Loss of cargo due to sinking of container ship MSC Elsa 3: Kerala HC orders conditional arrest MSC Polo 2 anchored in Vizhinjam port

The Kerala High Court on Wednesday ordered the conditional arrest of a Liberian-flag ship named MSC Polo 2 anchored in the Vizhinjam international seaport in connection with the sinking of container ship MSC Elsa 3 off the Kerala coast on May 25 on an admiralty suit filed by a cashew importer firm whose consignment was on board the sunken ship.

The arrest order came on a petition seeking compensation of ₹73.49 lakh from Mediterranean Shipping Company (MSC) for the loss of the consignment, filed by Praveena V.P., managing director of Kollam-based Sans Cashew India Private Limited. Her allegation was that the vessel sank due to its mechanical, technical defects/failure, owing to lack of proper care, and (also) the ‘unseaworthiness’ of the vessel, or due to the improper stowage of containers in the vessel due to incompetence of the crew.

Beyond jurisdiction

The counsel for the shipping firm contended that the vessel is beyond 14 nautical miles from the port and hence was beyond the court’s jurisdiction.

The court said that it is satisfied that the petitioner has made out an arguable maritime claim, warranting a conditional order of arrest of the vessel. No harm will be caused to the shipping firm if a conditional arrest is ordered, till furnishing of security by the shipping firm.

In its order, the court said that the vessel is ordered to be arrested (by Adani Vizhinjam Port Pvt Ltd – the second respondent in the case) until the first respondent MSC deposited the ₹73.49 lakh in the court, or until security for the amount is furnished.

The warrant of arrest of the vessel would be withdrawn and the conditional order of arrest automatically vacated once the amount is deposited or security is furnished by the firm. The matter has been posted for hearing on June 23.

Published - June 18, 2025 08:06 pm IST