Shipwrecks: HC raises concern over state forming panel to negotiate claim details with vessel owners
Kochi: High court on Thursday raised concerns over the state govt forming a committee to negotiate compensation details with the owners of MSC ELSA 3, the cargo vessel which capsized off the Kerala coast.
A bench of Chief Justice Nitin Jamdar and Justice Basant Balaji observed that since the state proposes to invoke the high court's admiralty jurisdiction to seek compensation, it may be appropriate to defer the negotiation process for the time being. The observation came while HC was hearing public interest litigations filed by former MP T N Prathapan and Ummer Ottummal of Malappuram, seeking a comprehensive compensation package for fishermen and other stakeholders affected by recent shipwrecks along the Kerala coast.
During hearing, the state submitted that the environment department special secretary has been appointed as the principal impact assessment officer. It was also stated that the state disaster management department has constituted a committee of govt officers to negotiate compensation for the damage caused by MSC ELSA 3. The committee has been tasked with addressing the cost of restoring the coastline and marine environment, removal of wrecks, economic losses suffered by fishermen and environmental degradation.
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HC noted that if such is the case, concerns raised by the petitioners would merit consideration. It could be argued that negotiations involving substantial environmental damage should not be conducted behind closed doors and take place without public disclosure or procedural safeguards. Questions may arise regarding the transparency and fairness of such a process. It could be further argued that since the harm directly affects the public, the process of settlement cannot remain confidential or hidden from public view.
The public has a right to know the basis of the negotiations, the extent of damage assessed, the terms being proposed, and the principles on which the settlement is being structured.
The court also observed that a binding settlement between the state and the respondent company might affect claims in the proposed Admiralty suit. There is a risk that once an agreement is signed, it could influence subsequent legal proceedings, even if the terms are inadequate. On the other hand, a settlement arrived at in court after the filing of a suit would allow judicial scrutiny, ensuring transparency and bringing the terms into the public domain, the court said.
Accordingly, the bench adjourned the petitions to July 2 for further response from the state and other stakeholders.
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