Kerala High Court Orders Arrest of Ship in ₹9,531 Crore Maritime Compensation Case

Published

Thiruvananthapuram, July 8 – The Kerala High Court has ordered the conditional arrest of the container ship MSC Akiteta II, currently docked at Vizhinjam Port, following a maritime compensation claim filed by the state government.

This action follows the sinking of MSC Elsa III in May off the Alappuzha coast, which carried over 600 containers, including hazardous cargo such as plastic pellets and diesel, resulting in significant environmental damage.

The state has filed an admiralty suit under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, which allows High Courts to hear disputes over:

  • Environmental damage caused by vessels

  • Ownership conflicts

  • Maritime accidents

  • Wage and compensation claims

  • Pollution control and cleanup efforts

The Kerala government is seeking ₹9,531 crore in total compensation, broken down as follows:

  • ₹8,626.12 crore for environmental damage

  • ₹378.48 crore for remediation efforts

  • ₹526.51 crore for economic losses to local communities

The suit names Mediterranean Shipping Company (MSC) as the party responsible, as one of its subsidiaries operated the MSC Elsa III, while another manages the MSC Akiteta II.

According to the court order, the compensation amount is based on guidelines issued by the Central Pollution Control Board (CPCB).

The court’s ruling permits the ship’s detention until the amount is paid or security is deposited by the vessel’s owner. In Indian maritime law, ship arrest is a legal mechanism to ensure claims can be enforced against shipowners in cases of environmental, commercial, or contractual breaches.

India’s admiralty jurisdiction now extends beyond the traditional Bombay, Calcutta, and Madras High Courts to include Kerala, Karnataka, Odisha, Telangana, and Andhra Pradesh, as per the 2017 Act. This jurisdiction reaches up to 12 nautical miles from the coastline, including the seabed and subsoil.

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