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Time of India
10-07-2025
- Business
- Time of India
Compensation claimed by state exaggerated: Owners
Kochi: The owners of the vessel MSC AKITETA II, which was arrested on the directive of the high court in an admiralty suit filed by the state govt, informed court that the amount claimed by the state, Rs 9,531 crore, is highly exaggerated. They also submitted that the suit is not maintainable, as the vessel is not within Indian territorial waters. While considering the interlocutory application filed by the vessel owners in the state's admiralty suit, the bench of Justice M A Abdul Hakhim orally asked the owners to state how much they were willing to deposit as security in the matter. HC had issued an arrest warrant against AKITETA II on July 7. It came following the state govt suit seeking claims for the grave and widespread environmental and economic damage allegedly caused by the capsize of cargo vessel MSC ELSA 3 off Kerala coast on May 25. The vessel owners, however, contended that there was no evidence of oil pollution resulting from the capsize. They submitted that the oil sheen, which had spread within one nautical mile of the site, was completely cleaned up by the ship owner. They reiterated that the claim is exaggerated and not backed by adequate supporting documents. Seeking modification of the previous order directing the deposit of Rs 9,531 crore as security, senior counsel for the vessel owners relied on Section 11(2) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, which permits the court to modify or cancel the security requirement for sufficient cause. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo They also referred to a 2017 HC division bench judgment that had reduced a security deposit from Rs 18.5 crore to Rs 1 crore. However, advocate general K Gopalakrishna Kurup opposed the plea, contending that the arrest order was issued after HC was satisfied with the prima facie case established by the plaint and supporting documents. He argued that the question of modifying or cancelling the order could arise only after completion of pleadings. Accepting the AG's submission, HC directed the ship owners to file a counter-affidavit along with supporting documents within two weeks. The matter has been posted for Aug 8, and HC clarified that the arrest order shall remain in force until then.
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Business Standard
07-07-2025
- Business Standard
Kerala HC orders conditional arrest of cargo ship in ₹9,531 cr damage case
The Kerala High Court on Monday ordered the conditional arrest of a cargo ship anchored at Vizhinjam Port in connection with a ₹9,531 crore compensation case filed by the State of Kerala over a major shipwreck and environmental damage. The vessel, MSC AKITETA II (IMO 9220847), was ordered to be detained after the state accused the owners and managers of another ship which appears to be of the same company, MSC ELSA III (IMO 9123221), of causing severe pollution off the Kerala coast. The MSC ELSA III had capsized and sunk off Kerala coast on May 25, allegedly releasing oil and cargo that harmed the marine environment, damaged the coastline and affected the livelihood of thousands of fishermen. Kerala's Environment Department, which brought the case, said the sunken vessel had 643 cargo containers and that the damage caused was enormous. The state is seeking ₹9,531 crore in total including compensation for environmental harm, clean-up efforts and economic losses to local fishing communities. The High Court, after hearing arguments from the state's legal team and the lawyers representing the shipowners, said documents showed both vessels were linked. It found that both ships appear to be managed by the same company, making them "sister vessels". That allowed the court to order the arrest of MSC AKITETA II to secure the state's claim arising from the MSC ELSA III disaster. Justice M A Abdul Hakhim said the ship would remain under arrest unless the owners deposited the full amount or provided security for the claim. However, the court allowed the ship to continue loading and unloading cargo in the meantime. "The 1st respondent vessel by name MSC AKITETA II (IMO 9220847) along with her hull, tackle, engine, machinery spares, gear, apparel, paraphernalia, furniture etc presently anchored in the Vizhinjam Port is ordered to be arrested until ₹9,531 crores is deposited by the 1st respondent in this Court or until security for the said amount is furnished by the 1st respondent to the satisfaction of this Court," the order said. The case will be heard again on July 10.


Time of India
07-07-2025
- Time of India
Sinking of MSC Elsa 3: Kerala government files admiralty suit, seeks Rs 9,531 crore damages
Kochi: The state govt on Monday filed an admiralty suit in the Kerala high court, seeking the arrest of the vessel MSC MV Akiteta II, currently within Indian territorial waters at Vizhinjam Seaport, to recover maritime claims amounting to Rs 9,531 crore for the environmental and economic damage caused by the sinking of the cargo vessel MSC Elsa 3 off the Kerala coast on May 25. The bench of Justice M A Abdul Hakhim, which considered the petition, ordered the interim arrest of MSC Akiteta II until July 10. The petition was brought before the court for consideration around 5.30pm as an urgent matter, given the likelihood that the vessel could depart from Vizhinjam Port by Tuesday morning. This marks the first instance in the state's history where a claim seeking compensation of such a magnitude was filed. No court fees were required to be deposited as the petitioner was the state govt. The state has also sought interest at the rate of 6% per annum from the date of the suit until the date of judgment, and 12% per annum thereafter until the realisation of the amount. MSC Elsa 3, a Liberian-flagged vessel, capsized 13 nautical miles off the Thottappally spillway in Alappuzha, while en route from Vizhinjam Port to Kochi Port. The petition was filed by Seeram Sambasiva Rao, special secretary of the environment department, who was designated as the principal impact assessment officer by the department of disaster management. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Providers are furious: Internet access without a subscription! Techno Mag Learn More Undo Citing scientific assessments and departmental reports, the petition quantified the maritime claims as follows: Rs 8,626.12 crore towards pollution damage; Rs 378.48 crore for environmental restoration and preventive measures; and Rs 526.51 crore for economic loss suffered by the local fishing community, aggregating to a total claim of Rs 9,531 crore. The state further submitted that MSC Elsa 3 and MSC Akiteta II are "sister vessels" under the common commercial, financial, and technical control of the Mediterranean Shipping Company (MSC) of Geneva, despite their formal registration under separate shell companies. The petition alleged that various vessels, such as MSC Manasa F, MSC Melissa, MSC Flora, etc., follow a similar pattern of registration, while sharing the same operational address and control, indicating a deliberate corporate structure intended to frustrate or evade maritime claim enforcement. The govt contended that such structuring amounts to a fraudulent device to defeat genuine claims. It further asserted that even if MSC were to be treated as a demise charterer, the high court is empowered under Section 5 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, to arrest the vessel in question. Advocate general K Gopalakrishna Kurup, assisted by govt pleader Parvathy Kottol, represented the State of Kerala.


Time of India
18-06-2025
- Business
- Time of India
Sinking of MSC ELSA 3: Kerala HC orders conditional arrest of sister ship in claims plea
Kochi: The HC on Wednesday ordered the conditional arrest of the vessel MSC Polo II, a sister vessel of MSC ELSA 3, which had capsized and sunk off the Kerala coast on May 25. The order was passed in a petition filed by Sans Cashew India Private Ltd, seeking compensation for the loss of cargo valued at Rs 74 lakh. Justice M A Abdul Hakhim further clarified that the vessel may be released upon the production of a demand draft for the said amount before the HC registrar general. Earlier, HC had similarly detained another vessel, MSC MANASA F, in connection with petitions filed by various companies to recover compensation for consignment losses arising from the sinking of ELSA 3. In the present petition, the petitioner submitted that it had lost two consignments of Ghana dried raw cashew nuts (in shell) shipped from Tema port, Ghana, to Tuticorin port, India. T by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo he cargo was transhipped via Adani Vizhinjam Port and loaded onto ELSA 3, which later sank due to technical and operational failures, as confirmed by the mercantile marine department (MMD) and directorate general of shipping. The petitioner contended that they are entitled to recover the maritime claim under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, amounting to Rs 73.49 lakh. Meanwhile, the counsel for the vessel owner submitted that they had filed caveats before HC to prevent the arrest of vessels operated by the company within Indian territorial waters. It was also contended that the vessel is beyond 14 nautical miles from the Vizhinjam port and hence not available within the jurisdiction of this court. Nevertheless, HC ordered the conditional arrest of MSC Polo II until the production of the demand draft. Later in the afternoon, the shipping company produced the demand draft before the registrar. The petition has been adjourned to June 23.


Time of India
16-06-2025
- Business
- Time of India
Ship mishap claim: Kerala HC directs registry to deposit money in bank
Kochi: High court on Monday directed the HC registry to deposit the amount of Rs 6 crore, covered by the demand draft provided by the owners of the cargo vessel MSC MANASA F, towards the claim raised by three cashew importing companies for losses suffered due to the capsize of MSC ELSA 3, in a fixed deposit with a nationalised bank for a year. The bench of Justice M A Abdul Hakhim issued the order on petitions filed by five cashew importing companies seeking compensation for the loss of their cargo due to the sinking of the Liberian-flagged cargo vessel MSC ELSA 3 off Kerala coast on May 25. The petitioners had approached the HC with interim prayers to arrest MSC MANASA F, a sister vessel of the sunken ship, which was anchored at Vizhinjam, until the realisation of their claims. Accordingly, on June 12, the bench ordered the arrest of the vessel until the shipping company produced a demand draft for Rs 6 crore before the HC registrar general. On Monday, the owners of the vessel informed HC that the demand draft towards the petitioners' claim had been deposited with the registrar, and the high court registry confirmed the same. Additionally, the owners sought a directive to transfer the amount covered by the demand draft to an interest-bearing account. The court accepted the request and ordered accordingly, before adjourning the petitions. The petitioner companies, based in Kollam, stated in their pleas that they had purchased dried raw cashew nuts from a trading company in Dubai, which were shipped in containers bound for Tuticorin port. According to the petitioners, the consignments were expected to arrive at Tuticorin on May 24 aboard MSC ELSA 3. However, the Indian agent of the shipping company informed them via email on May 28 that the vessel had sunk on May 25 en route from Vizhinjam to Kochi, resulting in the total loss of cargo. This led the companies to file Admiralty suits seeking compensation.