In News:

In a rare legal move, the Kerala High Court ordered the conditional arrest of the Liberian container ship MSC Akiteta II, anchored at Vizhinjam Port. The Kerala government filed an admiralty suit seeking ?9,531 crore compensation for alleged environmental and economic damage caused by the sinking of MSC Elsa III.

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

Purpose:

• Consolidates and updates maritime laws in India.
• Replaces outdated colonial legislations like:
  • Admiralty Court Act, 1861
  • Colonial Courts of Admiralty Acts of 1890 and 1891
  • Relevant provisions of Letters Patent, 1865

Applicability:

• Applies to all vessels, regardless of owner’s residence or domicile.
• Exemptions:
  • Inland vessels under the Inland Vessels Act, 1917
  • Warships and other government vessels used for non-commercial purposes
  • Foreign government vessels used for non-commercial purposes (as notified)

Key Provisions:

Section 4 – Maritime Claims:

High Courts can adjudicate disputes related to:

• Damage to vessels or marine environment
• Oil pollution and hazardous cargo
• Ownership or possession of a vessel
• Loss of life or injury due to vessel operations
• Carriage agreements (goods/passengers)
• Claims for unpaid wages, port dues, or cargo losses

Section 5 – Arrest of Vessels:

• Courts may order “arrest” of a ship to secure a maritime claim.
• Arrest can be made even if the ship is not directly involved but is owned by the liable party.
• It serves to ensure that compensation or security is provided before the vessel is released.
• Claimants may be asked to furnish an unconditional undertaking to compensate for wrongful arrest, if proved later.

Jurisdictional Expansion:

• Earlier limited to Bombay, Calcutta, and Madras High Courts.
• Now extended to Kerala, Karnataka, Odisha, Telangana, and Andhra Pradesh as well.
• Jurisdiction covers territorial waters up to 12 nautical miles, including seabed, subsoil, and airspace.

In Rem vs In Personam:

• Legal action can be initiated directly against the vessel (in rem) or against the owner/operator (in personam), based on the nature of the claim.