Kochi: The owners and operators of the sunken cargo vessel MSC Elsa III have approached the Kerala High Court seeking to limit their liability for maritime claims arising from the ship’s sinkage off the Kerala coast on May 25, 2025.

An admiralty suit was filed by Elsa 3 Maritime Inc., Multi Container Management, and MSC Mediterranean Shipping Co. under Part XA of the Merchant Shipping Act, 1958, which allows ship owners to cap their liability in maritime incidents. The suit also invokes provisions of the International Convention on Limitation of Liability for Maritime Claims, to which India is a signatory.

The MSC Elsa III, a Liberian-flagged container ship, sank off the coast of Kochi carrying over 643 containers, reportedly causing significant ecological, environmental, and economic damage. Following the incident, both private parties and the state government have filed PILs and admiralty suits before the Kerala High Court.

To secure claims arising from the incident, the High Court had earlier ordered the arrest of sister ships, including M.V. MSC Polo II, MSC Manasa F, and MV MSC Akiteta II.

The court was informed that the limitation of liability fund, as provided under both the Act and the Convention, would be based on the ship’s tonnage. In this case, the proposed fund would amount to approximately $14 million. The counsel warned that delays in processing the case were already impacting freight operations and insurance, and could lead to higher prices for goods transported by the company.

The Court queried whether the proposed fund would be sufficient to satisfy all claims. The counsel replied that if the liabilities exceeded the fund, the available amount would be distributed on a pro rata basis among claimants.

The High Court is expected to decide on Wednesday whether the suit can be formally numbered and admitted.
(With LiveLaw inputs.)