The owners of sunken MSC Elsa-3 ship Today (Aug 6) approached the Kerala High Court to cap their legal responsibility at $14 million. The ship’s sinking caused severe marine pollution and sparked huge compensation claims from Kerala government and private parties.
Thank you for reading this post, don't forget to subscribe!
KOCHI: The owners and operators of the ship MSC Elsa-3, which sank recently off the Alappuzha coast in Kerala, have filed a case in the Kerala High Court to limit their legal liability to 14 million US dollars (around Rs 118 crore). This legal step has been taken after the ship’s sinking caused a serious marine pollution crisis in Kerala.
The MSC Elsa-3, a container ship flying the Liberian flag, was travelling from Vizhinjam to Kochi. It was carrying diesel, bunker oil, calcium carbide (a highly reactive chemical), and plastic nurdles.
On May 25, the ship capsized in Indian waters near Alappuzha, leading to major environmental damage. There was a wide spread of oil and chemical pollution in the sea, affecting marine life, fishermen’s livelihoods, and public health.
Due to the damage, many private companies that had goods on the ship and the Kerala State Government have filed cases seeking compensation. The Kerala government has claimed Rs 9,531.11 crore in damages.
Out of this, Rs 8,626.12 crore is for pollution-related harm, Rs 378.48 crore is for cleaning and restoring the environment, and Rs 526.51 crore is to compensate fishermen and local communities for financial losses.
To protect these claims, the Kerala High Court had earlier ordered the detention of three other ships owned by the same company. These are called “sister vessels” of the MSC Elsa-3.
Now, the ship’s owning and operating companies—Elsa 3 Maritime Inc, Multi Container Management SA (the bareboat charterer), and MSC Mediterranean Shipping Co. SA (the operator)—have approached the High Court under Part XA of the Merchant Shipping Act, 1958, and the Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2015.
They are using a maritime law principle that lets shipowners limit how much compensation they have to pay, even if the actual damage is much higher.
This legal right to limit liability is calculated based on the size (tonnage) of the ship. The total amount they want to deposit as a “limitation fund” is $14,293,233.79 (around Rs 118 crore), based on current exchange rates. They have asked the Court to let them deposit this amount either in US dollars or in Indian rupees with the High Court’s Registrar General.
They also want the Court to declare that they are legally allowed to limit their liability and to stop anyone from filing or continuing other court cases related to the ship’s sinking.
So far, seven companies have already filed claims and are included as defendants in this case. A general category has also been added to cover any other people or companies who might file cases in the future, under the label “all persons claiming or being entitled to claim damages.”
Justice S Easwaran of the Kerala High Court has agreed to list the case for admission and directed that the suit be officially registered.
- Senior Advocate Prashant S Pratap and Advocate Pranoy Kottaram are representing the ship’s owners and operators in this case.
ALSO READ: Supreme Court Stays Trial Against YouTuber Elvish Yadav in Viral Snake Venom Party Case
Would You Like Assistance In Drafting A Legal Notice Or Complaint?
CLICK HERE
Click Here to Read Our Reports on CJI BR Gavai
Click Here to Read Our Reports on Ex-CJI Chandrachud
FOLLOW US ON YOUTUBE FOR MORE LEGAL UPDATES
