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2006 Supreme(MP) 1120

High Court Of Madhya Pradesh
A. K. PATNAIK, C. J. AND AJIT SINGH, J.
GYAN PRAKASH - Appellant
Versus
GENERAL MANAGER, ORDNANCE FACTORY, KHAMARIA - Respondents
W. P. 5433 Of 2002
Decided On : 10/05/2006

Advocates Appeared:
A.P.Shroti, GYAN PRAKASH, S.K.YADAV, Sajid Akhtar, V.S.Shroti

The liability of the owner under Section 3(1) of the Act is independent of the obligation to take out insurance under Section 4(1), and exemptions granted do not absolve owners from liability under Section 3(1). The Central Government is obligated to establish a scheme for the Environmental Relief Fund.

Headnote:

Public Liability Insurance Act - Alleged non-compliance with provisions - Sections 3, 4, 7a - Summary of key legal provisions and court's decision

Fact of the Case:

The petitioner alleged non-compliance with the Public Liability Insurance Act, 1991 and the Public Liability Insurance Rules, 1991 by the respondents, citing accidents and losses of life and property due to explosive materials and ammunitions.

Finding of the Court:

The Court held that the allegations made by the petitioner were disputed by the respondents, but emphasized the need to ensure public safety and compliance with the law, refusing to dismiss the petition based on a preliminary objection.

Issues: Alleged non-compliance with the Public Liability Insurance Act and Rules by the respondents, and the petitioner's motive for filing the petition.

Ratio Decidendi: The liability of the owner under Section 3(1) of the Act is independent of the obligation to take out insurance under Section 4(1). Owners not handling hazardous substances are not required to take out insurance. Exemptions granted do not absolve owners from liability under Section 3(1). The Central Government is obligated to establish a scheme for the Environmental Relief Fund.

Final Decision: The Court declared the liability of the owners under Section 3(1) of the Act, exempted certain owners from insurance requirements, directed compliance with insurance rules, and mandated the Central Government to notify the scheme for the Environmental Relief Fund and ensure compliance with the Act and Rules by the respondents.

( 1 ) THIS is a Public Interest Litigation alleging that the mandatory provisions of the Public Liability Insurance Act, 1991 and the Public Liability Insurance rules, 1991 made thereunder are not being complied with by Respondents 1 to 11. ( 2 ) THE petitioner who claims to be the founder of the Forum for Traffic Safety and environmental Sanitation has alleged that a number of fire accidents have taken place in the Ordnance Factories located in the state of Madhya Pradesh. He has alleged that several accidents have also taken place during storage and transportation of arms and ammunition from the said Ordnance factories to places outside the State of madhya Pradesh. He has stated that as a result of such accidents, there have been huge losses of life and property. Some of these accidents have been detailed in the writ Petition and these are accidents, which took place in March 1988 in the Central ordnance Depot, Jabalpur, in November, 1992 in the Ordnance Factory, Itarsi, in january, 1993 in the Ordnance Factory, khamariya, in August, 2001 in the Central ordnance Depot, Jabalpur, in October 2001 in the Ordnance Factory, Khamariya, in November 2001 in the Ordnance Factory, Itarsi, in January 2002 in the Ordnance Factory, khamariya, in April 2002 in the Ordnance factory, Khamariya, and in September 2002 in the Ordnance Factory, Khamariya. Some of the accidents during storage of arms and ammunition at places outside Madhya pradesh as mentioned in the writ petition are in January 2001 in the Sub-Ammunition Depot, Udhasar (Bikaner) Rajasthan, in april 2001 in the Ammunition Sub Depot, memoon and in the Field Ammunition Depot, Pathankot, in may 2001 in Ammunition Sub-Depot, Bridhwal and the Field Ammunition Depot, Ganganagar, in January 2001 in the Ordnance Depot, Shakurbasti, new Delhi and in 2000-2001 in the Central ordnance Depot, Bharatpur. The petitioner has alleged in the writ petition that these accidents have taken place on account of the explosion of explosive materials and ammunitions and that in such accidents property worth several crores has been lost. The petitioner has stated that such accident have posed a serious threat to the life and property of the public and his contention is that to cover the risk to the public from such hazardous activities carried on in the Ordnance Factories and Depots, elaborate provisions have been made in the Public Liability Insurance Act, 1991 and the Public liability Insurance Rules, 1991 made thereunder and to ensure safety for the public, provisions have also been made in the Public Liability Insurance Act, 1991 and the public Liability Insurance Rules, 1991 for furnishing of information to the Central Government, but these provisions of law are not being complied with by the respondents 1 to 11. The petitioner has, therefore, prayed for appropriate writs/directions to the respondents to ensure compliance with the said provisions of law.

( 3 ) AT the hearing of the writ petition, Mr. B. D'silva learned senior counsel appearing for the respondents Nos. 1 to 12, 16, 17 and 18, raised a preliminary objection saying that the writ petition has not been filed by the petitioner in the public interest but for oblique motive to settle his personal scores. He submitted that the petitioner was working as charge-man Grade II in the respondent No. 3/vehicle Factory, Jabalpur, and a disciplinary proceeding was initiated against him and a penalty of compulsory retirement was imposed on him with effect from 27-11 -2001. He submitted that after his compulsory retirement, the petitioner has filed this petition on unsubstantiated allegations and frivolous grounds on account of personal grudge. The petitioner, on the other hand, submitted that he has filed this PIL bona fide to ensure the safety of public through compliance of the Public Liability insurance Act, 1991 and the Public Liability Insurance Rules. 1991 and Manufacture, storage and Import of Hazardous Chemical rules, 1989, as amended by the A


































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