Kerala High Court Orders Conditional Arrest of MSC Polo II Following MSC ELSA 3 Sinking
In a significant legal development, the Kerala High Court has ordered the conditional arrest of MSC Polo II, the sister vessel of the sunken MSC ELSA 3. The move follows a petition filed by Sans Cashew India Pvt Ltd seeking compensation for cargo loss valued at approximately ₹74 lakh. The cargo consisted of dried cashew nuts transported from Ghana to India, which were reportedly lost when the MSC ELSA 3 sank off the Kochi coast on May 24, 2025.
According to court documents, the petitioner alleged that the MSC ELSA 3 was unseaworthy and failed to meet basic safety standards due to technical faults, improper cargo handling, and crew negligence. These allegations are central to the admiralty suit filed under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017. The High Court permitted the vessel owner to avoid detention by furnishing a demand draft and agreeing to deposit the amount as security. The matter has been scheduled for further hearing on June 23.
This is not the first time the Kerala High Court has intervened in the aftermath of the MSC ELSA 3 incident. Earlier this month, the Court had also ordered the arrest of another sister ship, MSC Manasa F, and directed that a fixed deposit worth ₹6 crore be held in court as security for multiple cargo-related claims from other importers.
The sinking of the MSC ELSA 3 has not only raised concerns about cargo liability but also triggered alarm over environmental safety. The ship was carrying around 100 containers, including hazardous materials such as calcium carbide, along with approximately 367 metric tonnes of fuel and diesel. Following the incident, the Indian Coast Guard launched a containment and cleanup operation. However, plastic pellets and oil slicks have already begun impacting local marine ecosystems and fishing communities across the Kerala coast.
Local fishermen have voiced concerns over the long-term environmental damage and are calling for broader compensation and stricter maritime regulation. Plastic contamination from the vessel has been reported in backwaters and estuaries, threatening aquatic life and coastal livelihoods.
From a legal standpoint, the case sets an important precedent under Indian maritime law. The Admiralty Act allows courts to arrest vessels in Indian jurisdiction to secure maritime claims, even when the incident occurs in international waters. The arrest of sister ships of the same beneficial owner marks a decisive move by the Indian judiciary to ensure claimants receive due compensation in the face of complex, transnational maritime operations.
The incident has also prompted questions about existing marine insurance frameworks and the adequacy of safety standards for feeder vessels operating during monsoon conditions. The insurance implications are far-reaching, potentially affecting coverage terms related to hazardous cargo, pollution liability, and third-party compensation.
In conclusion, the MSC ELSA 3 sinking and subsequent legal actions have revealed significant gaps in maritime safety, cargo risk management, and environmental protection. The case is expected to influence future regulations and litigation strategies in the Indian shipping and insurance sectors.
