Introduction

A writ petition was filed by M.C Mehta, a social activist lawyer, he sought
closure for Shriram Industries as it was engaged in manufacturing of hazardous
substances and located in a densely populated area of Kirti Nagar .While the
petition was pending, on 4 and 6 December 1985, there was leakage of oleum
gas from one of its units which caused the death of an advocate and affected the
health of several others. The incident took place on December 4, 1985.

Just after one year from the Bhopal gas disaster a large number of persons –
both amongst the workmen and public were affected. This incident also
reminded of the Bhopal gas holocaust.

M.C Mehta filed a PIL under Articles 21 and 32 of the Constitution and sought
closure and relocation of the Shriram Caustic Chlorine and Sulphuric Acid Plant
which was located in a thickly populated area of Delhi.

Factories were closed down immediately as Inspector of Factories and

Commissioner (Factories) issued separate orders dated December 8 and 24,
1985 . This incident took place only a few months before Environment
(Protection) Act came into force, thus became a guiding force for having an
effective law like this.

There are six reported orders in the Shriram Food and Fertilizer Industry case
of the Supreme Court of India, out of these six, four orders were pronounced
before Environment (Protection) Act, 1986 was passed and the date from
which it came into force. Thus the reported orders are relevant and important
as they shed new light on how highly toxic and hazardous substances industry
should be dealt with and contained and controlled to minimize hazards to the
workers and general public.
Issues -:

1. Whether such hazardous industries to be allowed to operate in such

areas
2. If they are allowed to work in such areas, whether any regulating
mechanism be evolved.
3. Liability and amount of compensation how to be determined.

Chief Justice Bhagwati showed his deep concern for the safety of the
people of the Delhi from the leakage of hazardous substances like the
one here – oleum gas. He was of the opinion that we cannot adopt the
policy to do away with chemical or hazardous industries as they also
help to improve the quality of life, a sin this case this factory, was
supplying chlorine to Delhi Water Supply Undertaking which is used
to maintain the wholesomeness of drinking water. Thus industries
even if hazardous have to be set up since they are essential for
economic development and advancement of well being of the people.
"We can only hope to reduce the element of hazard or risk to the
community by taking all necessary steps for locating such industries
in a matter which would pose least risk of danger to the community
and maximizing safety requirements in such industries "
Thus the Supreme Court was of the opinion that total ban on the above
industry of public utility will impede the developmental activities.
It was also observed that permanent closure of the factory would
result in the unemployment of 4000 workers, caustic soda factory and
add to social problem of poverty. Therefore the court made an order
to open the factory temporarily subject to eleven conditions and
appointed an expert committee to monitor the working of the
industry.
The court also suggested that a national policy will have to be evolved
by the Government for the location of toxic or hazardous industries
and a decision will have to be taken in regard of relocation of such
industries with a view to eliminate risk to the community.
Some of the conditions formulated by the
government were -:
1. The Central Pollution Control Board to
appoint an inspector to inspect and see that
pollution standards set under the Water Act
and Air Act to be followed.
2. To constitute Worker's Safety Committee
3. Industry to publicise the effects of chlorine
and its appropriate treatment
4. Instruct and train its workers in plant safety
through audio visual programme, install
loudspeaker to alert neighbours in the
event of leakage of gas
5. Workers to use safety devices like masks
and belts
6. And that the workers of Shriram to furnish
undertaking from Chairman of DCM
Limited, that in case of escape of gas
resulting in death or injury to workmen or
people living in vicinity they will be
"personally responsible " for payment of
compensation of such death or injury.
The Court also directed that Shriram industries would deposit Rs 20 lakhs and
to furnish a bank guarantee for Rs. 15 lakhs for payment of compensation
claims of the victims of oleum gas if there was any escape of chlorine gas within
three years from the date of order resulting in death or injury to any workmen
or living public in the vicinity . The quantum of compensation was determinable
by the District Judge , Delhi .It also shows that the court made the industry
"absolutely liable " and compensation to be paid as when the injury was proved
without requiring the industry to be present in the case .

The above mentioned conditions were formulated to ensure continuous

compliance with the safety standards and procedures laid by the committees
(Manmohan Singh Committee and Nilay Choudhary Committee ) so that the
possibility of hazard or risk to workmen could be reduced to nil .

This all indicates that Supreme Court in its judgement emphasized that certain
standard qualities to be laid down by the government and further it should also
make law on the management and handling of hazardous substances including
the procedure to set up and to run industry with minimal risk to humans ,
animals etc.

The Court also directed that Shriram industries would deposit Rs 20 lakhs and
to furnish a bank guarantee for Rs. 15 lakhs for payment of compensation
claims of the victims of oleum gas if there was any escape of chlorine gas within
three years from the date of order resulting in death or injury to any workmen
or living public in the vicinity . The quantum of compensation was determinable
by the District Judge , Delhi .It also shows that the court made the industry
"absolutely liable " and compensation to be paid as when the injury was proved
without requiring the industry to be present in the case .

The above mentioned conditions were formulated to ensure continuous

compliance with the safety standards and procedures laid by the committees
(Manmohan Singh Committee and Nilay Choudhary Committee ) so that the
possibility of hazard or risk to workmen could be reduced to nil .

This all indicates that Supreme Court in its judgement emphasized that certain
standard qualities to be laid down by the government and further it should also
make law on the management and handling of hazardous substances including
the procedure to set up and to run industry with minimal risk to humans ,
animals etc.