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Allegations of corruption in handling compensation claims u

The fire aboard the 'X-Press Pear' has become controversial amid allegations of corruption in handling compensation claims under the previous government. The island nation had a political leadership change in Sep 2024, with Anura Kumara Dissanayake elected as its new president. The new Sri Lankan government has decided to reopen the case in the wake of allegations that a $6.4bn insurance claim filed in Singapore was mishandled, in order to unearth possible lapses and to ascertain how the claim can be recovered. Abot $8m was settled by the ship’s insurer or P&I club, in multiple stages, against the massive claim. A litigation was ongoing against the feeder line in Singapore, and against its London-based insurer in a UK court. Sri Lanka has legal constraints against the carrier or its insurer in the face of “no asset base” for them in the country to underwrite the damages through potential confiscation, sources believe. Multiple sources, including those attached to the Sri Lanka Marine Environmental Protection Authority, had earlier flagged concerns about some “intentional laxity and delays” by agencies of the previous government in pursuing the claim for damages.

Captain still detained in Sri Lanka

Vitaly Tyutkalo, who was the captain of the 'X-Press Pearl' on its last voyage, has been detained since the accident by local authorities, with a prohibition to leave Sri Lanka. He was charged with, but pleaded not guilty to, two breaches of Sri Lankan environmental laws. But despite more than three years, there is no prospect that a trial will decide the issue of guilt. The crew of the 'X-Press Pearl' discovered long before the ship caught fire that a leak had occurred in a container of hazardous waste, but no ports would accept the ship so that the container could be removed.

claim against the London P&I Club over sinking of the 'X Press Pearl' must be heard in London

A judge has ruled that a claim against the London P&I Club over the sinking of the 'X Press Pearl' off the coast of Sri Lanka must be heard in the UK. The protection and indemnity club successfully argued that the case brought by cargo interests in Sri Lanka should be halted and arbitration brought to London. The judgment followed the trial of this action, which was held on April 12. Approved Judgement: https://jusmundi.com/en/document/pdf/decision/en-the-london-steam-ship-owners-mutual-insurance-association-ltd-v-trico-maritime-l-d-p-thisari-senanayake-s-d-k-prasanna-t-m-j-n-m-tennakoon-and-t-n-aluthwaththa-judgment-of-the-high-court-of-justice-of-england-and-wales-2024-ewhc-884-tuesday-23rd-april-2024