Arbitral Tribunal Award and Disbursement of Compensation

The legal system plays a crucial role in analyzing and interpreting complex issues, as evident in a recent case involving an Arbitral Tribunal award and the subsequent disbursement of compensation. The court’s legal analysis and decisions have paved the way for the resolution of this intricate legal matter, impacting various stakeholders involved. Let’s delve into the details of the case and understand the significance of the court’s rulings in upholding justice and ensuring fair outcomes for all parties concerned.


  • The learned Chief Judicial Magistrate committed the case to the Court of Sessions, Kollam.
  • Italian Marines, petitioner nos. 1 & 2, were identified as the ones who fired at the fishing boat.
  • Writ Petition No 135 of 2012 was filed under Article 32 of the Constitution of India seeking directions for the interest of petitioner nos. 1 & 2.
  • A directive was passed for the State of Kerala to consider the representation of Italy to shift petitioner nos. 1 & 2 to a safe house.
  • Pursuant to the order, petitioner nos. 1 & 2 were apprehended and produced before the Chief Judicial Magistrate, Kollam.
  • The legal heirs of the deceased and the boat owner agreed to accept the compensation offered to them.
  • A challenge was made to the jurisdiction of Kerala and the Circle Inspector of Police by filing Writ Petition No 4542 of 2012 before the High Court of Kerala.
  • A request is made to quash criminal proceedings under Article 142 of the Constitution of India.
  • The Republic of Italy made an ex-gratia payment of compensation to the legal heirs of the deceased in April 2012.
  • Charges were filed against petitioner nos. 1 & 2 for various offences including Sections 302 and 307 of the IPC.
  • The Ministry of External Affairs emphasized the implementation of an award related to the incident.
  • A direction was given for the disposition of a certain amount of compensation into a specified account.
  • The heirs of the deceased fishermen were impleaded in the proceedings.
  • The Republic of Italy deposited Rs. 10,00,00,000 with India, of which Rs. 10,00,00,000 was transferred to the Registry of this Court.
  • The Government of Kerala proposed disbursement of compensation to the dependents/victims of the incident.
  • An order was passed allowing the vessel involved in the incident to sail away with the crew members.
  • An FIR was registered against petitioner nos. 1 & 2 for various offences including Section 302 of the IPC.
  • The High Court dismissed Writ Petition No 4542 of 2012, upholding the jurisdiction of the State of Kerala and the concerned Circle Inspector of Police at Kollam.
  • The accused Italian Marine officials and the Republic of Italy filed a special leave petition against the High Court’s decision.
  • India and Italy agreed to settle the dispute concerning the incident in question in accordance with the UNCLOS and its dispute resolution mechanism under Annex VII.
  • ITLOS passed a Provisional Measures Order on 24 August 2015, requiring both Italy and India to suspend all court proceedings.
  • This Court stayed all proceedings in the pending matters by order dated 26.08.2015 and modified on 2.9.2015 as per the agreement of both parties.
  • By its order dated 6.3.2017, this Court requested the inclusion of the award passed by the Annex VII Arbitral Tribunal in the record.
  • The Annex VII Arbitral Tribunal delivered its award on 21.05.2020, where Italy committed to resuming its criminal investigation and cooperating with India.
  • Italy agreed to pay INR 100 million as compensation under the Arbitral Tribunal’s award, excluding the amount already paid to the victims’ families.

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  • Shri Tushar Mehta, learned Solicitor General of India, represented the Union of India.
  • Shri Sohail Dutta, learned senior counsel, represented the Republic of Italy and the petitioners.
  • Shri K.N. Balagopal, learned senior counsel, appeared on behalf of the State of Kerala.
  • Shri Unnikrishnan, learned counsel, represented the heirs of the deceased.
  • All parties, including Republic of Italy, Union of India, State of Kerala, and heirs of the deceased, have agreed to accept the award of the Arbitral Tribunal dated 21.05.2020.
  • Arbitral Tribunal constituted under Annex VII of UNCLOS has delivered an award dated 21.05.2020.
  • The Republic of Italy has agreed to pay compensation of Rs. Ten crores, in addition to ex-gratia amount already paid.
  • Italy has committed to resume its criminal investigation following the award.
  • Award amount of Rs. Ten Crores has been deposited with the Union of India and transferred to the Registry of the Court.
  • All involved parties, including the State of Kerala, heirs of the deceased fishermen, and the owner of the damaged boat, have agreed to accept the award.
  • The Union of India has accepted the award passed by the Arbitral Tribunal.
  • The compensation amount of Rs. Ten Crores is considered reasonable and in the interest of the deceased fishermen’s heirs.
  • A decision has been made to close all proceedings in India, including criminal proceedings, under Article 142 of the Constitution of India.
  • While disbursing the compensation of Rs. Four Crores to each deceased’s heirs, their interests will be protected by investing the amount in Fixed Deposits in nationalized banks to earn periodical interest.

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  • Republic of Italy to resume criminal investigation
  • Cooperation between Republic of Italy, Union of India, and State of Kerala required
  • Transfer of Rs. Ten Crores to High Court of Kerala
  • Disbursement of Rs. Four Crores to heirs of each deceased, Rs. Two Crores to owner of the boat
  • Nomination of a Judge by Hon’ble Chief Justice of Kerala High Court for disbursement/investment
  • Protection of interests of the heirs and prevention of misappropriation
  • Close of proceedings under Article 142 of the Constitution of India
  • Quashing of FIR No.2/2012 and related proceedings
  • Discharge of Bail-Bonds and release of Bank Guarantees
  • Disposal of all pending matters before the Court

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Case Number: SLP(C) No.-020370-020370 / 2012

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