MSC Elsa 3 sinking: Ship owners put liability at ₹132 cr, issue public notice
The liability figure claimed by the owners stands in stark contrast to the ₹9,531 crore compensation demanded by the Kerala government for environmental damage, marine pollution and economic losses arising from the sinking.
The liability figure claimed by the owners stands in stark contrast to the ₹9,531 crore compensation demanded by the Kerala government for environmental damage, marine pollution and economic losses arising from the sinking.
The liability figure claimed by the owners stands in stark contrast to the ₹9,531 crore compensation demanded by the Kerala government for environmental damage, marine pollution and economic losses arising from the sinking.
Kochi: The owners of the sunken container vessel MSC Elsa 3 have published a newspaper advertisement claiming that their liability in the May 25 maritime disaster will be only ₹132 crore. The ad—issued as public notice in two leading dailies—was published at the direction of the Kerala High Court as part of an Admiralty Suit in which the shipowners are seeking to legally limit their financial liability for maritime claims arising from the ship’s sinking off the Kerala coast on May 25, 2025.
The liability figure claimed by the owners stands in stark contrast to the ₹9,531 crore compensation demanded by the Kerala government for environmental damage, marine pollution and economic losses arising from the sinking.
Through the notice, the owners ask all potential claimants — cargo owners, fishing communities and any others — affected by the Liberian-flagged container ship’s sinking to appear before the High Court with their claims on September 18, 2025, when the case is posted for the next hearing.
According to the notice published by advocate Pranoy K Kottaram for the plaintiffs — Elsa 3 Maritime Inc. (Liberia), Multi Container Management S A (Panama) and MSC Mediterranean Shipping Co. S. A. (Switzerland) — have pegged their aggregate liability at 10,435,912 Special Drawing Rights (SDR). SDR is an international reserve currency created by the International Monetary Fund, the value of which is based on a basket of global currencies. The amount translates to roughly ₹132 crore in Indian rupees.
In the admiralty suit, the shipowners have invoked Section 352A of the Merchant Shipping Act, 1958, a provision that mirrors the International Convention on Limitation of Liability for Maritime Claims, to which India is a signatory. It allows vessel owners to cap their liability based on the ship’s tonnage by setting up a Limitation Fund of SDR 10,435,912 before a competent court. Once such a fund is constituted, all valid claims must be settled from it, and no further action can be taken against the company’s assets.
The plaintiffs are seeking several reliefs from the court, including a declaration that all claims are confined to the SDR 10,435,912 limitation fund, and a “permanent injunction restraining all persons known and unknown, from commencing any action for arrest, detention or attachment of any assets of the Plaintiffs in relation to the incident.”
Legal experts note that if the shipowners’ demands are accepted, this move would shield the shipping company’s global operations from the risk of vessel arrests and might limit compensation payouts to a fraction of what the Kerala government has demanded.