Ship ‘arrested’ after Kerala claims damages: How do admiralty suits work?

The government has sought compensation of Rs 9,531 crore for the alleged pollution of Kerala’s marine ecosystem due to the sinking of MSC Elsa III on May 25, around 25 km southwest of Alappuzha.

The ship went down with more than 600 containers, some of which carried plastic pellets, hazardous substances, and diesel.

What law governs maritime disputes?

The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 governs maritime disputes in India. Under the Act, admiralty suits can be filed for maritime claims such as damage to ships, ownership and agreement disputes, loss of life, wage issues, and environmental damage.

The 2017 law replaced the colonial-era Admiralty Court Act, 1861, and Colonial Courts of Admiralty Act, 1890.

The previous laws gave jurisdiction only to the High Courts of Bombay, Calcutta and Madras, as these were the only major ports in India earlier. Now, the HCs of Kerala, Karnataka, Odisha, Telangana and Andhra Pradesh also have jurisdiction over maritime disputes.

The jurisdiction of the courts extends up to the territorial waters of their respective jurisdictions. The limit of territorial waters is up to 12 nautical miles from the nearest point of a low-water line along the coast. This also includes the seabed, subsoil (the layer of soil under the topsoil on the surface), and airspace above it.

What does the law say about claims over environmental damages?

The Kerala government has sought compensation for environmental damage under Section 4 of the Admiralty Act. This section states that the HC “may exercise jurisdiction to hear and determine any question on a maritime claim, against any vessel, arising out of…damage… caused by the vessel to the environment…; measures taken to… remove such damage; compensation for such damage,” etc.

Apart from the Admiralty Act, other laws too address issues of compensation and accountability in such cases. Under the Merchant Shipping Act, 1958, ship owners are liable for oil pollution damage in the event of leaks. The Environment Protection Act, 1986 empowers authorities to take action against polluters.

The National Green Tribunal (NGT) can also be approached to seek environmental compensation. In 2016, the Tribunal ordered a Panama-based shipping company to pay Rs 100 crore in damages for an oil spill after its vessel M V Rak sank off the Mumbai coast in 2011.

So what does Kerala’s admiralty suit say?

The Kerala government’s admiralty suit sought the arrest of the MSC Akiteta II until compensation was paid to the state. In maritime law, the arrest of a ship refers to a legal procedure where a court or other competent authority detains a vessel to secure a maritime claim against it or its owner. The court found merit in the maritime claims of the Kerala government, it ordered the detention of the MSC Akiteta II until Rs 9,531 crore was deposited or security was furnished by the owners of the vessel.

“It is averred in the plaint that the damage occurred on account of oil pollution caused by the said vessel and pollution caused by the cargo in 643 containers carried in the said vessel. It is averred that the compensation is computed in accordance with the Central Pollution Control Board Guidelines,” the court order said.

Of the Rs 9,531 crore claim, Rs 8,626.12 crore has been sought for environmental damage caused due to the sinking of MSC Elsa III, and Rs 378.48 crore for the remediation work to minimise, prevent or remove the damage caused to the environment by the capsized ship. An amount of Rs 526.51 crore has been sought for economic losses caused to fishermen in Kerala.