Elsa 3 owners stare at rising claims, move HC to limit liability to 14 million dollars

Elsa 3 Maritime Inc., along with Multi Container Management and MSC Mediterranean Shipping Co., has filed an admiralty suit before the Kerala High Court seeking to limit their financial liability following the sinking of the MSC Elsa III. The cargo ship, flying the Liberian flag, sank off the coast of Kerala on May 25, 2025, causing severe environmental and economic damage.

In the aftermath, both private individuals and the Kerala government have filed public interest litigations and admiralty suits. The High Court even ordered the arrest of sister ships—MSC Polo II, MSC Manasa F, and MSC Akiteta II—to secure claims from affected parties.

Plea for limited liability

The present suit is filed under Part XA of the Merchant Shipping Act, 1958, which allows shipowners to cap liability for maritime claims. It also aligns with the International Convention on Limitation of Liability for Maritime Claims, which India is a signatory to. According to the plaintiffs, the Elsa III was carrying around 643 containers, and any number of consignees could raise claims.

The plaintiffs aim to establish a liability fund of about 14 million dollars based on the ship’s tonnage. They argue that if not permitted to limit liability, ongoing claims and ship arrests will disrupt insurance and freight operations, driving up goods prices.

Court considers next step

The High Court registry noted a defect in the case—defendant no. 8 was described vaguely as “all persons entitled to claim damages.” However, the plaintiffs clarified this was to ensure public notice. The Court will decide on Wednesday whether to number the case and allow proceedings.