Kerala HC Orders Arrest of Liberian-flagged Vessel Over Rs. 9,531 Crore Maritime Pollution Suit

The Kerala government’s admiralty suit arises from the sinking of MSC ELSA-3, a vessel reportedly linked to the same operator as MSC Akiteta II. The ship, flying the Liberian flag, is said to have capsized and gone down in the Arabian Sea approximately 14.6 nautical miles off the Kerala coast. Reportedly, at the time, it was transporting 640 containers, which included 13 classified as hazardous and 12 containing calcium carbide. The vessel also carried 84.44 metric tonnes of diesel and 367.1 metric tonnes of furnace oil.

Following the incident, a First Information Report (FIR) was registered at the Fort Kochi Coastal police station on June 11 under various provisions of the Bharatiya Nyaya Sanhita. These include charges related to reckless navigation, mishandling of dangerous substances, and obstructing a public navigation channel. The FIR alleged that the owners and crew acted negligently, resulting in the vessel's sinking and environmental damage. It further claimed that improper handling of hazardous cargo and the drift of containers had severely harmed the marine ecosystem and disrupted the livelihood of local fishermen, leading to substantial financial losses. The complaint was lodged by C. Shamji, a resident of Alappuzha district.

In the admiralty suit, the Kerala government argued that MSC Akiteta II, being a “sister vessel” of MSC ELSA-3, for both are operated by Mediterranean Shipping Company S.A. (MSC), is liable under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017.

On July 7, the bench of Justice M.A. Abdul Hakhim, noting a prima facie basis for Kerala’s claim, ordered the detention of MSC Akiteta II until the vessel either deposits the full claim amount or provides adequate security to the satisfaction of the court.

The high court observed that the documentation submitted with the plaint, comprising over 40 exhibits, established a prima facie case, justifying the vessel's arrest as security for the claim. Court also clarified that the detention of the vessel would not obstruct its cargo operations.

When the matter was taken up again on July 10, the vessel’s legal representatives opposed the arrest, contending that the ship was allegedly not within Indian territorial waters and that no formal report of oil pollution had been filed. They further argued that the Rs. 9,531 crore claim was exaggerated and lacked proper documentation.

The counsel for the vessel sought additional time to submit a detailed counter affidavit.

Acceding to that, court allowed the vessel two weeks to file its objections and granted the State of Kerala an additional week to file a rejoinder.

Justice Hakhim emphasized that any modification to the arrest order would be considered only after the completion of pleadings. Until then, court has directed Adani Vizhinjam Port Pvt. Ltd., the fifth respondent in the case, to execute the warrant of arrest and ensure the safe detention of MSC Akiteta II. The port authority has been instructed to keep the vessel under custody until further orders of the court or until the required security is furnished.

The matter has been posted for final hearing on August 6, 2025.

Case Title: State Of Kerala Vs M V MSC Akiteta II
Order Date: July 7, 2025
Bench: Justice M.A. Abdul Hakhim