On July 10, 2025, the Kerala High Court passed a crucial interim order allowing the continuation of the conditional arrest of MV MSC Akiteta II — the sister ship of the sunken MSC Elsa 3 — until August 6, 2025. This decision stems from an admiralty suit filed by the State of Kerala claiming massive environmental, economic, and ecological damage due to the sinking of MSC Elsa 3 off Kerala’s coast.
The State of Kerala has alleged that the sinking of MSC Elsa 3 on May 25, 2025, led to damages worth ₹9531.11 crores. The amount claimed includes ₹8626.12 crores for environmental damage, ₹378.48 crores for loss to the fishing community, and ₹526.51 crores as mitigation expenses.
“In the light of the submissions made before me, I am of the view that this Court can consider the modification or continuance of the order of arrest only after completion of the pleadings in this Application,”
— Justice M.A. Abdul Hakkim observed in the order dated July 10, 2025.
The arrest order dated July 7, 2025, instructed Adani Vizhinjam Port Pvt. Ltd. to execute the warrant of arrest on the Liberian-flagged vessel, MV MSC Akiteta II. The ship and its full structure — including hull, engines, tackle, and other equipment — were to be detained securely. However, the court clarified that loading and unloading of cargo may continue unaffected.
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Senior counsel for the vessel contested the arrest, arguing that the vessel was not in Kerala’s territorial waters and denied any oil pollution resulting from the incident. He also termed the State's claim as highly inflated and unsupported by evidence. Referring to Section 11(2) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, the counsel sought modification of the arrest security.
In response, the Advocate General for Kerala emphasized the existence of a strong prima facie case, which justified the conditional arrest granted earlier. Since the shipowners had not filed a counter affidavit, the court refused to modify the arrest order at this stage.
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The court has directed the 1st respondent to file a counter affidavit with all supporting documents within two weeks. The State may file a rejoinder within a week thereafter.
Meanwhile, the Kerala government’s plaint also highlights the cleanup efforts made, including the removal of 14,302 metric tons of discharged waste. It has provided interim financial aid of ₹1000 per head and 6 kg of rice per person to 78,498 fishermen families and 27,020 allied families across four districts.
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Further, a separate Public Interest Litigation is also being heard by another bench, seeking transparency on the aftermath of MSC Elsa 3's sinking. Although a State-formed committee began negotiations with MSC for compensation and restoration, the High Court paused the process over concerns of transparency.
The next hearing is scheduled for August 6, 2025.
Case Title: State of Kerala v. MV MSC Akiteta II and others.
Case No: Adml. S. 12/2025