MSC Elsa 3 shipwreck: Kerala HC stays state’s negotiations with firm, cites transparency concerns
The negotiations were aimed at determining compensation for the damages caused by the ship’s collision.
The negotiations were aimed at determining compensation for the damages caused by the ship’s collision.
The negotiations were aimed at determining compensation for the damages caused by the ship’s collision.
In a significant development in the MSC Elsa 3 shipwreck case, the Kerala High Court on Thursday stayed the ongoing negotiation process initiated by the state government with the MSC shipping company over compensation related to the incident. The bench, comprising Chief Justice Nitin Jamdar and Justice Basant Balaji, expressed concerns about the transparency of such negotiations, especially when the state has indicated its intent to file an admiralty suit.
The negotiations were aimed at determining compensation for the damages caused by the ship’s collision, including restoration of the marine environment, economic losses suffered by the fishing community, and removal of the wreck. The state had constituted a committee to facilitate the settlement process with MSC.
However, the court questioned the appropriateness of these out-of-court negotiations, particularly when a legal course of action under the Admiralty Act is still open. “Various questions arise for consideration—whether such a negotiation will result in a binding agreement, whether it can ensure transparency, and whether the court’s jurisdiction would be impacted,” the bench noted.
The judges observed that if the state were to initiate proceedings under Section 3 of the Admiralty Act, negotiations could still take place under the court’s supervision. “It would be appropriate that the avenue of negotiation is deferred at present,” the court stated.
The order was passed in response to a Public Interest Litigation (PIL) filed by former Member of Parliament T N Prathapan, who raised concerns about the environmental and livelihood impact of the MSC Elsa 3 incident, particularly on coastal communities and marine life.
The state, in its affidavit, informed the court of the steps taken since the shipwreck, including plans to act under the Environment Protection Act. The Special Secretary of the Department of Environment has been designated as the Principal Impact Assessment Officer. The fisheries department has also submitted a loss assessment report, following consultations with stakeholders.
The High Court has scheduled the next hearing in the case for next week, when the matter will be taken up in greater detail.
(With LiveLaw inputs.)