# M.C. MElITA & ANR. E'l'C v. UNION OF INDIA & <llS. E'l'C

- **Citation:** [1986] 1 S.C.R. 312
- **Court:** Supreme Court of India
- **Decided:** 1986-02-17
- **Bench:** P.N. Bhagwati, D.P. Madon, G.L. Oza
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/m-c-melita-anr-e-l-c-v-union-of-india-lls-e-l-c-9257
- **Pages:** 36

## Headnote

Public Interest Litigation and enviro!ll!l!nt law -
Power
of t~ Supreme Court to interfere under Article 32 of the
Constitution to permit the restarting of caustic chlorine
plant and under what conditions explained - Constitution of
Environment Court, need for - Water (Prevention and Control of
Pollution)
Act,
1974,
Air
(Prevention
and
Control
of
Pollution) Act, 1981 section 40(2) of Factories Act, 1948
section 430(3) Delhi Municipal Corporation Act,
1~57 and
section 133(1) of Code of Criminal Procedure, 1973.
r
Delhi Cloth Mills Ltd., a public limited company having
its reguterecl in Delhi runa an enterprise called Shriram
Pooda and Fertilizer Industries, which has several units
eagqecl in the 1181111factnre of caustic soda, chlorine, hydrochloric acid, 1table bleaching powder, superphosphate, vanaapati, aoap, 1ulphuric acid, alua anhydrous sodium sulphate,
high tut hypochlorite and active earth, These various units
are all Ht up in a si.ngle COIQ>lU situated in approxillately
76 acru and they are surrounded by thicltly populated colonies
Inch 11 Punjabi Bagh, Weat Patel Nagar, Karampura, Asholt ..
Vihar, · Trinqar, Shaetri Nagar and within a radius of 3 •
kil011etrea frOll thil complex there is a population of approrl-
~
utely 200,000. The cau1tic chlorine plant wu coraissioned in
the year 1949 and it has a strength of about 263 employees'
includiag executives, aupenisora, staff and work.era.
In the Wike of the Bhopal gas tragedy realising the
lluardoue character of eau1tic chlorine plant of Shrirma, the
Labour Mini1try of the Government of India cOlllliasioned
•tecbnica•, a f ira of couul tatl, Scientists and Engineer&• of
the United Xiaidoa who set out the areas of concern and
potential probl-, in their Report. Thereafter, the Dehi~'"
Adliiautration coutituted an Expert Comittee ·under the
Chair.a.hip of Mr.· llanohan Singh. This Coiiimittee Jllede
M.C. MEHTA v. U.O.I.
313
~l various recmmiendations in regard to safety and pollution
control measures with a view to minillising ltasard to the
workmen and the public.
On December 4, 1985, a major leakage of oleua gas toolt
place frOll one of the units of Shri Ru and this lealtags
. affected a large number of persons, both aongst the workmen
and the public and an Advocate practising in tlte Tis .Basari
Court died on account of inltalation of oleo11 gas. Thia leakage
resulted. from the borsting of tlte tank containing oleum gas aa
a result of the collapse of the structure on which it vu
1111unted and it· created a scare uongst tlte people residing in
that ares. Hardly had the pe0ple got out of the sltoclt of this
disaster, when within two days, another leakage, though thia
time a minor one toolt place as a result of escape of oleum gaa
froa the joints of a. pipe. The 1-diste response of the Delhi
Adminilitration to these two leakages was the ulting of, an
order dated 6th December '85 by the District Magistrate Delhi,
under sub-section (1) of section 133 of tlte Code of Criainal
"'· Procedure, directing and requiring Shriraa within two' days
from the date of issue of the order to cease carrying on the
occupation of 1111111ufacturing and processing ltasardona and
letltal chemicals and gases ilicluding chlorine, oleua, auperchlorine, phosphate etc. at their establishllent in Delhi and
within 7 days to remove such chemical• and gases from the said
place and not again to lteep or store tltea at the s- place or
to appear on
17th December 85
in
~he Court of District
Magistrate, Delhi to allow cause why the order should not .be
enforced. In the meantime, the "Agarwal Coami~tee" appointed
••
by the Supreme Court . visited the caustic chlorine plant and
submitted
a
Report
in
which it pointed · out
various
inadequacies in the plant and expressed the opinion that it
waa not possible to eliminate ltasard to the public so long as
the plant remained at.the present location.
Since there were conflicting opinions put forward in
regard to the question whether the caustic chlorine plant
should be

## Text

_Characters 0–39,234 of 86,406. This is a partial read: ask again with offset=39234 for what follows._

A
B
c
D
E
F
G
H
312
M.C. MElITA & ANR. E'l'C.
v.
UNION OF INDIA & <llS. E'l'C.
FEBRUARY 17, 1986
[P.N. BHAGWATI, C •. J., D.P. MADON AND G.L. OZA, JJ.]
Public Interest Litigation and enviro!ll!l!nt law -
Power
of t~ Supreme Court to interfere under Article 32 of the
Constitution to permit the restarting of caustic chlorine
plant and under what conditions explained - Constitution of
Environment Court, need for - Water (Prevention and Control of
Pollution)
Act,
1974,
Air
(Prevention
and
Control
of
Pollution) Act, 1981 section 40(2) of Factories Act, 1948
section 430(3) Delhi Municipal Corporation Act,
1~57 and
section 133(1) of Code of Criminal Procedure, 1973.
r
Delhi Cloth Mills Ltd., a public limited company having
its reguterecl in Delhi runa an enterprise called Shriram
Pooda and Fertilizer Industries, which has several units
eagqecl in the 1181111factnre of caustic soda, chlorine, hydrochloric acid, 1table bleaching powder, superphosphate, vanaapati, aoap, 1ulphuric acid, alua anhydrous sodium sulphate,
high tut hypochlorite and active earth, These various units
are all Ht up in a si.ngle COIQ>lU situated in approxillately
76 acru and they are surrounded by thicltly populated colonies
Inch 11 Punjabi Bagh, Weat Patel Nagar, Karampura, Asholt ..
Vihar, · Trinqar, Shaetri Nagar and within a radius of 3 •
kil011etrea frOll thil complex there is a population of approrl-
~
utely 200,000. The cau1tic chlorine plant wu coraissioned in
the year 1949 and it has a strength of about 263 employees'
includiag executives, aupenisora, staff and work.era.
In the Wike of the Bhopal gas tragedy realising the
lluardoue character of eau1tic chlorine plant of Shrirma, the
Labour Mini1try of the Government of India cOlllliasioned
•tecbnica•, a f ira of couul tatl, Scientists and Engineer&• of
the United Xiaidoa who set out the areas of concern and
potential probl-, in their Report. Thereafter, the Dehi~'"
Adliiautration coutituted an Expert Comittee ·under the
Chair.a.hip of Mr.· llanohan Singh. This Coiiimittee Jllede
M.C. MEHTA v. U.O.I.
313
~l various recmmiendations in regard to safety and pollution
control measures with a view to minillising ltasard to the
workmen and the public.
On December 4, 1985, a major leakage of oleua gas toolt
place frOll one of the units of Shri Ru and this lealtags
. affected a large number of persons, both aongst the workmen
and the public and an Advocate practising in tlte Tis .Basari
Court died on account of inltalation of oleo11 gas. Thia leakage
resulted. from the borsting of tlte tank containing oleum gas aa
a result of the collapse of the structure on which it vu
1111unted and it· created a scare uongst tlte people residing in
that ares. Hardly had the pe0ple got out of the sltoclt of this
disaster, when within two days, another leakage, though thia
time a minor one toolt place as a result of escape of oleum gaa
froa the joints of a. pipe. The 1-diste response of the Delhi
Adminilitration to these two leakages was the ulting of, an
order dated 6th December '85 by the District Magistrate Delhi,
under sub-section (1) of section 133 of tlte Code of Criainal
"'· Procedure, directing and requiring Shriraa within two' days
from the date of issue of the order to cease carrying on the
occupation of 1111111ufacturing and processing ltasardona and
letltal chemicals and gases ilicluding chlorine, oleua, auperchlorine, phosphate etc. at their establishllent in Delhi and
within 7 days to remove such chemical• and gases from the said
place and not again to lteep or store tltea at the s- place or
to appear on
17th December 85
in
~he Court of District
Magistrate, Delhi to allow cause why the order should not .be
enforced. In the meantime, the "Agarwal Coami~tee" appointed
••
by the Supreme Court . visited the caustic chlorine plant and
submitted
a
Report
in
which it pointed · out
various
inadequacies in the plant and expressed the opinion that it
waa not possible to eliminate ltasard to the public so long as
the plant remained at.the present location.
Since there were conflicting opinions put forward in
regard to the question whether the caustic chlorine plant
should be allowed to be restarted withont any real ltasard or
. risk to the woria.en and the public at large, another Expert
Comrlttee called "Nilay Chondhary Coamittee• vu constituted
by the Supreme Court, by its order dated 18th .Decaaber 85 •
. -I This Comittee visited the caustic . chlorine plant on Deceaber
· 28, 1985 and after considering Dr. Slater, llanaohan Singh
Coaitt..,, Agarwal Comrlttee and after bearing the parties
A
B
c
D
E
F
G
H
A
B
c
D
E
F
G
H
314
SUPREME COURT REPORTS
[19861 1 s.c.R.
ude a r:!pOrt setting·· out 14 rece>mEDdatiou which in its
opinion .rere required to be COllpliecl with by the unagemnt in
order to minimise the hazards due to possible chlorine leak.
The Committee also pointed out thst it was in ogre-nt with
the rec~ations ude in the l!eport of the llmmohan Singh
eo.!ttee which were exhaustive in nature and obviously the
re~tions ude by it in its l!eport were suppleMlltary
reco-ndation in addition to those contained in Maimohan
Singh Collllittee's Report.
In addition to these Comittees, the Lt. Governor of
Delhi also appointed an Expert Comittee called the •Seturaan
Collllittee• which submitted its l!eport on 3rd Jannary, 1986.
While these proceedings were going on before the Court,
an order dated 7th December 85 was issued by the Inspector of
Factories, Delhi in exercise of the poVer conferred under
section 40, sulMlection (2) of the Factories Act, 1948,
prohibiting Shrir1111 frOll using caustic chlorine and sulphuric
acid plants till adequate · safety •asures are adopted and
iminent danger to human life ia eliminated. Soon thereafte.r,
on December 13, 1985 a show cause notice was issued by the
Assistant Comissioner (Factories) of the ltJnicipal Corporatiop. of Delhi, calling upon Shrir1111 to show cause as to why
action for revocation of its licence should not be taken under
section 430, sub-section (3) of the Delhi Municipal Corporation Act, 1957 for violation of the terms and conditions of
the licence. Shriram showed cause, by its letter dated 23rd
December' 85, against the proposed cancellation of its licence
but by an order dated 24th December' 85, the Assistant eo.tssioner (Factories) directed Shriraa to stop industrial use of
the premises at which the chlorine caustic plant is located.
The result is that unless these two orders - one dated 7th
December 1985 and the other dated 24th December 1985 - are
vacated or suspended, Shrir1111 cannot restart ths caust le
chlorine plant. Hence the Shrirllll's Writ Petition challenging
the said two orders.
Suspending the operation of the two ordera ad-interill to
enable Shriram to restart the plants for unufacture of
caustic chlorine including its by products, the Court laid
down as 11any as eleven conditions, and
••
j
M.C •. MEHTA v. u.o.r.
315
mru>: 1. All Expert Collllllittees are unanimous in their
view that by adopting proper and adequate safety measures, the
element of risk to the workmen and the public can . only be
minimised, but it cannot be totally eliminated. The general
concensus of opinion of all the Expert Collllllittees is that
relocation of the caustic chlorine plant is the only long term
solution, if hazard to the community is to be completely
eliminated. lihether tile caustic chlorine plant should be
directed to be shifted or relocated . at a place where there
will be no hazard to the coammiW and if so, within what
time-frame, is a question which will require serious consideration and a National Policy will have to be evolved by the
Government for location of toxic or hazardous industries and a
decision will have to be taken in regard to relocation of such
industries with a view to eliminating risk to the cOlllllllllity
likely to arise from the operation of such · industries.
[325 B-D; 329 E-F]
A
B
c
· 1. 2 It is undoubtedly true that chlorine gas is ·
D
-""'I' dang'erous to the life and ·health of the COtmmlllity and it
. escape~ either from the storage tanks or from the filled
cylinders or from any other point in the cause of production,
it is likely to Sffect the health and .... 11 being of the
workmen and the people
in
the vicinity. Both Agarwal and
Manmohan Singh Colllllittees are agreed to their opinion that
E
chlorine is s hazardous gas and though smaller concentrations
of chlorine iii the air cause only an irritation and coughing,
longer concentrations whether 25 parts per million (PPM) or 40
parts per million (PPM) are likely to cause serious danger to
life. However, in view of the Report of yet another Expert
A Connittee (consisting of Dr. Manmohan Singh, Dr. Sharma, Prof.
F
P. Khanna & Shri Gharekhan) appointed for the purpose ·of
ascertaining whether the various recommendations made in the
earlier Reports were substantially complied with or not, aiid
taking into consideration that even the restarting of the
Vanaspati, refined oil plant and recovery plants like soap,
glycerine and technical hard oil, not involving any health
G
hazard, cannot be possible unless the caustic chlorine plant
is also restarted and severai other factors including the
PQ""r of the Board to renew or not to renew consent orders
under the Air Act. and Water Act, the balance of convenience
. ~would tilt in favour of Shriram to be· allowed to restart their
plants subject to certain stringent conditions.
[330 G-R;
H
331 C-D; 337 D-il]
A
B
316
SUPREME COURT REPORTS
[19861 l s.c.R.
1.3 Since cases
involving issues of environmental
pollution, ecological destruction and conflicts over natural
resources are increasingly coming up for adjudication and
these cases involve assessment and evolution of scientific and
technical data, it might be desirable to set up Enviornment
Courts on the regional basis with.one professional Judge and
two experts drawn from the Ecological Sciences Research Group
keeping in view the nature of the case and the expertise
required for its adjudication. There would of course be a
right of appeal to this Court from the decision of the
Environment Court. (345 H; 346 A-C]
c
ORIGINAL JURISDICTION : Writ Petition (Civil) Nos. 12739
D
E
of 1985' and 26 of 1986.
(Under Article 32 of the Constitution of 'India)
Anil B. Divan, Avadh Bihari, Danial Latifi, B. Datta,
Additional Solicitor General, M.C. Mehta (Petitioner-in-person); Ravinder Narain, S. Kashwaha, D.N. Mishra, S. Sukumaran
of J.B. Dadachanji & Co., Raju Ramachandran, R.D. Agarwala,
C.V.S. Rao, D. Kashwaha, R.N. Poddar, R. Mohan, B.P. Maheshwari, M.C. Dua, Ravinder Bana, A.K. Nauriya, R.S. Sodhi and
Ms. Kitty Kumaramanglam for the appearing parties.
The Judgment of the Court was delivered by
BllAQlATI, C.J. Writ Petition No. 12739 of 1985 which has
been brought by way of public interest litigation talses some
seminal questions concerning the true scope and alllbit of .Arts.
F ,
21 and 32 of the Constitution, the principles and norms for ~
determining the liability of large enterprises engaged in
manufacture and sale of hazardous products, the basis on which
damages in case of such liability should be quantified and
whether such large enterprises should be allowed to continue
to function in thickly populated areas and if they are
G
permitted so to function, what measures 1111st be taken for the
purpose of reducing to a minimum the hazard to the workmen and
the community living in the neighbourhood. These questions
which have been raised by the petitioner are questions of the
greatest importance particularly since, following upon the
leakage of MIC gas from the Union Carbide Plant in Bhopal, )<- -
H
lawyers, judges and jurists are considerably exercised as to
what controls, whether by way of relocation or by way of
M,C, MEHTA v. U.O.I. [BllAGWATI, C,J.]
317
_..\ ·installation of adequate safety devices, need to be imposed on
Corporations employing hazardous technology and producing
toxic or dangerous ·substances and if any liquid or gas escapes
which is injurious to the workmen and the people living in the
surrounding areas, on account of negligence or otherwise, what
is the extent of liability of such Corporations and what
remedies can be devised for enforcing such liability with a
view to securing payment of damages to the persons affected by
such leakage of liquid or gas. These questions arise in the
-1.
present case s irice on 4th and 6th Decemtier, 1985, there was
admittedly leakage of oleum gas from one of the units of .
Shriram Foods and Fertiliser· Industries and as a result of
such leakage, several persons were affected and according to
the petitioner and the Delhi Bar Association, one Advocate
practising in the Tis Hazari Courts died. We propose to hear
detailed arguments on these questions at a later date. But one
pressing issue which has to be decided by us immediately is
whether we should allow the caustic chlorine plant of Shriram
--.
Foods and Fertiliser Industries to be rest_arted and that is
the question which we are proceeding to decide in this
judgment.
I
Delhi Cloth Mills Ltd. is a public limited company
having its registered office in Delhi. It runs an enterprise
called Shriram Foods and Fertiliser Industries and this
enterprise has several units engaged in the manufacture of
caustic soda, chlorine, hydrochloric
acid, stable bleaching
powder, superphosphate, vanaspati, soap, sulphuric acid, alum
anhydrous sodium sulphate, high test hypochlorite. and active
••
earth. These various units 9re all set up in a single complex
situated in approximately 76 acres and they are surrounded by
thickly populated colonies such as Punjabi Bagh, West Patel
...
Nagar, Karampura, Ashok Vihar, Tri Nager and Shastri Nager and
within a redius of 3 kilometres from this complex there is
population of approximately 200,000. We are concerned in this
Order orily with the caustic chlorine plant. This pl~t was
commissioned in the year 1949 and it has a strength of about
263 employees including executives, supervisors, staff and
workers. It appears that until the Bhopal tragedy, no one
.neither the management of Shriram Foods
and
Fertiliser
Industries (hereinafter referred to as 'Shriram') not the
-'
Government seemed to have bothered at all about the hazardous
character of caustic chlorine plant of Shriram. But, it seems·
that the Bhopal disaster shook of the lethargy of everyone and
A
B
c
D
E
F
G
H
A
B
c
D
E
F
G
H
318
SUPREME COURT REPORTS
[19861 1 s.c.R.
triggered off a new wave of consciousness and every Government
became
alerted
to
the
necessity
of
examining
whether
industries
employing
hazardous
technology
and
producing
dangerous coDIDOdities were equipped with proper and adequate
safety and pollution control devices and whether they posed
any danger to the workmen and the co1D111nity living around
them.
The
Labour
Ministry of
the
Government
of
India
acco~dingly comnissioned 'Technica', a firm of Consultants,
Scientist& and Engineers of United Kingdom, to visit the
caustic chlorine plant of Shriram and make a report in regard
to the areas of concern and potential problems relating to
that plant. Dr. Slater visited the caustic chlorine plant on
behalf of Technica sometime in June-July 1985 and submitted a
report to the Government of India summarising the initial
impressioiw f<mned during his visit and subsequent dialogue
with the management and with one Mr. Harries. This report was
admittedly not an indepth engineering study but it set out the
preliminary conclusions of Dr. Slater in regard to the areas
of concern and potential problems. We do not propose to rP.ly
very 1111ch on this report since it is a preliminary report.
It appears that a question was raised in Parliament
sometime in March 1985 in regard to the possibility of major
leakage of liquid chlorine from the caustic chlorine unit of
Shriram and of danger to the lives of thousands of workers and
others. The Minister of Chemicals and Fertilizers, in answer
to this question, stated in the floor of the House that the
Governmerit of India was fully conscious of the problem of
hazards from dangerous and toxic processes and assured the
House that the necessary steps · for · securing observance of
safety standards would be taken early in the interest of the
workers and the general public. Pursuant to this assurance,
the Delhi Administration constituted an Expert Comnittee
consisting of Shri Maruoohan Singh,
Chief Mansger,
IPCL,
BARODA, as Chairman and 3 other persona as Members to go into
the
existence of safety and
pollution control measures
covering all aspects such as storage, manufacture and handling
of chlorine in Shr!ram and to suggest measures necessary for
strengthening safety and pollution control arrangements with a
view to eliminating community risk.
The
Maruoohan
Singh
Comnittee visited the caustic chlorine plant and inspected
various operations including storage tanks, cylinders and
tonners and obtained detailed information from the lilanagement
and after a thorough and exhaustive inquiry,
submitted its
Report to the Government. This Report is a detailed Report
••
>
·-.j
M.C. MEHTA v. U,0,1,
[BHA~ATI, C.J,)
319
dealing exclusively with the caustic chlorine plant and considerable reliance 111.lst, therefore, be
placed upon it. The
Manmohan Singh Committee made various recommendations in this
Report in regard to safety and pollution control measures with
a view to minimising hazard to the workmen and' the public and
obviously the caustic chlorine plant cannot be allowed to be
restarted unless these recommendations are strictly complied
with by the management of .shriram.
Now, on 4th December, 1985 a major leakage of oleum gas
took place from one of the units of Shriram and this leakage
affected a large number of persons, both amongst the workmen
and the public, and, according to the petitioner, an Advocate
practising in the Tis llazari Courts died on account of
inhalation of oleum gas. This leakage resulted from the
bursting of .the tank containing oleum gas as a result of the
collapse of. the structure on which it was mounte and it created a scare amongst the people residing in that area. Hardly
had. the people got out of the shock of this disaster when,
within two days, another leakage, though this time a minor
one, took place as a result of escape of oleum gas from the .
joints of a pipe. The immediate response of the Delhi Administration to these two leakages was the making of an Order dated
6th December 1985 by the District Magistrate, Delhi Under
sub-s.(l) of s.133 of the Code of Criminal Procedure, directing and requiring Shriram within two days from the date of
issue of the order to cease carrying on the occupation of
manufacturing and processing hazardous and lethal chemicals
and gases including chlorine, oleum, super-chlorine, phosphate, etc. at their establishment in Delhi and within 7 days
_to remove such chemicals and gases from the said place and not
again to keep or store them at the same place or to appear · on
17th December 1985 in the court of the District Magistrate,
Delhi to show cause why the order should not be enforced. When
we took up the writ petitions for hearing on 7th December
1985, our attention was drawn to this order made by the
District Magistrate, Delhi on 6th December 1985 and on perusing the order we pointed out the inadequ_acies in it which had
the effect of virtually defeating the urgency of the action to
be taken. We had earlier appointed a team of Experts. to visit
the caustic chlorine plant of Shriram and to report whether
the recommendations of the Manmohan Singh Committee had been
carried out by the management and this team of Experts orally
reported to us at the hearing on 7th December, 1985 that they
A
B
'
c
D
E
F
G
H
A
B
c
D
E
F
G
H
320
SUPREME COURT REPORTS
[1986] 1 s.c.R.
had been able to inspect the plant for only a couple of hours
and that cursory inspection showed that msny of the recommendations of the Manmohan Singh Committee appeared to have been
complied with and that too two one hundred MT tanks for
storage of chlorine which constituted a major element of
hazard or risk had been emptied. Since this inspection made by
the team of Experts had necessarily to be very hurried and
superficial on account of want of sufficient time, we adjourned the writ petition to 13th December, 1985 with a direction
that the petitioner would be entitled to appoint his own team
of experts who would be allowed access to the cauatic chlorine
plant for the purpose of
ascertaining whether the various
recommendations of the Manmohan Singh Committee had been
carried out or not and whether there were any other drawbaclts
or deficiencies likely to endanger the lives of workmen and
the public. We also, with a view to expediting adjudication of
claims for compensation on behalf of the victims of oleum gas
leakage, appointed the Chief Metropolitan Magistrate as the
Officer before whom claims for compensation may be filed by
persons affected by leakage of oleum gas in the course of the
two incidents referred to above and we fixed time of four
weeks within which such claim ~f compensation may be filed
before the Chief Metropolitan Magistrate, Delhi. We may point
out that subsequently by an Order dated 10.1.1986 we extended
the time for filing of compensation claims upto
January
31,1986. We also by our Orders dated 16.1.1986 and 21.1.1986
gave a further direction that those who file compensation
claims before the Chief Metropolitan Magistrate, Delhi should
be got examined by a team of Medical Experts and this task was
entrusted to the Secretary of the Delhi State Legal Aid and
Advice Board. This direction was given by us with a view to
ensuring that contemporaneoua medical evidence of the injuries
suffered by the claimants and of the cause of such injury
should be available in support of the claims for compensation
lodged by the v'-ctims of oleum gas leakage.
Pursuant to the liberty given by us, the petitioner
appointed an Expert Committee consisting of Dr. G.D. Agarwal,
Professor T. Shivaji Rao and Shri Purkayastha. This Committee,
which we. shall hereafter refer to as the 'Agarwal Committee',
visited the caustic chlorine plant and submitted a Report to
this Court in which it pointed out various inadequacies in \r
the plant and expressed the opinion that it waa not possible
M.C. MEHTA v. U.O.I. [BHAGWATI, C.J.]
321
•. to eliminate hazard to the public so long as the plant
·remained at the present location.
Since there were conflicting opinions put forward before
us in regard to the question whether the caustic chlorine
plant should be allowed to be restarted ·without any real
hazard or ris.k to the workmen and the public at large, we
thought it desirable to appoint an independent team of Experts
to assist us in this task. We accordingly by an Order dated
18th December, 1985 constituted a Committee of Experts consisting' of Dr. Nilay Choudhary as Chairman and Dr. Aghoranurty
and Mr. R.K. Garg as Members to inspect the caustic chlorine
plant and submit a report to the Court on the following three
points :
1. Whether the plant can be allowed to recommence
the operations in its present state and condition?
2. If not, what are the measures required to .be
adopted against the hazard or possibility of leaks,
expl'osion, pollution of air and water etc., for
this purpose?
3. How many of the .safety devices against the above
hazards and possibility exist in the plant
at
present and which of them, though necessary, are
not installed in the pl~t.
This Committee of Experts to which we shall hereafter,
for the sake of convenience,, ·refer to as 'Nilay Choudhary
Committee', visited the caustic chlorine plant on December 28,
1985 and after considering the Reports of Doctor Slater,
Manmohan Singh Committee and Agarwal ·Committee and hearing the
parties made a report to the Court setting out 14 recommendations which in its opinion were r~quired to be complied with
by the management in order to minimise the hazards due to
possible chlorine leak. Nilay Choudhary Committee pointed out
that it was in agreement .with the recommendations made in the
Report of the Manmohan Singh Committee which were exhaustive
in nature and obviously the recommendations made by it in its
Report were supplementary recommednations in addition to those
contained in Manmohan Singh Cpmmittee's Report.
We have thus two major Reports, one of Maruoohan Singh
A
B
c
D
E
F
G
H
A
322
SUPREME COURT REPORTS
11986] ·1 s.c.R.
Comml.thtee and thnde other of iNihlay Choudhary Committee, setting ••
out t e recomme ations wh c
1111st be complied with by the
management of Shriram in order to minimise the hazard or risk
which the caustic chlorine plant poses to the workmen and the
public. The question is whether these recommendations have
been complied with by the management of Shriram, for it is
B
only if these recommendations have . been carried out that we
can possibly consider whether the caustic chlorine plant
should be allowed to be restarted.
c
D
E
F
G
H
There is also one other report to which we 1111st refer in
this connection and that is the Report made by the Expert
Comml.ttee appointed by tl\e Lt. Governor of Delhi foliowing
upon the leakage of oleum gas on 4th December 1985, Since the
leakage of oleum gas caused' serious public concern, the Lt.
Governor of Delhi constituted an Expert committee consisting
of Shri N.K. Seturaman as Chairman and four other experts as
members to go into the causes of spillage of oleum and its
after-effects, to examine if inspection and safety procedures
prescribed under the existing laws and rules were followed by
Shriram, to fix responsibility for the leakage of oleum gas,
to review the emergency plans and measures for containment of
risk in the event of occurrence of such situations and for
elminati0n of pollution, to examine any other aspects that may
have a bearing on safety pollution control and hazard to the 1
public from
the factory of Shriram,
to make
specific
recommendations with a view to achieving effective pollution
control and safety measures in the factory and to advise
whether the factory should be shifted away from its present
location in densely populated area. This Committee to which we .-
shall hereafter refer to as the "Seturaman Committee" made an
on the spot inspection of the site of the factory and after
obtaining the required information about the plant submitted a
Report on 3rd January 1986, This Report, it_ must be conceded,
deals primarily with the safety procedures in the sulphuric
acid plant from which there was oleum gas leakage and is not
based on any indepth review and study of safety and pollution
control measures in the caustic chlorine plant. But even so it
does contain some obserVations which have relevance to the
question whether the caustic chlorine plant poses any hazard
to the coDmJnity and what steps or measures are necessary to
be taken to minimise the risk ,to the people living in the ,..
vicinity.
M.C. MEHTA v. u.o.I. [BHAGWATI, c.J.]
323
It is necessary at this stage to point out that whilst
these proceedings were going on before the Court, an order
dated 7th December 1985 was issued by the Inspector of
Factories, Delhi in exercise of the power conferred under
Section 40 sub-section (2) of the· Factories ·Act, 1948. The
order commenced with the following recital, viz.,
"Whereas it has
appeared to me
that Cauatic
chlorine plant
and sulphuric acid plants are
running without adequate safety measures being
adopted by your management, thereby endangering the
human life and safety of the workers and the public
A
B
at large. Earlier.notices of the Labour Department
C
asking your management to ensure proper safety
measures has not been complied with. fully; and
Whereas inapite of your management '·s assurances
vide letter dated 14,10,1985, on 4.12,85, non
adoption of the adequate safety measures have
o
~esulted in collapse of the structure on which
oleum tank was munted resulting in the massive
leakage of oleum cauaing fumes in the environment
affecting the health and safety of a large number
of residents of the Union Territory of Delhi; and
Whereaa the factory is not still having adequate
safety measures required for such plants."
and prohibited Shriram from using the caustic chlorine and
·
sulphuric acid plants till adequate safety measures are
11111...
adopted and imminent danger to human life is eliminated. Soon
r· thereaft'er, on December 13, 1985, a show-cause notice was
issued by the Assistant Commissioner (Factories) of the
Municipal
Corporation- of Delhi calling upon
Shriram to
-show-cauae as to why action for revocation of its licence
should not be taken under Section 430 sub-section (3) of the
Delhi Municipal Corporation Act, 1957 for violation of the
terms and conditions of the licence. Shriram by its letter
dated 23rd December, 1985 showed cause against the proposed
cancellation of its licence but by an Order dated 24th
December 1985, the Assistant Commissioner (Factories) directed
Shriram to stop industrial uae of the premises at which the
'<I chlorine cauatic plant is located. The result is that unless
these two orders - one dated 7th December 1985 and the other
E
F
G
H
•
A
B
c
D
E
F
G
H
324
SUPREME COURT REPORTS
[1986 J 1 s.c.R.
dated 24th December 1985 - are vacated or suspended, Shriram
cannot be allowed to restart the caustic chlorine plant.
We may first consider what has been said by the various
Expert Committees in regard to the relocation of the caustic
Chlorine plant. All the Expert Committees are unanimous in
their view that by adopting proper and adequate safety
measures the elements of risk to the workmen and the public
can only be minimised but it cannot be totally eliminated. Or.
Slater has in the last part of his Report pointed out that
,.
inspection of the caustic chlorine plant revealed "a worrying
,.
state of affairs" and he was of the opinion that the plant was
liable to be "classed as a major hazard facility by applying
most of the currently accepted definitions" and it did not
"measure up to the responsibilities incumbent upon operators
of such plants to safeguard both public and employees so far
as is reasonably practicable." He made various reco11111endations
which in his opinion were required to be complied with by
Shriram and he added that if a substantial improvement in
safety was not possible or rapidly forthcoming along the lines
r·
of these recommendations "the authorities should consider
constraining its activities
to protect the public
and
employees". He concluded by observing that "relocation is the
only practicable long tem option which would guarantee the
complete removal of the colllilllnity risk". The Maruoohan Singh
Committee also observed towards the end of its Report that
"total elimination of risk to the co1D111ity i.e. human
population from toxic plant hazardous industry located in
close proximity is improbable. However, the probability of
risk can be immensely reduced if the plant is run with adequate precautions , " and proceeded to make various reconmenda-
...
tionB for "strict and immediate compliance with an object to ,
minimise risk to the workers and the population around"•
Seturaman's Committee also pointed out in paragraph 10,8,1. of
its Report that Shriram factory "is certainly a perennial
•ource of hazard to the community. These hazards cannot be
completely eliminated but could be minimised by strict
compliance of safety regulations. Giving due weight to the
hazard aspects as mentioned above and taking into account the
safety of the community as a whole," the Manmohan Singh
Committee observed that functioning of the SEFI in the present
location is not desirable. So also Aggarwal Committee opined
that "under so many uncertain factors a chlorine manufacturing ,.....
unit cannot be even reasonably safe when located in proximity
M.C. MEHTA v. u.o.I. [BHAGIATI, C.J.]
325
A
) to a densely populated area. In the circumstances, the only
practical solution is to relocate the chlorine plant at least
-~-
10 k.ms. away from the urban limits of densely populated areas
with
adequate safety measures." Finally Nilay Choudhary
Committee also stated that even if all the recommendations
made in its Report as also in the Report of Marunohan Singh
Committee were carried out, "the risk due to major release of
chlorine could only be reduced but not completely eliminated.
Complete elimination of the risk to the population at large
obviously lies in relocation of the plant in an area without
human habitation." It will thus be seen that the general
concensus of opinion of all the Expert Committees is that
relocation of the caustic chlorine plant is the only long term
solution if hazard to the collllll1nity is to be completely
eliminated. We have therefore decided to hear arguments on the
question as to whether the caustic chlorine plant should be
directed to be shifted and relocated at a place where there
will be no hazard to the community and if so, within what time
frame. This is a question which will require serious cons!-
deration and a National Policy will have to be evolved by the
Government for location of toxic or hazardous industries and a
decision will have to be taken 1n regard to relocation of such
industries with a view to eliminating risk to the community
likely _to arise from the operation of such industries.
But
B
c
D
the immediate question which we have to consider is whether
E
the caustic chlorine plant of Shriram .should be allowed to be
reopened and if so, subject to what conditions, keeping in
mind constantly that the operation of the caustic chlorine
plant does involve a certain amount of hazard or risk to the
community.
Now it is an admitted fact that the caustic chlorine
plant was set up by Shriram more than 35 years ago and whatever might have been the situation at the time when the plant
was installed, it cannot be disputed that, at present, largely
owing to the growth and development of the city, there is
sizable population living in the vicinity of the plant and
there is therefore hazard or risk to large numbers of people,
if, on account of any accident, whether occasioned by negligence or not, chlorine gas escapes. The various Expert Connnittees appointed by the Government as well as by the Court
F
G
-~learly emphasise the
danger to the comm.mity living in the
H
A
II
c
D
E
F
G
H
326
SUPREME COURT REPORTS
[1986] i s.c.R.
vicinity of the caustic chlorine plant if there is exposure to ;.
chlorine gas through an accidental release which may take
place on account of negligence or other unforeseen events. Now
it is evident from the reports of the Expert Committees - and
on this aspect of the matter they are all unanimous that there
was considerable negligence on the part of the management of
Shriran in the maintenance and operation of the
caustic
chlorine plant and there were also defects and drawbacks in
its structure and design. The report of Dr. Slater which is
the first report in the series clearly pointed out that the \-
safety policies, practices and awareness on the part of the
management needed to be addressed urgently and added inter
alia that the effectiveness and availability of the design and
emergency arrangements was, to say the least, questionable and
in the real emergency involving a major spill, the measures
would probably prove ineffective in limiting serious consequences inside and outside the plant. He also added that the
standard of housekeeping and training among the operational
staff ·was not good and it was symptomatic of inadequate aware- ,..
ness of the importance of safety devices and the scale ·of
potential consequences follo11ing "loss of containment". He
also reiterated that the manner in which the caustic chlorine
plant was being maintained and operated did not "measure up to
the responliblities incumbent upon operators of such plants".
So also the report of Manmohan Singh Committee pointed out
various drawbacks and deficiencies in the structure and design
of the caustic chlorine plant as also in its maintenance and
operation and made various detailed recommendations which in
the opinion of the Manmohan Singh Committee needed to be
strictly and scrupulously carried out, if the risk to the
workers and the population in the vicinity was to be mini-.; ..
mised.
The Nilay Choudhary Committee also made
several ·
,.
recommendations in order to minimise the hazard due
to a
possible leakage of chlorine gas. The management of Shriram
claimed that all these recommendations made in the reports of
Manmohan singh committee and Nilay Choudhary Committee had
been carried out by Shriram and the possible hazard to the
workers and the community living in the vicinity was almost
reduced to nil and that Shriram should therefore be allowed to
reopen the caustic chlorine plant. The management of Shriram
made it clear that they did not intended to restart immediately their plants manufacturing Sulphuric Acid,
Ole~
Chloro-sulphonic Acid, Super Phosphate and Granulated Fertiliser
Ferric Alum and Active Earth. ·Since these plants were
M.C. MEHTA v. U,Q,I, [BHAGWATI, C,J,]
327
) under detailed engineering audit and that out of these plants
Double Conversion Double Absorption sulphur~c Acid plant and
Ferric Alum and Active Earth plants would be started in the
second phase "after attending to immediate maintenance needs"
and that so far as the other plants were concerned, the
schedule restarting would be communicated later. The · only
plants in respect of which Shriram sought the permission of
the Court to restart were the power plant and the plants
manufacturing vanaspati and
refined oil including its byproducts
and
recovery
plants
like soap,
glycerine
and
technical hard oil and the caustic chlorine plant including
plants manufacturing by-products
such as sodium sulphate,
hydrochloric acid, stable bleaching powder, superchlor, sodium
hypochlorite and container works.
Our directions in· the
present judgment 11J.1st therefore necessarily be confined only
to these plants which Shriram wants to restart immediately and
we may make it clear that so far as other plants which Shriram
does not propose to restart immediately are concerned,
they
shall not be restarted by Shriram without obtaining further
.....,
directions from the Court, particularly since the machinery
and equipment in some of these plants is as pointed out in the
report of Seturaman Committee old and worn out and the safety
instrumentation is not adequate and the CoUrt would therefore
have to be satisfied that the machinery and equipment is
properly renovated and its design and structure modernised
with a· view to ensuring maximum safety before the Court can
permit these plants to be recommissioned. Now, of course,
there could be no objection to the restarting to the vanaspati
and refined oil plant and other recovery plants like soap,
glycerine and technical hard oll, because
they admittedly do
not involve any risk or hazard to the community but these
plants obviously cannot be restarted by the manageruent of
Shriram unless and until the caustic chlorine plant is also
allowed to be reopened, because hydrogen is needed for the
vanaspati and refined oil plant and hydrogen would not be
available unless the caustic chlorine plant is put into
operation.