Owners of Sunken Ship MSC Elsa-3 Move To Court For Limiting Liability To $14 Million
Owners, charterers and the shipping company which operated the MSC Elsa-3 moved to the Kerala High Court seeking to limit their liability arising out of maritime claims to USD 14 million.
The Liberian-flagged container ship recently sank off the Alappuzha Coast, Kerala. It was sailing from Vizhinjam to Kochi and was carrying diesel, calcium carbide, bunker oil and plastic nurdles when it sank on May 25, 2025, in Indian territorial waters.
Several companies that had their cargo on the ship, and the State Government as well, have filed admiralty suits against MSC Mediterranean Shipping Company SA, the owner of MSC Elsa-3.
The State invoked Section 4 of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, to seek compensation of ₹9531.11 crores plus interest.
Per reports, ₹8,626.12 crores is for pollution damage, ₹378.48 crores for environmental cleanup and ₹526.51 crores for economic losses suffered by fishermen and coastal communities.
The 3 sister ships of MSC Elsa-3 have been detained for safeguarding the claims of the plaintiffs in these suits.
As a result, Elsa 3 Maritime Inc, the ship’s owner, Multi Container Management SA which is its bareboat charter and MSC Mediterranean Shipping Co. SA who is the operator of MSC Elsa-3 moved the High Court under the provisions of Part XA of the Merchant Shipping Act, 1958 and the the Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2015 to limit the liability out of the loss and damage of property because of the sinking.
The principle of Limited liability for maritime claims allows shipowners to limit their financial responsibilities for accidents to a particular amount, irrespective of the actual damages suffered.
The final amount will depend on the U.S exchange rate on the day the fund will be deposited, as per the current rate, the limitation fund will be for USD 14.2 million, the plaintiffs submitted.
The plaintiffs sought court orders to declare that they are entitled to limit their liability and have sought directions to allow them to create a limitation fund by depositing the amount in U.S dollars or Indian Rupees with the Registrar General of the High Court.
They also sought a decree of permanent jurisdiction to restrain the defendants from continuing any proceedings against the plaintiffs arising out of the sinking of MSC Elsa-3.
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