Kerala High Court Orders Seizure of MSC Cargo Ship in ₹9,531 Crore Oil Spill Case

The Kerala High Court on Monday issued a conditional arrest order for a cargo vessel operated by the Swiss-based Mediterranean Shipping Company, following a maritime pollution claim filed by the State of Kerala. The ship, MSC AKITETA II, is currently anchored at Vizhinjam Port.

The vessel will now be detained under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017. The court directed the arrest to secure a massive compensation claim amounting to ₹9,531 crore.

“The 1st respondent vessel by name ‘MSC AKITETA II’ (IMO 9220847) … is ordered to be arrested until ₹9,531 crore is deposited by the 1st respondent in this Court or until security for the said amount is furnished to the satisfaction of this Court,” said Justice M.A. Abdul Hakhim on July 7. He ordered Adani Vizhinjam Port Pvt Ltd, the operator of the port, to execute the arrest and detain the vessel until MSC deposits the full claim amount or provides acceptable security.

The State of Kerala filed the suit after another MSC vessel, MSC ELSA-3, allegedly capsized and sank off the Kerala coast, causing widespread oil and cargo pollution in May this year. The state alleges that the sunken vessel released hazardous materials from 643 containers, severely affecting the marine ecosystem.

In May, the Indian government stated that a marine services firm had been appointed to handle oil removal and environmental cleanup following the capsizing of the Liberia-flagged MSC ELSA-3. The vessel, en route from Vizhinjam to Kochi, capsized on May 25.

The Kerala government, in a court filing, said the incident caused massive pollution of the marine ecosystem, harming fisheries, the environment, and public health. In response, authorities advised fishermen to stay ashore and provided cash and food relief to over 1 lakh affected families.

The State of Kerala has claimed a total compensation of ₹9,531 crore in its admiralty suit related to the sinking of MSC ELSA-3. Of this, ₹8,626.12 crore is sought for environmental and coastal damage caused by oil spills and leaked cargo from the 643 containers aboard the sunken ship. The claim is based on the Central Pollution Control Board’s guidelines, the court order noted.

An additional ₹378.48 crore is claimed for preventive and restoration measures, including efforts to contain, minimise, or reverse the environmental damage caused by the vessel. Further, ₹526.51 crore is sought as compensation for economic losses suffered by fishermen in Kerala due to the pollution and its impact on livelihoods.

The State invoked the concept of “sister vessels,” claiming that MSC AKITETA II and MSC ELSA-3 are both managed and commercially operated by MSC and its affiliates.

The court agreed that the two vessels are linked under common control, establishing a prima facie case that justifies arresting MSC AKITETA II to ensure MSC faces the claim.

The court has allowed loading and unloading operations to continue despite the arrest. The matter has been posted for further proceedings on July 10, by which time counsel for MSC is expected to clarify representation for other respondents.

An email sent to MSC did not receive a response till the time of publication.