Compensation claimed by state exaggerated: Owners
They also submitted that the suit is not maintainable, as the vessel is not within Indian territorial waters. While considering the interlocutory application filed by the vessel owners in the state's admiralty suit, the bench of Justice M A Abdul Hakhim orally asked the owners to state how much they were willing to deposit as security in the matter.
HC had issued an arrest warrant against AKITETA II on July 7. It came following the state govt suit seeking claims for the grave and widespread environmental and economic damage allegedly caused by the capsize of cargo vessel MSC ELSA 3 off Kerala coast on May 25.
The vessel owners, however, contended that there was no evidence of oil pollution resulting from the capsize. They submitted that the oil sheen, which had spread within one nautical mile of the site, was completely cleaned up by the ship owner. They reiterated that the claim is exaggerated and not backed by adequate supporting documents.
Seeking modification of the previous order directing the deposit of Rs 9,531 crore as security, senior counsel for the vessel owners relied on Section 11(2) of the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, which permits the court to modify or cancel the security requirement for sufficient cause.
by Taboola
by Taboola
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They also referred to a 2017 HC division bench judgment that had reduced a security deposit from Rs 18.5 crore to Rs 1 crore.
However, advocate general K Gopalakrishna Kurup opposed the plea, contending that the arrest order was issued after HC was satisfied with the prima facie case established by the plaint and supporting documents. He argued that the question of modifying or cancelling the order could arise only after completion of pleadings.
Accepting the AG's submission, HC directed the ship owners to file a counter-affidavit along with supporting documents within two weeks. The matter has been posted for Aug 8, and HC clarified that the arrest order shall remain in force until then.
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