MSC Faces Another Legal Blow as Kerala High Court Orders Conditional Arrest of Sister Vessel Over Cargo Loss
Kochi | June 19, 2025
In a fresh legal setback for the Mediterranean Shipping Company (MSC), the Kerala High Court on Wednesday ordered the conditional arrest of MV MSC Polo II, a sister vessel of the ill-fated MSC Elsa 3, in connection with a cargo loss claim worth ₹74 lakh. The move comes less than a month after the MSC Elsa 3 sank off the coast of Kochi, triggering multiple legal and criminal proceedings.
Justice M. A. Abdul Hakhim, while passing the order, ruled that the arrest of MV MSC Polo II shall be carried out only if the vessel is anchored within the territorial waters of Kerala. The vessel, currently en route from Colombo, is expected to dock at Vizhinjam Port on Thursday, where authorities are preparing to enforce the court’s directive.
The arrest was sought by a cashew export company that had reportedly lost its cargo in the May 24 shipwreck of MSC Elsa 3. The petition claimed that MSC failed to ensure safe delivery of the shipment, resulting in a substantial financial loss. The High Court’s ruling permits the ship’s release upon recovery or deposit of the claimed compensation.
Legal Trouble Mounts for MSC
This is the second such arrest order issued by the Kerala High Court in recent weeks relating to the MSC Elsa 3 incident. Earlier, the court had ordered the conditional arrest of MSC Manasa F, another MSC vessel, based on a petition filed by a separate claimant alleging cargo loss in the same shipwreck.
These back-to-back legal orders reflect growing scrutiny of MSC’s operations following the Kochi shipwreck, which has raised serious questions about the company’s compliance with maritime safety and cargo handling regulations.
The repeated arrests of MSC’s vessels not only pose reputational damage but also carry operational and financial implications, as each ship must remain detained until legal dues are settled or adequate security is provided.
Details of the Kochi Shipwreck
The MSC Elsa 3, a cargo vessel owned by MSC, sank in the Arabian Sea on May 24, approximately 30 nautical miles off the Kochi coast. The vessel was carrying various consignments, including cashews and other commercial cargo, bound for international destinations.
According to sources in the coastal police and port authority, the vessel developed a sudden tilt before going down rapidly, raising suspicions about overloading or improper stowage. The Fort Kochi Coastal Police promptly registered a criminal case following the incident.
As per the First Information Report (FIR) filed by the police, the owner of the vessel has been named as the first accused, the ship’s master as the second, and the entire shipping crew as the third accused. The charges include endangering human life and gross negligence in maritime operations.
Although no fatalities were reported, the loss of high-value cargo and the potential environmental risks from the sunken vessel have heightened public concern and invited legal action from multiple stakeholders.
Industry Reaction and Implications
Legal experts suggest that the conditional arrest orders issued by the High Court are a strong warning to shipping companies operating in Indian waters. “This reflects the judiciary’s increasing willingness to hold global shipping lines accountable under Indian maritime law,” said a Kochi-based admiralty lawyer familiar with the case.
Meanwhile, representatives from MSC India have not issued any official statement on the court’s order at the time of writing, though sources suggest that the company may challenge the order or seek out-of-court settlements with the aggrieved parties.
The case is also being closely watched by international insurers and cargo owners, as it may set a precedent for liability claims related to lost or damaged shipments in Indian territorial waters.
Shipping analysts point out that such legal actions can disrupt global shipping schedules, as arrested vessels are often held up for days or weeks, leading to delays in cargo delivery and increasing demurrage costs.
What’s Next?
The arrest order is expected to be implemented when MV MSC Polo II reaches Vizhinjam Port on Thursday. If the authorities are successful in executing the arrest, the vessel may remain detained until the court is satisfied that the claimants have been adequately compensated.
Meanwhile, the criminal investigation into the MSC Elsa 3 shipwreck is ongoing. The Directorate General of Shipping and the Marine Mercantile Department are also conducting parallel inquiries to determine regulatory breaches and recommend systemic improvements to prevent similar incidents.
With more claimants reportedly preparing legal action, MSC may face a growing number of challenges in Indian courts, potentially complicating its cargo operations along India’s west coast.
