Shipping Firm Informs HC of Inability to Pay ₹9,531 Crore Damages for Sunken Vessel

Fast Summary:

• The Kerala government filed an admiralty suit before the Kerala high Court seeking ₹9,531 crore in compensation from MSC Shipping Company for marine pollution,loss of fishers’ livelihood,adn remediation measures due to the sinking of container vessel MSC Elsa-3 off Alappuzha coast on May 25.
• The vessel MSC Akiteta-2, owned by MSC Shipping Company and currently berthed at Vizhinjam port, was ordered to be arrested as security for this claim.
• on Thursday,MSC Shipping informed the court that it would not be able to deposit the demanded compensation amount.
• Justice M.A. Abdul Hakhim extended the interim arrest order of MSC Akiteta-2 till August 6 while setting a new hearing date for that day.
• MSC Shipping argued that there is no verified report of oil pollution from MSC Elsa 3, emphasizing that any oil sheen detected was contained and removed by them.
• The court instructed the Kerala government to file supporting documents within two weeks and ordered MSC Shipping Company to deliver their rejoinder within an additional week.

Indian Opinion Analysis:

The Kerala government’s suit highlights growing accountability demands on corporations responsible for environmental damage in India’s maritime borders-a critical issue affecting fisheries-dependent communities and ecosystems locally. While it underscores proactive governance in assessing such incidents, shipping companies like MSC may challenge claims with demands for substantiated evidence or reduced liability based on proven actions they have taken.

This case’s resolution could set an significant precedent regarding corporate responsibility levels relating to environmental harm caused off Indian coasts-especially in balancing economic impacts on local livelihoods against legal frameworks regulating international maritime actors.

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