environmental law, polluter pays, public interest litigation, Supreme Court India
10  13 Feb, 1996
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Indian Council For Enviro-Legal Action Vs. Union of India

  Supreme Court Of India Writ Petition Civil /967/1989
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INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION A

v.

UNION OF INDIA

FEBRUARY

13, 1996 [B.P. JEEVAN REDDY AND B.N. KIRPAL, JJ.]

B

Constitution of India, 1950 : Articles 21 and 32.

Writ Petition-Maintainability of-Social action litigation--On behalf

of affected villagers-Due to pollution caused by private chemical in- C

dustries--Directed against Central and State Govemments and State Pollution

Control

Board-To compel them to perfonn their statutory duties-Held :

Petition maintainable even

if private chemical industries were not amenable

to writ jurisdiction-The

Cowt had power and duty to intervene and protect

right to life

of citizens-Water (Prevention

and Control of Pollution) Act,

1981-AIR (Prevention and Control of Pollution) Act, 1981-Hazardous D

Wastes (Management and Handling) Rules, 1989.

Constitution of India, 1950 : Article 32.

Petition complaining of pollution by private chemical industries-Court

can direct Central Govemment to recover costs

of remedial measures from

offending industries-Question

of awarding damages against these industries

left open.

Environmental (Protection) Act, 1986:

Sections 3 & 4.

Environmental Pollution-Remedial measures-Costs for carrying

out-Central Govemment could levy on pollute~Such power was implicit in

Sections 3 &

4.

·Environmental (Protection) Act, 1986: Sections 3 & 5.

E

F

I G

Envirimmental Pollution-Remedial measures-Pollute~Liability

of-To defray costs-{Jniversally accepted as sound principle-central

Govemment empowered to give directions and take measures for giving effect

to this principle.

Environmental

Pollution-chemical industries-Main culprits-Their H

503

504 SUPREME COURT REPORTS [1996] 2 S.C.R.

A establishment and functioning must be scmtinized rigorously.

Torts:

Environmental pollutiort--Negligence-P1inciples

of "strict liability'' and

"Polluter pays"-Applicability of-Hazardous or inherently dangerous ac­

B tivity-Person carrying on-Absolute liability-Rule of-Laid down-In

Oleum gas leak-Not obiter but appropriate and binding--Rule in Reylands

v. Fletche1~Suitability and applicability to Indian conditions.

c

D

E

Practice and Procedure :

Environmental pollution-:;-R.ight to life-Invasion of-Due to pollution

caused

by private chemical

industries-Rep01ts from experts-Called by

Court-Use of-Various orders passed on basis

of reports-Objection there­tO-Urged at a belated stage after lapse of several years-Wholly unacceptable.

The units/factories of the Respondents, located in

an industrial

complex, were all chemical industries

and were controlled by the same

group of individuals. The respondents started producing certain chemicals

like Oleum (concentrated form of sulphuric acid), Single Super Phosphate,

'H' acid, fertilizers and a few other products. The respondents had not

obtained the requi.site clearances/consents/licences; nor did they instal any

equipment for treatment of highly toxic effiuents discharged by them.

'H'

acid was meant for export exclusively. Its manufacture gave rise to

enor­

mous quantities of highly toxic effiuents-in particular iron -based and

gypsum-based sludge -which if not properly treated, posed grave threat to

mother

Earth. It poisoned the earth, the water and everything that came

F

·in contact with it. The chemical produced ~y the respondents had given

birth to highly toxic sludge (iron-based sludge

and gypsum-based sludge)

besides other pollutants.

Since the toxic untreated waste waters were

allowed to

flow out freely and because. the untreated toxic sludge was

thrown in the open in

and around the complex, the toxic substances had

percolated deep into the bowels of the earth polluting

foe acquifers and

G the sub-terranean supply of water. The water in the wells and the streams

and turned dark and dirty rendering it unfit for human consumption, unfit

for cattle to

drink and for irrigating the land. The soil had become polluted

rendering

it unfit for cultivation, the main stay of the villagers, resulting

in misery to the

vill~gers needs no emphasis. It spread disease, death and

H disaster in the village and the surrounding areas. The villagers then rose

/.

..

INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. U.O.I. 505

in virtual revolt leading to the imposition of Section 144 Cr.P.C. by the A

District Magistrate in the area. It was averred by the respondents that

both the units, had stopped manufacturing 'ff' acid and were closed. Yet

the consequences of their action remain -the sludge, the long-lasting

damage to earth, to underground water, to human beings, to cattle

and the

village economy.

The petitioner filed the present writ petition before this Court by way

of social action litigation, complaining precisely of the above situation

and

requesting for appropriate remedial action. The Court requested the

Na­

tional Environmental Engineering Research Institute (NEERI) to study

B

the situation in and around the village and submit their report "as to the C

choice and scale of the available remedial alternatives". It was found that

out of a large quantity of sludge only a small quantity had been stored in

the pits provided by the respondents. The remaining sludge was still there

either within the area of the complex of the respondents

or outside their

complex. Huge quantities of sludge were lying

around either in the form

of mounds or placed in depressions, or spread over the continguous areas D

and covered with local soil to conceal its existence. The said sludge was

only a

part of the pernicious discharge emanating from the manufacture

of

'H' acid. The other part, which was not visible now (except in its

deleterious effects upon the soil

and underground water) was the 'mother

liquor' produced in enormous quantities which

had either flowed out or E

percolated into

·the soil.

On behalf of the petitioner it was contended that the abundant

material on record clearly established the culpability of the respondents for

the devastation in the village

and surrounding areas and their respon­

sibility

and obligation to

properly store the remaining sludge, stop dis·

charge of all untreated effluents by taking necessary measures.

On behalf of the respondents it was contended that they were private

corporate bodies

and were not 'State' within the meaning of Article 12 of

F

the Constitution; that a writ petition under Article 32 of the Constitution G

was, therefore, not maintainable; that the

State Pollution Control Board

.

had been adopting a hostile and malafide attitude towards them; that

blaming them for the pollution was incorrect as a fact and unjustified; that

they had been cooperating with this Court in all matters and carrying out

its directions faithfully,

and that the Reports submitted by the various

so-called expert committees

that sludge was still lying around within and

H.

q

j

506 SUPREME COURT REPORTS [1996] 2 S.C.R. '

A outside their complex and/or that the toxic wastes from the Sulphuric Acid

Plant were flowing through and reaching the sludge a:'Jd creating a highly

dangerous situation w~s untrue and incorrect.

B

c

Allowing the appeal, this Court

HELD : 1.1. This writ petition is not really for issuance of ap­

propriate writ, order or directions against the respondents but is directed

against the Central Government, the State Government and the State

Pollution Control Board to perform their statutory duties on the ground

that their failure to carry out their statutory duties is seriously undermin­

ing the right to life (of the residents of the village and the affected area)

guaranteed

by Article 21 of the Constitution. If this Court finds

that the

Government/authorities have

not taken the action required of them by law

and that their inaction is jeopardising the right to life of the citizens of

this Country or of any section thereof, it is the duty of this Court to

D intervene. If it is found that the respondents are flouting the provisions of

law and the directions and orders issued by the lawful authorities, this

Court can certainly make appropriate directions to ensure compliance

with

law and lawful directions made thereunder. This is a social action

litigation on behalf

of the villagers whose right to life, as elucidated by this

Court in several decisions, is invaded and seriously infringed by the

E respondents as is established by the various Reports of the experts called

for,

and filed before this Court. If an industry is established without

obtaining the requisite permission

and clearances and if the industry is

continued to be

run in blatant disregard of law to the detriment of life and

liberty of the citizens living in the vicinity, this Court has power to

F intervene and' protect the fundamental right to life a.nd

liberty_ of the

citizens

of this country. [536-E-H; 537-A-B]

1.2. The

State Pollution Control Board has not been adopting a

hostile attitude towards the re~pondents and the reports prepared by it

G can be relied upon. If the respondents establish and operate their plants

contrary to law, flouting all safety norms provided by law, the State

Pollution Control Board is bound to act. On that account, it cannot be

said to be acting out of animus or adopting a hostile attitude. Repeated

and persistent violations call for repeated orders. That is no proof of

hostility. The Reports were called by this

Court and several

Orders pass~d

H on the basis of those Reports. It was never suggested on behalf of Respon-

-

'

INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. U.O.I. 507

dents that unless they are permitted to cross-examine the experts or the A

persons who made those Reports, their Reports cannot be acted upon. This

objection, urged

at this late stage of proceedings -after a lapse of several

years -is wholly unacceptable. The persons who made the

said Reports are

all experts in their field and under no obligation either to the

State

Pollution Control Board or for that matter to any other person or in­

dustry. It is in view of their independence and competence that their

Reports were relied upon and made the basis of passing Orders by this

Court from time to time. (537-C-H;

538-A]

B

13. The report of National Environmental Engineering Research

Institute clearly establish

that huge quantities of sludge were still lying C

around either in the form of mounds or placed in depressions, or spread

over the continguous areas

and covered with local soil to conceal its

existence.

It is worth reiterating that the said sludge is only part of the

pernicious discharges emanating from the manufacture of

'H' acid. The

other

part, which is unfortunately not visible now (except in its deleterious

effects upon the soil

and underground water) is the 'mother liquor' D

produced in enormous quantities which has either flowed out or percolated

into the soil.

It must, therefore, be held that the respondents alone are

responsible for all the damage to the soil, to the underground water and

to the village in general. (539-C-E; H]

Indian Council for Enviro-Legal Action v.

Union of India, (1995) 5

SCALE 578, relied on.

E

2.1. Even if it is assumed that this Court cannot award damages

against the respondents in these proceedings

that does not mean that the

Court cannot direct the Central Government to determine

and recover the F

cost of remedial measures from the respondents.

The Central Government is empowered

under

Sections 2 (a), 3 and

5 of the Environment (Protection) Act, 1986 to take all measures and issue

all such directions as are called for, for the above purpose.

In the present

case, the said powers will include giving directions for the removal of

G

sludge, for undertaking remedial measures and also the power to impose

the cost of remedial measures on the offending industry

and utilise the

amount so recovered for carrying out remedial measures. This

Court can

certainly

give directions to the Central Government/its delegate to take all

such measures, if in a given case this

Court finds that such directions are H

j

.

508 SUPREME COURT REPORTS [1996] 2 S.C.R.

A warranted. It cannot, therefore, be said that this Court cannot make

B

· appropriate directions for the purpose of ensuring remedial action. It is

more a

matter of form. [542-E; 543-A-D; G]

Indian Council for Enviro-Legal Action v.

Union of India, (1995) 5

SCALE 578, relied on.

2.2. The question is whether

and to what extent can the respondents

be made responsible for defraying the cost of remedial measures

in these

proceedings

under Article 32. Any principle evolved in this behalf should

be simple, practical and suited to the conditions obtaining in this country.

C The law stated by this Court in

M.C. Mehta v. Union of India (Oleum Gas

Leak Case), [1987) 1 SCC 395 is by far the more appropriate one and the

said decision is not obiter. According to this rule, once the activio/ carried

on is hazardous

or inherently dangerous, the person carrying on such

activity is liable to

make good the loss caused to any other person by his

D activity irrespective of the fact whether he took reasonable care while

carrying on his activity. The rule is premised upon the very

nature of the

activity carried on. In the words of the.Constitution Bench, such

an activity

"can be tolerated only on the condition that the enterprise engaged in such

hazardous

or inherently dangerous activity indemnifies all those who

suffer on account of the carrying on of such hazardous

or inherently

E dangerous activity regardless of whether it is carried on carefully or

not."

F

The Constitution Bench has also assigned the reason for stating the law

in the said terms. It is that the enterprise (carrying on the hazardous or

inherently dangerous activity) alone has the resource to discover and

guard against hazards or danger and not the person affected and the

practical difficulty (on the

part of the affected person) in establishing the

absence of reasonable care.

or that the damage to him was foreseeable by

the enterprise.

[540-B; 546-F-H; 547-A-C]

23. The Constitution Bench also observed such liability is not sub­

ject to any of the exceptions which operate vis-a-vis the tortious principle

G of strict liability under the rule in Ryland v. Fletcher. The twin tests ~ apart

from the proof of damage to the plaintiff by the act/negligence of the

defendants -which

must be satisfied to attract this rule are

"foreseeability"

and "non-natural" user of the land. [545-F]

H M.C. Mehta v. Union of India, [1987) 1S.C.C.395, followed.

r

. '

-

INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. U.0.I. 509

Union Carbide C01poration v. Union of India, [1991] 4 S.C.C. 584, A

paras 14 & 15, overruled .

Pravinbhai Jashbhai & Ors. v. State of Gujarat and Anr., (1995) 2

G.L.R. 1210; Cambridge Water Company v. Eastern Counties Leather, plc,

(1994) 2 W.L.R. 53 and Bumie Port Authority v. General Jones Pty Ltd.,

(1994) 68 Aus. W 331, referred to.

Ballard v. Tomlinson, (1885) 29 Ch. D. 115, cited.

Rylands v. Fletcher, (1866) 3 H.L. 330, held inapplicable.

B

3.1. The question of liability of the respondents to defray the costs C

of remedial measures can also be looked into from another angle, which

has now come to be accepted universally as a sound principle,. viz., the

"Polluter Pays" Principle. According to this principle, the responsibility for

repairing the damage is

that of the offending party. Sections 3 and 5 of the

Environment Act empower the Central Government to give directions

and D

take measures for giving effect to this principle. Sections 3 and 4 of the

Environment Act confers upon the Central Government the power to give

directions of the above nature

and to the above effect. Levy of costs

required for carrying out remedial measures is implicit in Sections 3

and

4. [547-F-G; 548-G-H;

5:17-E]

"Historic Pollution - Dose the Polluter Pay ?" By Carolyn Shelbourn

-Journal of Planning and Environmental Law, Aug. 1974 issue, approved.

E

3.2. Further, in this case, there is a clear violation of law and

disobedience of the Orders of this Court apart from the orders of the

lawful authorities. This

Court has to ensure the observance of law and of F

1

its Orders as a part of enforcement of fundamental rights. That power

cannot be disputed.

If so, this Court is competent to make

Orders neces-

sary for a full

and effective implementation of its

Orders -and that

includes the imposition and recovery of cost of all measures including

remedial measures. [542-F,

G] G

4. In the circumstances, it is appropriate that the task of determining · the amount required for carrying out the necessary remedial measures to

repair the damage and to restore the water and soil to the condition it was

in before the respondents commenced their operations, is placed upon the

Central Government in the light of the provisions of the Environment Act.

H

510 SUPREME COURT REPORTS [1996] 2 S.C.R.

A It is open to the Central Government to take the help and assistance of

the State Government, the State Pollution Control Board or such other

agency

or authority as it thinks fit.

Itis but appropriate that an estimate.

of the cost of remedial measures be made

now with notice to the respon­

dents, which amount should be paid to Central Government

and/or

B

·recovered from them by the Central Government. [548-H, 549-A, D]

c

CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 967 of

1989.

With

Writ Petition-(C) Nos.

94/90, 824/93 and 76 of 1994. (Under Article 32 of the Constitution of India.)

Altaf Ahmad, Additional Solicitor General, Harish

N. Salve, K.N.

D Bhat and P.P. Malhotra,

M.C. Mehta, Ms. Seema Midha, K.R.R. Pillai,

P.R. Seetharaman, R.P. Wadhwani,

K.B. Rohtagi, M.K. Aggarwal, Ms.

Aparna Rohtagi, Mukul Mudgal, Aruneshwar Gupta, S.B. Wad, Surya

Kant, Ms.

Sushma Suri and Wasim A. Qadri for the appearing parties.

E

The Judgment of th'e Court was delivered by

B.P. JEEVAN REDDY, J. WRIT PETITION (C) NO. 967 OF 1989:

This 'Writ petition filed by an environmentalist organisation brings to

light the woes of people living in the vicinity of chemical industrial plants

p in India. It highlights the disregard, nay, contempt for law and lawful

authorities on the part of some among the emerging breed of

entrepreneurs, taking advantage, as they do, of the country's need for

industrialisation and export earnings. Pursuit of profit has absolutely

drained them of any feeling for fellow human beings -for that matter, for

anything else. And the law seems to have been helpless. Systemic defects?

G It is such instances which have led many people in this country to believe

that disregard of law pays and that the consequences of such disregard will

never

be visited upon them -particularly, if they are men with means.

Strong words indeed -but nothing less would reflect the deep sense of hurt,

the hearing of this case has instilled in

us. The facts of the case will bear

H out these opening remarks.

r

j

, ..

INDIANCOUNCILFORENVIRO-LEGALActrONv. U.O.I. [B.P.JEEVANREDDY,J.J 511

Bichhri is a small village in Udaipur district of Rajasthan. To its A

north is a major industrial establishment, Hindustan Zinc Limited, a public

sector concern. That did not affect Bichri. Its woes began somewhere in

1987 when the fourth respondent herein, Hindustan Agro Chemicals

Limited started producing certain chemicals like

Oleum [said to be the

concentrated form of Sulphuric acid) and Single Super Phosphate. The real

calamity occurred when a sister concern, Silver Chemicals [Respondent

B

No. 5}, commenced production of 'H' acid in a plant located within the

same complex.

'H' acid was meant for export exclusively. Its manufacture

gives rise to enormous quantities of highly toxic effluents -in particular,

iron-based and gypsum-based sludge -which if not properly treated, pose

grave threat to mother Earth. It poisons the earth, the water and everything

that comes in contact with

it. Jyoti Chemicals (Respondent No. 8] is

another unit established to produce 'H' acid, besides some other chemicals.

Respondents

Nos. 6 and 7 were established to produce fertilizers and a

few other products.

All the units/factories

of Respondents Nos. 4 to 8 are situated in the

same complex and are controlled

by the same group of individuals. All the

units are what

may be called

"chemical industries". The complex is located

within the limits of Bichhri village.

c

D

Because of the pernicious wastes emerging from the production of E

'H' acid, its manufacture is stated to have been banned in the western

countries. But the need of

'H' acid continues in the West. That need is

catered to by the industries like the Silver Chemicals and Jyoti Chemicals

in this part of the world.

(A few other units producing 'H' acid have been

established in Gujarat,

as would be evident from the decision of the F

Gujarat High Court in Pravinbhai Jashbhai &

Ors. v. State of Gujarat &

Anr., (1995) 2 G.L.R. 1210, a decision rendered by one of us, B.N. Kirpoal,

J.

as the Chief Justice of that Court.] Silver

Chemicals is stated to have

produced

375 MT of 'H' acid. The quantity of 'H' acid produced by Jyoti

Chemicals

is not known. It says that it produced only

20 mt., as trial G

production, and no more. Whatever quantity these two units may have

produced, it has given birth to about 2400-2500 MT of highly toxic sludge

[iron-based sludge and gypsum-based sludge] besides other pollutants.

Since the toxic untreated waste waters were allowed to

flow out freely and

because the untreated toxic sludge

was thrown in the open in and around

the complex, the toxic substances have percolated

dee.P into the bowels of H

512 SUPREME COURT REPORTS [1996] 2 S.C.R.

A the earth polluting the acquifers and the sub-terranean supply of water.

B

The water in the wells and the streams has turned dark and dirty rendering

it unfit for human consumption.

It has become unfit for cattle to drink and

for irrigating the land. The soil has become polluted rendering it unfit for

cultivation, the main stay of the villagers. The resulting misery to the

villagers needs no emphasis.

It spread disease, death and disaster in the

village and the surrounding areas. This sudden degradation of earth and

water

had an echo in Parliament too. An Hon'ble Minister said, action was

being taken, but nothing meaningful was done on the spot. The villagers

then rose in virtual revolt leading to the imposition of Section

144

Cr.P.C.

by the District Magistrate in the area and the closure of Silver Chemicals

C in January, 1989. It is averred by the respondents that both the units, Silver

Chemicals and Jyoti Chemicals have stopped manufacturing

'H' acid since

January,

1989 and are closed. We may assume it to be so.

Yet the conse­

quences of their action remain -the sludge, the long-lasting damage to

earth, to underground water, to human beings, to cattle and the village

D economy .. It is with these consequences that

we are to contend with in this

writ petition.

The present social action litigation was initiated in August,

1989

complaining precisely of the above situation and requesting for appropriate

remedial action. To the writ petition, the petitioner enclosed a number of

E photographs illustrating the enormous damage done to water, cattle, plants

and to the area in general. A good amount of technical data and other

material was also produced supporting the averments in the writ petition.

COUNTER-AFFIDAVITS OF THE RESPONDENTS:

F On notice being given, counter-affidavits have been filed by the

Government

of India, Government of Rajasthan, Rajasthan Pollution Con­

trol Board

[R.P.C.B.] and Respondents Nos. 4 to 8. Since the earliest

counter-affidavit in point of time is that of R.P. C.B., we shall refer to it in

the first instance. It was filed on October 26, 1989. The following are the

G averments:

(a) Re.: Hindustan Agro Chemicals Limited [R-4]: The unit obtained

'No-Objection Certificate' from the P.C.B. for manufacturing sulphuric

acid and alumina sulphate. The Board granted clearance subject to certain

conditions. Later 'No-Objection Certificate' was granted under the Water

H [Prevention and Control of Pollution] Act, 1974 [Water Act] and Air

_,

INDIANCOUNCILFORENVIRO-LEGALACTIONv. U.O.l. (B.P.JEEVANREDDY,J.) 513

(Prevention and Control of Pollution) Act, 1981 [Air Act], again subject to A

certain conditions. However, this unit changed its product without

clearance

from the Board. Instead of sulphuric acid, it started manufactur-

ing Oleum and Single Super

Phosphate [S.S.P.]. Accordingly, consent was

refused to the unit on February

16, 1987. Directions were also issued to

close down the unit.

(b) Re.: Silver Chemicals [R-5) : This unit

was promoted by the fourth

respondent without obtaining 'No-Objection Certificate' from the Board

for the manufacture of

'H' acid. The waste water generated from the

manufacture of 'H' acid

is highly acidic and contains very high concentra-

B

tion of dissolved solids along with several dangerous pollutants. This unit C

was commissioned in February, 1988 without obtaining the prior consent

of the Board and accordingly, notice

pf closure was served on April 30,

1988. On May 12, 1988, the unit applied for consent under Wat er and Air

Acts which was refused. The Government was requested to issue directions

for cutting off the electricity and water to this unit but no action was taken

by the Government. The unit was found closed on the date of mspection, D

viz., October 2, 1989.

(c) Re.: Rajasthan Multi Fertilizers [R-6] : This unit was installed without

obtaining prior 'No-Objection Certificate from the Board and without even

applying for consent under Water and Air Acts. Notice was served on this

E

unit on February

20, 1989. In reply whereto, the Board was informed that

the unit

was closed since last three years and that electricity has also been

cut off since February

12, 1988.

(d) Re.:

Phosphates India [R-7] : This unit was also established without

obtaining prior 'No-Objection Certificate' from the Board nor did it apply

F

for consent under the Water and Air Acts. When notice dated February

20, 1989 was served upon this unit, the Management replied that this unit

was closed for a long time.

(e) Re.: Jyoti Chemicals [R-8] : This unit applied for 'No-Objection

Certificate' for producing ferric alum. 'No-Objection Certificate' was

is-G

sued imoosing various conditions on April 8, 1988. The 'No-Objection

Certificate' was withdrawn on May

30, 1988 on account of non-compliance

with its conditions. The consent applied for under Water and

Air Acts by

this unit

was also refused. Subsequently, on February 9, 1989, the unit

, applied for fresh consent for manufacturing 'H' acid. The consent was H

514 SUPREME COURT REPORTS [1996] 2 S.C.R.

A refused on May 30, 1989. The Board has been keeping an eye upon this

unit to ensure that it does not start the manufacture of

'H' acid.

On

October 2, 1989, when the unit was inspected, it was found closed.

B

c

The Board submitted further [in its counter-affidavit] that the sludge

lying in the open in the premises of Respondents Nos. 4 to 8 ought to be

disposed of in accordance with the provisions contained in the Hazardous

Wastes (Management and Handling) Rules,

1989 framed under Environ­

ment (Protection) Act,

1986. According to the Board, the responsibility for

creating the

,said hazardous situation was squarely that of Respondents

Nos. 4 to

8. The Board enclosed several documents to its counter in

support of the averments contained therein.

The Govemment of Rajas than filed its counter-affidavit on January 20,

1990. It made a curious statement in Para 3 to the following effect: "(T)hat

the State Government

is now aware of the pollution of under ground water

being caused by liquid effluents from the firms arrayed as Respondent Nos.

D 4 to 8 in the writ petition. Therefore, the State Government has initiated

action through the Pollution Control Board to check further spread of

pollution." The State Government stated that the water in certain wells in

Bichri village and some other surrounding villages has become unfit for

drinking by human beings and cattle, though in some other wells, the water

E

remains unaffected.

The Ministry of Environment and Forests, Govemment of India filed

its counter

on February 8, 1990. In their counter, the Government of India

stated that Silver Chemicals

was merely granted a Letter

of Intent but it

never applied for conversion of the Letter of Intent into industrial licence.

F Commencing production before obtaining industrial licence is an offence

under Industries [Development and Regulation] Act,

1951. So far as Jyoti

Chemicals

is concerned, it is stated that it has not approached the Govern­

ment at any time even for a Letter of Intent. The Government of India

stated that in June,

1989, a study of the situation in Bichri village and some

G other surrounding villages was conducted by the Centre for Science and

Environment. A copy of their Report

is enclosed to the counter. The

Report states the consequences emanating from the production of

'H' acid

and the manner in which the resulting wastes were dealt with by Respon­

dents Nos. 4 to 8 thus :

H "The effluents are very difficult to treat as many of the pollutants

·-

INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. U.O.I. (B.P. JEEVAN REDDY, J.] 515

present are refractory in nature. Setting up such highly pollutin~ A

industry in a critical ground water area was essentially ill-con­

ceived. The effluents seriously polluted the nearby drain and over­

flowed into U daisagar main canal, severely corroding its

cement-concrete lined bed and banks. The polluted waters also

seriously degraded some agricultural land and damaged standing

crops. On being ordered to contain the effluents, the industry

installed an unlined holding pond within its premises and resorted

B

to spraying the effluent on the nearby hill-slope. This only resulted

in extensive seepage and percolation of the effluents into ground

water and their spread down the acquif er. Currently about

60 wells

appear to have been significantly polluted but every week a

few

new wells, down the acquifer start showing signs of pollution. This

has created

~erious problems for water supply for domestic pur­

poses, cattle-watering crop irrigation and other beneficial uses, and

c

it has

also caused human illness and even death, degradation of

land and damage to fruit, trees and other vegetation. There are

D

serious apprehensions that the pollution and its harmful effects

will spread further after the onset of the monsoon

as the water

percolating from the higher parts of the basin moves down carrying

the pollutants

lying on the slopes -in the holding

pond and those

already underground."

Each of the

Respondent Nos. 4 to 8 filed separate counter-affidavits.

E

All the affidavits filed on behalf of these respondents are sworn-to by Lt.

Gen. M.L. Yadava, who described himself as the

President of each of these

units. In the counter-affidavit filed on behalf of the fourth respondent, it

is

stated that it is in no way responsible for the situation complained of. It is . p

engaged in the manufacture

of· sulphuric acid and had commenced its

operations on January 6, 1987. It has been granted 'No-Objection

Certificates' from time to time. The consent obtained from R.P.C.B. is valid

upto August

15, 1988. Application for extension of consent has already

been filed. This counter-affidavit was filed on january

18, 1990.

In the counter-affidavit filed on behalf of the fifth respondent

[Silver

Chemicals], it is stated that the manufacture of 'H' acid which was com­

menced

in February, 1988

has been completely stopped after January, 1989.

G

The respondent is fully conscious of the need to conserve and protect

environment and

is prepared fully to cooperate in that behalf. It is ready H

516 SUPREME COURT REPORTS [1996] 2 S.C.R.

A to comply with any stipulations or directions that may be made for the

purpose. It, however, submitted that the real culprit is Hindustan Zinc

Limited. The Archeological Department of the Government of Rajasthan

had issued environmental clearance for its unit [rather surprising state­

ment]. 'No-Objection Certificates' had also been issued by the Executive

B

c

Engineer [Irrigation], Udaipur Division and the Wild Life Warden. So far

as the requirement of 'consent' under Water and Air Acts is concerned, it

merely stated that it had applied for it. Its closure in January, 1989 was on

account of promulgation of an order under Section 144 Cr. P.C. by the

District Magistrate in

view of wide-spread agitation by the villagers against

its functioning.

In the counter-affidavit

filed on behalf of the sixth respondent [Rajas­

than Mult~ Fertilizers], it is stated that it commenced production on March

14, 1982 and closed down in December, 1985. Electrical connection to it

was disconnected on February 13, 1988. It was submitted that since it is a

small-scale industry, no consent was asked for from anyone. It denied that

D it was causing any pollution, either ground, air or water.

In the counter-affidavit filed on behalf of the seventh respondent

• [Phosphates India], it is stated that this unit commenced production on

May

15, 1988 but was

closed on and with effect from September 1, 1988

E for want of support from the Central Government in the form of subsidies.

It submitted that it has merged with the fourth respondent in

1987-88.

In the counter-affidavit

filed on behalf of the eighth respondent [Jyoti

Chemicals], it

is stated that it has no electrical connection, that it had commencei,i production in April 1987 and closed down completely in

F January, 1989. It is stated that the unit produced 'H' acid to an extent of

20 MT as a trial measure for one month with the permission of the

Industries Department.

It is no longer manufacturing 'H' acid and, there­

fore,

is not responsible for causing any pollution. It is further submitted

that it is a small-scale industry and

was registered with the District Industry

G Centre,

Udaipur for the manufacture of ferric alum and 'H' acid. It began

its operation simultaneously with the fifth respondent, Silver Chemicals,

and several of the clearances are common to both, as both of them are

• located together. The trial production of 'H' acid, it is stated, took place

in January, 1987 ..

H Hindustan ·Zinc Limited was impleaded as the ninth respondent at

(

j

)

..

INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. U.O.I. (B.P. JEEV AN REDDY, J.J 517

the instance of Respondents Nos. 4 to 8. It has filed a counter-affidavit A

denying that it is responsible in any manner for causing any pollution in

Bichri

village or the surrounding areas. According to it, its plants are

situated downstream, towards north of Bichri

village. We do not think it

necessary to refer to this affidavit

in any detail inasmuch as we are not

concerned,

in this writ petition, with the pollution, if any, caused by the

ninth respondent in other villages but

only with the pollution caused by

Respondents Nos. 4 to 8 in Bichri or surrounding villages.

B

ORDERS PASSED AND STEPS TAKEN DURING

THE PERIOD 1989-1992:

The first considered Order made, after hearing the parties, by this

Court

is of December 11, 1989.

Under this Order, the Court requested the

National Environmental Engineering Research Institute [NEERI] to study

c

the situation in and around Bichri village and submit their report "as to the

choice and scale of the available remedial alternatives". NEERI

was re-D

quested to suggest both short-term and long-term measures required to

combat the hazard already caused. Directions were also made for

supply

of d1inking water to affected villages by the

State of Rajasthan. The R.P.C.B.

was directed to make available to the Court the Report it had prepared

concerning the situation

in Bichri village.

On the next da.te of hearing, i.e., March 5, 1990, the Court took note

of the statements made on behalf of Respondents

Nos. 4 to 8 that they have

completely stopped the manufacture of

'H' acid in their plants and that

they did not propose to resume its manufacture. The Court also took note

E

of the petitioner's statement that though the manufacture of 'H' acid may F

have been stopped, a large quantity of highly dangerous effluent

waste/sludge has accumulated

in the area and that unless properly treated,

stored and removed, it constitutes a serious danger to

~~ environment.

Directions were given to the R.P .C.B. to arrange for its· transportation,

treatment and safe storage according to the technically accepted proce­

dures

for disposal of chemical wastes of that kind. All reasonable expenses G

for the said operation were to be borne by Respondents Nos. 4 to 8

;;-.... [hereinafter referred to in this judgment as the "Respondents"]. So far as

the polluted water in the

wells was concerned, the Court noted the offer

made

by the learned counsel for the respondents that they will themselves

undertake the de-watering of the wells. The

R.P.C.B. was directed to H

l

f

1

518 SUPREME COURT REPORTS [1996] 2 S.C.R.

A inspect and indicate the number and location of the wells to be de-watered.

B

c

The matter was next taken up on April 4, 1990. It was brought to the

notice of the Court that no meaningful steps were taken for removing the

sludge

as directed by this Court in its

Order dated March 5, 1990. Since

the monsoon was about to set in, which would have further damaged the

earth and water in the area, the Court directed respondents

to immediately

remove the sludge from the open spaces where it

was lying and store it in

safe places to avoid the risk of seepage of toxic substances into the soil

during the rainy season. The respondents were directed to complete the

task within

five weeks therefrom.

It is not really necessary to refer to the contents of the various

Orders

passed in 1990 and 1991, i.e., subsequent to the Order dated April 4, 1990

for the present purposes. Suffice it to say that the respondents did not

comply with the direction to store the sludge in safe places. The de-water-

D ing of wells did not prove possible. There was good amount of bickering

between the respondents on one side and the

R.P.C.B. and the Ministry of

Environment and Forests on the other. They blamed each other for lack

of progress in the matter of removal of sludge. Meanwhile, years rolled

by

and the hazard continued to rise. NEERI submitted an interim Report.

[We are, however, not referring to the contents of this interim Report

E inasmuch as we would be referring to the contents of the final Report

presently after referring to a

few more relevant

orders of this Court.)

On February 17, 1992, this Court passed a fairly elaborate order

observing that Respondents Nos.

5 to

8 are responsible for discharging the

F hazardous industrial wastes; that the manufacture of 'H' acid has given rise

to huge quantities of iron sludge and gypsum sludge -approximately 2268

MT of gypsum-based sludge and about 189 mt. of iron-based sludge;-that

while the respondents blamed Respondent No. 9 as the main culprit,

Respondent No. 9 denied any responsibility therefor. The immediate con­

cern, said the Court,

was the appropriate remedial action. The

l'eport of

G the R.P.C.B. presented a disturbing picture. It stated that the respondents

have deliberately spread the hazardous material/sludge all over the place

which has only heightened the problem of its removal and that they have

failed to carry out the Order of this Court dated April 4, 1990. Accordingly,

the Court directed the Ministry of Environment and Forests, Government

H of India to depute its experts immediately to inspect the area to ascertain

-

INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. U.O.I. [B.P. JEEVAN REDDY, J.) 519

the existence and extent of gypsum-based and iron-based sludge, to suggest A

the handling and disposal procedures and to prescribe a package for its

transportation and safe storage. The cost of such storage and transporta-

tion

was to be recovered from the respondents.

Pursuant to the above Order, a team of experts visited the area and

submitted a Report alongwith an affidavit dated

t:Aarch 30, 1992. The

report presented a highly disturbing picture.

It stated that the sludge was

found inside a shed and also at four places outside the shed but within the

premises of the complex belonging

to the respondents. It stated further that

sludge has been mixed with soil and at many places it

is covered with earth.

A good amount of sludge

was said to be lying exposed to sun and rain. The

Report stated : "Above

all, the extent of pollution in the ground water

seems to be very great and the entire acquifer

may be affected due to the

pollution caused

by the industry. The organic content of the sludge needs

B

c

to be analysed to assess the percolation property of the contents from the

sludge.

It is also possible that the iron content in the sludge may be very D

high which may cause the reddish colouration. As the mother liquor

produced during the process (with pH-1)

was highly acidic in nature and

was indiscriminately discharged on land by the unit, it is possible that this

might

h_ave eroded soil and caused the extensive damage. It is also possible

that the organic contents of the mother liquor would have gone into soil

with water together with the reddish colour." The Report also suggested

the mode of disposal of sludge and measures for re-conditioning the soil.

E

In view of the above Report, the Court made an order on April 6,

1992 for entombing the sludge under the supervision of the officers of the F

Ministry of Environment and Forests, Government of India. Regarding

revamping of the soil, the Court observed that for this purpose, it might

become necessary to stop or suspend the operation of all the units of the

respondent but that, the Court said, requires to be examined

f1,1rther.

The work of entombment of sludge again faced several difficulties.

While the respondents blamed the Government officers for the delay, the

Government officials blamed the said respondents of non-cooperation.

Several Orders were passed

by this Court in that behalf and ultimately, the

work commenced.

G

H

520 SUPREME COURT REPORTS [1996] 2 S.C.R.

A ORDERS PASSED IN 1993, FILING OF WRIT PETITION (C) NO. 76

OF 1994 BY RESPONDENT NO. 4 AND THE ORDERS PASSED

THEREIN:

With a view to find out the connection between the wastes and sludge

resulting from the production of

'H' acid and the pollution in the under-

B ground water, the Court

directed· on 20th August, 1993, that samples

should be taken of the entombed sludge and also of the water from the

affected wells and sent for analysis. Environment experts of the Ministry

of Environment and Forests were asked to.find out whether the pollution

in the well water

was on account of the said sludge or not. Accordingly,

C analysis was conducted and the experts submitted the Report on November

1, 1993.

Under the heading "Conclusion", the report stated.:

D

E

F

"5.0. CONCLUSION

5.1. On the basis of the observations and analysis results, it is

concluded beyond doubt that the sludge inside the emtomed ·pit is

the contaminated one as evident from the number of parameters

analysed.

5.2. The groundwater is also contaminated due to discharge of

H-acid plant effluent as well as H-acid siudge/contaminated soil

leachates

as sh.own in the photographs and also supported by the

results. The analysis result revealed good correlation between the

colour of well water and

Headd content in it. The analysis results

show high degree of impurities in sludge/soil and also in well water

which is a clear indication of contamination of soil and

groundwa~er

due to disposal of H~acid waste."

The report which is based upon th!!ir inspection of the area in September,

1993 revealed many other alarming features. It represents a commentary

on the attitude and actions of the respondents. In Para-2, under the

G heading "Site Observations & Collection of Sludge/Contaminated Soil

Samples", the following facts are stated :

"2.1. The Central team, dur.ing inspection of the premises of M/s.

HACL, observed that

H-acid sludge

(iron/gypsum) and con­

taminated soil are still lying at different places, as shown in Fig. I,

H within the industrial premises (Photograph 1) which are the left

.,

I

"- INDIANCOUNCILFORENVIRO-LEGALACTIONv. U.O.I. [B.P.JEEYANREDDY,J.) 521

overs. The area, where the solar evaporation pond was existing A

with H-acid sludge dumped here and there, was observed to have

been levelled with borrowed soil (Photograph 2). It

was difficult

to ascertain whether the sludge had been removed before

filling.

However, there are visual evidences of contaminated soil in the

area.

B

moy-

2.2. As reported by the Rajasthan Pollution Control Board (RPCB)

representatives, about 720 tonnes out of the total contaminated soil

and sludge scraped from the sludge dump sites

is disposed of

in six

lined entombed pits

covered by lime/flyash mix, brick soling and

concrete (Photographs 3 &.4).

The remaining scraped sludge and c

contaminated soil was lying near the entombed pits for want of

additional djsposal facility. However, during the visit, the left over

sludge and contaminated soil could not be traced at site. Inspection

of the surrounding area revealed that

a huge heap off oreign soil

of 5 metre height (Photograph 5) covering a large area, as also

D

indicated in Fig. 1, was raised

on the slopy ground at the foot hill

within the industry premises.

The storm water run-off pathway over

the area showed indication of H-acid sludge leachate coming out

of the heap. Soil in the area

was sampled for analysis.

2.3. Mis HACL has a number of other industrial units which are

E

operating within the same premises without valid consents from the

Rajasthan Pollution Control Board

(RPCB). These plants are

sulphuric acid (H2S04), fertilizer (SSP) and vegetable oil extrac-

tion.

The effluent of these units are not properly treated and the un~reated effluent particularly from the acid plant is passing through

F

the sludge dump area playing havoc (Photograph 7). The final

effluent

was collected at the outlet of the factory premises during

operation of these units, at the time of groundwater monitoring in

September

1993, by the

RBPC. Its quality was observed to be highly

acidic (pH : 1.08), Conductivity : 37,100 mg/1, S04 : 21,000 mg/1,

Fe : 392 mg/1, COD : 167 mg/1) which was also revealed in the

G

earlier visits of the Central teams. However, these units were not

in operation during the present

visit."

.....__

Under Para 4.2.1, the report stated inter alia:

"The sludge sample from the surroundings of the (presently non-ex- H

"

f

522 SUPREME COURT REPORTS [1996] 2 S.C.R. '._

A

B istent) solar evaporation and the contaminated soil due to seepage

from the newly raised dump site also exhibited

very high values of

the above mentioned parameters. This revealed that the con­

taminated soil is buried under the new dump found by the team."

So much for the waste disposal by the respondents and their continu­

ing good conduct! To the same effect is the Report of the R.P.C.B. which

is dated October 30, 1993.

In view of the aforesaid Reports, all of which unanimously point out

the consequences of the

'H' acid production, the manner in which the

C highly corrosive waste water (mother liquor) and the sludge resulting from

the production

of 'H' acid was disposed of and the continuing discharge

·

of highly toxic effluents by the remaining units even in the year 1993, the

authorities [R.P.C.B.] passed orders closing down, in exercise of their /

powers under Section 33A of the Water Act, the operation of the Sulphuric

D Acid Plant and the solvent extraction Plant including oil refinery of the

fourth respondent with immediate effect. Orders were also passed direct­

ing disconnection of electricity supply to the said plants. The fourth .respon­

dent filed Writ Petition (C) No. 76 of 1994 in this Court, under Article 32

of the Constitution, questioning the said Orders in January, 1994. The main

grievance in this writ petition was that without even waiting for the

E petitioner's [Hindustan Agro Chemicals Limited] reply to the show-cause

notices,. orders of closure and disconnection of electricity supply were

passed and that this was done by the

R.P.C.B. with a malafide intent to

cause loss to the industry.

It was also submitted that sudden closure of its

plants is likely to result in disaster and, may be, an explosion and that this

F consideration was not taken into account while ordering.the closure. In its

Order dated March 7, 1994, this Court found some justification in the

contention of the industry that the various counter-affidavits filed by the

R.P.C.B. are self-contradictory. The Board was directed to adopt a con­

structive attitude in the matter.

By another Order dated March 18, 1994,

the

R.P.C.B. was directed to examine the issue of grant of permission to

G re-start the industry or to permit any interim arrangement in that behalf.

On April 8, 1994, a 'consent' order was passed whereunder the industry

was directed to deposit a sum of Rupees sixty thousand with R.P.C.B.

before April 11, 1994 and the R.P.C.B. was directed to carry on the

construction work of storage tank for storing and retaining ten days ef-

H fluents from the Sulphuric Acid

Plant. The construction of temporary tank ,

..

\.

I

1

" INDIAN COUNCIL FOR ENVIRO·LEGAL ACTION v.

1

U.O.I. [B.P. JEE:" AN REDDY, J.] 523

was supposed to be an interim measure pending the construction of an A

E.T.P. on permanent basis. The Order dated April 28, 1994 noted the

Report of the R.P.C.B. stating that the construction of temporary tank was

completed ·on April 26, 1994 under its supervision. The industry was

directed to comply with such other requirements as may

be pointed out by R.P.C.B. for prevention and control of pollution and undertake any works

required in that behalf forthwith. Thereafter, the matter went into a slum­

B

ber until

October 13, 1995.

NEERI REPORT:

At this juncture, it would be appropriate to refer to the Report C

submitted by NEERI on the subject of "Restoration of Environmental

Quality of the affected area surrounding Village Bichhri due to past Waste

Disposal Activities". This Report was submitted in April, 1994 and it states

that it

is based upon the study conducted by it during the period November,

1992 to February, 1994. Having regard to its technical competence and

reputation as an expert body on the subject, we may be permitted to refer

D

to its Report at some length :

At Page

7, the Report mentions the industrial wastes emerging from

the manufacture of

'H' acid. It reads :

"Solid wastes generated from H-acid manufacturing process are : E ·

Gypsum sludge produced during the neutralisation of acidic

solution with lime after nitration stage (around 6 tonnes/tonne

of H-acid manufactured).

Iron sludge produced during the reduction stage (around 0.5

tonnes/tonne of H-acid manufactured)

Gypsum sludge contains mostly calcium sulphate along with

sodium salts and organics. Iron sludge constitutes unreacted iron

powder, besides ferric salts

and organics.

It is estimated that, for each tonne of H-acid manufactured, about

F

G

20 m3 of highly corrosive wastewater was generated as mother

liquor, besides the generation

of around

2.0 m3 of wash water. The

mother liquor is characterised by low pH (around 2.0) and high

concentration of total dissolved solids (80 -280 g/L). High COD H

A

B

c

D

. E

F

G

H

524

SUPREME COURT REPORTS

J

[1996] 2 S.C.R.

of the wastewater (90 g/L) could be attributed to organics formed

during various stages of manufacture. These include nephthalene

trisulphonic acid, nitro nephthalene sulphonic acid, Koch acid and

H-acid, besides several other intermediates.':

At Pages 8 and 9, the Report describes the manner in which the

sludge and other industrial wastes were disposed of by the respondents.

It

states inter alia:

"The total quantities of wastes water and that of sludge generated

were around

8250 m3 and

2440 tonnes respectively for a produc­

tion of

.375 tonnes by Mis. Silver Chemicals Ltd. and

M/s. Jyoti

Chemicals Ltd ...... .

*

*

*

* Majority of sludge brought back from disposal sites located

outside the plant was transferred inside a covered shed.

The sludge lying in the plant premises

was entombed in the

underground pit by

RPCB as per the directions of the

Hon'ble Supreme Court.

It may be mentioned that only

720

MT of sludge out of the estimated quantity of 2440 MT could

be entombed as the capacity

of the underground tanks provided

by the industry for the

pwpose was only to that extent .

Remaining sludge

and sludge mixed soil were, howeve1; present

in the plant premises as these could

not be transfe"ed into

underground tanks.

It has also been observed that only sludge

above the soil was removed from the

six sites and transferred

to the plant site. Subsurface soil of these sites appears to have

been contaminated

as the soil has reddish colour akin to that

of the sludge.

A fertilizer plant (single superphosphate), a sulphuric acid

plant and an oil extraction and oil refining plant were in

operation in the same premises where H-acid was earlier

manufactured.

The acidic wastewater (around pH

I. 0) presently

generated from these units was flowing over the abandoned

dumpsite. 11tis leaches the sludge mixed soil from the aban­

doned dumpsite

and the contaminated water flows by gravity

towards east

and finds its way into a nallah flowing through the

"l

-

..

-

INDIAN COUNCIL FOR ENVIRO-LEGALACTION "· U.0.1. [B.P. JEEVAN REDDY, J.) 525

compound and conveys the contaminated water to an ilrigation A

canal which oliginates from Udaisagar lake (Pate 1.4)."

(Emphasis added)

At Page 10, the Report mentions the six dump sites outside the 'H'

acid plant premises where the sludge was lying in the open. At Pages 26

and 27, the Report states on the basis of V.E.S. investigations that while

certain

wells were found contaminated, others were not. At

Page 96, the

Report states thus :

"Damage to Crops and Trees

The field surveys in contaminated fields

in zone I and II showed

that no

crops were coming in the fields paTticularly in low lying areas. On some elevated areas, crops like jowar, maize were growing;

however the growth and yield were very poor.

Further it

was also observed that even trees like eucalyptus planted

in contaminated fields show leaf burning and stunted growth. Many

1

old trees which were badly affected due to contamination are still

· growing under stress conditions as a result of soil contamination.

B

c

D

The top soils at the old dump sites outside the plant premises are E

still contaminated and require decontamination before the land is

used for other purposes.

It

was observed that even after the operation of hauling the sludge

back to the industry premises, some sludge mixed soil

was still lying

in the premises of a primary school (Table 1.1), which needs F

decontamination."

In Chapter-6, the Report mentions the remedial measures.

Para 6.1,

titled "Introduction", states :

"As could be seen from the data reported in Chapters 4 and 5, the

G

ground water and soils within 2 km from the plant have been

contaminated. After critically scrutinising the data, it was con­

cluded that there is an urgent need to work out a decontamination

strategy for the affected area. This strategy includes the decon­

tamination of the soil, contaminated ground water and abandoned H

A

B

c

D

526 SUPREME COURT REPORTS (1996] 2 S.C.R.

dump sites .. This Chapter details the remedial measures that can

be considered for implementation to restore the environmental

quality of the affected area."

The Chapter then sets out the various remedial measures, including

land treatment, soil washing, revegetation, control over the

flow of the

contaminated water to adjoining lands through canals, leaching

Of soluble

salts, design of farm to development Agroforestry and/or forestry planta­

tion with salt tolerant crops/plants and ground water decontamination.

Inter alia, the Report states :

"The entire contaminated area compnsmg of

350 ha of con­

taminated land and

six abandoned dump sites outside the industrial

premises has been found to be ecologically fragile due to reckless

past disposal activities practiced

by M/s. Silver Chemicals Ltd. and

M/s. Jyoti Chemicals Ltd. Accordingly, it

is suggested that the

whole of the contaminated area be developed

as a green belt at

the expense of M/s. Hindustan Agrochemicals Ltd. during the

monsoon of

1994."

Under

Para 6.3~2., the Report suggests "Decontamination Alterna­

tives for Groundwater" including Bioremediation, Degradation of H-acid

E by Azotobacter Vinelandii, Isolation of Bacterial Population from H-acid

Contaminated Soil and several other methods.

Under Para 6.4.2, the Report mentions the several decontamination

. alternatives including containment of contaminated soil, surface control,

ground water control, leachate collection and treatment, gas migration

F control and direct waste treatment.

G

At Pages 157 and 158, the report mentions the continuing discharge

of effluents in an illegal and dangerous manner. It reports :

"It was also observed by NEERl's team during the current study

that the industry

has not provided adequate effluent treatment

facilities

and the wastewaters (pH 1.5) from the existing plants

(Sulphuric acid, Fertilizer,

and Oil extraction) are being dis­

charged, without treatment, on land within the plant premises. This

indiscriminate and willful disposal activity

is further aggravating the

contamination problem

in the area. Acidic effluent leaches the pol-

I

"-'-

-

/

--

INDIAN COUNCIL FOR ENVIRO-LEGALACTION v. U.0.1. [B.P. JEEV AN REDDY, J.J 527

lutants from the dumped sludge and the contaminated soil and A

facilitates th Cir penetration through the ground and thereby increas-

ing the concentration of sulphates and dissolved solids in

groundwater. What is most selious is the fact that the indust1y

pro,duced chlorosulfonic acid for a few months during late 1992

which is a hazardous and toxic substances as per MEF Notification B

titled 'Manufacture, Storage and Import of Hazardous Chemical

Rules,

1989' and even floated public shares for the manufactures

of this obnoxious chemical.

The production was however ceased due

to the intervention

of the Rajasthan Pollution Control Board in

December

1992 as the industry was operating without obtaining site

clearance, No Objection

Certificate (NOC)!Consent from the con- C

cemed appropriate regularity (regulatory?) auth01ities and without

providing for any pollution control measures.

it is, therefore, essen-

tial for

M/s. Hindustan Agrochemicals Ltd. to comply with these

requirements for carrying out the present industrial activities.

The

abatement

of

further contamination wa1Tants the closure of all in-D

dustrial operations. till an appropriate effluent treatment plant is

installed, and certified by RPCB for its functionality in keeping

with the provisions of Water Act."

The Report adds :

"The Industry management in the past [during

1988-89] has shown

scant respect for

Pollution Control and Environment Protection

Acts. Not only this, the management continues industrial activity

producing obnoxious waste waters

and dumping the same without

any treatment, contaminating land and ground water without any

concem for ecology

and public health. It is necessary that the

provisions of relevant legislations are imposed on the-industry to

avoid environmental damage and harm to public welfare."

(Emphasis added)

We do not think that the above Report requires any emphasis at our

hands. It speaks for itself -and it speaks volumes of the 'high regard' the

respondents have for

law!

At

Pages 179 onwards, the Report refers to the damage to the crops

E

G

and the land and to the psychological and mental torture inflicted upon H

'('

528 SUPREME COURT REPORTS

. f

[1996] 2 S.C.R.,

A the villagers by the respondents and suggests that the principle of 'Polluter

Pays' should be applied

in this case inasmuch as

"the incident involved

deliberate release

of untreated acidic process wastewater and negligent han­

dling

of waste sludge knowing

fully well the implif:ation of such acts." The

Report suggest that compensation should be paid under two heads, viz.,

B

c

D

E

F

(a) for the losses due to damage and (b) towards the cost of restoration of

environmental quality. It then works out the total cost of restoration of

environmental quality at Rs.

3738.5 lakhs -i.e., Rs. 37.385 crores.

Para

7.4. states the conclusions flowing from the material in Chap­

ter-6 thus:

"The cost of damage to be disbursed to the affected villagers is

estimated at Rs. 342.8 lakhs and remediation of impacted well

waters and soil at Rs. 3738.5 lakhs. This cost needs to be borne by

the management of the industry in keeping with the Polluter Pays

principle and the doctrine of Strict/Absolute liability,

as applied

to

Sri Ram Food and Fertilizers Industry in the case of Oleum leak

in

1985."

REPORT OF R.P.C.B. SUBMITTED IN JANUARY, 1996 DURING THE

FINAL

HEARING

OF THESE MATTERS:

When all these matters were posted before the Court on October 13,

1995, we realised that the matter requires to be heard on a priority basis.

Having regard to the voluminous data gathered by this Court and the

several Orders passed from time to time, the matter

was listed for regular

hearing. We heard all the parties at length on

10th, 11th, 16th and 17th

January,

1996. We have been taken through the voluminous record. Sub­

missions have also been made on the questions of law arising herein.

At the end of the

first day of regular hearing, we made an Order

calling upon the R.P.C.B. to send a team of high officiais to the spot and

G report to us the latest position on the following aspects : .

(i) Whether the factories of Silver Chemicals, Rajasthan Multi Fer­

tilizers and Joyti Chemicals are still working and whether the machinery

installed in the said plant

is still existing? [This information was required

to check the statement of the respondents that the said units are lying

H closed since last several year,s.]

"

INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION" U.0.1. (B.P. JEEV AN REDDY, J.) 529

(ii)

To report whether the factory or factories of Respondent No. 4, A

Hindustan Agro-Chemicals Limited, are working and if they are working,

what

are the products being manufactured by them? The Board was also

directed to

report whether the seventh respondent, Phosphate India, which

was said to have

merged with the fourth respondent, is having a separate

factory and if so, what is being produced therein?

(iii)

The approximate quantity of sludge -whether 'iron sludge' or

'gypsum sludge' -lying in the area. The report was to indicate what quantity

was entombed pursuant to the

Orders of this Court and whether any

further sludge was lying in the

area or in the premises of the respondents'

complex, its approximate quantity

and the time, effort and cost required

to remove the same.

(iv)

The Board was also to take samples of the water in wells and

tanks in the area and have them analysed and tell us whether it is fit for

drinking by cattle

and/or fit for irrigation purposes.

Accordingly, the

R.P.C.B. officials visited the site and have filed a

Report dated January 16, 1996 along with an affidavit. The Report dis­

Closes the following facts :

B

c

D

(1) The two units, Silver Chemicals and Jyoti Chemicals, do not exist E

now. There is no machinery. A godown and a Ferric Alum plant have been

constructed at the site of the said plant. The Ferric Alum plant was not in

operation at the time of inspection though plant and machinery for

manufacturing it was found installed therein. Certain old stock

of Ferric

Alum was also found lying within the plant premises_

(2) Hindustan Agro-Chemicals Limited [R-4] has seven industrial

plants-, viz., Rajasthan Multi Fertilizers [manufacturing Grannulated Single

Super Phosphate (G.S.S_P.)], a Sulphuric Acid

Plant, a Chlorosulphonic

Acid Plant, Edible Oil Solvent Extraction Plant, Edible Oil Refinery and

F

a Ferric Alum Plant (known as M/s. Jyoti Chemicals), all of which are G

located within the same premises. All these seven plants were found not

operating on the date of inspection by the R_P_C.B. officials though in many

cases

the machinery and the other equipment was in place. So far as the

sludge still remaining

h the area is concerned, the report stated :

"3. Village Bicchidi and other adjoining areas were visited by the H

A

B

c

530 SUPREME COURT REPORTS (1996] 2 S.C.R.

undersigned officials to know whether gypsum and iron sludge is

still lying in the aforesaid area. In area adjoining the irrigation

canal, sludge mixed with soil were found on an area of about 3000

sq. ft. The area was covered with foreign soil. Sample of the sludge

mixed soil

was collected for the perusal of the Hon'ble Court.

Entire premises of

Mis Hindustan Agro Chemicals Ltd. was also

inspected and sludge mixed with soil

was observed in a large area.

It was further observed that fresh soil in the varying depth has been

spread over in most of the area.

In view of the fact that sludge was

mixed with the soil and difficult to separate out of the soil it is very

difficult to estimate the exact quantity of the sludge required to be

removed.

Samples of sludge mixed with soil were collected from

different part of this area after serving due notices under Environ­

ment Protection Act,

1986." So far as the water in the wells was concerned, the Report mentioned that

D they took samples from the wells from Bichhri and other surrounding

villages, i.e., from thirty

two different locations and that water in sixteen

locations

was found to "contain colour of varying intensities ranging from

very

dark brown to light pink which apparently shows that these

wells/hand pumps are still polluted".

E

Sri K.N. Bhat, learned counseJ for the respondents, however, sub­

mitted that the R.P.C.B. officials have throughout been hostile to the

respondents and that, therefore, the Reports submitted

by them should not

be acted upon.

He also submitted that respondents have had no oppor­

tunity to file objections to the said Report or to produce material to

F

. contradict the statements made therein. While taking note of these submis­

sions,

we may, however, refer to the letter dated January 13, 1996 written

by the fourth respondent to the R.P.C.B. In this letter, the particulars of

the stocks remaining in each of its seven plants are mentioned along with

the date of the last production in each of those plants. The last dates of

production are the following : Sulphuric Acid

Plant -November 10, 1995,

G S.S.P. Plant [Phosphate India] -November 11, 1995, G.S.S.P. Plant [Rajas­

than Multi Fertilizers] -July 7, 1995, Solvent Extraction Plant and Refinery

-December

2, 1993,-Jyoti Chemicals -October,

1990 and Chlorosulphonic

Acid Plant -September 29, 1995. It is worthy of note that these dates are

totally at variance with the dates of closure mentioned in the counter-af-

H fidavits filed by these units in

1990~9f.

<-

INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. U.0.1. [B.P. JEEVAN REDDY, J.) 531

CONTENTIONS OF THE PARTIES:

Sri M.C. Mehta, learned counsel appearing for the petitioner,

brought to our notice the several Reports, orders and other material on

record. He submitted that the abundant material on record clearly estab­

lishes the culpability of the respondents for the devastation in village

Bichhri and surrounding areas and their responsibility and obligation to

properly store the remaining sludge, stop discharge of

all untreated

ef­

fluents by taking necessary measures and defray the total cost required for

remedial measures

as suggested by NEERI [Rupees forty crores and odd].

Learned counsel suggested that in

view of the saga of repeated and

continuous violation of

l~w and lawful orders on the part of the respon­

dents, they must be closed forthwith. So far as the legal propositions are

concerned, the learned counsel relied strongly upon the Constitution

Bench decision

in

M.C. Mehta v. Union of India (Oleum Gas Leak Case),

(1987) 1 SCC 395 as well as the recent Order of this Court in Indian Council

A

B

c

for Enviro-Lega/ Action v. Union of India, (1995) 5 SCALE 578. Learned D

counsel also invited our attention to quite a few foreign decisions and text

books on the subject of environment. Sri Altaf Ahmed, learned Additional

Solicitor General appearing for the Union of India, also stressed the need

for urgent appropriate directions to mitigate and remedy the situation on

the spot

in the light of the expert Reports including the one made by the

central team of experts.

The learned counsel for the

State of Rajasthan, Sri Aruneshwar

Gupta, expressed the readiness of the State Government to carry out and

enforce such orders

as this Court may think fit and proper in the

cir­

cumstances.

Sri K.B. Rohtagi, learned counsel for the R.P.C.B., invited our atten-

E

F

tion to the various orders passed, action taken, cases instituted and Reports

submitted

by the Board in this matter. He submitted that until recently the

Board had

no

power to close down any industry for violation of environ­

mental laws and that after conferment of such power, they did pass orders G

of closure. He denied the allegations of malaftdes or hostile intent on the

part of the Board towards the respondents. Learned counsel lamented that

despite its best efforts, the Board has not yet been successful in eradicating

the pollution in the area and hence asked for stringent orders for remedy-

ing the apalling conditions in the village due to the acts of the respondents.

H

532 SUPREME COURT REPORTS [1996] 2 S.C.R.

A Sri K.N. Bhat, learned counsel for the respondents, made the follow-

B

c

ing submissions :

(1) The respondents are private corporate bodies. They are not

'State' within the meaning of Article

12 of the Constitution. A writ petition

under Article

32 of the

~onstitution, therefore, does not lie against them.

(2) The R.P.C.B. has been adopting a hostile attitude towarqs these

respondents from the very beginning. The Reports submitted

by it

~r

obtained by it are, therefore, suspect. The respondents had no opportunity

to test the veracity of the said Reports.

If the

matt~r had been fought out

in a properly constituted suit, the respondents would have had an oppor­

tunity to cross-examine the experts to establish that their Reports are

defective and cannot be relied upon.

(3) Long before the respondents came into existence, Hindustan

Zinc Limited was already in existence close to Bichhri village and has been

D discharging toxic untreated effluents in an unregulated Jllanner. This had

affected the water in the wells, streams and acquifers. This

is

borne out by

the several Reports made long prior to 1987. Blaming the respondents for

the said pollution

is incorrect as a fact and unjustified.

E

F

(4) The respondents have been cooperating with this Court in all

matters and carrying out its directions faithfully. The report of the

R.P.C.B.

dated November 13, 1992 shows that the work of entombment of the sludge

. was almost over. The Report states that the entire sludge would be stored

in the prescribed manner within the next two days. In view of this report,

the subsequent Report oJ the Central team, R.P.C.B. and NEERI cannot

be accepted or relied upon. There are about 70 industries in India

manufacturing

'H' acid.

Only the units of the respondents have been picked

upon by the Central and State authorities while taking no action against

the other units. Even in the matter of disposal of sludge, the directions

given for its disposal in the case of other units are not as stringent

as have

G been prescribed

iti the case of respondents. The decision of the Gujarat

High Court in

Pravinbhai Jashbhai

Patel shows that the method of disposal

prescribed there is different and less elaborate than the one prescribed in

this case.

(5)

The Reports submitted by the various so-called expert

commit­

H tees that sludge is still lying around within and outside the respondents'

.<

,.J

INDIAN COUNCIL FOR ENVIRO-LEGALACTION v. U.0.1. [B.P . .TEEVAN REDDY, J.] 533

complex and/or that the toxic wastes from the Sulphuric Acid Plant are A

flowing through and leaching the sludge and creating a highly dangerous

situation

is untrue and incorrect. The

R.P.C.B. itself had constructed a

temporary E.T.P. for the Sulphuric Acid Plant pursuant to the Orders of

this Court made in Writ Petition (C) No. 76 of 1994. Subsequently, a

permanent E.T.P. has also been constructed. There is no question of

untreated toxic discharges from this plant leaching with sludge. There

is

no sludge and there is no toxic discharge from the

Sulphuric Acid Plant.

(6) The case put forward by the R.P.C.B. that the respondents' units

do not have the requisite permits/consents required by the Water Act, Air

B

Act and the Environment [Protection] Act is again unsustainable in law C

and incorrect as a

·fact. The respondents' units were established before the

amendment of Section 25 of the Water Act and, therefore, did not require

any prior consent for their establishment.

(7) The proper solution to the present problem lies in ordering a

comprehensive judicial enquiry by a sitting Judge of the High Court to find

D

out the causes of pollution in this

village and also to recommend remedial

measures and to estimate the loss suffered by the public

as well as by the

respondents. While the respondents are prepared to bear the cost of

repairing the damage, if any, caused by them, the

R.P.C.B. and other

authorities should be made to compensate for the huge losses suffered by E

the respondents on account of their illegal and obstructionist policy

adopted towards them.

(8) The decision in Oleum Gas Leak case has been explained in the

opinion of Ranganath Misra,

CJ., in the decision in Union Carbide Cor­

poration V. Union of India, [1991) 4 sec 584. The law laid down in

Oleum F

Gas Leak case is at variance with the established legal position in other

Commonwealth countries.

Sri Bhat suggested that in the larger interests of environment, in­

dustry and public, this Court may direct the Government

of India to G

constitute, by proper legislation, environment courts all over the country -

which courts alone should

be empowered to deal with such cases, to give

appropriate directions including orders of closure of industries wherever

necessary, to make necessary technical and scientific investigations, to

suggest remedial measures and to oversee their implementation.

Proceed-

ings by way of a writ in this Court under Article 32 or in the High Court H

i

534 SUPREME COURT REPORTS

[1996] 2 S.C.R.

A under Article 226, the learned counsel submitted, are not appropriate to

deal with such matters, involve

as they do several disputed questions of fact

and technical issues.

B

c

Before we proceed to deal with the submissions of the learned

counsel, it would be appropriate to notice the relevant provisions of

law.

RELEVANT

STATUTORY PROVISIONS:

Article 48A is one of the Directive Principles of State Policy. It says

that the State shall endeavour to protect and improve the environment and

to safeguard the forests and wildlife of the country. Article 51A sets out

the fundamental duties of the citizens. One of them is "(g) to protect and

improve the natural environment including forests, lakes, rivers and wild

life and to have compassion for livin1roreatures ...... ".

The problem of increasing pollution of rivers and streams in the

D country -says the Statement of Objects and Reasons appended to the Bill

which became the Water [Prevention and Control of Pollution] Act, 1974

-attracted the attention of the State Legislatures and the Parliament. They

realised the urgency of ensuring that domestic and industrial effluents are

not allowed to

be discharged into water courses without

adequate· treat­

ment and that pollution of rivers and streams was causing damage to the

E country's economy. A committee was set up in 1962 to draw a draft

ena~tment for prevention of water pollution. The issue was also considered

by the Central Council of Local Self-Government in September,

1963. The · ·. Council suggested the desirability of having a single enactment for the

purpose. A draft Bill was prepared and sent to various States. Several

p expert committees also made their recommendations meanwhile. Since an

enactment on the subject

was relatable to Entry 17 read with Entry 6 of List-I~ in the Seventh Schedule to the Constitution -and, therefore, within

the exclusive domain of the States -the State Legislatures of Gujarat,

Kerala, Haryana and Mysore passed resolutions

as contemplated by Article

252 of the Constitution enabling the

Parliament to make a law on the

G subject. On that basis, the Parliament enacted the Water [Prevention and

Control of Pollution] Act, 1974. [The State of Rajasthan too passed the

requisite resolution.] Section 24(1) of the Water Act provides that "subject

to the provisions of this section, (a) no person shall knowingly cause or

permit any poisonous, noxious or polluting matter determined in ~ccord-

H ance with such standards as may be laid down by the State Board to enter

-

\'

~

--

INDIAN COUNCIL FOR ENVJRO-LEGAL ACTION v. U.0.1. [RP. JEEVAN REDDY. J.] 535

whether (directly or indirectly) into any stream or well

....

". Section 25(1), A

before it was amended by Act 53 of 1988, provided that "(1) subject to the

provisions of this section, no person shall, without the previous consent of

the State Board, bring into use any new or altered outlet for the discharge

of sewage or trade effluent into a stream or well or begin to make any new

discharge of sewage or trade effluent into a steam or well." As amended

by Act

53 of 1988,

Section 25 now reads : "25(1) Subject to the provisions

of this section, no person shall without the previous consent of the State

Board, (a) establish or take any steps to establish any industry, operation

or process or any treatment and disposal system or an extension or an

addition thereto, which

is likely to discharge sewage or trade effluent into

a stream or well or sewer or on

land [such discharge being hereafter in this

section referred to as 'discharge of sewage']; er (b) bring into use any new

B

c

or altered outlets for the discharge of sewage or (c) begin to make any new

discharge of sewage ..... ". [It is stated that the Rajasthan Assembly passed

resolution under Article

252 of the Constitution adopting the said amend­

ment Act

vide Gazette Notification dated may 9,

1990.J Section 33 em-D

powers the Pollution Control Board to apply to the court, not inferior to

that of a Metropolitan Magistrate or a Judicial Magistrate of the First

Class, to restrain any person causing pollution if the said pollution

is likely

to prejudicially affect water in a stream or a well.

Section 33A, which has

been introduced by Amendment Act

53 of 1988, empowers the Board to

order the closure

of any industry and to stop the electricity, water and any

other service to such industry if it finds such a direction necessary for

effective. implementation of the provisions of the Act.

Prior to the said

amendment Act, the Pollation Control Board had no such power and the

course open to it was to make a recommendation to the Government to

pass appropriate orders including closure.

The Air [Prevention and Control of Pollution] Act, 1981 contains

similar provisions.

E

F

In the year 1986, Parliament enacted a comprehensive legislation,

Environment (Protection) Act. The Act

defines "environment" to include G

"water, air and land and the inter-relationship which exists among and

between water, air and land and human beings, other living creatures,

plants, micro-organison and property." The preamble to the Act recites

that the said Act was made pursuant to the decisions taken at the

United

Nations Conference on the Human Environment held at Stockholm in H

1

I

,I

536 SUPREME COURT REPORTS [1996] 2 s.c.R.

A June, 1972 in which India also participated. Section 3 empowers the

Central Government

"to take all such ineasures as it deems

necessa1y or

expedient for the pwpose

of protecting and improving the quality of the

environment and preventing, controlling and abating environmental pollu­

tion". Sub-section (2) elucidates the several powers inhering in Central

B

c

government in the matter of protection and promotion of environment.

Section 5 empowers the Central Government to issue appropriate direc­

tions to any person, officer or authority to further the objects of the

enactment. Section 6 confers rule-making power upon the Central Govern­

ment in respect of matters referred

to in Section 3. Section 7 says that "no

person carrying on any industry, operation or process shall discharge or

emit or permit to be discharged or emitted any environmental pollutant in

excess of such standards,

as may be prescribed".

The Central Government has made the Hazardous Wastes (Manage­

ment and Handling) Rules,

1989 in exercise of the power conferred upon

D it by Section 6 of the Environment

(Protection) Act prescribing the manner

in which the hazardous wastes shall be collected, treated, stored and

disposed

of.

E

F

CONSIDERATION OF THE SUBMISSIONS:

Taking up the objections urged by Sri Bhat first, we find it difficult

to agree with them. This writ petition

is not really for issuance of ap­

propriate writ, order

or directions against the respondents but is directed

against the Union of India, Government of Rajasthan and R.P.C.B. to

compel them to perform their statutory duties enjoined

by the Acts

aforementioned on the ground that their failure to carry out their statutory

duties is seriously undermining the right to life [of the residents of Bichhri

and the affected area] guaranteed by Article

21 of the Constitution. If this

Court finds that the said authorities have not taken the action required of

them by law and that their inaction

is jeopardising the right to life of

citizens of this country or of any section thereof, it is the duty of this court

G to intervene. If it is found that the respondents are flouting the provisions

of law and the directions and orders issued

by the lawful authorities, this

Court can certainly make appropriate directions to ensure compliance

with­

law and lawful directions made thereunder. This is a social action litigation

on behalf of the villagers of Bichhri whose right to life, as elucidated by

H this Court in several decisions, is invaded and seriously infringed by the

-

~-INDIAN COUNCIL FOR ENVIRO-LEGALACTION v. U.O.I. [B.P. JEEVAN REDDY.J.] 537

respondents as is established by the various Reports of the experts called A

for, and filed before, this Court. If an industry is established without

obtaining the requisite permission and clearances and if the industry

is

continued to be run in blatant disregard of law to the detriment of life and

liberty of the citizens

living in

the vicinity, can it be suggested with any

modicum of reasonableness that this Court has no power to intervene and

protect the fundamental right to life and liberty of the citizens of this

country. The answer,

in our opinion, is self-evident. We are also not

convinced of the plea of

Sri Bhat that R.P.C.B. has been adopting a hostile

attitude towards his clients throughout and, therefore, its contentions or

B

the Reports prepared by its officers should not be relied upon. If the

respondents establish and operate their plants contrary to

law, flouting all

safety norms provided

by law, .the

R.P.C.B. was bound to act. On that

account, it cannot be said

to be acting out of animus or adopting a hostile

attitude. Repeated and persistent violations call for repeated orders. That

c

is no proof of hostility. Moreover, the Reports of

R.P.C.B. officials are fully

corroborated and affirmed

by the Reports of central team of experts and D

of NEER!. We are also not prepared to agree with

Sri Bhat that since the

Report of NEERI

was prepared at the instance of

R.P.C.B., it is suspect.

This criticism is not only unfair but is also uncharitable to the officials of

NEERI who have no reason to be inimical to the respondents.

If, however,

the actions of the respondents invite the concern of the experts and if they

depict the correct situation in their Reports, they cannot be accused of any

bias. Indeed, it is this court that asked

NEERI to suggest remedial

measures and it

is in compliance with those orders that NEERI submitted

its interim Report and also the final Report. Similarly, the objection of

Sri

Bhat that the Reports submitted by the NEERI, by the Central team

(experts from the Ministry of Environment and Forests, Government of

India] and R.P.C.B. cannot be acted upon is equally unacceptable. These

Reports were called

by this Court and several

Orders passed on the basis

of those Reports.

It was never suggested on behalf of Respondents Nos. 4

E

F

to 8 that unless they are permitted to cross-examine the experts or the

persons who made those Reports, their Reports cannot be acted upon. This

G

objection, urged at this late stage of proceedings -after a lapse of several

years -is wholly unacceptable. The persons who made the said Reports are

all experts in their field and under no obligation either to the

R.P.C.B. or

for that matter to any other person or industry. It

is in view of their

independence and competence that their Reports were relied upon and H

!

,/

538 SUPREME COURT REPORTS (1996] 2 S.C.R.

A made the basis of passing Orders by this Court from time to time.

B

Now coming to the question alleged pollution by Hindustan Zinc

Limited (R-9], it may

be that Respondent No. 9 is also responsible for

discharging untreated effluents at one or the other point of time but that

is not the issue we are concerned with in these writ

petitions: These writ

petitions are confined to the pollution caused in Bichhri village on account

of the activities of the respondent. No Report among the several Reports

placed before us in these proceedings says that Hindustan Zinc Limited is

responsible for the pollution at Bichhri village. Sri Bhat brought to our

notice certain Reports stating that the discharges from Hindustan Zinc

C Limited were causing pollution in certain villages but they are all down

stream, i.e., to the north of Bichhri village and

we are not concerned with

the pollution in those

village~ in these proceedings. The bringing in of

Hindustan Zinc Limited in these proceedings

is, therefore, not relevant. If

necessary, the pollution, if any, caused by Hindustan Zinc Limited can be

D

tlie subject-matter of a separate proceeding.

We may now deal with the contentions of Sri Bhat based upon the

affidavit of R.P.C.B. dated November 13, 1992 which has been repeatedly

and strongly relied upon

by the learned counsel in support of his

submis­

sion that the entire sludge has been properly stored by or at the expense

E of his clients. It is on the basis of this affidavit that Sri Bhat says that the

subsequent Reports submitted showing the existence of sludge within and

outside their complex should not

be accepted or acted upon. Let us turn

to the affidavit of

R.P.C.B. dated November 13, 1992 and see how far does

it support Sri Bhat's contention.

It is in

Para 2(b) that the sentence, strongly

F relied upon by Sri Bhat occurs, viz., "remaining work is likely to be

completed by 15th November, 1992". For a proper appreciation of the

purport of the said sentence, it would

be appropriate to read the entire Para 2(b), which is to the following effect: "(b) that all the six tanks have

been entombed with brick toppings. Roofing

is complete on all

tanks which

have also been proyided with proper outlets for the exit of gases which may

G form as a result of possible chemical reactions in the sludge mass. The

tanks have also been provided with reinforced concrete to prevent

broop­

ing of the roof. Remaining work is likely to be completed by 15th Novem­

ber, 1992." We find it difficult to read the said sentence as referring to the

storage of th~ remaining about 1700 MT of sludge. When the storage of

H 720 MT itself took up all the six tanks provided by the respondent, where

-

--

INDIAN COUNCIL FOR ENVIRO-LEGALACTION v. U.0.L [B.P. JEEVAN REDDY, J.) 539

was the remaining 1700 tonnes stored? Except relying upon the said A

sentence repeatedly, Sri Bhat has not been able to tell us where this 1700

MT has been stored, whether in tanks and if so, who constructed the tanks

and when and

how were they covered and sealed. He is also not able to

tell

us on what dates the remaining sludge was stored. It is evident that the

aforesaid sentence occurring in clause 2(b) refers to the proper sealing and

completion of the said tanks wherein

720 MT of sludge was stored. If, in

fact, the said 1700 MT has also been entombed, it was not difficult for the

respondents to

give the particulars of the said storage. We are, therefore,

unable to agree with Sri Bhat that the subsequent Reports which repeatedly

and uniformly speak of the presence of sludge within and outside the

complex of the respondents should not be accepted.

It may be recalled that

the Report of the team of Central Experts

was submitted on November 1,

1993 based upon the inspection made by them in September/October, 1993.

To the same effect is the affidavit of

R.P.C.B. dated October 30, 1993 and

the further affidavit dated December

1, 1993. These Reports together with

B

c

the report of NEERI Clearly establish that huge quantities of sludge were D

still lying around either in the form of mounds or placed in depressions,

or spread over the contiguous areas and covered with local soil to conceal

its existence.

It is worth reiterating that the said sludge is only part of the

pernicious discharges emanating from the manufacture of

'H' acid. The

other part, which

is unfortunately not visible now [except in its deleterious

effects upon the soil and underground water] is the 'mother liquor'

produced in enormous quantities which has either flowed out or percolated

into the soil.

So far as the responsibility of the respondents for causing the pollu-

E

tion in the wells, soil and the acquifers is concerned, it is clearly established F

by the analysis Report referred

to in the Report of the Central Experts

team dated November

1, 1993

[Page 1026 of Vol. II]. Indeed, number of

Orders passed

by this Court, referred to hereinbefore, are premised upon

the finding that the respondents are responsible for the said pollution.

It

is only because of the said reason that they were asked to defray the cost

of removal and storage of sludge.

It is precisely for this reason that, at one G

stage, the respondents had also undertaken the de-watering of polluted

wells. Disclaiming the responsibility for the pollution in and around Bichhri

village, at this stage of proceedings,

is clearly an afterthought. We accord­

ingly held and affirm that the respondents alone are responsible for all the

damage to the soil, to the underground water and to the village Bichhri in

H

j

.(

540 SUPREME COURT REPORTS [1996) 2 S.C.R.

A general, damage which. is eloquently portrayed in the several Reports of

the experts mentioned hereinabove. NEER! has worked out the cost for

repairing the damage at more than Rupees forty crores.

Now, the question

is whether and to what extent can the respondents be made responsible for

defraying the cost of remedial measures in these proceedings under Article

B

32. Before we advert to this question, it may perhaps be appropriate to

clarify that

so far as removal of remaining sludge and/or the stoppage of

discharge of further toxic wastes are concerned, it

is the absolute respon­

sibility

of the respondents to store the sludge in

a· proper manner [in the

same manner in which 720 MT of sludge has already been stored) and to

stop the discharge of any other or further toxic wastes· from its plants

C including Sulphuric Acid Plant and to ensure that the wastes discharged

do not flow into or through the sludge.

Now, turning to the question of

liability, it would be appropriate to refer to a

few decisions on the subject.

In

Oleum Gas Leak case, a Constitution Bench discussed this ques­

D tion at length and held thus :

E

F

G

H

"We are of the view that an enterprise which is engaged in a

hazardous or inherently dangerous industry which poses a potential

threat to the health and safety of the persons working in the factory

and residing in the surrounding areas owes an absolute and non­

delegable duty to the community to ensure that no harm results to

anyone on account of hazardous or inherently dangerous. nature

of the activity which it has undertaken. The enterprise must be

held to be under an obligation t<? provide that the hazardous or

inherently dangerous activity

in which it is engaged must be con­

ducted with the highest standards of safety and if any harm results

on account

of such activity, the enterprise must be absolutely liable

to compensate for such harm and it should

be no answer to the

enterprise to say that it had taken all reasonable care and that the

harm occurred without any negligence on its part.

Since the per­

sons harmed on account of the hazardous or inherently dangerous

activity carried on

by the enterprise would not be in a position to

isolate the process of operation from the hazardous preparation

of substance or any other related element that caused the harm

the enterprise must be held strictly liable for causing such harm

as a part of the social cost for carrying on the hazardous or

inherently dangerous activity.

If the enterprise is permitted to carry

---

--

INDIAN COUNCIL FOR ENVIRO-LEGALACDON "· U.0.1. [B.P. JEEVAN REDDY, J.J 541

on an hazardous or inherently dangerous activity for its profits, the A

law must presume that such permission is conditional on the

enterprise absorbing the cost of

any accident arising on account

of

such. hazardous or inherently dangerous activity as an ap­

propriate item of its overheads.

Such hazardous or inherently

dangerous activity for private profit can be tolerated only on

condition that the enterprise engaged

in such hazardous or in­

herently dangerous activity indemnifies all those

who suffer on

account of the carrying on of such hazardous or inherently

dangerous activity regardless of whether it

is carried on carefully

or not .......... We would therefore hold that where an enterprise

is engaged in a hazardous or inherently dangerous activity and

harm results to anyone on account of an accident in the operation

B

c

of such hazardous or inherently dangerous activity resulting for

example, in escape of toxic

gas the enterprise is strictly and

absolutely liable to

compem~te all those who are affected by the

accident and such liability

is not subject to any of the exceptions D

which operate vis-a-vis the tortious principle of strict liability under

the rule in

Ryland v. Fletcher [supra] ..

We would also like to point out that the measure of compen­

sation in the kind of cases referred to in the preceding paragraph

must be correlated to the magnitude and capacity of the enterprise

because such compensation must have a deterrent effect. the larger

and more prosperous the entire,

greater must be the amount of

compensation payable

by it for the harm caused on account of an

accident in the carrying on of the hazardous

or inherently

dangerous activity

by the enterprise."

Sri Bhat, however, points out that in the said decision, the question

whether the industry concerned therein

was a 'State' within the meaning of

Article

12 and, therefore, subject to the discipline of Part-III of the

Constitution including Article

21 was left open and that no compensation

E

F

as such was awarded by this Court to the affected persons. He relies upon G

the observations in the concurring opinion of Ranganath Misra, CJ., in

Union Carbide Corporation (1991] 4

SCC 584. The learned Chief Justice,

referred in the first instance, to the propositions enunciated in

Oleum Gas

Leak case and then made the following observations in

Paras 14 and 15:

"14. In M.C. Mehta case, no compensation was awarded as this H

I

542

A

B

c

SUPREME COURT REPORTS [1996] 2 S.C.R. '

Court could not reach the conclusion that Shriram (the delinquent

comI?any) came within the meaning of 'State' in Article 12 so as

to be liable to the discipline of Article

21 and to be subjected to

a proceeding under Article 32 of the Constitution. Thus what was

said

was essentially obiter.

15. The extracted part of the observations from

M.C. Mehta case

perhaps

is a good guidelines for working out compensation in the

cases to which the ratio

is intended to apply. The statement of the

law ex-facie makes a departure from the accepted legal position

in

Rylands v. Fletcher. We have not been shown any

binc}ing

precedent from the American Supreme Court where the ratio of

M.C. Mehta decision has in terms been applied. In fact Bhagwati,

C.J., clearly indicates in the judgment that his

view is a departure

from the law applicable to western countries."

The majority judgment delivered

by M.N.Venkatachaliah, J. [on be-

D

llalf of himself and two other learned Judges] has nQt expressed any

opinion on this issue. We on o~r part find it difficult to say, with great

respect to the learned Chief Justice, that the law declared

in

Oleum Gas

Leak case is obiter. It does not appear to be unnecessary for the purposes

of that case. Having declared the

law, the Constitution Bench directed the

E parties and other organisations to institute actions on

the-basis of the law

so declared.* Be that

as it may,

we are of the considered opinion that even

if it

is assumed [for the sake of argument] that this Court cannot award

damages against the respondents in these proceedings that does not mean

F

G

H

* A distinction between the

Oleum Gas Leak case and the present case may be noticed.

That

was not a case where the industry was established or was being operated contrary

to law

as in the present case. That was also

not a case where the orders of lawful ·

authorities and Courts were violated with impunity as in this case. In this case, there

is a clear violation of law and disobedience to the Orders of this Court apart from the

orders of the lawful authorities. The facts stated above and findings recorded by us

hereinafter bear it out. This Court has to ensure the observance of law and of its

Orders

as a part of enforcement of fundamental rights. That power cannot be disputed.

If so, a question may arise why is this Court not competent to make Orders necessary

for a full and effective implementation

of its Orders -and that includes the imposition

and recovery

of cost of all measures including remedial measures. Above all, the

Central Government has the power under the provisions

of Sections 3 and 5 of the

Environment

(Protection) Act, 1986 to levy and recover the cost of remedial measures

-as

we shall presently point out. If the Central Government omits to do that duty, this

Court can certainly issue appropriate directions to it to

takt necessary measures. Is it

not open to the Court, in an appropriate situation, to award damages against private

parties as part

of

relief granted against public authorities. Thls is a question upon which

we do not wish to express any opinion in the absence

of a full debate at the Bar.

--

...

INDIAN COUNCIL FOR ENVIRO-LEGALACTION v. U.0.1. [B.P. JEEVAN REDDY, J.] 543

that the Court cannot direct the Central Government to determine and A

recover the cost of remedial measures from the respondents. Section 3 of

the Environment (Protection) Act, 1986 expressly empowers the Central

Government [or its delegate, as the case may be] to

"take all such measures

as it deems

necessaiy or expedi.ent for the purpose of protecting and improving

the quality of environment ...... ". Section 5 clothes the Central Government

[or its delegate] with the power to issue directions for achieving the objects

of

the Act. Read with the wide definition of "environment" in Section 2(a),

Sections 3

and 5 clothe the Central Government with all such powers as

are "necessary or expedient for the purpose of protecting

and improving

the quality of the environment".

The Central Government is empowered to

take all measures and issue all such directions as are called for the above

purpose.

In the present case, the said powers will include

giv.ng directions

for the removal of sludge, for undertalCing remedial measures and also the

power to impose the cost of remedial measures

on the offending industry

B

c

and utilise the amount so recovered for carrying out remedial measures.

This Court can certainly give directions to the Central Government/its

D

delegate to take all such measures, if in a given case this Court finds that

such directions are warranted. We find that similar directions have

been

made in a recent decision of this Court in

In di.an Council for Enviro-Legal

Action and Ors. [supra). That was also a writ petition filed under Article

32 of the Constitution. Following

is the direction:

"It appears that the Pollution Control Board had identified as many

as 22 industries responsible for the pollution caused by discharge

of their effluents into Nakkavagu. They were responsible to com­

pensate to farmers. It was the duty

of the State Government to

ensure that this amount was recovered from the industries

and

paid to the farmers."

It is, therefore, idle to contend that this Court cannot make appropriate

directions for the purpose of ensuring remedial

action_ It is more a matter

of form.

Sri

KN. Bhat submitted that the rule of absolute liability is not

accepted in England or other Commonwealth countries

and that the rule

evolved by the House of Loards in

Rylands v. Fletcher, (1866) 3 H.L.

330

E

F

G

is the correct rule to be applied in such matters. Firstly, in view of the

binding decision of this Court in Oleum Gas Leak case, this contention is H

544 SUPREME COURT REPORTS [1996) 2 S.C.R. '

A untenable, for the said decision expressly refers to the rule in Rylands but

refuses to apply

it saying that it is not suited to the conditions in India.

Even so, for the sake of completeness, we may discuss the rule in

Rylands

B

c

D

· and indicate why that rule is inappropriate and unacceptable in this

country. The rule was first stated

by Blackburn, J. [Court of Exchequer

Chamber] in the following

words: "We think that the true rule of law is, that the person who for his

own purposes brings on his lands and collects and keeps there

anything likely to do mischief if it escapes, must keep it in at his

peril, and, if he does not do

so, is prima facie answerable for all

the damage which is the natural consequence of its escape.

He can

excuse himself by shewing that the escape was owing to the

plaintiffs default; or perhaps that the escape was the consequence

of

vis major, or the act of God; ........ and it seems but reasonable

and just that the neighbour, who has brought something on his own

property which was not naturally there, harmless to others so long

as it is confined to his own property, but which he knows to be

mischievous if it gets on his neighbour's, should be obliged to make

good the damage which ensues if he does not succeed in confining

it to his own

property."

E The house of Lords, however, added a rider to the above statement,

viz., that the user by the defendant should be a "non-natural" user to attract

the rule. In other words, if the user by the defendant

is a natural user of

the land, he would not be liable for damages. Thus, the twin tests -apart

from the proof of damage to the plaintiff by the act/negligence of the

F defendants -which must be satisfied to attract this rule are

"foreseeab~lity"

and "non-natural" user of the land.

The rule in

Rylands has been approved by the House of Lords in the

recent decision in

Cambridge Water Company v. Eastem Counties Leather,

PLC, (1994) 2 W.L.R. 53. The plaintiff, Cambridge Water Company, was

G a statutory corporation engaged in providing public water supply within a

certain area including the city of Cambridge.

It was lifting water from a

bore well situated at some distance from Sawstyn. The defendant-company.

Eastern Leather,

was having a tannery in Sawstyn. Tanning necessarily

involves degreasing of pelts. For that purpose, the defendant was using an

H organo chlorine called

P.C.E. P.C.E. was stored in a tank in the premises

... -..... -

-

--

-

-.

INDIAN COUNCIL FOR ENVIRO-LEGALACTION v. U.O.I. [B.P. JEEV AN REDDY,J.) 545

of the defendant. The plaintiffs case was that on account of the P.C.E.

percolating into the ground, the water in its well became contaminated and

unfit for human consumption and that on that account it

was obliged to

find an alternative source at a substantial cost.

It sued the defendant for

the resulting damages: The plaintiff based

his claim on

three alternative

grounds, viz., negligence, nuisance and the rule in Rylands. The Trial Judge

(High Court) dismissed the action in negligence and nuisance holding that

the defendant could not have reasonably foreseen that such damage could

occur

to the plaintiff.

So far as the rule in Rylands was concerned, the Trial

Judge held that the user by the defendant

was not an non-natural user and

hence,

it was not liable for damages.

On appeal, the Court of Appeal

declined to decide the matter on the basis of the rule in Rylands. It relied

strongly upon the ratio in

Ballard v. Tomlinson, (1885) 29 Ch. D. 115

holding that no person having a right to use a common source is entitled

to contaminate that source

so as to prevent his neighbour from having a

full value of his right of appropriation. The Court of Appeal also opined

A

B

c

that the defendant's use of the land was not a natural use.

On appeal by D

the defendant, the House of Lords allowed the appeal holding that

foreseeability of the harm of the relevant type by the defendant was a

pre-requisite to the right to recover damages both under the heads

of

nuisance and also under the rule in Rylands and since that was not

established

by the plaintiff, it has to fail. The House of Lords, no doubt,

held that the defendant's use of the land was a non-natural use

but

dismissed the suit,

as

st~ted above, on the ground that the plaintiff has failed

E

to establish that pollution of their water supply by the solvent used by the

defendant in his premises was in the circumstances

of the case f orseeable by

the defendant.

The Australian High Court has, however, expressed its disinclination

to treat the rule in

Rylands as an independent head for claiming damages

or

as a rule rooted in the law governing the law of nuisance in Bwnie

P01t

Auth01ity v. General Jones Pty Ltd., (1994) 68 Australian Law Journal 331.

F

The respondent, General Jones Limited, had stored frozen vegetables in

three cold storage rooms in the building owned

by the appellant, Burnie G Port Authority (Authority]. The remaining building remained under the

occupation of the Authority. The Authority wanted to extend the building.

The extension work was partly done

by the Authority itself and partly by

an independent contractor [Wildridge and Sinclair

Pty. Ltd.]. for doing its

work, the contractor used a certain insulating material called E.P.S., a H

546 SUPREME COURT REPORTS [1996) 2 S.C.R.

A highly inflammable substance. On account of negligent handling of E.P.S.,

there was a fire which inter alia damaged the rooms in which General Jones

had stored its vegetables. On an action by General Jones, the Australian

High court held

by a majority that the rule in Rylands having attracted

many difficulties, uncertainties, qualifications and exceptions, should now

B

c

be seen, for the purposes of Australian Common Law, as absorbed by the

principles of ordinary

negligence. The Court held further that under the

rules governing negligence, if a person in control of a premises, introduces

a dangerous substances to carry on a dangerous activity, or allows another

to

do one of those things, owes a duty of reasonable care to avoid a

reasonably foreseeable risk of injury or damage to the person or property

of another.

In a case where a person or the property of that other is lawfully

in a place outside the premises, the duty of care varies in degree according

to the magnitude of the risk involved and extends to ensuring that such

care

is taken. Applying the said principle, the Court held that the Authority

allowed the independent contractor

to introduce or retain a dangerous

D substance or to engage in a dangerous activity in its premises which

substance and activity caused a fire that destroyed the goods of General

jones. The evidence, the Court held, established that the independent

contractor's work

was a dangerous activity in that it involved real and

foreseeable risk of a serious conflagration unless special precautions were

taken. In the circumstances,

it was held that the Authoiity owed a non-

E delegable duty of care to

General Jones to ensure that its contractor took

reasonable steps to prevent the occwTence

of a fire and the breach of that

duty attracted liability pursuant to the

ordina1y principles of negligence for the

damage sustained by the respondent.

F

On a consideration of the two lines of thought [one adopted by the

English Courts and the other

by the Australian High Court], we are of the

opinion that any principle evolved in this behalf should be simple, practical

and suited to the conditions obtaining in this country. We are convinced

that the law stated by this Court in

Oleum Gas Leak case is by far the more

appropriate one -apart

fro~ the fact that it is binding upon us. [We have

G disagreed with the view that the law stated in the said decision is obiter. J

According to this rule, once· the activity carried on is hazardous or in­

herently dangerous, the person carrying

ort such activity is liable to make

good the loss caused to any other person

by his activity

imspective of the

fact whether he took reasonable care while carrying on his activity. The

. H rule is premised upon the very nature of the activity carried on. In the

...,.,

-

-

INDIANCOUNCILFORENVIRO-LEGALACTIONv. U.O.I. (B.P.JEEVANREDDY,J.] 547

words of the Constitution Bench, such an activity "can be tolerated only on A

the condition that the enterprise engaged in such hazardous or inherently

dangerous activity indemnifies all those

who suffer on account of the

carrying

on of such hazardous or inherently dangerous activity regardless

of whether it

is carried on carefully or

not" The Constitution Bench has

also assigned the reason for stating the law in the said terms.

It is that the

enterprise [carrying on the hazardous or inherently dangerous activity]

alone has the resource to discover and guard against hazards or dangers -

and not the person affected

and the practical difficulty [on the part of the

affected person]

in establishing the absence of reasonable care or that the

damage

to his was foreseeable by the enterprise.

B

c

Once the law in Oleum Gas Leak case is held to be the law ap­

plicable, it

follows, in the light of our findings recorded hereinbefore, that

Respondents

Nos. 4 to 8 are absolutely liable to compensate for the harm

caused

by them to villagers in the affected area, to the soil and to the

underground water and hence, they are bound to take all necessary

D

measures to remove the

sludge and other pollutants lying in the affected

area

[by affected area, we

!!lean the area of about 350 ha. indicated in the

sketch at Page 178 of NEERI Report] and also to defray the cost of the

remedial measures required to restore the soil and the underground water

sources_ Sections 3 and 4 of Environment

[Protection] Act confers upon

the Central Government the power to

give directions or the above nature

and to the above effect.

Levy of costs required for carrying out remedial

measures

is implicit in Sections 3 and 4 which are couched in very wide

and expansive language. Appropriate directions can be given

by this Court

to the Central Government to invoke and exercise those powers with such

modulations

as are called for in the facts and circumstances of this case.

The question of liability of the respondents to defray the costs of

remedial measures can also be looked into from another angle, which has

now come

to be accepted universally as a sound principle, viz., the

"Polluter

Pays" Principle.

"The polluter pays principle demands that the financial costs of

preventing or remedying damage caused

by pollution should lie

with. the undertakings which cause the pollution, or produce the

goods which cause the pollution.

Under the principle it is not the

E

F

G

role of government to meet the costs involved in either prevention

· H

A

B

c

D

E

F

G

1

548 SUPREME COURT REPORTS [1996] 2 S.C.R.

of such damage, or in carrying out remedial action, because the

effect of this would be to shift the financial burden of the pollution

incident to the taxpayer.

The 'polluter pays' principle was

promoted

by the Organisation for Economic Co-operation and

Development

[OECDJ during the 1970s when there was great

public interest in environmental issues. During this time there were

demands on government

and other institutions to introduce

policies and mechanisms for the protection of the environment and

the public from the threats posed

by pollution in a modern in­

dustrialised society.

Since then there has been considerable dis­

cussion of the nature of the polluter pays principle, but the precise

scope of the principle and its implications for those involved in

past, or potentially polluting activities have never been satisfactory

agreed.

Despite the difficulties inherent in defining the principle, the

European Community accepted

it as a fundamental part of its

strategy on environmental matters, and it has been one of the

underlying principles of the four Community Action Programmes

on the Environment.

The current Fourth Action Programme

([1987] O.J.C328/1) makes it clear that 'the cost of preventing and

eliminating nuisances must in principle be borne

by the polluter',

and the polluter pays principle has now been incorporated into the

European community Treaty

as part of the new Articles on the

environment

which were introduced by the Single European Act

of 1986. Article 130R(2) of the Treaty states that environmental

considerations are to play a part in all the policies of the Com­

munity, and that action

is to be based on three principles : the

need for preventative action; the need for environmental damage

to the rectified at source; and that the polluter should pay."

["Historic Pollution -Does the Polluter

Pay?" By Carolyn Shelbourn

-Journal of Planning and Environmental Law, Aug. 1974 issue.]

Thus, according

to this principle, the responsibility for repairing the

damage

is that of the offending industry.

Section 3 and 5 empower the

Central Government to give directions and take measures for giving effect

to this principle.

In all the circumstances of the case, we think it ap-

H propriate that the task of determining the amount required for carrying out

t

-

'

).

INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. U.O.L [B.P. JEEVAN REDDY, J.) 549

the remedial measures, its recovery/realisation and the task of undertaking A

the remedial measures is placed upon the Central Government in the light

of the provisions of the Environment [Protection] Act,

1986. It is, of course,

open

to the Central Government to take the help and assistance of State

Government,

R.P.C.B. or such other agency or authority, as they think fit.

The next question is what is the amount required for carrying out the

necessary remedial measures to repair the damage and to restore the water

and soil to the condition it

was in before the respondents commenced their

operations. the Report of NEERI has worked out the cost at more than

Rupees forty crores. The estimate of cost of remedial measures

is, however,

not a technical matter within the expertise of NEERI officials. Moreover,

the estimate

was made in the year 1994. Two years have passed by since

then. Situation, if at

all, must have deteriorated further on account of the

presence of -and dispersal of

th~ sludge -in and around the complex of

B

c

the respondents by them. They have been discharging other toxic effluents

from their other plants,

as reported by NEERI and the central team. It is

but appropriate that an estimate of the cost of remedial measures be made D

now with notice to the responde.nts, which amount should be paid to

Central Government and/or recovered from them

by the Central Govern­

ment.

Other directions are also called for in the light of the facts and

circumstances mentioned above.

E

CONCLUSIONS :

~ From the affidavits of the parties, Orders of this Court, technical

--

Reports and other data, ref erred to above [even keeping aside the latest

Report of the R.P.C.B.], the following facts emerge :

(I)

Silver Chemicals [R-5] and Jyoti Chemicals [R-8] had manufac­

tured about

375 MT of 'H' acid during the years 1988-89. This had given

rise to about

8250 rn3 of waste water and 2440 tonnes of sludge [both

iron-based and gypsum-based]. The waste water had partly percolated into

F

the earth in and around Bichhri and part of it had flowed out.

Out of 2440

tonnes of sludge, about 720 tonnes has been stored In the pits provided by G

the respondents. The remaining sludge is still there either within the area

of the complex of the respondents or outside their complex. With a

view

·to conceal it from the eyes of the inspection teams and other authorities,

the respondents have dispersed it all over the area and covered it with

earth.

In some places, the sludge is lying in mounds. The story of entombing H

)

.550 SUPREME COURT REPORTS

.z

[1996) 2 S.C.R.

A the entire quantity of sludge is untrue.

B

The units manufacturing 'H' acid -indeed most of the units of the

respondents -had started functioning, i.e., started manufacturing various

chemicals without obtaining requisite clearances/consents/licences. They

did not instal any equipment for treatment of highly toxic effluents dis­

charged by them. They continued to function even after and inspite of the

closure orders of The R.P.C.B. They did never carry out the Orders of this

court

fully, [e.g., entombing the sludge] nor did they fulfil the undertaking

given

by them to the Court [in the matter of removal of sludge

and

de-watering of the wells]. Inspite of repeated Reports of officials and

C expert bodies, they persisted in their illegal course of action in a brazen

manner, which exhibits their contempt for

law, for the lawful authorities

and the Courts.

(II) That even after the closure of 'H' acid plant, the fourth respon-

D dent had not taken adequate measures for treating the highly toxic waste

water and other wastes emanating from the Sulphuric Acid

Plant. The

untreated highly toxic waste water

was found - by NEERI as well as the

Central team -flowing through the dumps of iron/gypsum sludge creating

a highly potent

mix. The letter of the fourth respondent dated January 13,

1996, shows that the Sulphuric Acid

Plant was working till November 10,

E 1995. An assertion is made before us that permanent E.T.P. has also been

constructed for the Sulfuric Acid Plant in addition to the temporary tank

which

was constructed under the

Orders of this Court. We express no

opinion on this assertion, which even if true,

is valid only for the

period

subsequent to April, 1994.

F

(III) The damage caused by the untreated highly toxic wastes result­

ing from the production of

'H' acid -and the continued discharge of highly

toxic effluent from the Sulphuric Acid

Plant, flowing through the sludge

[H-acid waste] -

is undescribable. It has inflicted untold misery upon the

villagers and long lasting damage to the

soil, to the uncerground water and

G to the environment of that area in general. The Report of NEERI contains

a sketch, at Page 178, showing the area that has been adversely affected by

the production of

'H' acid by the respondents. The area has been divided

into three zones on the basis of the extent of contamination. A total area

of

350 ha has become seriously contaminated. The water in the wells in

H that area i.s not fit for consumption either by human beings or cattle. It has

1-·

--

'

....._ INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION v. U.O.I. [B.P. JEEVAN REDDY, J.) 551

seriously affected the productivity of the land. According to NEERI. A

Report, Rupees forty crores is required for repairing the damage caused

to men, land, water and the flora.

(IV) This Court has repeatedly found and has recorded

in its

Orders

that it is respondents who have caused the said damage. The analysis

Reports obtained pursuant to the directions of the Court clearly establish

that the pollution of the wells

is on account of the wastes discharged by

Respondents Nos. 4 to

8, i.e., production of 'H' acid. The Report of the

environment experts dated November

1, 1993 has already been referred to

hereinbefore. Indeed, several orders of this Court referred to

supra are also

based upon the said finding.

B

c

(V) Sections 3 and 5 of the Environment

(Protection) Act, 1986,

apart from other provisions of Water and Air Acts, empower the Govern­

ment to make all such directions and take all such measures as are

necessary or expedient for protecting and promoting the 'environment',

which expression has been defined in very wide and expansive terms in

D

Section 2(a) of the Environment

[Protection] Act. This power includes the

power to prohibit an activity, close an inqustry, direct and/or carry out

remedial measures, and wherever necessary impose the cost of remedial

measures upon the offending industry. The principle "Polluter Pays" has

gained almost universal recognition, apart from the fact that it is stated in

E

absolute terms in Oleum Gas Leak case. The law declared in the said

decision

is the law governing this case.

DIRECTIONS :

Accordingly, the following directions are made :

1. The Central Government shall determine the amount required for

carrying out the remedial measures including the removal of sludge lying

F

in and around the complex of Respondents 4 to 8, in the area

affected in

village Bichhri and other adjacent villages, on account of the production

G

of 'H' acid and the discharges from the Sulphuric Acid

Plant of Respon­

dents 4 to

8. Chapters-VI and VII in NEER! Report [submitted in 1994]

shall be deemed to be the show-cause notice issued by the Central Govern­

ment proposing the determination of the said amount. Within six weeks

from this day, Respondents 4 to 8 shall submit their explanation, along with

such material as they think appropriate in support of their case, to the

H

)

552 SUPREME COURT REPORTS -

[1996] 2 S.C.R.

A Secretary, Ministry of Environment and Forests, Government of fodia,

[M.E.F.] The Secretary shall thereupon determine the amount in consult­

ation with the experts of his Ministry within

six weeks of the submission of

the explanation by the said Respondents. The order passed

by the

Secretary, [M.E.F.] shall be communicated to Respondents 4 to 8 -and all

B

concerned -and shall also be placed before this Court. Subject to the

Orders, if

any, passed by this Court, the said amount shall represent the

amount which Respondents 4 to 8 are liable to pay to improve and restore

the environment in the area. For the purpose of these proceedings, the

Secretary, [M.E.F.] and Respondents 4 to 8 shall proceed on the assump­

tion that the affected area

is

350 ha, as indicated in the sketch at Page 178

C of NEERI Report. In case of failure of the said respondents to pay the

said amount, the same shall be recovered

by the Central Government in

accordance with

law. The factories, plant, machinery and all other immov­

able assets of Respondents 4 to 8 are attached herewith. The amount so

determined and recovered shall be utilised by the M.E.F. for carrying out

D all necessary remedial measures to restore the soil, water sources and the

environment

in general of the affected area to its former state.

2.

On account of their continuous, persistent and insolent violations

of law, their attempts to conceal the sludge, their discharge of toxic

effluents from the Sulphuric Acid Plant which was aliowed to

flow through

E the sludge, and their non-implementation of the Orders of this Court -all

of which are

fully borne out by the expert committees' Reports and the

findings recorded hereinabove -Respondents 4 to 8 have earned

the

dubious distinction of being characterised as "rogue industries". They have

inflicted untold misery upon the poor, un,suspecting villagers, despoiling

F their land, their water sources and their entire environment .. all in pur­

suance of their private profit. ·They have forfeited all claims for any

consideration

by this Court. Accordingly, we herewith

order the closure of

all the piants and factories of Respondents 4 to 8 lo.cated in Bichhri village.

The R.P.C.B. is directed to seal all the factories/units/plants of the said

G respondents forthwith. So far as the Sulphuric Acid Plant is c0ncerned, it

will be closed at the end of one week from· today, within which period

Respondent

No. 4

sh'l-ll wind down its operations so as to avoid risk of any

untoward consequences, as asserted

by Respondent No.4 in Writ Petition

(C) No. 76 of 1994. It is the responsibility of Respondent No. 4 to take

necessary steps in this behalf. The

R.P.C.B. shall seal this unit too at the

H end of one week from today. The re-opening of these plants shall depend

--

INDIAN COUNCIL FOR ENVIRO-LEGALACTION v. U.0.1. [B.P. JEEVAN REDDY, J.) 553

upon their compliance with the directions made and obtaining of all A

requisite permissions and consents from the relevant authorities. Respon­

dents 4

to 8 can apply for directions in this behalf after such compliance.

3.

So far as the claim for damages for the loss suffered by the villagers

in the affected area is concerned, it is open to them or any organisation on

their behalf to institute suits

in the appropriate civil court. If they file the

suit or suits in

Jonna pauperis, the

State of Rajasthan shall not oppose their

applications for leave to sue in

Jonna paupe1is.

B

c

4. The Central Government shall consider whether it

would not be

appropriate, in the light of the experience gained, that chemical industries

are treated

as a category apart.

Since the chemical industries are the main

culprits

in the matter of polluting the environment, there is every need for

scrutinising their establishment and functioning more rigorously.

No dis­

tinction should be made in this behalf

as between a large-scale industry

and a small-scale industry or for that matter between a large-scale industry

and a medium-scale

industrY, All chemical industries, whether big or small, D

should be allowed to be established only after taking into consideration all

the environmental aspects and their functioning should be monitored close-

ly to ensure that they do not pollute the environment around them. It

appears that most of these industries are water-intensive industries. If so,

the advisability of allowing the establishment of these industries in arid

areas may also require examination. Even the existing chemical industries

may be subjected to such a study and

if it is found on such scrutiny that it

is necessary to take any steps in the interests of environment, appropriate

directions in that behalf may be issued under Sections 3 and 5 of the

Environment Act. The Central Government shall ensure that the directions

given by it are implemented forthwith.

5. The Central Government and the

R.P.C.B. shall file quarterly

Reports before tliis Court with respect to the progress in the implementa­

tion of Directions 1 to 4 aforesaid.

6. The suggestion for establishment of environment courts is a com-

mendable

one. The experience shows that the prosecutions launched in

ordinary criminal courts under the provisions of the Water Act,

Air Act

E

F

G

and Environment Act never reach their conclusion either because of the

work-load

in those courts or because their is no proper appreciation of the

significance of the environment matters on the part of those in charge of

H

<

I

A_

554 SUPREME COURT REPORTS (1996) 2 S.C.R.

A conducting of those cases. Moreover, any orders passed by the authorities

under Water and Air Acts and the Environment Act are immediately

questioned

by the industries in courts. Those proceedings take years and

years to reach conclusion. Very often, interim orders are granted

meanwhile which effectively disable the authorities from ensuring the im-

B

c

plementation . of their orders. All this points to the need for creating

environment courts which alone should be empowered to deal with all

matters, civil and criminal, relating to environment. These courts should

be

manned by legally trained persons/judicial officers and should be allowed

to adopt summary procedures. This issue, no doubt, requires to

be studied

and examined indepth from all angles before taking any action.

7. The Central Government may also consider the advisability of

strengthening the. environment protection machinery both at the Centre

and the

States and provide them more teeth. The heads of several units

and agencies should be made personally accountable for any lapses and/or

negligence on the part of their units and agencies. The idea of

an environ-

D

mental audit by specialist bodies created on a permanent basis with power

to inspect, check and take necessary action not only against erring in­

dustries but also against erring officers may

be considered. The idea of an

environmental

· audit conducted periodically and_ certified annually, by

specialists in the field, duly recognised, can also be considered. The ul-

E timate idea is to integrate and balance the concern for environment with

the need for industrialisation. and technological progress.

F

G

Respondents 4 to 8 shall pay a sum of Rupees fifty thousand by way

of costs to the petitioner which had to fight this litigation over a period of

over six years with its own means. Voluntary bodies, like the petitioner,

deserve encouragement wherever their actions are found

to be in fur­

therance of public interest. The said sum

shall be deposited' iii this Court

within two weeks from today.

It shall be paid over to the petitioner.

Writ Petition (C)

No. 967of1989 is allowed with the above directions

with costs as specified hereinabove.

WRIT PETITION (C) NO. 76 OF 1994:

In view of the decision in Writ Petition (C) No. 967 of 1989, the writ -

petition

is dismissed.

H No costs.

INDIAN COUNCIL FOR ENVIRO-LEGALACTION v. U.0.1. [B.P. JEEVAN REDDY, J.) 555

WRIT PETITION (C) NO. 94 OF 1990 :

In view of the decision in Writ Petition (C) No. 967 of 1989, no

separate Orders are necessary in this petition. The writ petition is accord­

ingly dismissed.

No costs.

WRIT

PE.TIT/ON (C) NO. 824 OF 1993:

In view of the decision in Writ Petition (C) No. 967 of 1989, no

separate Orders are necessary in this petition. The writ petition is accord-

A

B

ingly dismissed. c

No costs.

v.s.s. Petition dismissed.

Description

A Deep Dive into the Landmark Indian Council for Enviro-Legal Action v. Union of India Case

The landmark Supreme Court ruling in Indian Council for Enviro-Legal Action v. Union of India (1996) stands as a cornerstone of Indian environmental jurisprudence, firmly cementing the Polluter Pays Principle into the nation's legal fabric. This pivotal judgment, now meticulously indexed on CaseOn, redefined corporate responsibility for environmental damage and championed the fundamental right to a clean and healthy environment, as enshrined in Article 21 of the Constitution. The case serves as a stark reminder of the devastating impact of unchecked industrial pollution and the judiciary's vital role in holding powerful entities accountable.

Case Background: The Poisoning of Bichhri Village

The case originated from a social action litigation filed by the Indian Council for Enviro-Legal Action, an environmentalist organization, on behalf of the residents of Bichhri, a small village in Udaipur, Rajasthan. The villagers' lives and livelihoods were shattered by the reckless operations of several private chemical industries (Respondents 4 to 8). These factories, primarily engaged in producing hazardous chemicals like 'H' acid, operated without the requisite permits, clearances, or effluent treatment plants.

The manufacturing process generated thousands of tons of highly toxic iron-based and gypsum-based sludge, along with corrosive 'mother liquor.' This hazardous waste was indiscriminately dumped in and around the factory complex. The toxic effluents were allowed to flow freely, percolating deep into the earth. The consequences were catastrophic: the groundwater and local streams turned dark and poisonous, rendering the water unfit for human or cattle consumption and the soil barren for cultivation. The pollution led to widespread disease, death, and the complete collapse of the village economy.

A Legal Battle for Life and Livelihood: The IRAC Analysis

The Supreme Court was faced with a complex situation involving blatant corporate negligence, regulatory failure, and a severe infringement of the villagers' fundamental rights.

The Core Issues at Stake

  1. Can a writ petition under Article 32 of the Constitution be maintained against private corporate bodies for causing environmental pollution?
  2. What is the extent of liability of an industry for the environmental damage caused by its hazardous operations?
  3. Which legal principle—Strict Liability or Absolute Liability—is applicable in such cases?
  4. Can the Court direct the Central Government to recover the costs of remedial measures from the offending industries?

The Governing Rules: Absolute Liability and Polluter Pays

The Court drew upon a robust legal framework to address these issues:

  • Article 21 of the Constitution: The Right to Life, which has been judicially interpreted to include the right to a clean, wholesome, and healthy environment.
  • Article 32 of the Constitution: The right to approach the Supreme Court directly for the enforcement of fundamental rights.
  • The Absolute Liability Principle: Established in the landmark M.C. Mehta v. Union of India (Oleum Gas Leak Case), this principle states that any enterprise engaged in a hazardous or inherently dangerous activity is absolutely liable to compensate all those affected by any harm, without any exceptions. This is a more stringent standard than the rule of Strict Liability laid down in the English case of Rylands v. Fletcher.
  • The Polluter Pays Principle: A universally recognized doctrine holding that the entity responsible for the pollution must bear the financial costs of preventing damage, carrying out remediation, and compensating victims.
  • The Environment (Protection) Act, 1986: Sections 3 and 5 empower the Central Government to take all necessary measures to protect the environment and issue directions, including those for recovering the costs of remedial action.

Analyzing the intricate legal arguments and the evolution from strict to absolute liability in rulings like this can be time-consuming. This is where legal tech platforms like CaseOn.in become invaluable. Their concise, 2-minute audio briefs on judgments such as Indian Council for Enviro-Legal Action v. UoI allow legal professionals to quickly grasp the core principles and judicial reasoning, saving critical hours of research.

The Supreme Court's In-Depth Analysis

The Court systematically dismantled the respondents' arguments and established their culpability based on overwhelming evidence from expert bodies like the National Environmental Engineering Research Institute (NEERI).

  • On Maintainability: The Court held that the petition was maintainable. While the polluters were private companies, the writ was primarily directed against the Central and State Governments and the Pollution Control Board for their failure to perform their statutory duties. This inaction directly violated the villagers' Right to Life under Article 21. The Court affirmed its power and duty to intervene and protect fundamental rights, regardless of whether the transgressor is a public or private entity.
  • On Liability: The Court emphatically rejected the older, more lenient doctrine of Strict Liability from Rylands v. Fletcher, which allows for exceptions. It declared that the principle of Absolute Liability, as laid down in the Oleum Gas Leak Case, was the governing law in India for hazardous industries. The Court reasoned that an enterprise that profits from a dangerous activity must bear the cost of any damage it causes as a part of its operational overheads. The harm to the villagers was a direct result of the respondents' activities, making them absolutely liable.
  • On the Polluter Pays Principle: The Court integrated this principle into its reasoning, stating that the responsibility for repairing the damage rests squarely with the offending industry. It found that the Environment (Protection) Act, 1986, provided the statutory teeth for the government to enforce this principle and recover remediation costs.

The Conclusive Verdict

The Supreme Court, finding the industries to be "rogue industries" that showed contempt for the law, delivered a powerful and decisive judgment:

  1. Absolute Liability Confirmed: Respondents 4 to 8 were held absolutely liable for the harm caused to the villagers, the soil, and the water sources.
  2. Closure of Industries: The Court ordered the immediate closure of all plants and factories operated by the respondents in Bichhri village.
  3. Cost of Remediation: The Central Government was directed to determine the total cost required for remedial measures (estimated by NEERI to be over ₹37 crores) and recover this amount from the respondents. The Court also ordered the attachment of the factories, plant, and machinery of the respondents to ensure the recovery of this amount.
  4. Damages for Villagers: The villagers were given the liberty to institute civil suits to claim damages for the losses they suffered.
  5. Call for Environment Courts: The Court also made a strong recommendation for the establishment of specialized Environment Courts to ensure the speedy and effective adjudication of environmental cases.

Final Summary of the Judgment

In essence, the Supreme Court in Indian Council for Enviro-Legal Action v. Union of India established a new paradigm for environmental justice in India. It took a stand for a poor, voiceless community against powerful industrial polluters. By upholding the Absolute Liability and Polluter Pays principles, the Court sent a clear message: environmental degradation for private profit is unacceptable, and those who pollute will be held financially and legally accountable for restoring the damage they cause. The judgment empowered government bodies to take punitive action and affirmed the judiciary's role as the ultimate guardian of the people's fundamental right to a clean environment.

Why This Judgment is an Important Read for Lawyers and Students

This case is essential reading for anyone in the legal field for several reasons:

  • Foundational Precedent: It is a foundational authority on the principles of Absolute Liability and Polluter Pays in India.
  • Judicial Activism: It is a classic example of judicial activism and the expansive interpretation of Article 21 to include environmental rights.
  • Public Interest Litigation (PIL): It showcases the power and potential of PIL as a tool for securing justice for marginalized communities and protecting the environment.
  • Corporate Accountability: It sets a high standard for corporate environmental responsibility and serves as a powerful deterrent against industrial pollution.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute legal advice. The content is a summary and analysis of a court judgment and should not be used as a substitute for professional legal consultation.

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