South Africa has won a legal claim worth $43 million in treasure from a World War II shipwreck that was found off the country's coast by a British export company, the Supreme Court said on Wednesday. United Kingdom. The sinking of the SS Tilawa, which has been called the “Indian Titanic”, killed 280 people and sent more than 2,000 silver bars crashing to the ocean floor.
On November 23, 1942, the SS Tilawa was sunk by Japanese torpedoes in the Indian Ocean, the court said in a press release announcing the ruling. In addition to nearly 3,000 people on board, the ship was also carrying 2,364 silver bars that had been purchased by what was then known as the Union of South Africa to be converted 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, was able to reach the silver.
The treasure was transported to the UK and declared the company's property, with Argentum Exploration arguing in a lower court that maritime law states that someone who salvages a treasure can claim payment to get it back. The company argued that it was a voluntary bailout, meaning a payment could be sought even if South Africa did not ask them to take the silver back.
South Africa argued that the lower court had no power to hear the company's suit because it was a foreign state, while the company said the country did not have immunity in the suit.
The argument before the court centered on whether the silver was “in use or intended to be used for commercial purposes” when the ship sank during World War II, the court said. The court first found 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. This court agreed with the original judgment. South Africa then appealed to the UK Supreme Court.
SS Tilawa Foundation
The Supreme Court ruled that the silver was not in use or intended to be used for commercial purposes, so South Africa is immune from the claim. Although both parties agreed that the Tilawa was being used 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 sitting in the hold of a ship is not used for any purpose, commercial or otherwise,” the court said in the press release.
The sinking of the Tilawa has been dubbed the “Forgotten Tragedy” of World War II, according to a website commemorating the incident. The ship was carrying 732 passengers, 222 crew and 4 gunners at the time of its sinking. In addition to the silver, the ship had over 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 World War II.”
Two nearby ships were able to rescue 678 passengers, but 280 people died, according to the website.
