Supreme Court Stays Bombay HC Ruling Holding JSW Steel Not Liable For Sunken Barge Removal Costs

The Supreme Court on Friday stayed a Bombay High Court judgment that had held JSW Steel Ltd was not liable for the costs incurred in removing the wreck of the barge M.V. Satyam from Mumbai harbor.

The High Court, in its April 10, 2026 judgment, had directed Mumbai Port Trust (MPT) to refund ₹4.09 crore, comprising the ₹70 lakh deposited by JSW Steel and the accrued interest, within six weeks.

A bench of Justices S.V.N. Bhatti and Atul S. Chandurkar issued notice in the matter, while recording that counsel appearing for JSW Steel had accepted notice. The Court also directed issuance of notice to the other respondents and posted the matter for hearing on August 3.

The bench stayed the operation of the High Court judgment and directed Mumbai Port Trust, which has challenged the ruling, to deposit the amount referred to in paragraph 83 of the High Court judgment within two weeks.

"Keeping in perspective the direction issued by the impugned judgment with a view to balancing the interest of both the parties, we direct the petitioner to deposit the amount as directed in paragraph '83' of the impugned judgment within two weeks in the Registry of this Court. There shall be stay of the impugned judgment and order till further orders," the court ruled.

The dispute stems from the sinking of the barge M.V. Satyam on April 11, 1995 while it was transporting iron ore destined for JSW's Dolvi steel plant. Following the incident, Mumbai Port Trust issued a notice under Section 14 of the Indian Ports Act, 1908, calling for removal of the wreck and seeking a security deposit towards the salvage operation.

JSW challenged the demand, arguing that it was not the owner of the barge and therefore could not be held liable for the wreck-removal costs.

In its judgment, the Bombay High Court held that liability under Section 14 of the Indian Ports Act could be imposed only on the owner of the vessel. The court found that the barge was owned by a third party and that JSW was merely the principal employer that had engaged the vessel's services. It concluded that Mumbai Port Trust could not recover the wreck-removal costs from JSW and directed it to refund ₹4.09 crore to the company.