Kerala High Court Allows Impleadment Of Multiple Claimants In MSC ELSA 3 Admiralty Suit

Justice M.A. Abdul Hakhim passed an interim order allowing the impleadment of several claimants in the admiralty suit arising under Part XA of the Merchant Shipping Act, 1958, which provides for the limitation of liability of shipowners in maritime incidents.

The Court has previously permitted the owners to make newspaper publication to limit liability of maritime claims in admiralty suits.

A total of 47 interlocutory applications (IAs) were filed by third parties seeking to be impleaded as additional defendants in the limitation fund proceedings. These included cargo owners, insurers, individual fishermen, and associations of fishing boat operators.

The respondents/Plaintiffs contended that most of the Applicants are not entitled to get impleadment, as they have not filed any suit raising their claim. 

The Court observed that a conjoint of Subsections (4) and (5) makes it abundantly clear that after the constitution of the fund, the claimants cannot institute separate proceedings for making their claim, and the claimants have to make the claims in the proceedings under Section 352C itself. 

"The claimants can very well join the proceedings under Section 352 C as persons interested." the bench noted. 

The Court held that the impleadment of third parties must be examined in light of Section 352C(4) of the Merchant Shipping Act, which allows “persons interested” to participate in proceedings concerning the constitution and distribution of a limitation fund.

The Court observed that:

“Only the persons who are entitled to claim compensation from the limitation fund alone could be said to be affected by the constitution of the said fund and they alone are entitled to contest the proceedings.”

The Court noted that claimants who had already filed separate admiralty suits or disclosed specific claims against the vessel's owners were entitled to be impleaded. These included cargo owners, insurance companies, and fishermen who had reported losses.

“The Applicants in these Applications who have claims listed under Section 352A against the respondents/Plaintiffs are 'persons interested' within the meaning of Subsection (4) of Section 352C and they are liable to be made parties to the present proceedings under Section 352C. Only the persons who are entitled to claim compensation from the limitation fund alone could be said to be affected by the constitution of the said fund and they alone are entitled to contest the proceedings.” the bench noted.

The All Kerala Fishing Boat Operators Association had also sought to join the proceedings to represent the interests of its members, asserting that the sinking and subsequent debris had affected their boats and fishing operations.

The associations and individuals who had not disclosed any specific claim were denied impleadment, as they did not qualify as “persons interested” within the meaning of Section 352C(4).

“I.A. Nos. 5, 10 and 16 of 2025 are filed by Associations of boat owners and fishermen stating that they are interested in the subject matter of the suit as it would affect the interests of their members. The Associations of Boat owners and fishermen have not disclosed any claim. They cannot have any claim out of the limitation fund. They are not persons interested within the meaning of Subsection (4) of Section 352C, and hence, I.A. Nos.5, 10 and 16 of 2025 are liable to be dismissed.” the bench noted.

The bench allowed the impleading petition of the insurance companies, cargo owners, insurance companies, and fishermen who had reported losses, while dismissing the application of Associations of Boat owners and fishermen have not disclosed any claim.

Case No: Adml. Suit No. 14/2025

Case Title: Elsa 3 Maritime Inc. and Ors. v. Saji Surendran and Ors.