Absolute liability for hazardous industrial accidents requires standardized compensation to victims' families, payable by state authorities if project proponent fails.

ORDER

1. This original application was registered suo moto on the basis of the news item titled “Paint factory fire in Delhi’s Alipur claims 11 lives 4 injured” appearing in Times of India dated 16.02.2024. News item discloses the details of a massive fire broke out at paint factory at Dayalpur Market in north Delhi’s Alipur Area in which atleast 11 persons had died and 04 others were injured. News discloses that blaze was so strong that walls of the houses adjacent to the factory were impacted and those who had died were completely charred. Apart from the paint factory, few shops and rehabilitation centre running inside the structure had collapsed.

2. Tribunal in the order dated 19.02.2024 had expressed that incident seem to have involved hazardous substance and there was violation of the provisions of Public Liability Insurance Act, 1991 (for short PLIA Act, 1991) and there was substantial issue relating to compliance of environmental norms. accordingly, concerned parties were impleaded and notices were issued to them.

3. Reply on behalf of Delhi Pollution Control Committee (for short DPCC) and Central Pollution Control Board (for short CPCB) have been filed.

4. We have heard Learned Counsel for the parties on the issue of grant of compensation to the family members of the deceased.

5. Under Section 15 (1) of the National Green Tribunal Act, 2010, Tribunal has the power to grant compensation to the victims of pollution and other environmental damage arising under scheduled enactments.

6. In terms of Section 17, in a case where death or injury to any person (other than a workman) or damage to any property or environment results from an accident or the adverse impact of an activity or operation or process, under any scheduled enactment, person responsible is liable to pay such relief or compensation for death, injury or damage, under heads specified in Schedule II of the Act, as per the determination by the Tribunal.

7. Schedule-II of the NGT, Act, 2010 covers death, permanent, temporary, total or partial disability or other injury in addition to the other heads.

8. Public Liability Insurance Act, 1991 (for short PLIA) is one of the schedule enactments under the NGT, Act, 2010. Section 2 (a) of PLIA defines accident to mean an accident involving a fortuitous or sudden or unintended occurrence while handling any hazardous substance. Section 4 requires every owner to take insurance policy before starting of any hazardous substance. Other provisions of the Act provide for payment of compensation in case of death or injury in the accident covered under the enactment and procedure thereof. In terms of Section 8 a right to claim relief under sub-section (1) of section 3 in respect of death of, or injury to, any person or damage to any property is in addition to any other right to claim compensation in respect thereof under any other law in force.

9. In the present case, reply dated 23.04.2024 has been filed by DPCC disclosing that in compliance of the order of the Tribunal dated 19.02.2024 a joint inspection by officials of CPCB, DPCC and District Magistrate (North Delhi) was carried out on 05.04.2024 and it was found that factory where the incident took place was located in a densely populated area and was being run illegally. Factory was manufacturing paint using chemicals/substances in non-conforming area. It is also stated that the cause of fire incident was welding activity being carried out in the factory in the presence of drums filled with chemicals/substances. When fire broke out inside the fa