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

GS 2 – Polity

Context:

The Kerala High Court recently invoked this law to arrest the Liberian ship MSC Akiteta II, following a suit by the state government demanding ₹9,531 crore as compensation for environmental damage to the marine ecosystem.

Overview of the Admiralty Act, 2017:

• Nature of the Act:
  A comprehensive central legislation that modernizes and consolidates laws related to maritime claims, ship arrest, and enforcement of maritime rights in India.
• Objective:
  To provide a uniform legal framework for maritime adjudication, replacing archaic colonial laws from 1861 and 1890.

Key Provisions:

• Expanded Jurisdiction:
  Empowers High Courts in Kerala, Karnataka, Odisha, Telangana, and Andhra Pradesh, in addition to Bombay, Calcutta, and Madras, with admiralty jurisdiction.
• Types of Maritime Claims (Section 4):
  Covers a wide range, including:
  • Environmental damage
  • Oil spills
  • Cargo loss
  • Crew wage disputes
  • Collisions
  • Ship ownership conflicts
• Ship Arrest Provisions (Section 5):
  Courts may arrest ships even if they are not directly involved in the incident, provided there is a legal ownership link.
• Dual Legal Action:
  • In rem: Directly against the ship
  • In personam: Against the shipowner
• Environmental Safeguards:
  Includes explicit legal coverage for marine pollution compensation, a crucial tool for states to seek damages.
• Alignment with International Law:
  Brings India in sync with UNCLOS and IMO standards.

Significance of the Act:

• Environmental Accountability:
  Allows proactive legal action in maritime ecological damage cases (e.g., MSC Elsa III case).
• Investor Assurance:
  By creating a transparent legal regime, it bolsters investor confidence in maritime infrastructure (e.g., Sagarmala initiative).
• Protection for Fisheries Sector:
  Enables compensation for livelihood losses — Kerala claimed ₹526 crore on behalf of affected fishermen.
• Legal Empowerment of Regional Ports:
  Strengthens non-metro ports and ensures legal decentralization in maritime disputes.