IMPORTANT POINT
The Span Motel by constructing walls and bunds on Beas river banks and in the river bed has interfered with the flow of the river, therefore, held liable to pay exemplary damages of Rupees Ten Lakhs.

Headnote:Water (Prevention & Control of Pollution) Act, 1974-Section 24-Pollution caused by various constructions made by Span Motels in riverbed and banks of River Beas-Damage caused to environment and ecology of the area - Polluter pays principle-Applicability-Award of exemplary damages of Rupees Ten Lakhs only on basis of undertaking given to bear a fair share of the project cost of ecological restoration-Constitution of India-Article 32.
       Held : The Motel by constructing walls and bunds on the river banks and in the river bed as detailed in the judgment has interfered with the flow of the river and their liability to pay the damages on the principle of "Polluter pays" and also as an inevitable consequence thereof. The specification in the NEERI report regarding details of the activities of Span Motels Pvt. Ltd. and the nature of constructions made in 1993 in figure No.2 that (a) "in 1993, to protect the newly acquired land as also the main resort land, the SMPL constructed concrete studs, stepped wall and concrete bars as depicted in Fig.2"; (b) "blocked the mouth of the natural relief/spill channel by dumping of boulders" resulting in the levelling of the leased area and (c) "at the downstream of M/s SMPL, a private property owner has blocked the relief/spill channel by constructing a stonewall across the channel (E & F)" also confirms and only reinforce the need and justification for the indictment already made. The basis for their liability to be saddled with the exemplary costs has been firmly and irreversibly already laid down in the main judgment itself and there is no escape for the Span Motels Pvt. Ltd. in this regard. We have to necessarily proceed further only on those bases of facts and position of law, found and declared. (Para 8)
       The various laws in force to prevent, control pollution and protect environment and ecology provide for different categories of punishment in the nature of imposition of fine as well as or imprisonment or either of them, depending upon the nature and extent of violation. The fine that may be imposed alone may extend even to one lakh of rupees. Keeping in view all these and the very object underlying the imposition of imprisonment and fine under the relevant laws to be not only punish the individual concerned but also to serve as a deterrent to others to desist from indulging in such wrongs which we consider to be almost similar to the purpose and aim of awarding exemplary damages, it would be both in public interest as well as in the interests of justice to fix the quantum of exemplary damages payable by Span Motels Pvt. Ltd. at Rupees Ten lakhs only. This amount we are fixing keeping in view the undertaking given by them to bear a fair share of the project cost of ecological restoration which would be quite separate and apart from their liability for the exemplary damages. The question relating to the said quantum of liability for damages on the principle of "polluter pays", as held by this Court against the Span Motels Pvt. Ltd. and undertaken by them, will be determined separately and left open for the time being. The amount, of special damages of Ten lakhs of rupees, shall be remitted to the State Government in the Department of Irrigation and Public Health to the Commissioner/Secretary for being utilized only for the flood protection works in the area of Beas river affected by the action of Span Motels Pvt. Ltd. (Para 9)

JUDGMENT

Raju, J.-The above matter has been set down for hearing before us pursuant to the orders passed by this Court (Justice S.Saghir Ahmad and Justice Doraiswamy Raju) on May 12, 2000 and the consequent Notice issued to the Executive Director, M/s. Span Motels Pvt. Ltd. at Manali, and the Executive Director, Span Motels Pvt. Ltd., Operations Headquarters at New Delhi, calling upon them to show cause as to why in addition to damages, exemplary damages be not awarded for having committed the various acts set out and enumerated in detail in the main judgment reported in M.C. Mehta vs. Kamal Nath & Others [(1997) 1 SCC 388] wherein it was held as hereunder:

"39. We, therefore, order and direct as under:

1. The public trust doctrine, as discussed by us in this judgment is a part of the law of the land.

2. The prior approval granted by the Government of India, Ministry of Environment and Forest by the letter dated 24.11.1993 and the lease deed dated 11.4.1994 in favour of the Motel are quashed. The lease granted to the Motel by the said lease deed in respect of 27 bighas and 12 biswas of area, is cancelled and set aside. The Himachal Pradesh Government shall take over the area and restore it to its original-natural conditions.

3. The Motel shall pay compensation by way of cost for the restitution of the environment and ecology of the area. The pollution caused by various constructions made by the Motel in the riverbed and the banks of River Beas has to be removed and reversed. We direct NEERI through its Director to inspect the area, if necessary, and give an assessment of the cost which is likely to be incurred for reversing the damage caused by the Motel to the environment and ecology of the area. NEERI may take into consideration the report by the Board in this respect.

4. The Motel through its management shall show cause why pollution fine in addition be not imposed on the Motel.

5. The Motel shall construct a boundary wall at a distance of not more than 4 metres from the cluster of rooms (main building of the Motel) towards the river basin. The boundary wall shall be on the area of the Motel, which is covered by the lease dated 29.9.1981. The Motel shall not encroach/cover/utilize any part of the river basin. The boundary wall shall separate the Motel building from the river basin. The river bank and the river basin shall be left open for the public use.

6. The Motel shall not discharge untreated effluents into the river. We direct the Himachal Pradesh Pollution Control Board to inspect the pollution control devices/treatment plants set up by the Motel. If the effluent/waste discharged by the Motel is not conforming to the prescribed standards, action in accordance with law be taken against the Motel.

7. The Himachal Pradesh Pollution Control Board shall not permit the discharge of untreated effluent into River Beas. The Board shall inspect all the hotels/ institutions/factories in Kullu-Manali area and in case any of them are discharging untreated effluent/ waste into the river, the Board shall take action in accordance with law.

8. The Motel shall show cause on 18.12.1996 why pollution fine and damages be not imposed as directed by us. NEERI shall send its report by 17.12.1996. To be listed on 18.12.1996."

2. On being served with a Notice dated 14.12.1996, the matter was heard on 19.12.1996, when this Court (Justice Kuldip Singh and Justice S. Saghir Ahmed) passed the following order:

"Pursuant to the above quoted direction NEERI has filed its report. A copy of the report was given to the learned counsel for the Motel yesterday. Show cause notice to the Motel has been given on 2 counts - (i) why the Motel be not asked to pay compensation to reverse the degraded environment and (ii) why pollution fine, in addition, be not imposed. Mr. H.N. Salve, learned counsel appearing for the Motel states that he intends to file counter to the report filed by the NEERI. He has asked for short adjournment. We are of the view tha

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2002 Supreme(SC) 362

IMPORTANT POINTThe Span Motel by constructing walls and bunds on Beas river banks and in the river bed has interfered with the flow of the river, therefore, held liable to pay exemplary damages of Rupees Ten Lakhs.

Cases Referred (2)

IMPORTANT POINT
The Span Motel by constructing walls and bunds on Beas river banks and in the river bed has interfered with the flow of the river, therefore, held liable to pay exemplary damages of Rupees Ten Lakhs.