🔔This Festive Season, Invest in your future with our exclusive festive offer. Get up to 20% off on ALL COURSES with coupon code Fest20.

ADMIRALTY SUITS

The Kerala High Court arrested the MSC Akiteta II, seeking ₹9,531 crore for environmental and economic damage caused by the sunken MSC Elsa III, linked to the same company. Citing the Admiralty Act 2017, the court ordered detention until compensation or security is provided, amidst allegations of corporate structuring to evade claims.

Description

Copyright infringement not intended

Picture Courtesy:  INDIAN EXPRESS

Context:

Kerala High Court conditionally arrests MSC Akiteta II at Vizhinjam, seeking ₹9,531 cr compensation for environmental and economic damage from MSC Elsa 3 oil spill.

Background

On May 25, the ship known as MSC Elsa III sank off the Kerala coast. The ship carried more than 600 large containers. Some of these containers held plastic pellets, dangerous substances, and diesel fuel. The sinking of the ship severely polluted their marine environment.

What is an "Admiralty Suit"?

It is a type of lawsuit that deals with legal problems related to the sea, ships, and shipping activities. For example, if two ships crash, if a ship causes pollution in the ocean, or if people argue about who owns a ship, these issues go to an admiralty court.

The Kerala government filed the lawsuit in the High Court because they believed the sinking of the MSC Elsa III harmed their environment.

How much compensation Kerala government seeks in this lawsuit?

The Kerala government demanded Rs 9,531 crore —because they claim the MSC Elsa III’s sinking damaged their marine ecosystem and impacted the livelihoods of local fishermen. The government wanted this funds to cover:

  • The environmental damage itself (e.g., harm to marine life, coral reefs).
  • The costs of cleaning up the pollution (like removing plastic pellets or oil).
  • The money lost by fishermen who could not work due to the pollution.

Which law handles sea disputes in India?

The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, governs maritime disputes. This law provides certain High Courts the power to hear and decide cases related to ships and the sea. It covers a wide range of "maritime claims," such as:

  • Damage to ships (like in a collision).
  • Disputes over who owns a ship or agreements about its use.
  • Cases involving loss of life or injuries at sea.
  • Problems with sailors' wages.
  • Crucially, claims for environmental damage caused by vessels, which is what the Kerala case is all about.

The Merchant Shipping Act, 1958, makes ship owners responsible for oil pollution damage if their vessels leak.

The Environment Protection Act, 1986, gives government authorities the power to take action against polluters.

The National Green Tribunal (NGT) is a special court that specifically handles environmental cases. For example, in 2016, the NGT ordered a shipping company from Panama to pay Rs 100 crore in damages for an oil spill after its ship, MV Rak, sank off the Mumbai coast in 2011.  

What was the court's final decision?

The court agreed that the Kerala government's maritime claims were valid. It ordered the "arrest" and detention of the MSC Akiteta II. This means the ship cannot leave port until its owners either deposit the full Rs 9,531 crore or provide a suitable financial guarantee. 

Source: 

INDIAN EXPRESS

PRACTICE QUESTION

Q. Discuss the concept of 'Green Shipping' and its importance in reducing the environmental footprint of maritime trade. 150 words

Free access to e-paper and WhatsApp updates

Let's Get In Touch!