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Kerala High Court Allows Committee to Resume MSC Compensation Talks Over Environmental Damage

Shivam
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The Kerala High Court allowed a government-appointed committee to resume compensation-related negotiations over environmental damage and directed stakeholders to submit inputs for a multibeam survey within one week.

Kerala High Court Allows Committee to Resume MSC Compensation Talks Over Environmental Damage

The Kerala High Court has permitted a government-appointed committee to resume its functions, including negotiations concerning damages, restoration costs and compensation for environmental damage linked to a maritime incident. The Court also directed stakeholders to submit their inputs for a proposed multibeam survey within one week to prevent further delay.

A Division Bench of Justice Raja Vijayaraghavan V. and Justice K. V. Jayakumar passed the order on October 27, 2026, in a batch of public interest litigations.

Background

The proceedings arose from concerns over environmental damage and the need to assess its consequences for Kerala's environment, fishing community and economy. The State Government had constituted a committee to coordinate damage assessment, remedial measures and compensation-related discussions with Mediterranean Shipping Company (MSC).

In June 2025, the High Court had deferred the committee's functioning. The petitioner subsequently sought modification of that order, arguing that circumstances had changed and that the committee should be allowed to resume its work.

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The Court was also informed that the State Government had initiated admiralty proceedings and that a bank guarantee of ₹1,227.62 crore had been furnished pursuant to a direction in the pending proceedings.

The Additional Solicitor General informed the Bench that C-Track Surveys had been selected to conduct a multibeam survey at the vessel owner's cost and responsibility. The survey is intended to provide data for further assessment and necessary action.

The Court directed the Director General of Shipping to consolidate inputs from the concerned stakeholders before forwarding the scope of work to the survey agency. It specifically required the Kerala State Pollution Control Board to submit its inputs, given its responsibility for environmental protection and damage assessment.

The Bench stated:

"We expect the petitioners and all other stakeholders, including the State Government and the Kerala State Pollution Control Board, to furnish their respective inputs to the 3rd respondent without fail within one week from today"

The Court also clarified that questions concerning survey expenses and claims in the pending admiralty proceedings must be considered by the competent court in accordance with law.

Considering the subsequent developments and the State Government's position, the Bench found that the circumstances underlying its earlier restraint had changed.

The Court observed:

"The Committee may resume and continue its functions in accordance with the objectives for which it was constituted and the applicable Government orders."

Accordingly, the High Court recalled the restraint imposed by its June 19, 2025, order to the extent that it had deferred negotiations by the special committee of government officers.

The matters were directed to be listed on November 24, 2026.

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