Kerala HC defers negotiation initiated by State with MSC on compensation for damage due to sinking of container ship

The Kerala High Court on Thursday deferred the negotiation process initiated by the State government with the Mediterranean Shipping Company (MSC) on the compensation for the damage caused by the sinking of the firm’s container ship MSC Elsa 3 off the Kerala coast on May 25.

The interim order was passed on a public interest litigation (PIL) filed by T.N. Prathapan, former MP and the chairperson of Kerala Fishermen Coordination Committee, and others seeking a directive to the Union and State governments, among others, to release interim financial assistance to fishers and others affected by the ship’s sinking and subsequent environmental concerns.

High-level panel

The other demands included constitution of a high-level expert committee to assess the damage caused to the marine environment and the coast, directive to the Indian Coast Guard, State government and the Kerala State Pollution Control Board to clear all waste, debris and chemicals from the ship and to clean up the marine environment.

While taking note of the affidavit filed by the State government informing that a committee had been formed to determine the compensation for the damage caused by the sinking, restoration of the coastal and marine environment, removal of wreckage and the economic losses caused to the fishers, the court questioned whether the out-of-court negotiations, particularly when a legal course of action under the Admiralty Act is still open, would result in a binding agreement. It further questioned whether it could have transparency, the extent of the damage assessed, and also whether the court’s jurisdiction would be affected. Once the State has proposed to move the court, it would be appropriate that the avenue of negotiation is deferred.

On its part, the State government said the Special Secretary (Department of Environment) was appointed as the Principal Impact Assessment Officer and that it has been decided to take steps under the Environment Protection Act.

Meeting convened

In addition, the Minister for Fisheries convened a meeting with all stakeholders, and the Fisheries department has forwarded the loss assessment report to the Special Secretary.

Moreover, the Director General of Shipping has directed the State to submit an interim claim. The State also said that it has decided to file an admiralty suit against the company, including the arrest of a sister vessel of MSC.

Published - June 19, 2025 08:51 pm IST