The Merchant Shipping Act (MSA) 2007 permits the shipowner to limit his liability for maritime claims. However, section 354 of the MSA 2007, has made provision for circumstances under which the right to limit liability would be denied. This paper analysis the ingredients that need to be proved before liability is denied. These include intent to cause damage or other reckless acts or omissions of the shipowner or his servants or agents. The author recommends the amendment of section 354 MSA 2007 for being inequitable as it protects the interest of the shipowner to the detriment of the victim of damage.