Yeah in SH3 they do appear to see Torps once they get close as just today a Dido class Cruiser saw my two eels and went to flank.
I had aimed at the first turret and forward superstructure, but when he accelerated I just barely caught him on the stern in front of his props with the lead eel.
He was still able to make 8kts and I fell out of position, had to end around to finish him.