Brian McDonald
South Africa has won a court case over $43 million worth of treasure from a Second World War shipwreck that was found off the country’s coast by a British exploration company, the UK Supreme Court said on Wednesday. . The sinking of the SS Tilawa – which has been called “Indian Titanic” – killed 280 people and caused more than 2,000 silver bars to fall to the bottom of the ocean.
On 23 November 1942, the SS Tilawa was sunk by Japanese torpedoes in the Indian Ocean, the court said in a press release announcing the decision. In addition to the almost 3,000 people on board, the ship also carried 2,364 silver bars purchased by what was then known as the Union of South Africa to be turned into coins. The treasure aboard the sunken ship was unrecoverable until 2017, when a specialist salvage vehicle from Argentum Exploration Ltd, a British company owned by hedge fund leader Paul Marshall, managed to get to the silver.
The treasure was transported to the UK and declared the company’s property, with Argentum Exploration arguing in the first instance court that maritime law states that someone who salvages treasure can claim payment for its recovery. The company argued that this was a voluntary bailout, meaning that a payment could be requested even if South Africa did not ask them to recover the silver.
South Africa argued that the court of first instance did not have the power to hear the company’s claim because it was a foreign state, while the company argued that the country did not have immunity from the proceedings.
The argument presented to the court centered on whether the silver was “in use or intended for commercial purposes” when the ship sank during World War II, the court said. The court first ruled in favor of Argentum Exploration and said the silver was in use or would be used for commercial purposes.
South Africa filed an appeal, which was heard by the country’s Court of Appeal. That court agreed with the initial decision. South Africa then filed an appeal with the UK Supreme Court.
SS Tilawa Foundation
The Supreme Court ruled that the silver was not in use nor intended to be used for commercial purposes, so South Africa is immune from the claim. Although both parties agreed that the Tilawa was in use for commercial purposes, the silver on board the ship was not, the court said. The court ruled that planning to mint silver did not count as a commercial purpose.
“Cargo stored in the hold of a ship is not being used for any purpose, commercial or otherwise,” the court said in the press release.
The sinking of the Tilawa was dubbed the “Forgotten Tragedy” of World War II, according to a report website commemorating the incident. The ship was carrying 732 passengers, 222 crew and 4 gunners at the time of the sinking. In addition to silver, the ship was carrying more than 5,900 tons of other cargo.
Two torpedoes fired by the Imperial Japanese Navy hit the ship, sinking it. The SS Tilawa is described online as the “only passenger cargo ship attacked in the Indian Ocean during the Second World War”.
Two nearby ships managed to rescue 678 passengers, but 280 people died, according to the website.
