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Supreme Court of India

M.C. MEHTA & ANR. ETC.versusUNION OF INDIA & ORS. ETC.

Citation
1986 INSC 19
Decided
17 February 1986
Disposal
Disposed off

Holding

The Supreme Court held that the caustic‑chlorine plant may be restarted provided that all safety recommendations of the expert committees are complied with and the plant is operated under the strict conditions enumerated by the Court, while the prohibitory orders are suspended pending further compliance.

Summary

The Supreme Court examined a public‑interest writ petition filed by environmental activist M.C. Mehta on behalf of Delhi residents challenging two orders that prohibited Shriram Foods & Fertiliser Industries from operating its caustic‑chlorine plant in a densely populated area of Delhi. After a series of oleum‑gas leaks in December 1985, the District Magistrate, the Inspector of Factories and the Assistant Commissioner (Factories) had ordered the plant’s shutdown under the Code of Criminal Procedure, the Factories Act and the Delhi Municipal Corporation Act. Multiple expert committees (Manmohan Singh, Agarwal, Nilay Choudhary, Seturaman) examined safety and pollution‑control measures and recommended relocation, but the management claimed compliance with their recommendations. The Court, after appointing a further expert committee that found substantial compliance, held that the plant could be restarted provided stringent safety, monitoring and compensation conditions were imposed, and it suspended (but did not vacate) the earlier prohibitory orders. The judgment also directed temporary water‑consent renewal, continuous oversight by expert and factory inspectors, and suggested the creation of specialised environmental courts and a national policy for locating hazardous industries.

Issues considered

  • Whether the caustic‑chlorine plant can be allowed to restart despite the risk of chlorine leakage
  • Whether the orders issued under the Factories Act and the Delhi Municipal Corporation Act should be vacated or suspended
  • What conditions, if any, must be imposed to ensure safety of workers and the surrounding community
  • Whether relocation of the plant is required under environmental and public‑health considerations
  • How the Water (Prevention and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981 apply to the plant’s operations
  • Liability for compensation to victims of the oleum‑gas leaks

Legislation cited

Subjects

public interest litigationenvironmental lawhazardous industrychlorine plantindustrial safetypollution controlArticle 32Supreme Courtexpert committeesrelocationcompensation

Judgment

    312
A
                        M.C. MElITA & ANR. E'l'C.
                                   v.
                      UNION OF INDIA & <llS. E'l'C.

                           FEBRUARY 17, 1986
B         [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
c   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

D         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, hydro-
    chloric acid, 1table bleaching powder, superphosphate, vanaa-
    pati, aoap, 1ulphuric acid, alua anhydrous sodium sulphate,
E   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- ~
F   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
G   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
H
                          M.C. MEHTA v. U.O.I.                    313

                                                                         A
 ~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          B
    . 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    c
      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      D
 "'· 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, auper-
      chlorine, phosphate etc. at their establishllent in Delhi and
      within 7 days to remove such chemical• and gases from the said     E
      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.
                                                                         F




             Since there were conflicting opinions put forward in
       regard to the question whether the caustic chlorine plant         G
       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        H
       Coaitt..,, Agarwal Comrlttee and after bearing the parties
    314                  SUPREME COURT REPORTS      [19861 1 s.c.R.

A
    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
B   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
c   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,
D   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 Corpora-
    tiop. of Delhi, calling upon Shrir1111 to show cause as to why
E   action for revocation of its licence should not be taken under
    section 430, sub-section (3) of the Delhi Municipal Corpora-
    tion 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

F
    but by an order dated 24th December' 85, the Assistant eo.ts-
    sioner (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
G   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
H
                              M.C •. MEHTA v. u.o.r.                 315

                                                                            A
  j
               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     B
         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 consider-
         ation and a National Policy will have to be evolved by the
         Government for location of toxic or hazardous industries and a     c
         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]

                · 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]
     316                  SUPREME COURT REPORTS      [19861 l s.c.R.

A
           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
B    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
     of 1985' and 26 of 1986.

           (Under Article 32 of the Constitution of 'India)

           Anil B. Divan, Avadh Bihari, Danial Latifi, B. Datta,
D    Additional Solicitor General, M.C. Mehta (Petitioner-in-per-
     son); 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. Mahesh-
     wari, M.C. Dua, Ravinder Bana, A.K. Nauriya, R.S. Sodhi and
     Ms. Kitty Kumaramanglam for the appearing parties.
E
           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

                                                                                A
        _..\ ·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          B
              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      c
              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          D
              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              E
           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
                                                                                F


           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         G
           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·       H
           that the Bhopal disaster shook of the lethargy of everyone and
        318                  SUPREME COURT REPORTS      [19861 1 s.c.R.


A       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
B       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
c       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
D       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
E       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


    F
        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
    G   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
    H   and after a thorough and exhaustive inquiry, submitted its
        Report to the Government. This Report is a detailed Report
                 M.C. MEHTA v. U,0,1, [BHA~ATI, C.J,)            319

                                                                        A
   dealing exclusively with the caustic chlorine plant and consi-
   derable 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         B
   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   c'
   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 creat-
   ed a scare amongst the people residing in that area. Hardly
   had. the people got out of the shock of this disaster when,     D
   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 Adminis-
   tration 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, direct-   E
   ing 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, phos-
      phate, etc. at their establishment in Delhi and within 7 days
     _to remove such chemicals and gases from the said place and not    F
      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 perus-     G
      ing 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
·-.j carried out by the management and this team of Experts orally
                                                                        H
      reported to us at the hearing on 7th December, 1985 that they
    320                  SUPREME COURT REPORTS    [1986] 1 s.c.R.

A
    had been able to inspect the plant for only a couple of hours
    and that cursory inspection showed that msny of the recommen-
    dations 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
B   the team of Experts had necessarily to be very hurried and
    superficial on account of want of sufficient time, we adjourn-
    ed 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
c   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
D   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
E   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
F   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.

G         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
H   the plant and expressed the opinion that it waa not possible
                M.C. MEHTA v. U.O.I. [BHAGWATI, C.J.]          321

                                                                     A
•. 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         B
   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 con-
   sisting' 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     c
   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       D
              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          E
              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,    F
   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 recommenda-
   tions 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     G
   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.
                                                                     H
        We have thus two major Reports, one of Maruoohan Singh
    322                   SUPREME COURT REPORTS       11986] ·1 s.c.R.

A
    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.

         There is also one other report to which we 1111st refer in
    this connection and that is the Report made by the Expert
c   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
D   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

E
    elminati 0n of pollution, to examine any other aspects that may
    have a bearing on safety pollution control and hazard to the
    public from the factory of Shriram, to make specific
                                                                             1
    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 . -
F   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
G   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 ,..
H   vicinity.
                       M.C. MEHTA v. u.o.I. [BHAGWATI, c.J.]          323

                                                                             A
                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.,                 B

                     "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
                     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
                                                                             E
                     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...
r·          adopted and imminent danger to human life is eliminated. Soon
            thereaft'er, on December 13, 1985, a show-cause notice was
            issued by the Assistant Commissioner (Factories) of the
                                                                             F


            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       G
            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      H
            these two orders - one dated 7th December 1985 and the other
                                                                     ,.
    324                 SUPREME COURT REPORTS     [1986 J 1 s.c.R.

A
    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
B   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
c   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
D   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
E   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 ade-
F   quate 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
G    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
H    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      B
    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   c
    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!-      D
-~-
    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
    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.
                                                                     F
        Now it is an admitted fact that the caustic chlorine
   plant was set up by Shriram more than 35 years ago and what-
   ever 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        G
   there is therefore hazard or risk to large numbers of people,
   if, on account of any accident, whether occasioned by negli-
  gence or not, chlorine gas escapes. The various Expert Connnit-
   tees appointed by the Government as well as by the Court
 -~learly emphasise the danger to the comm.mity living in the
                                                                     H
     326                  SUPREME COURT REPORTS     [1986] i s.c.R.

A
     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
II   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
c    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 consequ-
     ences inside and outside the plant. He also added that the
     standard of housekeeping and training among the operational
D    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".
E    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
F    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
 G   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 imme-
     diately their plants manufacturing Sulphuric Acid, Ole~
 H   Chloro-sulphonic Acid, Super Phosphate and Granulated Fertili-
     ser Ferric Alum and Active Earth. ·Since these plants were
                 M.C. MEHTA v. U,Q,I, [BHAGWATI, C,J,]            327

                                                                         A
    ) 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       B
       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 by-
       products 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    c
       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       D
....., 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        E
       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         F
       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. The question which therefore requires to be consi-     G
       dered is whether all the recommendations made in the reports
       of Manmohan Singh Committee and Nilay Choudhary Committee in
       regard to the caustic chlorine plant have been carried out by
       the management of Shriram and if so, whether Shriram should be
       allowed to restart the caustic chlorine plant.
~                                                                        H
    328                  SUPREME COURT REPORTS     [1986] 1 s.c.R.

A
          Since there _was considerable controversy between the >.
    parties as to whether the recommendations made in the report
    of Marunohan Singh Committee and Nilay Choudhary Conmittee had
    been carried out by the management of S\lriram and a notice
    dated 28th January, 1986 issued by the Inspector of Factories
    (Delhi) to the management of Shriram set out seven of these
    recommendations in respect of which the Inspector of Factories
B
    did not appear to be satisfied as to whether they had been
    complied with or not and a dispute was also specifically
    raised in the affidavit of Mrs. M.Bassi, Joint Labour Commis-
    sioner, Delhi Administration, dated 31st January, 1986 in
    regard to compliacne with the recommendations of Manmohan
    Singh Conmittee set out in paragraph 3 and the recommendations
c   of Nilay Choudhary Committee set out in paragraph 4 of the
    affidavit, the Court decided to appoint another Expert
    Conmittee for the purpose of ascertaining whether the various
    recommendations made in the reports of Manmohan Singh
    Comnittee and Nilay Choudhary Conmittee had been complied with
    by the management. The Court accordingly made an order on .,...
D
    31st January, 1986 appointing a Committee consisting of Shri
    Manmohan Singh, Professor P, Khahna, Dr. Sharma and Shri
    Gharekhan to visit the site of the caustic chlorine plant of
    Shriram and report to the Court whether the recommendations
    contained in the reports of Manmohan Singh Committee and Nilay
    Choudhary Conmittee had been complied with by the management
E
    of Shriram and even if there was no strict compliance with any
    of these recommendations, whether the measures adopted by the
    management of Shriram were sufficient to meet the requirements
    set out in the reports of Manmohan Singh Conmittee and Nilay
    Choudhary Conmittee. It seems that Professor P.·Khanna .could
    not make his services available with the result that the
F                                                                  i -
    assignment entrusted by us by our order dated 31st January,        ·~
    1986 had to be carried out by a Conmittee consisting of only
    three persons, namely, Shri Manmohan Singh, Dr. Sharma and
    Shri Gharekhan. The Committee inspected the caustic chlorine
    plant of Shriram and submitted its report dt. 3rd February,
    1986 showing the status of compliance of the recommendations
G
    made by the Manmohan Singh Conmittee and Nilay Choudhary
    Committee. The report showed that barring the construction of
    a shed on the space where filled cylinders are to be kept,
    which construction is expected to be complete by 15th March,
    1986, all the recommendations made in the reports of Manmohan y
    Singh Conmittee and Nilay Choudhary Conmittee have been.
H
                      M.c. MEHTA v. u.o.r. [BHAGWATI, C.J.)                329

                                                                                  A
   ,i   coqilied with by the management of Shdrsm. The hydraulic test
        carried out by Messrs. Nike Associates, Bombay, a firm recog-
        nised by the Chief Inspector of Factories, Bombay as 'compe-
        tent person' to take up the responsibilities of testing, exa-
        min·ing and issuing certificate in respect of pressure vessels
        a.l.so established that all the five tanks had an adequate capa- B
        city of withstanding pressure. Since however the authorities
        wanted a . hydraulic test to be carried out once again by the
        Regional Testing Centre, Olthla, the management of Shrirsm got
 --'    a fresh .test carried out by the Regional Testing Centre and
        the certificate issued by the Regional Testing Centre dated
        4th February, 1986 ~bowed that all the five tanks were found
        to be strong enough to withstand pressure of 375 dsig. for       c
        thirty minutes' duration. The Committee also insisted that not
        more than 140 filled chlorine cylinders should be stored and
        the report shows that this limitation has been accepted by the
        management of Shrirsm. The Committee also witnessed a mock-
        drill with a view to ensuring whether there was a specially
  -r    trained group to handle any chlorine leakage emergency and the   0
        Colllllitte.. stated in the report that the mock-drill was found
        to be satisfactory. There were also one or two other recommen-
        dations in respect of which the Committee observed that
        compliance with them could be tested only during the operation .
        of the plant.
                                                                                  E
                   ' question is whether in view of the fact that all the
                  The
            recommendations m8de in the Reports of Manm:>han Singh Commit-
            tee and Nilay Choudhary Committee have now been complied with
            by the management of Shrirsm, the caustic chlorine plant of
            Shrirsm should be aliowed to be restarted. The petitioner who
   ·- -t appeared in person submitted vehemently and passionately that            F
~/          the court should not· permit the caustic chlorine plant to be
            restarted because there was always an element of hazard or
            risk to the c0111111111ity in its operation. He urged that chlorine
            ts a dangerous gas and even if the utmost care is taken the
            possibility of its accidental leakage cannot be ruled out and
            it would therefore be imprudent to ruL the risk of allowing           G
            the caustic chlorine plant to be restarted. Mrs. Kumar-
            mangalsm, learned counsel appearing on behalf of lokshit
            Congress Union as also the learned counsel appearing on behalf
          . of Karsmchari Ekta Union, however, expressed themselves
      "'-1 emphaticaily against the permanent closure of the caustic
            chlorine · plant and submitted that if the caustic chlorine           H
            plant was not allowed to be restarted, it would not be
    330                  SUPREME COURT REPORTS     [1986] 1 s.c.R.
A
    possible to operate the plants manufacturing the down stream      >
    products and the result would be that about 4,000 workmen
    would be thrown out of employment. Both the learned counsel
    submitted that sihce all the recommendations made in the
    reports of Manmohan Singh Committee and Nilay Choudhary
    Conmittee had been complied with by the management of shriram
B   and the possibility of risk or hazard to the community had
    been considerably minimised and in their opinion reduced to
    almost hil, the caustic chlorine plant should be allowed to be
    reopened. The learned Addl. Solicitor General appearing on        '"'
    behalf of the Union of India and the Delhi Administration
    stated before us that his clients were not withdrawing their
C   objection to the reopening of the caustie' chlorine plant but
    if the court was satisfied that there was no real risk or
    hazard to the community by reason of various recommendations
    of Manmohan Singh Committee and Nilay Choudhary Committee
    having been carried out by the management of Shriram, the
    Court might make such order as it thinka fit, but in any
D   event, strict conditions should be imposed with a view to
    ensuring the safety of the workmen and the people in the
    vicinity. The learned counsel for Shriram strongly pleaded
    that now that all the recommendations made in the reports of
    Manmohan Singh Committee and Nilay Choudhary Committee had
    been complied with by the management and every possible step
E   had been taken and measure adopted for the purpose of ensuring
    complete safety in the operation of the caustic chlorine
    plant, there was no real danger of escape of chlorine gas and
    even if there was some leakage it could be only of a small
    quantity and such leakage could easily be contained and there
    was therefore no reason for permanently closing down the
F   caustic chlorine plant as it would result not only in less to
    the company but also in unemployment of about 4,000 workmen
    and non-availability of chlorine to Delhi Water Supply Under-
    taking and short supply of down stream products. These rival
                                                                     1-
                                                                            --
    contentions raise a very difficult and delicate question
    before the court as to what course of action to adopt.
G
          It is undoubtedly true that chlorine gas is dangerous to
    the life and health of the community and if it escapes either
    from the storage tanka or from the filled cylinders or from
    any other point in the course of production, it is likely to
    affect the health and well-being of the workmen and the people   r-
H   living in the vicinity. There was some controversy before us
                     H.C. MEHTA v. U.O.l. [BllA(;WATI, C.J.)          331

                                                                              A
    J as to ·what is the concentration of chlorine in the air which
         is dangerous to life and health. Aggarwal Committee in its
         report stated that concentration of chlorine in the air above
         25 parts per million (PPM) is recognised by Occupational
         Safety and Health Act (USA) aa !mediately dangerous to life
         and health, but this was disputed on behalf of the management        B
         of Shriram relying on the report of l!aru!Dhan Singh Committee
         which opined that it is only where concentration of chlorine
          in the air is between 40 to 60 parts per. million (PPM) that
     _.I exposure for 30 minutes would be dangerous to life. It is not
          necessary for us to go into this controversy and decide aa to
         which view is correct, whether the one expressed by Aggarwal
          Committee or the one expressed by l!aru!Dhan .Singh Committee.      c
          Fortunately, both Committees are agreed that chlorine is a

I         hazardous gas and though smaller concentrations of chlorine in
          the air may cause only irritation and coughing, larger concen-
          trations , whether above · 25 parts per million (PPM) or above 40
          parts per million (PPM) are likely to cause serious danger to
          life. There can therefore be no doubt that there would be           D
      \
          hazard to the life and health of the coummity, if there is
          escape of chlorine gas from the caustic chlorine plant,
          whether by reason of negligence of the management or due to
          accidental release. In fact the Issue of the Journal
          "Scavenger" for January; 1985 enumerates some major accidents
          which have occurred in. different parts of the world in the         E
         ·process industries and this enumeration shows that not less
          than 25 accidents have been caused by escape of chlorine gaa
          in the laat about 70 years and many of these accidents have
           resulted in death of quite a few persona. To take only a few
          examples, the escape of chlorine from storage tank in Wilsum
     _ f Germany in 1952 resulted in death of seven persona and sind-         F
..-·      larly release of chlorine gas in Bankstown, Australia in 1967
           resulted in gassing of five persona and on account of escape
          of chlorine gas in Baton Rouge in 1976, about 10,000 persona
          had to be evacuated. It is true that quite a few of these
          accidents ardse on account of escape of chlorine gaa in
          course of transport by rail tanlt cars but some accidents did       G
          occur on account of escape of chlorine gas from storage tanks.
          We cannot therefore ignore the possible hazard to the health
          and well -being of the workmen and the people living in the
          vicinity on account of escape of chlorine gaa. We also cannot
        ~ overlook the old and worn out state of inachinery and
          equipment, the negligence of the management in the maintenance      H
    332                  SUPREME COURT REPORTS      [1986 l i s.c.R.

A
    and operation of the caustic chlorine plant and the indif fer- l
    ence shown by the management in installing proper safety
    devices and safety instruments and taking proper and adequate
    measures for enauring safety of the workmen and the people
    living in the vicinity. These are considerationa which are
    very relevant in deciding whether the caustic chlorine plant
B   should be allowed to be restarted. But as againat these conai-
    derations, we must also take into account the proven fact that
    all the recommendationa made in the Reports of Marum!han Singh
    Conmittee and Nilay Choudhary Committee have been carried out ._
    by the management of Shriram and it is the opinion of not only
    Manmohan singh Conmittee and Nilay Choudhary Committee but
C   also of the last Committee appointed by us on 31st January,
    1986 that since all these recommendationa have been complied
    with by the management in satisfactory manner, Shriram may be
    allowed to restart the caustic chlorine plant. There can be no
    doubt, particularly having regard to the opinion of Marum>han
    Singh Committee, Nilay Choudhary Committee and the last
D   Committee appointed by us, that the possibility of hazard or r
    risk to the co1D1111nity is conaiderably minimised and there is
    now no appreciable risk of danger to the comnunity if the
    caustic chlorine plant is allowed to be restarted. We cannot
    also ignore the interests or the workmen while deciding this
    delicate and complex question. It could not be disputed either
E   by t;he Government of India or by the .Delhi Administration or
    even by the petitioner that the effect of permanently closing
    down the caustic chlorine plant would be to throw about 4,000
    workmen out of employment and that such closure would lead to
    their utter impoverishment. The Delhi Water Supply Undertaking
    which gets its supply of chlorine from Shriram would also have
F   to. find alternative sources of supply and it was co111DOn ground i _
    between the parties that such sources may be quite distant            .
    from Delhi. The production of down stream products would also
    be seriouilly affected resulting to some extent in short supply
    of these products. These various conaiderationa on both sides
    have to be weighed and balanced and a decision has to be made
G   at to on which side the considerationa preponderate and till
    the balance. It is none too easy task, for the decision either
    way may entail serious consequences. We have therefore reflec-
    ted over the vatious aspects of this rather difficult and
    complex question with great anxiety and care and taking an ,
    overall view of the diverse considerationa we have, with V
H   conaiderable hesitation, bordering almost on trepidation
    reached the conclusion that, pending conaideration. of the
               M.C. MEHTA v. U.O.I. [BHAGWATI, C.J.]         333

                                                                    A
  issue whether the caustic chlorine plant should be directed to
  be shifted and relocated at some other place, the caustic
  chlorine plant ·should be allowed to be rest~rted by the
  management of Shriram, subject to certain stringent conditions
  which we propose to specify.
                                                                    B
        But before we proceed to set out the conditions which
  must strictly be observed by the management of Shriram while
  operating the caustic chlorine plant, we must deal with one
  other question which was raised before us on behalf of the
  Central Board of Prevention and Control of Water Pollution
  (hereinafter referred to as the Central Board). The Central
  Board is constituted under the Water (Prevention and Control      c
  of Pollution) Act, 1974 (hereinafter referred to as the Water
  Act) and it is also required to perform the functions assigned
  under the Air (Prevention and Control of Pollution) Act, 1981
  (hereinafter referred to as the Air Act). Since some of the
  plants of Shriram situate within the complex including the
  vanaspati plant were discharging effluent, Shriram was            D
  required to obtain consent for discharging effluent from the
  Central Board under Section 25 of the Water Act and Shriram
  accordingly made an application for this purpose in the
  prescribed form. The Central Board passed an Order on 19th
  April, 1979 granting consent to Shriram to discharge effluent
  from their factory in the sewer, subject to the terms and         E
  conditions set out in the consent order. The consent granted
   to Shriram was renewed from time tO time and the last renewed
   Consent Order was dated 22nd July, 1985 and it was valid upto
   31st December, 1985. Pursual\t to the Consent Order Shriram
   installed effluent treatment plants in the vanaspati, stable
   bleaching powder, super phosphate and active earth units with    F
   a view to complying with the limiting standards stipulated by
   the Central Board in the consent Order. The waste water in
   other units was either solar dried in lagoons or recycled in
   the different process houses and the major units emanating
   waste water were thus vanaspati, active earth, superphosphate
   and stable bleaching powder plants. The waste water effluent     G
   from these four plants used to be drained out through one
   common terminal outlet and the complaint of the Central Board
   was that this combined effluent at the terminal outlet never
   complied with the limiting standards prescribed by the Central
,jBoard. The results of analysis of the samples collected by the
  'officers of the Central Board at the terminal outlet were        H
   annexed as Annexure I to the supplementary affidavit dated
    334                  SUPREME COURT REPORTS       [1986] 1 S,C,R,

A
    19th December, 1985 filed by Shri P.R. Gharekhan on behalf of
                                                                    1
    the Central Board. The Central Board also repeatedly complain-
    ed that the effluent. discharged from the vanaspati plant was
    not in accordance with the limiting standards prescribed in
    the Consent Order. Now, as pointed out by Surendra Kumar,
    Senior Environmerrt:al Engineer in the employ of Shriram, there
B   are broadly two technologies available for effluent treatment
    in yanaspati industry. One is the technology of removing
    suspended s0lids by settling with the help of clarifloccula-
    tion and the other is the technology of removing suspended
    solids, oils and grease and greasy solids by flotation and       \..-
    skimming. The affidavit of Surendra Kumar stated that the
c   technology based on settling with the help of clarifloccula-
    tion was reconnnended by the Central Board and Messrs Dorr
    Oliver were selected by Shriram in consultation with the
    Central Board for supply of an effluent treatment plant
    employing this technology, But, unfortunately, the plant of
    Messrs Dorr Oliver failed to give the guaranteed results
D   presumably because this technology was not satisfactory. The
    Central Board in fact carried out a performance evaluation of .,...
    this plant in December, 1983 and they came to the conclusion
    that this plant would require substantial changes to make it
    to achieve stipulated effluent standards, It was then realised
    that the technology of removal of impurities by flotation
E   method is more appropriate for vanaspati plant effluent and
    Shriram accordingly once again, as pointed out in the
    affidavit of Surendra Kumar, made a reference to the Central
    Board. On 17th January, 1985 the Central Board directed that
    Messrs Kroft Engineering Company should be asked to set up a
    pilot plant based on dissolved air flotation technology .in the
F   vanaspati plant for treatability study of the effluent. But
    despite the follow-up action taken by Shriram, the pilot plant 1 - -.,,.
    was not set up by Messrs Kroft Engineering Company. Shriram
    thereupon in its anxiety to comply with the limiting standards
    set by the Central Board in the Consent Order, placed an order
    with another reputed supplier namely, Messrs Patel Brothers of
G   Bombay in June, 1985 for supply of a plant based on flotation
    technology. Messrs Patel Brothers guaranteed to instal and
    commission the plant by 31st December, 1985 but the affidavits
    show that there has been some delay in the installation of
    this plant and its installation is now going to be completed
    by 28th February, 1986. Meanwhile, however, Shriram installed y
H
                       M.c. MEHTA v. u.0.1. [BHAGWATI, C,J,]        335
                                                                           A
    --~   at the terminal outlet a plant based on dissolved air flota-
          tion technology of Messrs Kc.ofta Engineering Company and the
          counter-affidavit of Shri P.R. Gharekhan dated 13th January,
          1986 shows that the representatives of the Central Board have
          verified that this terminal treatment plant has been install-
          ed. However, the performance of this terminal treatment plant    B
          is yet to be evaluated by the Central Board in order to assess
          compliance with the limiting standards stipulated in the
          Consent Order. The Central Board will therefore have to
          evaluate the performance of this terminal treatment plant
          after the caustic chlorine and other plants of Shriram
          commence production. So far as the effluent discharged by the
          active earth plant and stable bleaching plant is concerned, it   c
          complies with the limiting standards prescribed for it in the
          Consent Order but the effluent discharged by the vanaspati
          plant does not comply with the relevant limiting standards.
          Shriram has, however, stated that once the plant ordered from
          Messrs Patel Brothers, Bombay is installed, it will be possi~
          ble to secure compliance with the requirement of the limiting    D
          standards, This of course will have to be assessed on the
          basis of performance evaluation of the plant of Messrs Patel
          Brothers when installed.

              But there is one difficulty in the way of Shriram
        restarting its vanaspati plant; The last renewed Consent Order     E
        dated 2nd July, 1985 expired on 31st December, 1985 and
        obviously therefore Shriram cannot operate the vanaspati plant
        and discharge effluent unless and until the Consent Order is
        renewed, for the discharge of effluent without Consent Order
        would be contrary to the provisions of the Water Act. We,
   ~· ~ however, find that the Central Board has stated in the affi-       F
_,.'    davit filed in this behalf by Shri D.C. Sharma, Assistant
        Environmental Engineer, that the Central Board has no
        objection to grant temporary consent pursuant to the provi-
        sions of the Water Act on condition that Shriram would comply
        with all the recommendations of various Collllllittees appointed
        by this Court or otherwise and that such consent would be          G
        valid only for a period of one month from the date of issue of
        the Consent Order. Since we are permitting Shriram to reopen
        its caustic chlorine vanaspati and other plants above referred
        to, we would ask the Central Board to grant a temporary
     ~j Consent Order to Shriram valid for a period of one month from
        the date of its issue and the Central Board will take samples      H
    336                  SUPREME COURT REPORTS     [19861 1 s.c.R.

A
    from the effluent discharged from the vanaspati plant as also    ~-
    at the terminal outlet and ascertain whether the samples
    comply with the limiting standards set out in the Consent
    Order. If the samples do not comply with the relevant
    standards, the Central Board will immediately bring such fact
    to the notice of this Court and it will be open to the Central
B   Board to take such action as it thinks fit including non-
    renewal of the Consent Order.

          So far as compliance with the provisions of the Air Act
    is concerned, the Central Government in consultation with the
    Central Board issued a notification under Section 19(1) of the
c   Air Act notifying certain areas in the Union Territory of
    Delhi as air pollution controf area. The plants of Shriram are
    admittedly situated in the air pollution control area and the
    industries carried on by Shriram also fall within the schedule
    of industries specified in the Air Act. Shriram was therefore
    required to apply for a Consent Order from the Central Board
    under Section 21 of the Air Act and an application was
D
    accordingly made by Shriram on the basis of which a Consent      r
    Order was issued by the Central Board on 13th June, 1985
    authorising Shriram to operate their plants in the air
    pollution control area, subject to the conditions set out in
    the Consent Order, The Consent Order relates to three plants
E   of Shriram, namely, sulphuric acid plant, super phosphate
    plant and power plant. We are not concerned at the present
    stage with the sulphuric acid and super phosphate plants since
    permission to restart them is not presently sought by Shriram
    and we need not therefore pause to consider whether the
    conditions laid down in the consent Order in respect of these
F   two plants have been complied with or not. So far as the power
    plant of Shriram is concerned, it is not the case of the
    Central Board that the conditions in the Consent Order in
    regard to . the operation of the power plant are not being
    complied with by the management, though there is specific
    complaint made in the affidavit filed on behalf of the Central
G   Board that the conditions in the Consent Order relating to
    sulphuric acid and super phosphate plants are not being
    observed. We msy however point out that if the Central Board
    finds at any time that the conditions in the Consent Order
    relating to the power plant are not being complied with and
    the particulate matter emitted by the stacks of the boilers is
H
    more than 150 mg/Nm3, it will be open to the Central Board to
     take whatever action is appropriate under the law.
                     M.C. MEHTA V• u.o.I. [BHAGIATI, C.J.]           337

                                                                              A
                 Before we part with this topic of water and air pollu-
        .; tion by the plants operated by Shriram, we may point out a
           most unsatisfactory state of affairs which seems to· prevail in
           the Delhi Municipal Corporation. ·The Municipal Corporation
           sewer in the Nazafgarh area has admittedly been lying chocked
           since 1980 with the result that Shriram has since then not        B
           been able to discharge its domestic effluent in the 1111nicipal
           sewer and the domestic effluent has to be discharged in the
           Nazafgarh drain thereby adversely affecting the standards
           prescribed by the Central Board. It is difficult to understand
    ,.... as to why the Delhi Municipal Corporation has not taken any .
           steps for the last five years to clean up the sewer ~o that it
           can be used for carrying domestic effluent discharged by the      C
           people. We are not issuing any direction in this behalf but we
           are certainly constrained to express our deep sense of regret
           at the total indifference of the Delhi Municipal Corporation
           in discharging its obligations under the law.

               We have therefore decided to pemt Shriram to restart          .D
     '"" its power plant as also plants for msnufacture of caustic
         chlorine inculding its by-products like sodium sulphate,
         hydrochloric acid, stable bleaching powder, superchlor, and
         sodium hypochlorite, vanaspati refined oil including its
         by-products and recovery plants like soap, glycerine and
         technical hard oil and container works. But there are two            E
•        orders which prohibit Shriram from operating these plants. One
         is the order dated 7th December, 1985 issued by the Inspector
         of Factories, Delhi, prohibiting Shriram from using the
         caustic chlorine and other plants till adequate safety
         measures are adopted and imminent danger to human life i•i
         eliminated and the other is the order dated 24th December,           F
    -- ~ 1985 issued by the Assistant Commissioner (Factories}
         directing Shriram to stop industrial use of the premises on
         which the caustic chlorine plant is located. The validity of
         these two orders has been assailed by Shriram in Writ Petition
         No. 26 of 1986. We are not inclined at the present moment to
         vacate these two orders because the pemss ion which we are           G
         granting by this judgment to Shriram to reopen these plants is
         as a temporary measure •to be reviewed at some point of time in
,        the future and we would therefore merely suspend the operation
         of these two orders until further directions with a view to
       ~nabling Shriram to restart these plants. But we are laying
         aown certain conditions which shall be strictly and                  H
    338                 SUPREME COURT REPORTS     [1986] 1 s.c.R.

A
    scrupulously followed by Shri.ram and if at any time it is
    found that any one or more of these conditions are violated,    1·
    the permission granted by us will .be liable to be withdrawn.
    We fot'IIl.llate these conditions as follows:-

              (1) Since it i• clear from the affidavits and the
B             reports ·of the various Expert Committees that the
              management of Shriram was negligent in the
              operation and maintenance of the caustic chlorine
              plant and did not take the necessary measures for
              improving the design and quality of the plant and :..
              equipment and installing adequate safety devices
c             and instruments with a view to ensuring the maxilllllll
              safety of the workers and the CO!Dllllllity living in
              the vicinity and it is only after w.P. No. 12739 of
              1985 was filed and all the glaring devic:lenc:les
              were pointed out that the management carried out
              various alterations and adopted various measures in
D             accordance with the reco11111endations made by
              Me.nmohan Singh Committee and Nilay Choudhary r
              Committee, it is necessary that an expert Committee
              should be appointed by us which will monitor the
              operation and maintenance of the pl!lllt and
              equipment and ensure the continued implementation
E             of the recommendations of these two commititeee. We
              accordingly constituted an Expert Committee
              consisting of Shri Manmohan Singh, Shri P.R.
              Gllarekhan and Professor P. I<hanna of the Indian
              Institute of Technology, Bombay - and if Professor
              P, I<hanna is not available for any reaeon, Dr,
F             Sharma of the University Department of Chemical
              Technology, Bombay will take his place as a member~ -
              of the Expert Committee and this Expert Committee       ·
              will inspect the caustic chlorine plant of Shriram
              at least once in a fortnight and examine whether
              the reco11111endat ions made by Manmohan Singh
G             Committee and Nilay Choudhary Committee are being
              scrupulously implemented by the management. The
              Expert Committee will also examine the adequacy of
              the design, materials, fabrication etc, of the
              devices, instruments and other hardware calculated
              to monitor, warn, avoid, control and handle all
H             situations arising on account of possibl~
              accidental release of chlorine gas, keeping in mind
          M.C. MEHTA v. U.O.I. [BHAGWATI, C.J.]         339
                                                               A
         matereological factors, location of the plant and
         the largeness of the population exposed to hszard
         or risk. This examination may involve a thorough
         check and experimentation at site with a view to
         determining how for the safety measures adopted by
         the management are adequate to deal with a possible   B
         situation. The Expert Committee will submit a
         report of its examination to this Court immediately
         after completion of the examination with copies to
         the petitioner and Shriram. The first such examina-
         tion shall be made by the Expert Committee within
         one week of the restarting of the caustic chlorine
         plant and it shall be followed by a second examina-   c
         tion within a further period of 15 days. If as a
         result of either such examination it is found that
         there is default on the part of the management in
         continuous compliance with any of the recommenda-
         tions made by Manmohan Singh Committee and Nilay
         Choudhary Committee or the safety devices or          D
         instruments are not adequate or are not in opera-
         tion or are not properly functioning, the peti-
~··
         tioner will be at liberty to immediately bring such
         default to the notice of this Court so that in that
         ~vent, the permission granted to the management to
         restart the caustic chlorine plant may be revoked.    E
         Shriram will, within 3 days from today, deposit a
         sum of Rs.30,000 in this Court to meet the travell-
         ing, boarding and lodging expenses of the members
         of the Expert Committee.

         (2) One operator should be designated as personally   F
         responsible for each safety device or measures and
         the head of the caustic chlorine division should be
         made individually responsible for the efficient
         operation of such safety device or measure. If at
         any time during examination by the Expert Committee
         or inspection by the Inspectorate it is found that    G
         any safety device or measure is inoperative or is
         not properly functioning, the head of the caustic
         chlorine plant as well as the operator incharge of
         such safety device or measure shall be held person-
 .....
-~:
         ally responsible. Their duty shall be not merely
                                                               H
    340            SUPREME COURT REPORTS      [1986] 1 s.c.R.

A
          to report non-functioning or mal-functioning of any
          safety device or measure to the higher authority ""
          but to see that the operation of the entire plant
          is immediately shut-down, the safety device is
          urgently replenished and the plant does not restart
          functioning until such replenishment is completed.
B
          (3) The Chief Inspector of Factories_ or any Senior
          Inspector duly nominated by him, who has necessary
          expertise in inspection of chemical factories, will     f
          inspect the caustic chlorine plant at least once in     --
          a week by paying surprise visit wihout any previous
          intimation and examine whether the recommendations
c         of Manmohan Singh Committee and Nilay Chou:lhary
          Committee are being complied with by the management
          and whether the safety devices or instruments
          installed by the management are operative and are
          properly functioning or whether there are any
D
          defects or def iciancies in the operati0n and
          maintenance of the caustic chlorine plant and in ;>--
          the safety devices or instruments installedin the _..
          plant. The Chief Inspector of Factories or the
          seriior Inspector nominated by him, who carries   out
          such inspection, shall immediately report to this
E
          Court and to the Labour Commissioner any default,
          deficiency or remissness on the part of the manage-
          ment which may be noticed by him in the course of
          such inspection and on such report being made, it
          will be open to the Labour Commissioner and the
          Chief Inspector of Factories to take such action as
          they think fit.
F
          ( 4) The Central Board will also depute a senior j
          Inspector to visit the caustic chlorine plant and
          the VanaJpati Plant atleast once in a week without
          any prior notice to the management, for the purpose
G
          of ascertaining whether the effluent discharged
          from the Vanaspati Plant as also at the terminal
          out-let complies with the limiting standards laid
          down in the Consent Order issued under the Water
          Act and the particulate matter emitted by the
          stacks of the boilers in the power plant complies,....t-
H
         M.C. MEHTA v. u.o.r. [BHAGWATI, C.J.]             34r

                                                                  A
        with the standards laid down in the Consent Order
        issued under the Air Act and if there is any
        default in complying with the relevant standards in
        either case, such default shall be brought to the
        notice of this Court and the Central Board will be
        entitled to take such action as it think fit, incl-       B
        uding revocation of the relevant Consent Order.

        (5) The management of Shriram will obtain an under-
        taking from the Chairman and Managing Director of
        the Delhi Cloth Mills Ltd. which is the owner of
        the various units     of   Shriram as also from the
        officer or officers who are in actual management of       C
        the caustic chlorine plant that in case there is
        any escape of chlorine gas resulting in death or.
        injury to the workmen or to the people living in
        the vicinity, they will be personally responsible
        for payment of compensation for such death or
        injury and such undertaking shall be filed in Court       D
        within 1 week from today.

        ( 6) There shall be a Connnittee of three
        representatives of Lokahit Congress Union and three
        representatives of Karamchari Ekta Union to look
        after   th   safety   arrangements   in   the   caustic   E
        chlorine plant. The function of this Committee will
        be to ensure that all safety measures are strictly
        observed and there is no non-functioning or mal-


-   .   functioning of the safety devices and instrument
        and for this purpose, they will be entitled to
        visit any section or department of the plant during
        any shift and ask for any releva..,t information from
        the management. If there is any default or negli-
                                                                  F



        gence in the observance of the safety measures and
        the maintenance and oper_ation of the safety devices
        and instruements, this Committee will be entitled
        to bring such default or negligence to the notice         G
        of the management and if the management does not
        heed to the same, this Committee will be entitled
        to draw the attention of the Labour Commissioner to
        such default or negligence. The members of this
        Committee will be given proper and adequate train-
        ing in regard to the functioning of the caustic           H
    342              SUPREME COURT REPORTS       [1986] 1 S.C.R.

A
          chlorine plant and the operation of the safety r
          devices and instruments and this will be done
          within a period of 2 weeks after the nomination of
          three representatl.ves on the Committee is co1mm.ini-
          cated by each of the two unions to the management.

B         (7) There shall be placed in each department or
          section of the caustic chlorine plant as also at
          the gate of the premises a detailed chart in
          English and Hindi stating the effects of chlorine ;.>.
          gas on human body and informing the workttl!n and the
          people as to what immediate treatment should be
c         taken in case they are affected by leakage of
          chlorine gas.

           (8) Every worker in the caustic chlortne plant
           should be properly trained and instructed in regard
           to the functioning of the ·specific plant and
D          equipment in whl.ch he is working and he should also ,.-
           be educated and informed as to what precautions
           should be taken and in case of leakage of chlorine ·'.
           gas, what steps should be taken to control and
           contain such leakage. The 100st effective way of
          ·giving such training and instruction would be
E          through audio-visual programmes to be specially
           prepared by the management. Even after proper
           training and instruction is given it is likely that
           the workers engaged in the plant may, on account of
           lapse of time, forget the sequences of steps to be
           taken to monitor, warn, avoid, control and, handle
F          any chlorine leakage emergency and refresher
                                                               4
           courses should therefore be conducted atleast once
           in 6 weeks with mock trials.                         .;; ·

          (9) Loud speakers shall be installed all around the
          factory premises for giving timely warning and
G         adequate instructions to the people residing in the
          vicinity in case of leakage of chlorine gas.

          (10) The management shall maintain proper vigilance
          with a view to ensuring that workers working in the
          caustic chlorine plant wear helmets gas masks of r·
H         safety belts as the case may be while working in
                 M.C. MEHTA v. u.0.1. [BHAGWATI, c.J. I         343


                the hazardous departments or sections of the plant
                and regular medical check-up of the workers shall
                be got carried out by the management in order to
                ensure that the workers are in good health.

                (11) The management of Shriram will deposit in this    B
                Court a sum of Ba. 20 lacs as and by way of
                security for payment of compensation claims made by
                or on behalf of the victims of olium gas, if and to
                the extent to which such compensation claims are
                held to be well founded. This amount deposited by
                the management of Shriram will be invested by the
                Registrar of this Court in fixed deposit with a        c
                Nationalised Bank so that it earns interests and it
                will abide further directions· of this Court. The
                management of Shriram will also furnish a bank
                guarantee to the satisfaction of the Registrar of
                this Court for a sum of Bs.15 iacs which bank
                guarantee shall be encashed by the Registrar,
                wholly or in part, in case there is any escape of
                chlorine gas within a ;..1riod of three years from
                today resulting in death or injury to any workman
                or to any person or persons living in the vicinity.
                The amount of the bank guarantee when encashed
                shall be utilised in or towards payment of             E
                compensation to the victims of chlorine gas, the
                quantum of compensation being determinable by the
                District    Judge   Delhi   on    applications  for
                compensation being made to him by the victims    of
                chlorine gas. The amount of Bs.20 lacs shall be
                deposited .and the bank guarantee for Bs.15 lacs       F
-'              shall be furnished within a period of 2 weeks from
                today and on failure of the management of Shriram
                to do so, the permission granted by us this
                Judgment to restart the caustic chlorine plant and
                other plants shall stand withdrawn.
                                                                       G
          We have for!Dllated these conditions with a view to
     ensuring continuous compliance with the recommendations of
     Manmohan Singh Colilmittee and Nilay Choudhary Comnittee and
     strict observance of safety standards and procedures, so that
     the possibility of hazard or risk to the workmen and the
     com!Dlnity is almost reduced to nii. We would like to point out   H
    344                       SUPREME COURT REPORTS          [1986] 1 s.c.R.

A
    that the caustic chlorine plant of Shriram is not the only
    plant which is carrying on a hazardous industry. There are
    many other plants in Delhi which are employing hazardous
    technology or are engaged in manufacture of hazardous goods
    and if proper and adequate precautions are not taken, they too
    are likely to endanger the life and health of the colIIIllllnity.
B   We would therefore suggest that a . High Powered Authority
    should be set up by the government of India in consultation
    with the Central Board for overseeing functioning of hazardous
    industries with a view to ensuring that there are no defects
    or deficiencies in the design, structure or quality of their
    plant and machinery, there is no negligence in maintenance and
c   operation of the plant and equipment and necessary safety
    devices and instruments are installed and are in operation and
    proper   and   adequate     safety   standards    and    procedures   are
    strictly followed. This is a question which needs serious
    attention of the Government of India and we would request the
    Government of India to take the necessary steps at the
D   earliest, because the problem of danger to the health and
    well-being of the community on account of chemical and other
    hazardous industries has become a pressing problem in modern
    industrial society. It is also necessary to point out that
    when science and technology are increasingly employed in
    producing goods and services calculated to improve the quality
E   of-life, there is a certain element of hazard or risk inherent
    in the very use of science and technology and it is not possi-
    ble to totally eliminate such hazard or risk altogether. We
    cannot possibly adopt a policy of not having any Chemical or
    other hazardous industries merely because they pose hazard or
    risk to the community. If such a policy were adopted, it would
F   mean the end of all progress and development. Such industries,
    even if hazardous have to be set up since they are essential
    for economic development and advancement of             well-being of the
    people. ·we can only hope to reduce the element of hazard or
    risk· to the colllllllnity by taking all necessary steps for locat-
    ing such industries in a manner which would pose least risk of
G   danger to the coimm.lnity and maximising safety requirements in
    such industries. We would therefore like to impress upon the
    Government of India to evolve a national policy for location
    of chemical and other hazardous          industries in areas where
    population is scarce and there is little hazard or risk to the
    community, and when hazardous industries ar~ located in such
H   areas, every care must be taken to see that large human habi-
                      M.C. MEHTA v. U.O.I. [BHAGWATI, C.J.]                  345

                                                                                   A
        tation does not grow around then. There should preferably be a
        green belt of l to 5 k.m. width around such hazardous indust-
        ries.

             There is also one other matter to which we should like to
        draw the attention of the Government of India. We have noticed             B
        that in the past few years there is an increasing trend in the
        number of cases based on enviorrunental pollution and ecologi-
        cal destrucUon coming up before the Courts. Many such cases
        concerning the material basis of livelihood of millions of
        poor people and reaching this Court by way of Public interest
        litigation. In most of these cases there is need for neutral
        scientific expertise as an essential input to inform judicial              c
        decision making. These cases require expertise at a high level
        of scientific and technical sophistication. We felt the need
        for such expertise in this very case and we had to appoint
        several expert committees to inform. the court as to what
        measures were required to be adopted by the Management of
        Shriram to safeguard against the hazard or possibility of                  D
        leaks, explosion, pollution of air and water etc. and how
        many of the safety devices against this hazard or possibility
        existed in the plant and which of them, though necessary, were
        not installed. We have great difficulty in finding out
        independent expertes who would be able to advise the court on
        these issues. Since there is at present no independent and                 E
        competent machinery to generate, gather and make available the
        necessary scientific and technical information, we had to make
        an effort on our own. to identify experts who would provide
        reliable scientific and technical input necessary or the
        decision of the case and this was obviously a difficult and by
-   )
        its very nature, unsatisfactory . exercise.         It
        absolutely essential that there should be an independent
                                                                 is   therefore    F

        Centre with professionally competent and public spirited
        experts to provide the needed scientific and technological
        input. We would in the circumstances urge upon the Government
        of India to set up an Ecological         Sciences    Research     Group
        consisting of independent, professionally competent experts in             G
        different branches of science and technology, who would act as
        an information bank for the. Court and the Government Depart-
        mants and generate new information according to the particular
        requirements of the Court or the concerned Government depart-
        ment. We would also suggest to the Government nf India that
        since cases    involving   issues   of   enviornmental        pollution,   H
    346                  SUPREME COURT REPORTS     [19861 1 s.c.R.

A
    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 Environment Courts on
    the regional basis with one professional Judge and two experts
    drawn from the Ecological Sciences Research Group keeping in
B   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 Enviornment Court.
                                                                     ,
         We have in this judgment dealt only with the question as    ""
    to whether Shriram should be allowed to restart its caustic
c   chlorine plant and other plants manufacturing by-products and
    if so, subject to what conditions. There are many other issues
    of seminal importance arising out of the claims for compen-
    sation by victims of olium gas which have to be considered by
    the Court. We have forrulated these issues and asked the
    petitioner and those supporting him in W.P. 12739 of 1985 to
D   file their written submissions on or before 24th February,
    1986 and Shriram to file their written submissions on or
    befo~e 28th February, 1986 so that we can take up the hearing
    of the writ petitions on 3rd March 1986.

         Before we part with this judgment we would like to
E   express our deep sense of appreciation for the bold initiative
    taken by the petitioner in bringing this public interest
    litigation before the Court. The petitioner has rendered
    signal service to the community by bringing this public
    interest litigation and he has produced before the Court
    considerable material bearing on the issues arising in the
F   litigation. He has argued his case with great sincerety and      i -
    dedication and the people of Delhi must be grateful to him for
    espousing such a public cause. There is no doubt in our mind
    that but for this public interest litigation brought by the
    petitioner, there would have been no improvement in the
    design, structure and quality of the machinery and equipment
G   in the caustic chlorine plant nor would any proper and
    adequate safety devices and instruments have been installed
    nor would there have been any pressure on the manag~ment to
    observe safety standards and procedures and the possibility
    cannot be ruled out that perhaps some day olium gas tragedy
    might have been repeated but this time with chlorine gas which
H   is admittedly lb:)re dangerous than olium gas. Though lone and
                       M.c. MEHTA v. u.o.r. [BHA~ATI .• c.J. J       347

           single, he has fought a valiant battle against a giant enter-    A
      ~    prise and achieved substantial success. We would therefore as
           a token of our appreciation of the work done by the petitioner
           direct that a sum of Rs. 10,000 be paid by Shriram to the
           petitioner by way of costs.

                                                                            B



      ;J   S.R.




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