restoration, and ₹526.51 crores for economic losses suffered by fishermen and coastal communities, amounting to a total maritime claim of ₹9,531.11 crores, with interest on the entire sum.The State submitted that its claim arose due to the environmental damage, economic loss to fisherfolk and government expenditure on containment and clean up of the shores and informed the Court that relief payments and free rations had been issued to over 1 lakh affected families.The government submitted that the sister vessel is within the Court's jurisdiction but was at risk of leaving Indian waters imminently and therefore, the Court should invoke Section 5(1)(b) read with Section 5(2) of the Admiralty Ac and order the immediate arrest of the sister vessel..The Court observed that the documents on record established a prima facie case, showing that the two vessels were sister ships and that MSC had substantial control over both.The Court noted that the continued presence of MSC Akiteta II within its jurisdiction gave it authority under Sections 4 and 5 of the Admiralty Act to pass a conditional order of arrest.Accordingly, the Court ordered MSC Akiteta II to be detained until the owners deposited ₹9,531 crore or provided adequate security.Adani Vizhinjam Port Pvt Ltd was directed to execute the arrest and ensure safe custody of the vessel.The Court also clarified that the order would not interfere with the loading or unloading of cargo.The matter will be heard next on July 10. This is the third MSC vessel to be detained by the Court in connection with the sinking of MSC Elsa. Earlier, the Court had ordered the arrest of two other sister ships of Elsa, MSC Manasa-F, MSC Polo-II in suits filed by private parties claiming compensation for cargo loss..Kerala High Court orders arrest of one more sister ship of sunken MSC Elsa-3 for recovery of cargo loss.The State was represented by Advocate General K Gopalakrishna Kurup instructed by government pleader Parvathy Kottol.Advocate Pranoy K Kottaram appeared for the vessel, MSC AKITETA II. Advocate Roshen D Alexander appeared for Adani Vizhinjam Port..[Read Order]