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2004(4) Supreme 303
SUPREME COURT OF INDIA
Rajendra Babu, CJI & G.P. Mathur, J.
Deepak Nitrite Ltd. -Appellant
versus
State of Gujarat & Ors. -Respondents
Civil Appeal No. 1521 of 2001
With
C.A. Nos. 1522/2001, 1523/2001, 1524/2001, 1525-1526, 1527/2001, 1528/2001)
Decided on 5-5-2004
Held : The fact that the industrial units in question have not conformed with the standards prescribed by GPCB cannot be seriously disputed in these cases. But the question is whether that circumstance by itself can lead to the conclusion that such lapse has caused damage to environment. No finding is given on that aspect which is necessary to be ascertained because compensation to be awarded must have some broad co-relation not only with the magnitude and capacity of the enterprise but also with the harm caused by it. May be, in a given case the percentage of the turnover itself may be a proper measure because the method to be adopted in awarding damages on the basis of polluter to pay principle has got to be practical, simple and easy in application. The appellants also do not contest legal position that if there is a finding that there has been degradation of environment or any damage caused to any of the victims by the activities of the industrial units certainly damages have to be paid. However, to say that mere violation of the law in not observing the norms would result in degradation of environment would not be correct. Therefore, we direct the High Court to further investigate in each of these cases and find out broadly whether there has been any damage caused by any of the industrial units by their activities in not observing the norms prescribed by the GPCB as reported by the Modi Committee appointed by the High Court or by an expert body like NEERI and that exercise need not be undertaken by the High Court as if the present proceeding is an action in tort but an action in public law. A broad conclusion in this regard by the High Court would be sufficient. We, therefore, direct the High Court to re-examine this aspect of the matter as to whether there is degradation of environment and as a result thereof any damage is caused to any victim, and what norms should be adopted in the matter of awarding compensation in that regard. In this process it is open to the High Court to consider whether 1% of the turnover itself would be an appropriate formula or not as applicable to the present cases. (Paras 6 and 7)
JUDGMENT
Rajendra Babu, CJI.-These appeals arise out of a series of orders made by the High Court of Gujarat. A petition was filed before the High Court in public interest alleging large scale pollution caused by industries located in the Gujarat Industrial Development Corporation (GIDC) Industrial Estate at Nandesari. It is alleged that effluents discharged by the said industries into the effluent treatment project had exceeded certain parameters fixed by the Gujarat Pollution Control Board (GPCB) thereby causing damage to the environment. Some of the industries have set up their own effluent treatment plants in their factory premises, while some of them have not. The High Court, by an order made on 17.4.1995, directed that the chemical industries in Nandesari should be made parties to the proceedings thereby 252 industrial units located in the Nandesari Industrial Estate, Baroda were made parties to the proceedings, apart from the State of Gujarat, Central Pollution Control Board, Gujarat Industrial Development Corporation and Nandesari Industries Association. The High Court also issued notices to the financial institutions or banks in respect of these proceedings.
2. On May 5, 1995 the High Court appointed a Committee under the Chairmanship of Dr. V.V. Modi to ascertain the position with regard to the extent of pollution in Nandesari Industrial Estate. A Common Effluent Treatment Plant (CETP) was erected by the GIDC in Nandesari Industrial Estate on the contribution made by the industrial units in the Nandesari Industrial Estate to the extent of about Rs. 300 lakhs. Inasmuch as CETP was not achieving the required parameters laid down by the GPCB, the High Court, by an order made on 7.8.1996, appointed NEERI as a consultant to assess the treatment facilities and to provide suitable rectification measures for upgrading the CETP and effluent treatment plant facilities. Dr. Committee made a report on 7.9.1996. The High Court restrained several industries from removing their products from their plant without prior permission of the High Court and thereafter, by an order made on 13.9.1996, the High Court permitted them to dispatch materials by depositing a certain sum of money which was the value of the materials. NEERI submitted its report on 31.10.1996. The High Court, while granting permission to some of the industries to carry on their activities, called for turnover figures and profitability data. On 9.5.1997 the High Court passed an order directing the industries to pay 1% of the maximum annual turnover of any of the preceding three years towards compensation and betterment of environment within a stipulated time. It is against this order that the appellants are before us.
3. The High Court in its impugned order followed a decision of the High Court of Gujarat in Pravinbhai Jashbhai Patel & Anr. Vs. State of Gujarat & Ors., 36 Guj. Law Reports 1210, wherein it was noticed that the industrial units though aware of the requirements of law had not complied with the same nor did they meet the GPCB parameters and they were irresponsible in not wanting or caring to set up effluent treatment plants but continued to manufacture and pollute the environment and the concern shown now in meeting with the pollution control norms is only because of the threatened court order; that pollution caused by these industrial units was adversely affecting large number of citizens residing in the adjacent cities or villages; that in particular water and air pollution is not only continued to the immediate area in which the pollution is generated, but the same affects other areas as well wherever water or air went; that this Court in M.C. Mehta vs. Union of India, AIR 1988 SC 1037, Virender Gaur & Ors. Vs. State of Haryana & Ors., 1995 (2) SCC 577 and CERC vs. Union of India, AIR 1995 SC 922, invoked the provisions of Article 21 of the Constitution of India to declare that the citizens have a fundamental right to live decently unaffected by pollution
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