Kerala High Court Rejects Admiralty Suit Against M.V. Korea Chemi Owners For Lack Of Jurisdiction After Collision With Fishing Boat

In a ruling clarifying the territorial reach of admiralty jurisdiction under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, the Kerala High Court has dismissed an admiralty suit against the owners of the vessel M.V. Korea Chemi, holding that the vessel was not within the court's jurisdiction at the relevant time.Justice Syam Kumar V.M., while allowing an application filed by the owners (defendants 1 and 2) under Order VII Rule 11 CPC, ruled that the Kerala High Court lacked jurisdiction under Section 3 of the Admiralty Act, 2017, since the vessel was anchored at Nhava Sheva Port in Mumbai and not within Kerala's territorial waters.BackgroundThe plaintiffs, a group of fishermen from Tamil Nadu, filed an admiralty suit seeking damages of ₹1 crore for injuries and loss of livelihood allegedly caused by a collision involving the fishing boat MERCY ANNAI and the 2nd defendant vessel M.V. Korea Chemi on 19.10.2023, about 48 nautical miles off the Kerala coast. They claimed that the collision resulted from gross negligence in the vessel's navigation and operation.The suit sought not only compensation but also the arrest and sale of the vessel to secure their claim. Although the 2nd defendant vessel was at that time berthed at Nhava Sheva Port, the plaintiffs approached the Kerala High Court, invoking its admiralty jurisdiction under the 2017 Act and other maritime laws.In response, the vessel's owners (defendants 1 and 2) filed an application to reject the plaint, contending that, the suit lacked jurisdiction because the vessel was not within Kerala's territorial waters at the time of arrest or filing. The incident occurred beyond 12 nautical miles (outside territorial waters). The Admiralty Act, 2017, restricted the court's jurisdiction to vessels physically present within its territorial limits.Court's FindingJustice Syam Kumar V.M. analyzed the scope of admiralty jurisdiction post-2017 and held that the Admiralty Act specifically limits jurisdiction to vessels located within the “territorial waters” of the respective High Courts' coastal boundaries (12 nautical miles from the baseline).The court rejected the plaintiffs' reliance on earlier precedents like M.V. Elisabeth v. Harwan Investments, observing that the Admiralty Act, 2017 had effectively modified that jurisprudence by expressly defining and limiting jurisdiction.The court observed that:On the first count, for an effective enforcement of admiralty jurisdiction it is imperative that the res or the 'thing' over which such jurisdiction is being exercised by issuing an order of arrest must be situated within the territorial limits of the court issuing the same or within the control of authorities over whom such court has command or jurisdiction for enforcement of such order.The court also dismissed the plaintiffs' arguments based on Section 443 of the Merchant Shipping Act, 1958, clarifying that such provisions cannot override the clear jurisdictional framework of the Admiralty Act, 2017.Court's RulingThe court held that since the 2nd defendant's vessel was anchored at Nhava Sheva Port in Mumbai (outside the Kerala High Court's jurisdiction), the suit was not maintainable under Section 3 of the Admiralty Act, 2017. The court rejected the plaint under Order VII Rule 11(d) CPC as being barred by law. The court directed the return of the ₹1 crore security deposit (provided earlier to prevent arrest of the vessel) with accrued interest to the vessel owners through their counsel.This judgment reaffirms that admiralty jurisdiction under the 2017 Act is strictly territorial, requiring the vessel to be within the High Court's geographical waters at the time of invoking jurisdiction. The ruling effectively curtails forum-shopping and overlapping claims by ensuring that suits are filed only in the appropriate jurisdiction, thereby streamlining the adjudication of maritime claims in India.Case Title: Owners and Parties Interested in the Vessel M.V. Korea Chemi & Anr. v. Siluvaipichai Francies & Ors.Citation: 2025 LiveLaw (Ker) 330 Case No.: IA No.1/2024 in Adml.Suit No.8/2023Click Here To Read/ Download Order

Kerala High Court Rejects Admiralty Suit Against M.V. Korea Chemi Owners For Lack Of Jurisdiction After Collision With Fishing Boat

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