Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017

Context: The Kerala High Court has ordered the conditional arrest of the Liberian container vessel MSC Akiteta II, currently docked at Vizhinjam port, in response to an admiralty suit filed by the Kerala government.

Background of the Kerala Government Admiralty Suit Case

• The Kerala government filed an admiralty suit after the sinking of MSC Elsa III on May 25 near Alappuzha.
• The vessel reportedly carried 600+ containers with hazardous materials such as plastic pellets and diesel.
• The spill caused serious environmental and economic damage to Kerala’s marine ecosystem.
• In response, the Kerala High Court conditionally arrested MSC Akiteta II, docked at Vizhinjam Port, to secure a compensation claim.
• Kerala alleged that MSC Elsa III and MSC Akiteta II are “sister ships” owned by Mediterranean Shipping Company (MSC).
• Though registered under different shell companies, both operate from the same Geneva address.
• The state claims this structure was a fraudulent device to evade liability.

Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017

• Purpose: Governs maritime disputes, including:
  • Ship damage
  • Ownership issues
  • Seafarer wage disputes
  • Environmental damage
  • Loss of life/injuries at sea
• Replaced colonial-era laws:
  • Admiralty Court Act, 1861
  • Colonial Courts of Admiralty Act, 1890

Jurisdiction Expansion under 2017 Act

• Earlier: Jurisdiction restricted to the Bombay, Calcutta, and Madras High Courts.
• Now: Extended to High Courts of:
  • Kerala
  • Karnataka
  • Odisha
  • Telangana
  • Andhra Pradesh
• Jurisdiction covers 12 nautical miles from the coast, including seabed, subsoil, and airspace.

Environmental Damage Provisions

• Section 4: Allows maritime claims for environmental damage and cleanup costs.
• Additional Laws Supporting Claims:
  • Merchant Shipping Act, 1958: Holds shipowners liable for oil spills.
  • Environment Protection Act, 1986: Empowers action against polluters.
  • NGT (National Green Tribunal): Handles environmental compensation claims.
    • Example: In 2016, NGT ordered ₹100 crore compensation after the M V Rak oil spill near Mumbai.

Legal Grounds & Court’s Justification

• Under Section 5 of the Admiralty Act, the High Court has the power to arrest ships even under a demise charter (bareboat charter).
• A demise charterer temporarily assumes full control of a vessel (crew, operations, maintenance), acting as “owner for the time being.”
• The court accepted Kerala’s claims and ordered the ship’s arrest until:
  • The owners deposit the claimed amount, or
  • Furnish adequate security.

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