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2022 Supreme(SC) 343

SUPREME COURT OF INDIA
Hemant Gupta, V. Ramasubramanian, JJ.
SANJAY GUPTA & ORS. – APPELLANT(S)
VERSUS
STATE OF UTTAR PRADESH THROUGH ITS CHIEF SECRETARY & ORS. – RESPONDENT(S)
Writ Petition (Civil) No. 338 of 2006
Decided On : 12-04-2022

Advocates appeared:
For the Petitioner(s):Prem Malhotra, Advocate
For the Respondent(s):Rajeev Kumar Dubey, Ashiwan Mishra, Kamlendra Mishra, Gunnam Venkateswara Rao, P. Parmeswaran, Sunil Kumar Jain, Anuvrat Sharma, Manoj K. Mishra, Umesh Dubey, D.N. Dubey, Vishrov Mukeree, Sudhir S. Rawat, Pradeep Misra, Saurabh Trivedi, A.P. Dhamija, J.P. Singh, Sarad Kumar Singhania, Shanti Bhushan, Sr. Adv. (N.P.) Rohit Kumar Singh, Sunita Singh Chauhan, Hitesh Kumar Sharma, Akhileshwar Jha, E. Vinay Kumar, Arvind Kumar Sharma, Advocates

The liability of the organizers and the State for the fire tragedy and the extent of compensation payable to the victims.

Headnote:

The writ petition was filed by the victims of a fire tragedy that occurred at an exhibition organized by the Respondents. The Court examined the liability of the organizers and the State for the tragedy and the extent of compensation payable to the victims. MAIN LEGAL POINT : The liability of the organizers and the State for the fire tragedy and the extent of compensation payable to the victims.

Fact of the Case:

A fire broke out at an exhibition organized by the Respondents, resulting in the deaths of 65 persons and injuries to 161 or more. The State of Uttar Pradesh appointed a Commission to inquire into the incident. The Commission submitted its report, finding that the organizers were primarily liable for the tragedy due to their negligence in obtaining the requisite permissions and complying with the relevant provisions of the statute. The Court appointed a one-man Commission to re-investigate the matter. The Commission submitted its report, apportioning the liability between the organizers and the State as 60:40.

Finding of the Court:

The Court held that the organizers were liable for the tragedy due to their negligence in obtaining the requisite permissions and complying with the relevant provisions of the statute. The Court also held that the State was liable for the tragedy due to the negligence of its officers in failing to take appropriate action to prevent the tragedy. The Court directed the State to pay compensation to the victims and their families in accordance with the principles of just compensation as in the case of an accident under the Motor Vehicle Act, 1988.

Issues: 1. Whether the organizers were liable for the fire tragedy? 2. Whether the State was liable for the fire tragedy? 3. The extent of compensation payable to the victims.

Ratio Decidendi: 1. The organizers were liable for the fire tragedy due to their negligence in obtaining the requisite permissions and complying with the relevant provisions of the statute. 2. The State was liable for the fire tragedy due to the negligence of its officers in failing to take appropriate action to prevent the tragedy. 3. The extent of compensation payable to the victims was to be determined in accordance with the principles of just compensation as in the case of an accident under the Motor Vehicle Act, 1988.

Final Decision: The Court directed the State to pay compensation to the victims and their families in accordance with the principles of just compensation as in the case of an accident under the Motor Vehicle Act, 1988. The Court also directed the State to entrust the work of determination of compensation to a Judicial Officer in the rank of District Judge/Additional District Judge at Meerut within two weeks of the order of this Court to work exclusively on the question of determination of the compensation on day-to-day basis.

JUDGMENT

Hemant Gupta, J.

1. The present writ petition has been preferred by the victims of the fire tragedy which occurred on 10.4.2006 at about 5:40 p.m., the last day of the India Brand Consumer Show organized at Victoria Park, Meerut, Uttar Pradesh by Mrinal Events and Expositions who are being represented as Respondents 10 to 12 herein. For the sake of convenience, Respondents 10-12 are being collectively referred as “Organizers”. This unfortunate incident claimed the lives of 65 persons and left 161 or more with burn injuries.

2. The State of Uttar Pradesh appointed Hon’ble Mr. Justice O.P. Garg (Retired) in terms of provisions of the Commission of Inquiry Act, 1952, For short, the ‘Inquiry Act’, vide order dated 2.6.2006 with the following terms of reference:

    “(1) To find out the facts, causes on account of which the aforesaid accident occurred;

    (2) To decide the ways and means to keep up the situation in control;

    (3) In respect of the aforesaid occurrence, determination of liability and the extent thereof;

    (4) Measures to be adopted to avoid the occurrence of such incident in future.”

3. The above appointed Commission submitted its report on 5.6.2007 wherein various witnesses and documents produced were examined. Such report was not found to be sustainable in the order dated 31.7.2014 reported as Sanjay Gupta & Ors. v. State of Uttar Pradesh & Ors., (2015) 5 SCC 283 . This Court while rejecting the proceedings conducted by the Commission under the Inquiry Act, appointed Hon’ble Mr. Justice S.B. Sinha (Retired) as a one-man Commission as it was found that the Organizers were summoned after examination of almost 45 witnesses and were not afforded opportunity of cross-examination. It was held as under:

    “11. In view of the aforesaid enunciation of law, it is difficult to sustain the report. We are obliged to state here that in course of hearing, we had asked the learned counsel for the parties that in case the report of the Commission would be set aside, the Commission has to proceed after following the provisions of the Act. The said position was acceded to. On a further suggestion being made, the learned counsel for the parties had fairly agreed for appointment of another retired Judge as Commission. The learned counsel for the parties had suggested certain names in sealed covers but there was no commonality. Regard being had to the gravity of the situation and the magnitude of the tragedy, on due deliberation we appoint Justice S.B. Sinha, formerly a Judge of this Court, as the one-man Commission. It is agreed by the learned counsel for the parties that the witnesses, who were examined by the previous Commission and not cross-examined by Respondents 10 to 12, their depositions shall be treated as examination-in-chief and they shall be made available for cross-examination by the respondent. It has also been conceded that the documents which have been marked as exhibits, unless there is a cavil over the same, they shall be treated as exhibited documents.

    xxx xxx

    14. The question that we would like to pose is whether this Court should wait for the Commission's report and then direct the State Government to pay the amount of compensation to the grieved and affected persons, who have been waiting for the last eight years, or should they get certain sum till the matter is finalised. We will be failing in our duty if we do not take into consideration the submission of Mr Shanti Bhushan, learned Senior Counsel, that as far as Respondents 10 to 12 are concerned, no liability can be fastened under Article 32 of the Constitution of India, and definitely not at this stage. As far as first part of the submission is concerned, we keep it open to be dealt with after the report is obtained by this Court. As far as the second aspect is concerned, we shall deal with it after we address the issue of public law remedy and the liability of the State in a case of this nature.

    xxx xxx

    24. Mr Shanti Bhushan, learned Senior Counsel, would submit that the l

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