MSC Elsa 3 Shipwreck | Kerala High Court Stays State's Negotiation With MSC Company, Cites Transparency Issues

The Kerala High Court on Thursday (19th June) stayed the negotiation process initiated by the State with the MSC Company over the loss caused due to the sinking and consequent cargo loss of MSC Elsa. The State has constituted a committee for negotiation to determine the compensation for damage caused due to collision, restoration of coastal life and marine environment, removal of wreck, and economic loss caused to the fishermen.The Bench of Chief Justice Nitin Jamdar and Justice Basant Balaji raised concerns with such negotiation proceedings. The Court observed that such negotiation raises concerns of transparency. The Court said that the State has the option of doing settlement talks through the Court, especially when the State has expressed its intention of filing an Admiralty suit against MSC. Observing thus, the court stayed the negotiation proceedings for now.“Various questions should arise for consideration. Whether such a negotiation results in an agreement with the respondent company? Whether it could have transparency? Whether jurisdiction of this court will be affected? … Prima facie such negotiation can also take place if the State moves the Court under Section 3 of the (Admiralty) Act…It would be appropriate that the avenue of negotiation is deferred at present.”The order was passed by the Court in the PIL filed by former parliamentarian T. N. Prathapan, raising concerns over the damage caused to the environment and the fishermen after the sinking of the ship MSC Elsa 3The State, through its affidavit, has informed the Court about the steps taken by it since the sinking of the ship. The State is proposing to take action under the Environment Protection Act.The Special Secretary of the Department of Environment has been appointed as the Principal Impact Assessment Officer. The Ministry of Fisheries had convened a meeting with the stakeholders, and the fisheries department has forwarded the loss assessment report to the Special Secretary.The case will be heard in detail in next weekCase Title: T. N. Prathapan v Union of India and OthersCase No: WP (PIL) 50/ 2025

MSC Elsa 3 Shipwreck | Kerala High Court Stays State's Negotiation With MSC Company, Cites Transparency Issues

Manju Elsa Isac

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