Manu SC 1112 1996 Jud20200904131636

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PETITIONER:
INDIAN COUNCIL FOR ENVIRO-LEGAL ACTION ETC.
Vs. a
RESPONDENT:
UNION OF INDIA AND ORS.ETC.
DATE OF JUDGMENT: 13/02/1996
BENCH:
JEEVAN REDDY, B.P. (J)
BENCH: b
JEEVAN REDDY, B.P. (J)
KIRPAL B.N. (J)
CITATION:
1996 AIR 1446 1996 SCC (3) 212
JT 1996 (2) 196 1996 SCALE (2)44
c
ACT:
HEADNOTE:
d
JUDGMENT:
J U D G M E N T
B.P.JEEVAN REDDY,J.
WRIT PETITION (C) NO.967 OF 1989:
This writ petition filed by an environmentalist
organization brings to light the woes of people living in
the vicinity of chemical industrial plants in India. It
highlights the disregard, nay, contempt for law and lawful e
authorities on the part of some among the emerging breed of
entrepreneurs, taking advantage, as they do, of the
country’s need for industrialization and export earnings.
Pursuit of profit has absolutely drained them of any feeling
for fellow human beings - for that matter, for anything
else. And the law seems to have been helpless. Systemic
defects? It is such instances which have led many people in
this country to believe that disregard of law pays and that f
the consequences of such disregard will never be visited
upon them - particularly, if they are men with means. Strong
words indeed - but nothing less would reflect the deep sense
of hurt, the hearing of this case has instilled in us. The
facts of the case will bear out these opening remarks.
Bichhri is a small village in Udaipur district of
Rajasthan. To its north is a major industrial establishment,
Hindustan Zinc Limited, a public sector concern. That did
not affect Bichri. Its woes began somewhere in 1987 when the
g
fourth respondent herein, Hindustan Agro Chemicals Limited
started producing certain chemicals like Oleum [said to be
the concentrated form of Sulphuric acid] and Single Super
Phosphate. The real calamity occurred when a sister concern,
Silver Chemicals [Respondent No.5], commenced production of
‘H’ acid in a plant located within the same complex. ‘H’
acid was meant for export exclusively. Its manufacture gives
rise to enormous quantities of highly toxic effluents - in h
particular, iron-based and gypsum-based sludge - which if
not properly treated, pose grave threat to mother Earth. It
poisons the earth, the water and everything that comes in
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contact with it. Jyoti Chemicals [Respondent No.8] is
another unit established to produce ‘H’ acid, besides some
other chemicals. Respondents Nos.6 and 7 were established to
produce fertilizers and a few other products. a
All the units/factories of Respondents Nos.4 to 8 are
situated in the same complex and are controlled by the same
group of individuals. All the units are what may be called
"chemical industries". The complex is located within the
limits of Bichhri village.
Because of the pernicious wastes emerging from the
production of ‘H’ acid, its manufacture is stated to have
been banned in the western countries. But the need of ‘H’
acid continues in the West. That need is catered to by the b
industries like the Silver Chemicals and Jyoti Chemicals in
this part of the world. [A few other unites producing ‘H’
acid have been established in Gujarat, as would be evident
from the decision of the Gujarat High Court in Pravinbhai
Jashbhai & Ors. v. State of Gujarat & Anr. (1995 (2)
G.L.R.1210), a decision rendered by one of us, B.N.Kirpal,J.
as the Chief Justice of that Court.] Silver Chemicals is
stated to have produced 375 MT of ‘H’ acid. The quantity of c
‘H’ acid produced by Jyoti Chemicals is not known. It says
that it produced only 20mt., as trial production, and no
more. Whatever quantity these two units may have produced,
it has given birth to about 2400-2500 MT of highly toxic
sludge [iron-based sludge and gypsum-based sludge] besides
other pollutants. Since the toxic untreated waste waters
were allowed to flow out freely and because the untreated
toxic sludge was thrown in the open in and around the d
complex, the toxic substances have percolated deep into the
bowels of the earth polluting the aquifers and the
subterranean supply of water. The water in the wells and the
streams has turned dark and dirty rendering it unfit for
human consumption. It has become unfit for cattle to drink
and for irrigating the land. The soil has become polluted
rendering it unfit for cultivation, the main stay of the
villagers. The resulting misery to the villagers needs no e
emphasis. It spread disease, death and disaster in the
village and the surrounding areas. This sudden degradation
of earth and water had an echo in Parliament too. An Hon’ble
Minister said, action was being taken, but nothing
meaningful was done on the spot. The villagers then rose in
virtual revolt leading to the imposition of Section 144
Cr.P.C. by the District Magistrate in the area and the
closure of Silver Chemicals in January, 1989. It is averred f
by the respondents that both the units, Silver Chemicals and
Jyoti Chemicals have stopped manufacturing ‘H’ acid since
January, 1989 and are closed. We may assume it to be so. Yet
the consequences of their action remain - the sludge, the
long-lasting damage to earth, to underground water, to human
beings, to cattle and the village economy. It is with these
consequences that we are to contend with in this writ
petition.
The present social action litigation was initiated in
g
August, 1989 complaining precisely of the above situation
and requesting for appropriate remedial action. To the writ
petition, the petitioner enclosed a number of photographs
illustrating the enormous damage done to water, cattle,
plants and to the area in general. A good amount of
technical data and other material was also produced
supporting the averments in the writ petition.
COUNTER-AFFIDAVITS OF THE RESPONDENTS h
On notice being given, counter-affidavits have been
filed by the Government of India, Government of Rajasthan,
Rajasthan Pollution Control Board [R.P.C.B.] and Respondents

Nos.4 to 8. Since the earliest counter-affidavit in point of
time is that of R.P.C.B., we shall refer to it in the first
instance. It was filed on October 26, 1989. The following
are the averments: a
(a) Re. Hindustan Agro Chemicals Limited [R-4]: The unit
obtained ’No-Objection Certificate’ from the P.C.B. for
manufacturing sulphuric acid and alumina sulphate. The Board
granted clearance subject to certain conditions. Later ’No-
Objection Certificate’ was granted under the Water
[Prevention and Control of Pollution] Act, 1974 [Water Act]
and Air (Prevention and Control of Pollution) Act, 1981 [Air
Act], again subject to certain conditions. However, this
unit changed its product without clearance from the Board. b
Instead of sulphuric acid, it started manufacturing Oleum
and Single Super Phosphate [S.S.P.]. Accordingly, consent
was refused to the unit on February 16, 1987. Directions
were also issued to close down the unit. (b) Re.:Silver
Chemicals [R-5]: This unit was promoted by the fourth
respondent without obtaining ’No-Objection Certificate’ from
the Board for the manufacture of ‘H’ acid. The waste water
generated from the manufacture of ‘H’ acid is highly acidic c
and contains very high concentration of dissolved solids
along with several dangerous pollutants. This unit was
commissioned in February, 1988 without obtaining the prior
consent of the Board and accordingly, notice of closure was
served on April 30, 1988. On May 12, 1988, the unit applied
for consent under Water and Air Acts which was refused. The
Government was requested to issue directions for cutting off
the electricity and water to this unit but no action was d
taken by the Government. The unit was found closed on the
date of inspection, viz., October 2, 1989.
(c) Re.:Rajasthan Multi Fertilizers [R-6]: This unit was
installed without obtaining prior ’No-Objection Certificate’
from the Board and without even applying for consent under
Water and Air Acts. Notice was served on this unit on
February 20, 1989. In reply whereto, the Board was informed
that the unit was closed since last three years and that e
electricity has also been cut off since February 12, 1988.
(d) Re.:Phosphates India [R-7]: This unit was also
established without obtaining prior ’No-Objection
Certificate’ from the Board nor did it apply for consent
under the Water and Air Acts. When notice dated February 20,
1989 was served upon this unit, the Management replied that
this unit was closed for a long time.
(e) Re.:Jyoti Chemicals [R-8]: This unit applied for ’No- f
Objection Certificate’ for producing ferric alum. ’No-
Objection Certificate’ was issued imposing various
conditions on April 8, 1988. The ’No-Objection Certificate’
was withdrawn on May 30, 1988 on account of non-compliance
with its conditions. The consent applied for under Water and
Air Acts by this unit was also refused. Subsequently, on
February 9, 1989, the unit applied for fresh consent for
manufacturing ‘H’ acid. The consent was refused on May 30,
1989. The Board has been keeping an eye upon this unit to
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ensure that it does not start the manufacture of ‘H’ acid.
On October 2, 1989, when the unit was inspected, it was
found closed.
The Board submitted further [in its counter-affidavit]
that the sludge lying in the open in the premises of
Respondents Nos.4 to 8 ought to be disposed of in accordance
with the provisions contained in the Hazardous Wastes
(Management and Handling) Rules, 1989 framed under h
Environment (Protection) Act, 1986. According to the Board,
the responsibility for creating the said hazardous situation
was squarely that of Respondents Nos.4 to 8. The Board

enclosed several documents to its counter in support of the
averments contained therein.
The Government of Rajasthan filed its counter-affidavit
on January 20, 1990. It made a curious statement in Para 3 a
to the following effect: "(T)hat the State Government is now
aware of the pollution of under-ground water being caused by
liquid effluents from the firms arrayed as Respondent Nos.4
to 8 in the writ petition. Therefore, the State Government
has initiated action through the Pollution." The State
Government stated that the water in certain wells in Bichri
village and some other surrounding villages has become unfit
for drinking by human beings and cattle, though in some
other wells, the water remains unaffected. b
The Ministry of Environment and Forests, Government of
India filed its counter on February 8, 1990. In their
counter, the Government of India stated that Silver
Chemicals was merely granted a Letter of Intent but it never
applied for conversion of the Letter of Intent into
industrial licence. Commencing production before obtaining
industrial licence is an offence under Industries
[Development and Regulation] Act, 1951. So far as Jyoti c
Chemicals is concerned, it is stated that it has not
approached the Government at any time even that in June,
1989, a study of the situation in Bichri village and some
other surrounding villages was conducted by the Centre for
Science and Environment. A copy of their Report is enclosed
to the counter. The Report states the consequences emanating
from the production of ‘H’ acid and the manner in which the
resulting wastes were dealt with by Respondents Nos.4 to 8 d
thus:
"The effluents are very difficult
to treat as many of the pollutants
present are refractory in nature.
Setting up such highly polluting
industry in a critical ground water
area was essentially ill-conceived.
The effluents seriously polluted e
the nearby drain and overflowed
into Udaisagar main canal, severely
corroding its cement-concrete lined
bed and banks. The polluted waters
also seriously degraded some
agricultural land and damaged
standing crops. On being ordered to
contain the effluents, the industry f
installed an unlined holding pond
within its premises and resorted to
spraying the effluent on the nearby
hill-slope. This only resulted in
extensive seepage and percolation
of the effluents into ground water
and their spread down the aquifer.
Currently about 60 wells appear to
have been significantly polluted
g
but every week a few new wells,
down the aquifer start showing
signs of pollution. This has
created serious problems for water
supply for domestic purposes,
cattle-watering crop irrigation and
other beneficial uses, and it has
also caused human illness and even h
death, degradation of land and
damage to fruit, trees and other
vegetation. There are serious

apprehensions that the pollution
and its harmful effects will spread
further after the onset of the
monsoon as the water percolating a
from the higher parts of the basin
moves down carrying the pollutants
lying on the slopes - in the
holding pond and those already
underground."
Each of the Respondent Nos.4 to 8 filed separate
counter-affidavits. All the affidavits filed on behalf of
these respondents are sworn-to by Lt.Gen. M.L.Yadava, who
described himself as the President of each of these units. b
In the counter-affidavit filed on behalf of the fourth
respondent, it is stated that it is in no way responsible
for the situation complained of. It is engaged in the
manufacture of sulphuric acid and had commenced its
operations on January 6, 1987. It has been granted ’No-
Objection Certificates’ from time to time. The consent
obtained from R.P.C.B. is valid upto August 15, 1988.
Application for extension of consent has already been filed. c
This counter-affidavit was filed on January 18, 1990.
In the counter-affidavit filed on behalf of the fifth
respondent [Silver Chemicals], it is stated that the
manufacture of ‘H’ acid which was commenced in February,
1988 has been completely stopped after January, 1989. The
respondent is fully conscious of the need to conserve and
protect environment and is prepared fully to cooperate in
that behalf. It is ready to comply with any stipulations or d
directions that may be made for the purpose. It, however,
submitted that the real culprit is Hindustan Zinc Limited.
The Archaeological Department of the Government of Rajasthan
had issued environmental clearance for its unit [rather
surprising statement]. ’No-Objection Certificates’ had also
been issued by the Executive Engineer [Irrigation], Udaipur
Division and the Wild Life Warden. So far as the requirement
of ’consent’ under Water and Air Acts is concerned, it e
merely stated that it had applied for it. Its closure in
January, 1989 was on account of promulgation of an order
under Section 144 Cr.P.C. by the District Magistrate in view
of wide-spread agitation by the villagers against its
functioning.
In the counter-affidavit filed on behalf of the sixth
respondent [Rajasthan Multi Fertilizers], it is stated that
it commenced production on March 14, 1982 and closed down in f
December, 1985. Electrical connection to it was disconnected
on February 13, 1988. It was submitted that since it is a
small-scale industry, no consent was asked for from anyone.
It denied that it was causing any pollution, either ground,
air or water.
In the counter-affidavit filed on behalf of the seventh
respondent [Phosphates India], it is stated that this unit
commenced production on May 15, 1988 but was closed on and
with effect from September 1, 1988 for want of support from
g
the Central Government in the form of subsidies. It
submitted that it has merged with the fourth respondent in
1987-88.
In the counter-affidavit filed on behalf of the eighth
respondent [Jyoti Chemicals], it is stated that it has no
electrical connection, that it had commenced production in
April 1987 and closed down completely in January, 1989. It
is stated that the unit produced ‘H’ acid to an extent of 20 h
MT as a trial measure for one month with the permission of
the Industries Department. It is no longer manufacturing ‘H’
acid and, therefore, is not responsible for causing any

pollution. It is further submitted that it is a small-scale
industry and was registered with the District Industry
Centre, Udaipur for the manufacture of ferric alum and ‘H’
acid. It began its operation simultaneously with the fifth a
respondent, Silver Chemicals, and several of the clearances
are common to both, as both of them are located together.
The trial production of ‘H’ acid, it is stated, took place
in January, 1987.
Hindustan Zinc Limited was impleaded as the ninth
respondent at the instance of Respondents Nos.4 to 8. It has
filed a counter-affidavit denying that it is responsible in
any manner for causing any pollution in Bichri village or
the surrounding areas. According to it, its plants are b
situated downstream, towards north of Bichri village. We do
not think it necessary to refer to this affidavit in any
detail inasmuch as we are not concerned, in this writ
petition, with the pollution, if any, caused by the ninth
respondent in other villages but only with the pollution
caused by Respondents Nos.4 to 8 in Bichhri or surrounding
villages.
ORDERS PASSED AND STEPS TAKEN DURING THE PERIOD 1989-1992: c
The first considered Order made, after hearing the
parties, by this Court is of December 11, 1989. Under this
Order, the Court requested the National Environmental
Engineering Research Institute [NEERI] to study the
situation in and around Bichri village and submit their
report "as to the choice and scale of the available remedial
alternatives". NEERI was requested to suggest both short-
term and long-term measures required to combat the hazard d
already caused. Directions were also made for supply of
drinking water to affected villages by the State of
Rajasthan. The R.P.C.B. was directed to make available to
the Court the Report it had prepared concerning the
situation in Bichhri village.
On the next date of hearing, i.e., March 5, 1990, the
Court took note of the statements made on behalf of
Respondents Nos.4 to 8 that they have completely stopped the e
manufacture of ‘H’ acid in their plants and that they did
not propose to resume its manufacture. The Court also took
note of the petitioner’s statement that though the
manufacture of ‘H’ acid may have been stopped, a large
quantity of highly dangerous effluent waste/sludge has
accumulated in the area and that unless properly treated,
stored and removed, it constitutes a serious danger to the
environment. Directions were given to the R.P.C.B. to f
arrange for its transportation, treatment and safe storage
according to the technically accepted procedures for
disposal of chemical wastes of that kind. All reasonable
expenses for the said operation were to be borne by
Respondents Nos.4 to 8 [hereinafter referred to in this
judgment as the "Respondents"]. So far as the polluted water
in the wells was concerned, the Court noted the offer made
by the learned counsel for the respondents that they will
themselves undertake the de-watering of the wells. The
g
R.P.C.B. was directed to inspect and indicate the number and
location of the wells to be de-watered.
The matter was next taken up on April 4, 1990. It was
brought to the notice of the Court that no meaningful steps
were taken for removing the sludge as directed by this Court
in its Order dated March 5, 1990. Since the monsoon was
about to set in, which would have further damaged the earth
and water in the area, the Court directed the respondents to h
immediately remove the sludge from the open spaces where it
was lying and store it in safe places to avoid the risk of
seepage of toxic substances into the soil during the rainy

season. The respondents were directed to complete the task
within five weeks therefrom.
It is not really necessary to refer to the contents of
the various Orders passed in 1990 and 1991, i.e., subsequent a
to the Order dated April 4, 1990 for the present purposes.
Suffice it to say that the respondents did not comply with
the direction to store the sludge in safe places. The de-
watering of wells did not prove possible. There was good
amount of bickering between the respondents on one side and
the R.P.C.B. and the Ministry of Environment and Forests on
the other. They blamed each other for lack of progress in
the matter of removal of sludge. Meanwhile, years rolled by
and the hazard continued to rise. NEERI submitted an interim b
Report. [We are, however, not referring to the contents of
this interim Report inasmuch as we would be referring to the
contents of the final Report presently after referring to a
few more relevant orders of this Court.]
On February 17, 1992, this Court passed a fairly
elaborate order observing that Respondents Nos.5 to 8 are
responsible for discharging the hazardous industrial wastes;
that the manufacture of ‘H’ acid has given rise to huge c
quantities of iron sludge and gypsum sludge - approximately
2268 MT of gypsum-based sludge and about 189 mt, of iron-
based sludge; that while the respondents blamed Respondent
No. 9 as the main culprit, Respondent No. 9 denied any
responsibility therefor. The immediate concern, said the
Court, was the appropriate remedial action. The report of
the R.P.C.B. presented a disturbing picture. It stated that
the respondents have deliberately spread the hazardous d
material/sludge all over the place which has only heightened
the problem of its removal and that they have failed to
carry out the Order of this Court dated April 4, 1990.
Accordingly, the Court directed the Ministry of Environment
and Forests, Government of India to depute its experts
immediately to inspect the area to ascertain the existence
and extent of gypsum-based and iron-based sludge, to suggest
the handling and disposal procedures and to prescribe a e
package for its transportation and safe storage. The cost of
such storage and transportation was to be recovered from the
respondents.
Pursuant to the above Order, a team of experts visited
the area and submitted a Report alongwith an affidavit dated
March 30, 1992. The report presented a highly disturbing
picture. It stated that the sludge was found inside a shed
and also at four places outside the shed but within the f
premises of the complex belonging to the respondents. It
stated further that sludge has been mixed with soil and at
many places it is covered with earth. A good amount of
sludge was said to be lying exposed to sun and rain. The
Report stated. "Above all, the extent of pollution in the
ground water seems to be very great and the entire aquifer
may be affected due to the pollution caused by the industry.
The organic content of the sludge needs to be analysed to
assess the percolation property of the contents from the
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sludge. It is also possible that the iron content in the
sludge may be very high which may cause the reddish
colorations. As the mother liquor produced during the
process (with pH-1) was highly acidic in nature and was
indiscriminately discharged on land by the unit, it is
possible that this might have eroded soil and caused the
extensive damage. It is also possible that the organic
contents of the mother liquor would have gone into soil with h
water together with the reddish colour." The Report also
suggested the mode of disposal of sludge and measures for
re-conditioning the soil.

In view of the above Report, the Court made an order on
April 6, 1992 for entombing the sludge under the supervision
of the officers of the Ministry of Environment and Forests,
Government of India. Regarding revamping of the soil, the a
Court observed that for this purpose, it might become
necessary to stop or suspend the operation of all the units
of the respondent but that, the Court said, requires to be
examined further.
The work of entombment of sludge again faced several
difficulties. While the respondents blamed the Government
officers for the delay, the Government officials blamed the
said respondents of non-cooperation. Several Orders were
passed by this Court in that behalf and ultimately, the work b
commenced.
ORDERS PASSED IN 1993, FILING OF WRIT PETITION (C) NO.76 OF
1994 BY RESPONDENT NO.4 AND THE ORDERS PASSED THEREIN:
With a view to find out the connection between the
wastes and sludge resulting from the production of ‘H’ acid
and the pollution in the underground water, the Court
directed on 20th August, 1993, that samples should be taken
of the entombed sludge and also of the water from the c
affected wells and sent for analysis. Environment experts of
the Ministry of Environment and Forests were asked to find
out whether the pollution in the well water was on account
of the said sludge or not. Accordingly, analysis was
conducted and the experts submitted the Report on November
1, 1993. Under the heading "Conclusion", the report stated:
"5.0 CONCLUSION
5.1 On the basis of the d
observations and analysis results,
it is concluded beyond doubt that
the sludge inside the emtomed pit
is the contaminated one as evident
from the number of parameters
analysed.
5.2 The groundwater is also
contaminated due to discharge of H- e
acid plant effluent as well as H-
acid sludge/contaminated soil
leachates as shown in the
photographs and also supported by
the results. The analysis result
revealed good correlation between
the colour of well water and H-acid
content in it. The analysis results f
show high degree of impurities in
sludge/soil and also in well water
which is a clear indication of
contamination of soil and
groundwater due to disposal of H-
acid waste."
The report which is based upon their inspection of the area
in September, 1993 revealed many other alarming features. It
represents a commentary on the attitude and actions of the
g
respondents. In Para-2, under the heading "Site Observations
& Collection of Sludge/Contaminated Soil Samples", the
following facts are stated:
"2.1. The Central team, during
inspection of the premises of
M/s.HACL, observed that H-acid
sludge (iron/gypsum) and
contaminated soil are still lying h
at different places, as shown in
Fig.1, within the industrial
premises (Photograph 1) which are

the left overs. The area, where the
solar evaporation pond was existing
with H-acid sludge dumped here and
there, was observed to have been a
levelled with borrowed soil
(Photograph 2). It was difficult to
ascertain whether the sludge had
been removed before filling.
However, there are visual evidences
of contaminated soil in the area.
2.2 As reported by the Rajasthan
Pollution Control Board (RPCB)
representatives, about 720 tonnes b
out of the total contaminated soil
and sludge scraped from the sludge
dump sites is disposed of in six
lined entombed pits covered by
lime/flyash mix, brick soling and
concrete (Photographs 3 & 4). The
remaining scraped sludge and
contaminated soil was lying near c
the entombed pits for want of
additional disposal facility.
However, during the visit, the left
over sludge and contaminated soil
could not be traced at site.
Inspection of the surrounding area
revealed that a huge heap of
foreign soil of 5 metre height d
(Photograph 5) covering a large
area, as also indicated in Fig.1,
was raised on the slopy ground at
the foot hill within the industry
premises. The storm water run-off
pathway over the area showed
indication of H-acid sludge
leachate coming out of the heap. e
Soil in the area was sampled for
analysis.
2.3 M/s.HACL has a number of other
industrial units which are
operating within the same premises
without valid consents from the
Rajasthan Pollution Control Board
(RPCB). These plants are sulphuric f
acid (H2SO4), fertilizer (SSP) and
vegetable oil extraction. The
effluent of these units are not
properly treated and the untreated
effluent particularly from the acid
plant is passing through the sludge
dump area playing havoc (Photograph
7). The final effluent was
collected at the outlet of the
g
factory premises during operation
of these units, at the time of
groundwater monitoring in September
1993, by the RBPC. Its quality was
observed to be highly acidic (pH :
1.08, Conductivity : 37,100 mg/1,
So4 : 21,000 mg/1, Fe : 392 mg/1,
COD : 167 mg/1) which was also h
revealed in the earlier visits of
the Central teams. However, these
units were not in operation during

the present visit."
Under Para 4.2.1, the report stated
inter alia:
"The sludge samples from the a
surroundings of the (presently non-
existent) solar evaporation and the
contaminated soil due to seepage
from the newly raised dump site
also exhibited very high values of
the above mentioned parameters.
This revealed that the contaminated
soil is buried under the new dump
found by the team." b
So much for the waste disposal by the respondents and
their continuing good conduct! To the same effect is the
Report of the R.P.C.B. which is dated October 30, 1993.
In view of the aforesaid Reports, all of which
unanimously point out the consequences of the ‘H’ acid
production, the manner in which the highly corrosive waste
water (mother liquor) and the sludge resulting from the
production of ‘H’ acid was disposed of and the continuing c
discharge of highly toxic effluents by the remaining units
even in the year 1993, the authorities [R.P.C.B.] passed
orders closing down, in exercise of their powers under
Section 33A of the Water Act, the operation of the Sulphuric
Acid Plant and the solvent extraction plant including oil
refinery of the fourth respondent with immediate effect.
Orders were also passed directing disconnection of
electricity supply to the said plants. The fourth respondent d
filed Writ Petition (C) No.76 of 1994 in this Court, under
Article 32 of the Constitution, questioning the said Orders
in January, 1994. The main grievance in this writ petition
was that without even waiting for the petitioner’s
[Hindustan Agro Chemicals Limited] reply to the show-cause
notices, orders of closure and disconnection of electricity
supply were passed and that this was done by the R.P.C.B.
with a malafide intent to cause loss to the industry. It was e
also submitted that sudden closure of its plants is likely
to result in disaster and, may be, an explosion and that
this consideration was not taken into account while ordering
the closure. In its Order dated March 7, 1994, this Court
found some justification in the contention of the industry
that the various counter-affidavits filed by the R.P.C.B.
are self-contradictory. The Board was directed to adopt a
constructive attitude in the matter. By another Order dated f
March 18, 1994, the R.P.C.B. was directed to examine the
issue of grant of permission to re-start the industry or to
permit any interim arrangement in that behalf. On April 8,
1994, a ’consent’ order was passed whereunder the industry
was directed to deposit a sum of Rupees sixty thousand with
R.P.C.B. before April 11, 1994 and the R.P.C.B. was directed
to carry on the construction work of storage tank for
storing and retaining ten days effluents from the Sulphuric
Acid plant. The construction of temporary tank was supposed
g
to be an interim measure pending the construction of an
E.T.P. on permanent basis. The Order dated April 28, 1994
noted the Report of the R.P.C.B. stating that the
construction of temporary tank was completed on April 26,
1994 under its supervision. The industry was directed to
comply with such other requirements as may be pointed out by
R.P.C.B. for prevention and control of pollution and
undertake any works required in that behalf forthwith. h
Thereafter, the matter went into a slumber until October 13,
1995.
NEERI REPORT:

At this juncture, it would be appropriate to refer to
the Report submitted by NEERI on the subject of "Restoration
of Environmental Quality of the affected area surrounding
Village Bichhri due to past Waste Disposal Activities". This a
Report was submitted in April, 1994 and it states that it is
based upon the study conducted by it during the period
November, 1992 to February, 1994. Having regard to its
technical competence and reputation as an expert body on the
subject, we may be permitted to refer to its Report at some
length:
At Page 7, the Report mentions the industrial wates
emerging from the manufacture of ‘H’ acid. It reads:
"Solid wastes generated from H- b
acid manufacturing process are:
Gypsum sludge produced during the
neutralization of acidic solution
with lime after nitration stage
(around 6 tonnes/tonne of H-acid
manufactured)
Iron sludge produced during the
reduction stage (around 0.5 c
tonnes/tonne of H-acid
manufactured)
Gypsum sludge contains mostly
calcium sulphate along with sodium
salts and organics. Iron sludge
constitutes unreacted iron powder,
besides ferric salts and organics.
It is estimated that, for each d
tonne of H-acid manufactured, about
20 m3 of wholly corrosive
wastewater was generated as mother
liquor, besides the generation of
around 2.0 m3 of wash water. The
mother liquor is characterised by
low pH (around 2.0) and high
concentration of total dissolved e
solids (80 - 280 g/L). High COD of
the wastewater (90 g/L) could be
attributed to organics formed
during various stages of
manufacture. These include
naphthalene trisulphonic acid,
nitro naphthalene sulphonic acid,
Koch acid and H-acid, besides, f
several other intermediates."
At Pages 8 and 9, the Report describes the manner in
which the sludge and other industrial wastes were disposed
of by the respondents. It states inter alia:
"The total quantities of wastes
water and that of sludge generated
were around 8250 m3 and 2440 tonnes
respectively for a production of
375 tonnes by M/s.Silver Chemicals
g
Ltd. and M/s.Jyoti Chemicals
Ltd......
* Majority of sludge brought
back from disposal sites
located outside the plant was
transferred inside a covered
shed.
* The sludge lying in the plant h
premises was entombed in the
underground pit by RPCB as per
the directions of the Hon’ble

Supreme Court. It may be
mentioned that only 720 MT of
sludge out of the estimated
quantity of 2440 MT could be a
entombed as the capacity of
the underground tanks provided
by the industry for the
purpose was only to that
extent.
* Remaining sludge and sludge
mixed soil were, however,
present in the plant premises
as these could not be b
transferred into underground
tanks. It has also been
observed that only sludge
above the soil was removed
from the six sites and
transferred to the plant site.
Subsurface soil of these sites
appears to have been c
contaminated as the soil has
reddish colour akin to that of
the sludge.
* A fertilizer plant (single
superphosphate), a sulphuric
acid plant and an oil
extraction and oil refining
plant were in operation in the d
same premises where H-acid was
earlier manufactured. The
acidic wastewater (around pH
1.0) presently generated from
these units was flowing over
the abandoned dumpsite. This
leaches the sludge mixed soil
from the abandoned dumpsite e
and the contaminated water
flows by gravity towards east
and finds its way into a
nallah flowing through the
compound and conveys the
contaminated water to an
irrigation canal which
originates from Udaisagar lake f
(Pate 1.4)."
(Emphasis added)
At Page 10, the Report mentions the six dump sites
outside the ‘H’ acid plant premises where the sludge was
lying in the open. At Pages 26 and 27, the Report states on
the basis of V.E.S. investigations that while certain wells
were found contaminated, others were not. At Page 96, the
Report states thus:
"Damage to Crops and Trees
g
The field surveys in contaminated
fields in zone I and II showed that
no crops were coming in the fields
particularly in low lying areas. On
some elevated areas, crops like
jowar, maize were growing; however
the growth and yield were very
poor. h
Further it was also observed that
even trees like eucalyptus planted
in contaminated fields show leaf

burning and stunted growth. Many
old trees which were badly affected
due to contamination are still
growing under stress conditions as a
a result of soil contamination.
The top soils at the old dump sites
outside the plant premises are
still contaminated and require
decontamination before the land is
used for other purposes.
It was observed that even after the
operation of hauling the sludge
back to the industry premises, some b
sludge mixed soil was still lying
in the premises of a primary school
(Table 1.1), which needs
decontamination."
In Chapter-6, the Report mentions the remedial
measures. Para 6.1, titled "Introduction", states:
"As could be seen from the data
reported in Chapter 4 and 5, the c
ground water and soils within 2 km
from the plant have been
contaminated. After critically
scrutinising the date, it was
concluded that there is an urgent
need to work out a decontamination
strategy for the affected area.
This strategy includes the d
decontamination of the soil,
contaminated ground water and
abandoned dump sites. This chapter
details the remedial measures that
can be considered for
implementation to restore the
environmental quality of the
affected area." e
The Chapter then sets out the various remedial
measures, including land treatment, soil washing,
revegetation, control over the flow of the contaminated
water to adjoining lands through canals, leaching of soluble
salts, design of farm to development Agroforestry and/or
forestry plantation with salt tolerant crops/plants and
ground water decontamination. Inter alia, the Report states:
"The entire contaminated area f
comprising of 350 ha of
contaminated land and six abandoned
dump sites outside the industrial
premises has been found to be
ecologically fragile due to
reckless past disposal activities
practiced by M/s. Silver Chemicals
Ltd. and M/s.Jyoti Chemicals Ltd.
Accordingly, it is suggested that
g
the whole of the contaminated area
be developed as a green belt at the
expense of M/s.Hindustan
Agrochemicals Ltd. during the
monsoon of 1994."
Under Para 6.3.2, the Report suggests "Decontamination
Alternatives for Groundwater" including Bioremediation,
Degradation of H-acid by Azotobacter Vinelandii, Isolation h
of Bacterial Population from H-acid Contaminated Soil and
several other methods.
Under Para 6.4.2, the Report mentions the several

decontamination alternatives including containment of
contaminated soil, surface control, ground water control,
leachate collection and treatment, gas migration control and
direct waste treatment. a
At Pages 157 and 158, the report mentions the
continuing discharge of effluents in an illegal and
dangerous manner. It reports:
"It was also observed by NEERI’s
team during the current study that
the industry has not provided
adequate effluent treatment
facilities and the wastewaters
(pH.1.5) from the existing plants b
(Sulphuric acid, Fertilizer, and
Oil extraction) are being
discharged, without treatment, on
land within the plant premises.
This indiscriminate and willful
disposal activity is further
aggravating the contamination
problem in the area. Acidic c
effluent leaches the pollutants
from the dumped sludge and the
contaminated soil and facilitates
their penetration through the
ground and thereby increasing the
concentration of sulphates and
dissolved solids in groundwater.
What is most serious is the fact d
that the industry produced
chlorosulfonic acid for a few
months during late 1992 which is a
hazardous and toxic substance as
per MEF Notification titled
’Manufacture, Storage and Import of
Hazardous Chemical Rules, 1989, and
even floated public shares for the e
manufactures of this obnoxious
chemical. The production was
however ceased due to the
intervention of the Rajasthan
Pollution Control Board in December
1992 as the industry was operating
without obtaining site clearance,
No Objection Certificate f
(NOC)/Consent from the concerned
appropriate regularity
(regulatory?) authorities and
without providing for any pollution
control measures. It is, therefore,
essential for M/s. Hindustan
Agrochemicals Ltd. to comply with
these requirements for carrying out
the present industrial activities.
g
The abatement of further
contamination warrants the closure
of all industrial operations till
an appropriate effluent treatment
plant is installed, and certified
by RPCB for its functions of Water
Act."
The Report adds: h
"The Industry management in the
past [during 1988-89] has shown
scant respect for Pollution Control

and Environment Protection Acts.
Not only this, the management
continues industrial activity
producing obnoxious waste waters a
and dumping the same without any
treatment, contaminating land and
ground water without any concern
for ecology and public health. It
is necessary that the provisions of
relevant legislations are imposed
on the industry to avoid
environmental damage and harm to
public welfare." b
(Emphasis added)
We do not think that the above Report requires any
emphasis at our hands. It speaks for itself - and it speaks
volumes of the ’high regard’ the respondents have for law!
At Pages 179 onwards, the Report refers to the damage
to the crops and the land and to the psychological and
mental torture inflicted upon the villagers by the
respondents and suggests that the principle of ’Polluter c
Pays’ should be applied in this case inasmuch as "the
incident involved deliberate release of untreated acidic
process wastewater and negligent handling of waste sludge
knowing Fully well the implication of such acts." The Report
suggests that compensation should be paid under two heads,
viz., (a) for the losses due to damage and (b) towards the
cost of restoration of environmental quality. It then works
out the total cost of restoration of environmental quality d
at Rs.3738.5 lakhs - i.e., Rs.37.385 crores.
Para 7.4 states the conclusions flowing from the
material in Chapter-6 thus:
"The cost of damage to be disbursed
to the affected villagers is
estimated at Rs.342.8 lakhs and
remediation of impacted well waters
and soil at Rs.3738.5 lakhs. This e
cost needs to be borne by the
management of the industry in
keeping with the Polluter Pays
principle and the doctrine of
Strict/Absolute liability, as
applied to Sri Ram Food and
Fertilizers Industry in the case of
Oleum leak in 1985." f
REPORT OF R.P.C.B. SUBMITTED IN
JANUARY, 1996 DURING THE FINAL
HEARING OF THESE MATTERS:
When all these matters were posted before the Court on
October 13, 1995, we realised that the matter requires to be
heard on a priority basis. Having regard to the voluminous
data gathered by this Court and the several Orders passed
from time to time, the matter was listed for regular
hearing. We heard all the parties at length on 10th, 11th,
g
16th and 17th January, 1996. We have been taken through the
voluminous record. Submissions have also been made on the
questions of law arising herein.
At the end of the first day of regular hearing, we made
an Order calling upon the R.P.C.B. to send a team of high
officials to the spot and report to us the latest position
on the following aspects:
(i) Whether the factories of Silver Chemicals, Rajasthan h
Multi Fertilizers and Jyoti Chemicals are still working and
whether the machinery installed in the said plant is still
existing? [This information was required to check the

statement of the respondents that the said units are lying
closed since last several years.]
(ii) To report whether the factory or factories of
Respondent No.4, Hindustan Agro-Chemicals Limited, are a
working and if they are working, what are the products being
manufactured by them? The Board was also directed to report
whether the seventh respondent, Phosphate India, which was
said to have merged with the fourth respondent, is having a
separate factory and if so, what is being produced therein?
(iii) The approximate quantity of sludge - whether ’iron
sludge’ or ’gypsum sludge’- lying in the area. The report
was to indicate what quantity was entombed pursuant to the
Orders of this Court and whether any further sludge was b
lying in the area or in the premises of the respondents’
complex, its approximate quantity and the time, effort and
cost required to remove the same.
(iv)The Board was also to take samples of the water in wells
and tanks in the area and have them analysed and tell us
whether it is fit for drinking by cattle and/or fit for
irrigation purposes.
Accordingly, the R.P.C.B. officials visited the site c
and have filed a Report dated January 16, 1996 along with an
affidavit. The Report discloses the following facts:
(1) The two units, Silver Chemicals and Jyoti Chemicals, do
not exist now. There is no machinery. A godown and a Ferric
Alum plant have been constructed at the site of the said
plant. The Ferric Alum plant was not in operation at the
time of inspection though plant and machinery for
manufacturing it was found installed therein. Certain old d
stock of Ferric Alum was also found lying within the plant
premises.
(2) Hindustan Agro-Chemicals Limited [R-4] has seven
industrial plants, viz., Rajasthan Multi Fertilizers
[manufacturing Grannulated Single Super Phosphate
(G.S.S.P.)], a Suphuric Acid Plant, a Chlorosulphonic Acid
Plant, Edible Oil Solvent Extraction Plant, Edible Oil
Refinery and a Ferric Alum Plant (known as M/s.Jyoti e
Chemicals), all of which are located within the same
premises. All these seven plants were found not operating on
the date of inspection by the R.P.C.B. officials though in
many cases the machinery and the other equipment was in
place. So far as the sludge still remaining in the area is
concerned, the report stated:
"3. Village Bicchidi and other
adjoining areas were visited by the f
undersigned officials to know
whether gypsum and iron sludge is
still lying in the aforesaid area.
In area adjoining the irrigation
canal, sludge mixed with soil were
found on an area of about 3000
sq.ft. The area was covered with
foreign soil. Sample of the sludge
mixed soil was collected for the
g
perusal of the Hon’ble Court.
Entire premises of M/s.Hindustan
Agro Chemicals Ltd. was also
inspected and sludge mixed with
soil was observed in a large area.
It was further observed that fresh
soil in the varying depth has been
spread over in most of the area. In h
view of the fact that sludge was
mixed with the soil and difficult
to separate out of the soil it is

very difficult to estimate the
exact quantity of the sludge
required to be removed. Samples of
sludge mixed with soil were a
collected from different part of
this area after serving due notices
under Environment Protection Act,
1986."
So far as the water in the wells was conceded, the
Report mentioned that they took samples from the wells from
Bichhri and other surrounding villages, i.e., from thirty
two different locations and that water in sixteen location
was found to "contain colour of varying intensities ranging b
from very dark brown to light pink which apparently shows
that these wells/handpumps are still polluted".
Sri K.N.Bhat, learned counsel for the respondents,
however, submitted that the R.P.C.B. officials have
throughout been hostile to the respondents and that,
therefore, the Reports submitted by them should not be acted
upon. He also submitted that respondents have had no
opportunity to file objections to the said Report or to c
produce material to contradict the statements made therein.
While taking note of these submissions, we may, however,
refer to the letter dated January 13, 1996 written by the
fourth respondent to the R.P.C.B. In this letter, the
particulars of the stocks remaining in each of its seven
plants are mentioned along with the date of the last
production in each of those plants. The last dates of
production are the following: Sulphuric Acid Plant - d
November 10, 1995, S.S.P.. Plant [Phosphate India] -
November 11, 1995, G.S.S.P. Plant [Rajasthan Multi
Fertilizers] - July 7, 1995, Solvent Extraction Plant and
Refinery - December 2, 1993, Jyoti Chemicals- October, 1990
and Chlorosulphonic Acid Plant - September 29, 1995. It is
worthy of note that these dates are totally at variance with
the dates of closure mentioned in the counter-affidavits
filed by these units in 1990-91. e
CONTENTIONS OF THE PARTIES:
Sri M.C.Mehta, learned counsel appearing for the
petitioner, brought to our notice the several Reports,
orders and other material on record. He submitted that the
abundant material on record clearly establishes the
culpability of the respondents for the devastation in
village Bichhri and surrounding areas and their
responsibility and obligation to properly store the f
remaining sludge, stop discharge of all untreated effluents
by taking necessary measures and defray the total cost
required for remedial measures as suggested by NEERI [Rupees
forty crores and odd]. Learned counsel suggested that in
view of the saga of repeated and continuous violation of law
and lawful orders on the part of the respondents, they must
be closed forthwith. So far as the legal propositions are
concerned, the learned counsel relied strongly upon the
Constitution Bench decision in M.C.Mehta v. Union of India
g
[Oleum Gas Leak Case] (1987 (1) S.C.C.395) as well as the
recent Order of this Court in Indian Council for Enviro-
Legel Action v. Union of India [1995 (5) SCALE 578]. Learned
counsel also invited our attention to quite a few foreign
decisions and text books on the subject of environment. Sri
Altaf Ahmed, learned Additional Solicitor General appearing
for the Union of India, also stressed the need for urgent
appropriate directions to mitigate and remedy the situation h
on the spot in the light of the expert Reports including the
one made by the central team of experts.
The learned counsel for the State of Rajasthan, Sri

Aruneshwar Gupta, expressed the readiness of the State
Government to carry out and enforce such orders as this
Court may think fit and proper in the circumstances.
Sri K.B.Rohtagi, learned counsel for the R.P.C.B., a
invited our attention to the various Orders passed, action
taken, cases instituted and Reports submitted by the Board
in this matter. He submitted that until recently the Board
had no power to close down any industry for violation of
environmental laws and that after conferment of such power,
they did pass orders of closure. He denied the allegations
of malafides or hostile intent on the part of the Board
towards the respondents. Learned counsel lamented that
despite its best efforts, the Board has not yet been b
successful in eradicating the pollution in the area and
hence asked for stringent orders for remedying the appalling
conditions in the village due to the acts of the
respondents.
Sri K.N.Bhat, learned counsel for the respondents, made
the following submissions:
(1) The respondents are private corporate bodies. They are
not ‘State’ within the meaning of Article 12 of the c
Constitution. A writ petition under Article 32 of the
Constitution, therefore, does not lie against them.
(2) The R.P.C.B. has been adopting a hostile attitude
towards these respondents from the very beginning. The
Reports submitted by it or obtained by it are, therefore,
suspect. The respondents had no opportunity to test the
veracity of the said Reports. If the matter had been fought
out in a properly constituted suit, the respondents would d
have had an opportunity to cross-examine the experts to
establish that their Reports are defective and cannot be
relied upon.
(3) Long before the respondents came into existence,
Hindustan Zine Limited was already in existence close to
Bichhri village and has been discharging toxic untreated
effluents in an unregulated manner. This had affected the
water in the wells, streams and aquifers. This is borne out e
by the several Reports made long prior to 1987. Blaming the
respondents for the said pollution is incorrect as a fact
and unjustified.
(4) The respondents have been cooperating with this Court
in all matters and carrying out its directions faithfully.
The Report of the R.P.C.B. dated November 13, 1992 shows
that the work of entombment of the sludge was almost over.
The Report states that the entire sludge would be stored in f
the prescribed manner within the next two days. In view of
this report, the subsequent Report of the Central team,
R.P.C.B. and NEERI cannot be accepted or relied upon. There
are about 70 industries in India manufacturing ‘H’ acid.
Only the units of the respondents have been picked upon by
the Central and State authorities while taking no action
against the other units. Even in the matter of disposal of
sludge, the directions given for its disposal in the case of
other units are not as stringent as have been prescribed in
g
the case of respondents. The decision of the Gujarat High
Court in Pravinbhai Jashbhai Patel shows that the method of
disposal prescribed there is different and less elaborate
than the one prescribed in this case.
(5) The Reports submitted by the various so-called expert
committees that sludge is still lying around within and
outside the respondents’ complex and/or that the toxic
wastes from the Sulphuric Acid Plant are flowing through and h
leaching the sludge and creating a highly dangerous
situation is untrue and incorrect. The R.P.C.B. itself had
constructed a temporary E.T.P. for the Sulphuric Acid Plant

pursuant to the Orders of this Court made in Writ Petition
(C) No.76 of 1994. Subsequently, a permanent E.T.P. has also
been constructed. There is no question of untreated toxic
discharges from this plant leaching with sludge. There is no a
sludge and there is no toxic discharge from the Sulphuric
Acid Plant.
(6) The case put forward by the R.P.C.B. that the
respondents’ units do not have the requisite
permits/consents required by the Water Act, Air Act and the
Environment [Protection] Act is again unsustainable in law
and incorrect as a fact. The respondents’ units were
established before the amendment of Section 25 of the Water
Act and, therefore, did not require any prior consent for b
their establishment.
(7) The proper solution to the present problem lies in
ordering a comprehensive judicial enquiry by a sitting Judge
of the High Court to find out the causes of pollution in
this village and also to recommend remedial measures and to
estimate the loss suffered by the public as well as by the
respondents. While the respondents are prepared to bear the
cost of repairing the damage, if any, caused by them, the c
R.P.C.B. and other authorities should be made to compensate
for the huge losses suffered by the respondents on account
of their illegal and obstructionist policy adopted towards
them.
(8) The decision in Oleum Gas Leak Case has been explained
in the opinion of Ranganath Misra, CJ., in the decision in
Union Carbide Corporation v. Union of India (1991 (4)
S.C.C.584). The law laid down in Oleum Gas Leak Case is at d
variance with the established legal position in other
Commonwealth countries.
Sri Bhat suggested that in the larger interests of
environment, industry and public, this Court may direct the
Government of India to constitute, by proper legislation,
environment courts all over the country - which courts alone
should be empowered to deal with such cases, to give
appropriate directions including orders of closure of e
industries wherever necessary, to make necessary technical
and scientific investigations, to suggest remedial measures
and to oversee their implementation. Proceedings by way of a
writ in this Court under Article 32 or in the High Court
under Article 226, the learned counsel submitted, are not
appropriate to deal with such matters, involve as they do
several disputed questions of fact and technical issues.
Before we proceed to deal with the submissions of the f
learned counsel, it would be appropriate to notice the
relevant provisions of law.
RELEVANT STATUTORY PROVISIONS:
Article 48A is one of the Directive Principles of State
Policy. It says that the State shall endeavor to protect and
improve the environment and to safeguard the forests and
wildlife of the country. Article 51A sets out the
fundamental duties of the citizens. One of them is "(g) to
protect and improve the natural environment including
g
forests, lakes, rivers and wild life and to have compassion
for living creatures.....".
The problem of increasing pollution of rivers and
streams in the country - says the Statement of Objects and
Reasons appended to the Bill which became the Water
[Prevention and Control of Pollution] Act, 1974 - attracted
the attention of the State Legislatures and the Parliament.
They realised the urgency of ensuring that domestic and h
industrial effluents are not allowed to be discharged into
water courses without adequate treatment and that pollution
of rivers and streams was causing damage to the country’s

economy. A committee was set up in 1962 to draw a draft
enactment for prevention of water pollution. The issue was
also considered by the Central Council of Local Self-
Government in September, 1963. The Council suggested the a
desirability of having a single enactment for the purpose. A
draft Bill was prepared and sent to various States. Several
expert committees also made their recommendations meanwhile.
Since an enactment on the subject was relatable to Entry 17
read with Entry 6 of List-II in the Seventh Schedule to the
Constitution - and, therefore, within the exclusive domain
of the States - the State Legislatures of Gujarat, Kerala,
Haryana and Mysore passed resolutions as contemplated by
Article 252 of the Constitution enabling the Parliament to b
make a law on the subject. On that basis, the Parliament
enacted the Water [Prevention and Control of Pollution] Act,
1974. [The State of Rajasthan too passed the requisite
resolution.] Section 24(1) of the Water Act provides that
"subject to the provisions of this section, (a) no person
shall knowingly cause or permit any poisonous, noxious or
polluting matter determined in accordance with such
standards as may be laid down by the State Board to enter c
whether (directly or indirectly) into any stream or
well.....". Section 25(1), before it was amended by Act 53
of 1988, provided that "(1) subject to the provisions of
this section, no person shall, without the previous consent
of the State Board, bring into use any new or altered outlet
for the discharge of sewage or trade effluent into a stream
or well or begin to make any new discharge of sewage or
trade effluent into a stream or well." As amended by Act 53 d
of 1988, Section 25 now reads: "25(1) Subject to the
provisions of this section, no person shall without the
previous consent of the State Board, (a) establish or take
any steps to establish any industry, operation or process or
any treatment and disposal system or an extension or an
addition thereto, which is likely to discharge sewage or
trade effluent into a stream or well or sewer or on land
[such discharge being hereafter in this section referred to e
as ‘discharge of sewage’]; or (b) bring into use any new or
altered outlets for the discharge of sewage or (c) begin to
make any new discharge of sewage.....". [It is stated that
the Rajasthan Assembly passed resolution under Article 252
of the Constitution adopting the said amendment Act vide
Gazette Notification dated May 9, 1990.] Section 33 empowers
the Pollution Control Board to apply to the court, not
inferior to that of a Metropolitan Magistrate or a Judicial f
Magistrate of the First Class, to restrain any person
causing pollution if the said pollution is likely to
prejudicially affect water in a stream or a well. Section
33A, which has been introduced by Amendment Act 53 of 1988,
empowers the Board to order the closure of any industry and
to stop the electricity, water and any other service to such
industry if it finds such a direction necessary for
effective implementation of the provisions of the Act. Prior
to the said amendment Act, the Pollution Control Board had
g
no such power and the course open to it was to make a
recommendation to the Government to pass appropriate orders
including closure.
The Air [Prevention and Control of Pollution] Act, 1981
contains similar provisions.
In the year 1986, Parliament enacted a comprehensive
legislation, Environment (Protection) Act. The Act defines
"environment" to include "water, air and land and the inter- h
relationship which exists among and between water, air and
land and human beings, other living creatures, plants,
micro-organism and property." The preamble to the Act

recites that the said Act was made pursuant to the decisions
taken at the United Nations Conference on the Human
Environment held at Stockholm in June, 1972 in which India
also participated. Section 3 empowers the Central Government a
"to take all such measures as it deems necessary or
expedient for the purpose of protecting and improving the
quality of the environment and preventing, controlling and
abating environmental pollution". Sub-section (2) elucidates
the several powers inhering in Central Government in the
matter of protection and promotion of environment. Section 5
empowers the Central Government to issue appropriate
directions to any person, officer or authority to further
the objects of the enactment. Section 6 confers rule-making b
power upon the Central Government in respect of matters
referred to in Section 3. Section 7 says that "no person
carrying on any industry, operation or process shall
discharge or emit or permit to be discharged or emitted any
environmental pollutant in excess of such standards, as may
be prescribed".
The Central Government has made the Hazardous Wastes
(Management and Handling) Rules, 1989 in exercise of the c
power conferred upon it by Section 6 of the Environment
(Protection) Act prescribing the manner in which the
hazardous wastes shall be collected, treated, stored and
disposed of.
CONSIDERATION OF THE SUBMISSIONS:
Taking up the objections urged by Sri Bhat first, we
find it difficult to agree with them. This writ petition is
not really for issuance of appropriate writ, order or d
directions against the respondents but is directed against
the Union of India, Government of Rajasthan and R.P.C.B. to
compel them to perform their statutory duties enjoined by
the Acts aforementioned on the ground that their failure to
carry out their statutory duties is seriously undermining
the right to life [of the residents of Bichhri and the
affected area] guaranteed by Article 21 of the Constitution.
If this Court finds that the said authorities have not taken e
the action required of them by law and that their inaction
is jeopardizing the right to life of the citizens of this
country or of any section thereof, it is the duty of this
Court to intervene. If it is found that the respondents are
flouting the provisions of law and the directions and orders
issued by the lawful authorities, this Court can certainly
make appropriate directions to ensure compliance with law
and lawful directions made thereunder. This is a social f
action litigation on behalf of the villagers of Bichhri
whose right to life, as elucidated by this Court in several
decisions, is invaded and seriously infringed by the
respondents as is established by the various Reports of the
experts called for, and filed before, this Court. If an
industry is established without obtaining the requisite
permission and clearances and if the industry is continued
to be run in blatant disregard of law to the detriment of
life and liberty of the citizens living in the vicinity, can
g
it be suggested with any modicum of reasonableness that this
Court has no power to intervene and protect the fundamental
right to life and liberty of the citizens of this country.
The answer, in our opinion, is self-evident. We are also not
convinced of the plea of Sri Bhat that R.P.C.B. has been
adopting a hostile attitude towards his clients throughout
and, therefore, its contentions or the Reports prepared by
its officers should not be relied upon. If the respondents h
establish and operate their plants contrary to law, flouting
all safety norms provided by law, the R.P.C.B. was pound to
act. On that account, it cannot be said to be acting out of

animus or adopting a hostile attitude. Repeated and
persistent violations call for repeated orders. That is no
proof of hostility. Moreover, the Reports of R.P.C.B.
officials are fully corroborated and affirmed by the Reports a
of central team of experts and of NEERI. We are also not
prepared to agree with Sri Bhat that since the Report of
NEERI was prepared at the instance of R.P.C.B., it is
suspect. This criticism is not only unfair but is also
uncharitable to the officials of NEERI who have no reason to
be inimical to the respondents. If, however, the actions of
the respondents invite the concern of the experts and if
they depict the correct situation in their Reports, they
cannot be accused of any bias. Indeed, it is this Court that b
asked NEERI to suggest remedial measures and it is in
compliance with those orders that NEERI submitted its
interim Report and also the final Report. Similarly, the
objection of Sri Bhat that the Reports submitted by the
NEERI, by the Central team [experts from the Ministry of
Environment and Forests, Government of India] and R.P.C.B.
cannot be acted upon is equally unacceptable. These Reports
were called by this Court and several Orders passed on the c
basis of those Reports. It was never suggested on behalf of
Respondents Nos.4 to 8 that unless they are permitted to
cross-examine the experts or the persons who made those
Reports, their Reports cannot be acted upon. This objection,
urged at this late stage of proceedings - after a lapse of
several years - is wholly unacceptable. The persons who made
the said Reports are all experts in their field and under no
obligation either to the R.P.C.B. or for that matter to any d
other person or industry. It is in view of their
independence and competence that their Reports were relied
upon and made the basis of passing Orders by this Court from
time to time.
Now coming to the question of alleged pollution by
Hindustan Zinc Limited [R-9], it may be that Respondent No.9
is also responsible for discharging untreated effluents at
one or the other point of time but that is not the issue we e
are concerned with in these writ petitions. These writ
petitions are confined to the pollution caused in Bichhri
village on account of the activities of the respondent. No
Report among the several Reports placed before us in these
proceedings says that Hindustan Zinc Limited is responsible
for the pollution at Bichhri village. Sri Bhat brought to
our notice certain Reports stating that the discharges from
Hindustan Zinc Limited were causing pollution in certain f
villages but they are all down stream, i.e., to the north of
Bichhri village and we are not concerned with the pollution
in those villages in these proceedings. The bringing in of
Hindustan Zinc Limited in these proceedings is, therefore,
not relevant. If necessary, the pollution, if any, caused by
Hindustan Zinc Limited can be the subject-matter of a
separate proceeding.
We may now deal with the contentions of Sri Bhat based
upon the affidavit of R.P.C.B. dated November 13, 1992 which
g
has been repeatedly and strongly relied upon by the learned
counsel in support of his submission that the entire sludge
has been properly stored by or at the expense of his
clients. It is on the basis of this affidavit that Sri Bhat
says that the subsequent Reports submitted showing the
existence of sludge within and outside their complex should
not be accepted or acted upon. Let us turn to the affidavit
of R.P.C.B. dated November 13, 1992 and see how far does it h
support Sri Bhat’s contention. It is in Para 2(b) that the
sentence, strongly relied upon by Sri Bhat occurs, viz.,
"remaining work is likely to be completed by 15th November,

1992". For a proper appreciation of the purport of the said
sentence, it would be appropriate to read the entire Para
2(b), which is to the following effect: "(b) that all the
six tanks have been entombed with brick toppings. Roofing is a
complete on all tanks which have also been provided with
proper outlets for the exit of gases which may form as a
result of possible chemical reactions in the sludge mass.
The tanks have also been provided with reinforced concrete
to prevent propping of the roof. Remaining work is likely to
be completed by 15th November, 1992." We find it difficult
to read the said sentence as referring to the storage of the
remaining about 1700 MT of sludge. When the storage of 720
MT itself took up all the six tanks provided by the b
respondent, where was the remaining 1700 tonnes stored?
Except relying upon the said sentence repeatedly, Sri Bhat
has not been able to tell us where this 1700 MT has been
stored, whether in tanks end if so, who constructed the
tanks and when and how were they covered and sealed. He is
also not able to tell us on what dates the remaining sludge
was stored. It is evident that the aforesaid sentence
occurring in clause 2(b) refers to the proper sealing and c
completion of the said tanks wherein 720 MT of sludge was
stored. If, in fact, the said 1700 MT has also been
entombed, it was not difficult for the respondents to give
the particulars of the said storage. We are, therefore,
unable to agree with Sri Bhat that the subsequent Reports
which repeatedly and uniformly speak of the presence of
sludge within and outside the complex of the respondents
should not be accepted. It may be recalled that the Report d
of the team of Central Experts was submitted on November 1,
1993 based upon the inspection made by them in
September/October, 1993. To the same effect is the affidavit
of R.P.C.B. dated October 30, 1993 and the further affidavit
dated December 1, 1993. These Reports together with the
report of NEERI clearly establish that huge quantities of
sludge were still lying around either in the form of mounds
or placed in depressions, or spread over the contiguous e
areas and covered with local soil to conceal its existence.
It is worth reiterating that the said sludge is only part of
the pernicious discharges emanating from the manufacture of
‘H’ acid. The other part, which is unfortunately not visible
now [except in its deleterious effects upon the soil and
underground water] is the ‘mother liquor’ produced in
enormous quantities which has either flowed out or
percolated into the soil. f
So far as the responsibility of the respondents for
causing the pollution in the wells, soil and the aquifers is
concerned, it is clearly established by the analysis Report
referred to in the Report of the Central experts team dated
November 1, 1993 [Page 1026 of Vol.II]. Indeed, number of
Orders passed by this Court, referred to hereinbefore, are
premised upon the finding that the respondents are
responsible for the said pollution. It is only because of
the said reason that they were asked to defray the cost of
g
removal and storage of sludge. It is precisely for this
reason that, at one stage, the respondents had also
undertaken the de-watering of polluted wells. Disclaiming
the responsibility for the pollution in and around Bichhri
village, at this stage of proceedings, is clearly an
afterthought. We accordingly held and affirm that the
respondents alone are responsible for all the damage to the
soil, to the underground water and to the village Bichhri in h
general, damage which is eloquently portrayed in the several
Reports of the experts mentioned hereinabove. NEERI has
worked out the cost for repairing the damage at more than

Rupees forty crores. Now, the question is whether and to
what extent can the respondents be made responsible for
defraying the cost of remedial measures in these proceedings
under Article 32. Before we advert to this question, it may a
perhaps be appropriate to clarify that so far as removal of
remaining sludge and/or the stoppage of discharge of further
toxic wastes are concerned, it is the absolute
responsibility of the respondents to store the sludge in a
proper manner [in the same manner in which 720 MT of sludge
has already been stored] and to stop the discharge of any
other or further toxic wastes from its plants including
Sulphuric Acid Plant and to ensure that the wastes
discharged do not flow into or through the sludge. Now, b
turning to the question of liability, it would be
appropriate to refer to a few decisions on the subject.
In Oleum Gas Leak Case, a Constitution Bench discussed
this question at length and held thus:
"We are of the view that an
enterprise which is engaged in a
hazardous or inherently dangerous
industry which poses a potential c
threat to the health and safety of
the persons working in the factory
and residing in the surrounding
areas owes an absolute and non-
delegable duty to the community to
ensure that no harm results to
anyone on account of hazardous or
inherently dangerous nature of the d
activity which it has undertaken.
The enterprise must be held to be
under an obligation to provide that
the hazardous or inherently
dangerous activity in which it is
engaged must be conducted with the
highest standards of safety and if
any harm results on account of such e
activity, the enterprise must be
absolutely liable to compensate for
such harm and it should be no
answer to the enterprise to say
that it had taken all responsable
care and that the harm occurred
without any negligence on its part.
Since the persons harmed on account f
of the hazardous or inherently
dangerous activity carried on by
the enterprise would not be in a
position to isolate the process of
operation from the hazardous
preparation of substance or any
other related element that caused
the harm the enterprise must be
held strictly liable for causing
g
such harm as a part of the social
cost for carrying on the hazardous
or inherently dangerous activity.
If the enterprise is permitted to
carry on an hazardous or inherently
dangerous activity for its profits,
the law must presume that such
permission is conditional on the h
enterprise absorbing the cost of
any accident arising on account of
such hazardous or inherently

dangerous activity as an
appropriate item of its overheads.
Such hazardous or inherently
dangerous activity for private a
profit can be tolerated only on
condition that the enterprise
engaged in such hazardous or
inherently dangerous activity
indemnifies all those who suffer on
account of the carrying on of such
hazardous or inherently dangerous
activity regardless of whether it
is carried on carefully or b
not...........We would therefore
hold that where an enterprise is
engaged in a hazardous or
inherently dangerous activity and
harm results to anyone on account
of an accident in the operation of
such hazardous or inherently
dangerous activity resulting for c
example, in escape of toxic gas the
enterprise is strictly and
absolutely liable to compensate all
those who are affected by the
accident and such liability is not
subject to any of the exceptions
which operate vis-a-vis the
tortuous principle of strict d
liability under the rule in Ryland
v. Fletcher [supra].
We would also like to point out
that the measure of compensation in
the kind of cases referred to in
the preceding paragraph must be
correlated to the magnitude and
capacity of the enterprise because e
such compensation must have a
deterrent effect. The larger and
more prosperous the entire, greater
must be the amount of compensation
payable by it for the harm caused
on account of an accident in the
carrying on of the hazardous or
inherently dangerous activity by f
the enterprise."
Sri Bhat, however, points out that in the said decision, the
question whether the industry concerned therein was a
‘State’ within the meaning of Article 12 and, therefore,
subject to the discipline of Part-III of the Constitution
including Article 21 was left open and that no compensation
as such was awarded by this Court to the affected persons.
He relies upon the observations in the concurring opinion of
Ranganath Misra,CJ., in Union Carbide Corporation [1991 (4)
g
S.C.C. 584]. The learned Chief Justice, referred in the
first instance, to the propositions enunciated in Oleum Gas
Leak Case and then made the following observations in Paras
14 and 15:
"14. In M.C.Mehta case, no
compensation was awarded as this
Court could not reach the
conclusion that Shriram (the h
delinquent company) came within the
meaning of ‘State’ in Article 12 so
as to be liable to the discipline

of Article 21 and to be subjected
to a proceeding under Article 32 of
the Constitution. Thus what was
said was essentially obiter. a
15. The extracted part of the
observations from M.C.Mehta case
perhaps is a good guidelines for
working out compensation in the
cases to which the ratio is
intended to apply. The statement of
the law ex-facie makes a departure
from the accepted legal position in
Rylands v. Fletcher. We have not b
been shown any binding precedent
from the American Supreme Court
where the ratio of M.C.Mehta
decision has in terms been applied.
In fact Bhagwati,C.J., clearly
indicates in the judgment that his
view is a departure from the law
applicable to western countries." c
The majority judgment delivered by M.N.Venkatachaliah,J. [on
behalf of himself and two other learned Judges] has not
expressed any opinion on this issue. We on our part find it
difficult to say, with great respect to the learned Chief
Justice, that the law declared in Oleum Gas Leak Case is
obiter. It does not appear to be unnecessary for the
purposes of that case. Having declared the law, the
Constitution Bench directed the parties and other d
organizations to institute actions on the basis of the law
so declared.** Be that as it may, we are of the considered
opinion that even if it is assumed [for the sake of
argument] that this Court cannot award damages against the
respondents in these proceedings that does not mean that the
Court cannot direct the Central Government to determine and
------------------------------------------------------------
**A distinction between the Oleum Gas Leak Case and the e
present case may be noticed. That was not a case where the
industry was established or was being operated contrary to
law as in the present case. That was also not a case where
the orders of lawful authorities and Courts were violated
with impunity as in this case. In this case, there is a
clear violation of law and disobedience to the Orders of
this Court apart from the orders of the lawful authorities.
The facts stated above and findings recorded by us f
hereinafter bear it out. This Court has to ensure the
observance of law and of its Orders as a part of enforcement
of fundamental rights. That power cannot be disputed. If so,
a question may arise why is this Court not competent to make
Orders necessary for a full and effective implementation of
its Orders - and that includes the imposition and recovery
of cost of all measures including remedial measures. Above
all, the Central Government has the power under the
provisions of Sections 3 and 5 of the Environment
g
(Protection) Act, 1986 to levy and recover the cost of
remedial measures - as we shall presently point out. If the
Central Government omits to do that duty, this Court can
certainly issue appropriate directions to it to take
necessary measures. Is it not open to the Court, in an
appropriate situation, to award damages against private
parties as part of relief granted against public
authorities. This is a question upon which we do not wish to h
express any opinion in the absence of a full debate at the
Bar.
recover the cost of remedial measures from the

respondents. Section 3 of the Environment (Protection) Act,
1986 expressly empowers the Central Government [or its
delegate, as the case may be] to "take all such measures as
it deems necessary or expedient for the purpose of a
protecting and improving the quality of
environment.........". Section 5 clothes the Central
Government [or its delegate] with the power to issue
directions for achieving the objects of the Act. Read with
the wide definition of "environment" in Section 2(a),
Sections 3 and 5 clothe the central Government with all such
powers as are "necessary or expedient for the purpose of
protecting and improving the quality of the environment".
The Central Government is empowered to take all measures and b
issue all such directions as are called for the above
purpose. In the present case, the said powers will include
giving directions for the removal of sludge, for undertaking
remedial measures and also the power to impose the cost of
remedial measures on the offending industry and utilize the
amount so recovered for carrying out remedial measures. This
Court can certainly give directions to the Central
Government/its delegate to take all such measures, if in a c
given case this Court finds that such directions are
warranted. We find that similar directions have been made in
a recent decision of this Court in Indian Council for
Enviro-Legal Action and Ors. [supra]. That was also a writ
petition filed under Article 32 of the Constitution.
Following is the direction:
"It appears that the Pollution
Control Board had identified as d
many as 22 industries responsible
for the pollution caused by
discharge of their effluents into
Nakkavagu. They were responsible to
compensate to farmers. It was the
duty of the State Government to
ensure that this amount was
recovered from the industries and e
paid to the farmers."
It is, therefore, idle to contend that this Court cannot
make appropriate directions for the purpose of ensuring
remedial action. It is more a matter of form.
Sri K.N.Bhat submitted that the rule of absolute
liability is not accepted in England or other Commonwealth
countries and that the rule evolved by the House of Lords in
Rylands v. Fletcher [1866 (3) H.L.330] is the correct rule f
to be applied in such matters. Firstly, in view of the
binding decision of this Court in Oleum Gas Leak Case, this
contention is untenable, for the said decision expressly
refers to the rule in Rylands but refuses to apply it saying
that it is not suited to the conditions in India. Even so,
for the sake of completeness, we may discuss the rule in
Rylands and indicate why that rule is inappropriate and
unacceptable in this country. The rule was first stated by
Blackburn,J. [Court of Exchequer Chamber] in the following
g
words:
"We think that the true rule of law
is, that the person who for his own
purposes brings on his lands and
collects and keeps there anything
likely to do mischief if it
escapes, must keep it in at his
peril, and, if he does not do so, h
is prima facie answerable for all
the damage which is the natural
consequence of its escape. He can

excuse himself by shewing that the
escape was owing to the plaintiff’s
default; or perhaps that the escape
was the consequence of vis major, a
or the act of God;.....and it seems
but reasonable and just that the
neighbor, who has brought something
on his own property which was not
naturally there, harmless to others
so long as it is confined to his
own property, but which he knows to
be mischievous if it gets on his
neighbour’s, should be obliged to b
make good the damage which ensues
if he does not succeed in confining
it to his own property."
The House of Lords, however, added a rider to the above
statement, viz., that the user by the defendant should be a
"non-natural" user to attract the rule. In other words, if
the user by the defendant is a natural user of the land, he
would not be liable for damages. Thus, the twin tests - c
apart from the proof of damage to the plaintiff by the
act/negligence of the defendants - which must be satisfied
to attract this rule are "foreseability" and "non-natural"
user of the land.
The rule in Rylands has been approved by the House of
Lords in the recent decision in Cambridge Water Company v.
Eastern Counties Leather, PLC [1994 (2) W.L.R.53]. The
plaintiff, Cambridge Water Company, was a statutory d
corporation engaged in providing public water supply within
a certain area including the city of Cambridge. It was
lifting water from a bore well situated at some distance
from Sawstyn. The defendant-company, Eastern Leather, was
having a tannery in Sawstyn. Tanning necessarily involves
decreasing of pelts. For that purpose, the defendant was
using an oregano chlorine called P.C.E. P.C.E. was stored in
a tank in the premises of the defendant. The plaintiff’s e
case was that on account of the P.C.E. percolating into the
ground, the water in its well became contaminated and unfit
for human consumption and that on that account it was
obliged to find an alternative source at a substantial cost.
It sued the defendant for the resulting damages. The
plaintiff based his claim on three alternative grounds,
viz., negligence, nuisance and the rule in Rylands. The
Trial Judge (High Court) dismissed the action in negligence f
and nuisance holding that the defendant could not have
reasonably foreseen that such damage could occur to the
plaintiff. So far as the rule in Rylands was concerned, the
Trial Judge held that the user by the defendant was not an
non-natural user and hence, it was not liable for damages.
On appeal, the Court of Appeal declined to decide the matter
on the basis of the rule in Rylands. It relied strongly upon
the ratio in Ballard v. Tomlinson [(1885) 29 Ch.D.115]
holding that no person having a right to use a common source
g
is entitled to contaminate that source so as to prevent his
neighbor from having a full value of his right of
appropriation. The Court of Appeal also opined that the
defendant’s use of the land was not a natural use. On appeal
by the defendant, the House of Lords allowed the appeal
holding that foreseability of the harm of the relevant type
by the defendant was a pre-requisite to the right to recover
damages both under the heads of nuisance and also under the h
rule in Rylands and since that was not established by the
plaintiff, it has to fail. The House of Lords, no doubt,
held that the defendant’s use of the land was a non-natural

use but dismissed the suit, as stated above, on the ground
that the plaintiff has failed to establish that pollution of
their water supply by the solvent used by the defendant in
his premises was in the circumstances of the case forseable a
by the defendant.
The Australian High Court has, however, expressed its
disinclination to treat the rule in Rylands as an
independent head for claiming damages or as a rule rooted in
the law governing the law of nuisance in Burnie Port
Authority v. General Jones Pty Ltd. [(1994) 68 Australian
Law Journal 331]. The respondent, General Jones Limited, has
stored frozen vegetables in three cold storage rooms in the
building owned by the appellant, Burnie Port Authority b
[Authority]. The remaining building remained under the
occupation of the Authority. The Authority wanted to extend
the building. The extension work was partly done by the
Authority itself and partly by an independent contractor
[Wildridge and Sinclair Pty.Ltd.]. For doing its work, the
contractor used a certain insulating material called E.P.S.,
a highly inflammable substance. On account of negligent
handling of E.P.S., there was a fire which inter alia c
damaged the rooms in which General Jones had stored its
vegetables. On an action by General Jones, the Australian
High Court held by a majority that the rule in Rylands
having attracted many difficulties, uncertainties,
qualifications and exceptions, should now be seen, for the
purposes of Australian Common Law, as absorbed by the
principles of ordinary negligence. The Court held further
that under the rules governing negligence, if a person in d
control of a premises, introduces a dangerous substance to
carry on a dangerous activity, or allows another to do one
of those things, owes a duty of reasonable care to avoid a
reasonably foreseeable risk of injury or damage to the
person or property of another. In a case where a person or
the property of that other is lawfully in a place outside
the premises, the duty of care varies in degree according to
the magnitude of the risk involved and extends to ensuring e
that such care is taken. Applying the said principle, the
Court held that the Authority allowed the independent
contractor to introduce or retain a dangerbus substance or
to engage in a dangerous activity in its premises which
substance and activity caused a fire that destroyed the
goods of General Jones. The evidence, the Court held,
established that the independent contractor’s work was a
dangerous activity in that it involved real and foreseeable f
risk of a serious conflagration unless special precautions
were taken. In the circumstances, it was held that the
Authority owed a non-delegable duty of care to General Jones
to ensure that its contractor took reasonable steps to
prevent the occurrence of a fire and the breach of that duty
attracted liability pursuant to the ordinary principles of
negligence for the damage sustained by the respondent.
On a consideration of the two lines of thought [one
adopted by the English Courts and the other by the
g
Australian High Court], we are of the opinion that any
principle evolved in this behalf should be simple, practical
and suited to the conditions obtaining in this country. We
are convinced that the law stated by this Court in Oleum Gas
Leak Case is by far the more appropriate one - apart from
the fact that it is binding upon us. [We have disagreed with
the view that the law stated in the said decision is
obiter.] According to this rule, once the activity carried h
on is hazardous or inherently dangerous, the person carrying
on such activity is liable to make good the loss caused to
any other person by his activity irrespective of the fact

whether he took reasonable care while carrying on his
activity. The rule is premised upon the very nature of the
activity carried on. In the words of the Constitution Bench,
such an activity "can be tolerated only on the condition a
that the enterprise engaged in such hazardous or inherently
dangerous activity indemnifies all those who suffer on
account of the carrying on of such hazardous or inherently
dangerous activity regardless of whether it is carried on
carefully or not." The Constitution Bench has also assigned
the reason for stating the law in the said terms. It is that
the enterprise [carrying on the hazardous or inherently
dangerous activity] alone has the resource to discover and
guard against hazards or dangers - and not the person b
affected and the practical difficulty [on the part of the
affected person] in establishing the absence of reasonable
care or that the damage to him was foreseeable by the
enterprise.
Once the law in Oleum Gas Leak Case is held to be the
law applicable, it follows, in the light of our findings
recorded hereinbefore, that Respondents Nos.4 to 8 are
absolutely liable to compensate for the harm caused by them c
to villagers in the affected area, to the soil and to the
underground water and hence, they are bound to take all
necessary measures to remove the sludge and other pollutants
lying in the affected area [by affected area, we mean the
area of about 350 he, indicated in the sketch at Page 178 of
NEERI Report] and also to defray the cost of the remedial
measures required to restore the soil and the underground
water spruces. Sections 3 and 4 of Environment [Protection] d
Act confers upon the Central Government the power to give
directions of the above nature and to the above effect. Levy
of costs required for carrying out remedial measures is
implicit in Sections 3 and 4 which are couched in very wide
and expansive language. Appropriate directions can be given
by this Court to the Central Government to invoke and
exercise those powers with such modulations as are called
for in the facts and circumstances of this case. e
The question of liability of the respondents to defray
the costs of remedial measures can also be looked into from
another angle, which has now come to be accepted universally
as a sound principle, viz., the "Polluter Pays" Principle.
"The polluter pays principle
demands that the financial costs of
preventing or remedying damage
caused by pollution should lie with f
the undertakings which cause the
pollution, or produce the goods
which cause the pollution. Under
the principle it is not the role of
government to meet the costs
involved in either prevention of
such damage, or in carrying out
remedial action, because the effect
of this would be to shift the
g
financial burden of the pollution
incident to the taxpayer. The
‘polluter pays’ principle was
promoted by the Organization for
Economic Co-operation and
Development [OECD] during the 1970s
when there was great public
interest in environmental issues. h
During this time there were demands
on government and other
institutions to introduce policies

and mechanisms for the protection
of the environment and the public
from the threats posed by pollution
in a modern industrialized society. a
Since then there has been
considerable discussion of the
nature of the polluter pays
principle, but the precise scope of
the principle and its implications
for those involved in past, or
potentially polluting activities
have never been satisfactory
agreed. b
Despite the difficulties inherent
in defining the principle, the
European Community accepted it as a
fundamental part of its strategy on
environmental matters, and it has
been one of the underlying
principles of the four Community
Action Programmes on the c
Environment. The current Fourth
Action Programme ([1987]
O.J.C328/1) makes it clear that
‘the cost of preventing and
eliminating nuisances must in
principle be borne by the
polluter’, and the polluter pays
principle has now been incorporated d
into the European Community Treaty
as part of the new Articles on the
environment which were introduced
by the Single European Act of 1986.
Article 130R(2) of the Treaty
states that environmental
considerations are to play a part
in all the policies of the e
Community, and that action is to be
based on three principles: the need
for preventative action; the need
for environmental damage to be
rectified at source; and that the
polluter should pay."
["Historic Pollution - Does the
Polluter Pay?" By Carolyn Shelbourn f
- Journal of Planning and
Environmental Law, Aug.1974 issue.]
Thus, according to this principle, the responsibility for
repairing the damage is that of the offending industry.
Sections 3 and 5 empower the Central Government to give
directions and take measures for giving effect to this
principle. In all the circumstances of the case, we think it
appropriate that the task of determining the amount required
for carrying out the remedial measures, its
g
recovery/realisation and the task of undertaking the
remedial measures is placed upon the Central Government in
the light of the provisions of the Environment [Protection]
Act, 1986. It is, of course, open to the Central Government
to take the help and assistance of State Government,
R.P.C.B. or such other agency or authority, as they think
fit.
The next question is what is the amount required for h
carrying out the necessary remedial measures to repair the
damage and to restore the water and soil to the condition it
was in before the respondents commenced their operations.

The Report of NEERI has worked out the cost at wore than
Rupees forty crores. The estimate of cost of remedial
measures is, however, not a technical matter within the
expertise of NEERI officials. Moreover, the estimate was a
made in the year 1994. Two years have passed by since then.
Situation, if at all, must have deteriorated further on
account of the presence of - and dispersal of the sludge -
in and around the complex of the respondents by them. They
have been discharging other toxic effluents from their other
plants, as reported by NEERI and the central team. It is but
appropriate that an estimate of the cost of remedial
measures be made now with notice to the respondents, which
amount should be paid to Central Government and/or recovered b
from them by the Central Government. Other directions are
also called for in the light of the facts and circumstances
mentioned above.
CONCLUSIONS:
From the affidavits of the parties, Orders of this
Court, technical Reports and other data, referred to above
[even keeping aside the latest Report of the R.P.C.B.], the
following facts emerge: c
(I) Silver Chemicals [R-5] and Jyoti Chemicals [R-8] had
manufactured about 375 MT of ‘H’ acid during the years 1988-
89. This had given rise to about 8250 m3 of waste water and
2440 tones of sludge [both iron-based and gypsum-based]. The
waste water had partly percolated into the earth in and
around Bichhri and part of it had flowed out. Out of 2440
tones of sludge, about 720 tones has been stored in the pits
provided by the respondents. The remaining sludge is still d
there either within the area of the complex of the
respondents or outside their complex. With a view to conceal
it from the eyes of the inspection teams and other
authorities, the respondents have dispersed it all over the
area and covered it with earth. In some places, the sludge
is lying in mounds. The story of entombing the entire
quantity of sludge is untrue.
The units manufacturing ‘H’ acid - indeed most of the e
units of the respondents - had started functioning, i.e.,
started manufacturing various chemicals without obtaining
requisite clearances/consents/licences. They did not instal
any equipment for treatment of highly toxic effluents
discharged by them. They continued to function even after
and inspite of the closure orders of the R.P.C.B. They did
never carry out the Orders of this Court fully, [e.g.,
entombing the sludge] nor did they fulfil the undertaking f
given by them to the Court [in the matter of removal of
sludge and de-watering of the wells]. Inspite of repeated
Reports of officials and expert bodies, they persisted in
their illegal course of action in a brazen manner, which
exhibits their contempt for law, for the lawful authorities
and the Courts.
(II) That even after the closure of ‘H’ acid plant, the
fourth respondent had not taken adequate measures for
treating the highly toxic waste water and other wastes
g
emanating from the Sulphuric Acid Plant. The untreated
highly toxic waste water was found - by NEERI as well as the
Central team - flowing through the dumps of iron/gypsum
sludge creating a highly potent mix. The letter of the
fourth respondent dated January 13, 1996, shows that the
Sulphuric Acid Plant was working till November 10, 1995. An
assertion is made before us that permanent E.T.P. has also
been constructed for the Sulphuric Acid Plant in addition to h
the temporary tank which was constructed under the Orders of
this Court. We express no opinion on this assertion, which
even if true, is valid only for the period subsequent to

April, 1994.
(III) The damage caused by the untreated highly toxic
wastes resulting from the production of ‘H’ acid - and the
continued discharge of highly toxic effluent from the a
Sulphuric Acid Plant, flowing through the sludge [H-acid
waste] - is undescribable. It has inflicted untold misery
upon the villagers and long lasting damage to the soil, to
the underground water and to the environment of that area in
general. The Report of NEERI contains a sketch, at Page 178,
showing the area that has been adversely affected by the
production of ‘H’ acid by the respondents. The area has been
divided into three zones on the basis of the extent of
contamination. A total area of 350 he has become seriously b
contaminated. The water in the wells in that area is not fit
for consumption either by human beings or cattle. It has
seriously affected the productivity of the land. According
to NEERI Report, Rupees forty crores is required for
repairing the damage caused to men, land, water and the
flora.
(IV) This Court has repeatedly found and has recorded in its
Orders that it is respondents who have caused the said c
damage. The analysis Reports obtained pursuant to the
directions of the Court clearly establish that the pollution
of the wells is on account of the wastes discharged by
Respondents Nos.4 to 8, i.e., production of ‘H’ acid. The
Report of the environment experts dated November 1, 1993 has
already been referred to hereinbefore. Indeed, several
orders of this Court referred to supra are also based upon
the said finding. d
(V) Sections 3 and 5 of the Environment [Protection] Act,
1986, apart from other provisions of Water and Air Acts,
empower the Government to make all such directions and take
all such measures as are necessary or expedient for
protecting and promoting the ‘environment’, which expression
has been defined in very wide and expansive terms in Section
2(a) of the Environment [Protection] Act. This power
includes the power to prohibit an activity, close an e
industry, direct and/or carry out remedial measures, and
wherever necessary impose the cost of remedial measures upon
the offending industry. The principle "Polluter Pays" has
gained almost universal recognition, apart from the fact
that it is stated in absolute terms in Oleum Gas Leak Case.
The law declared in the said decision is the law governing
this case.
DIRECTIONS: f
Accordingly, the following directions are made:
1. The Central Government shall determine the amount
required for carrying out the remedial measures including
the removal of sludge lying in and around the complex of
Respondents 4 to 8, in the area affected in village Bichhri
and other adjacent villages, on account of the production of
‘H’ acid and the discharges from the Sulphuric Acid Plant of
Respondents 4 to 8. Chapters-VI and VII in NEERI Report
[submitted in 1994] shall be deemed to be the show-cause
g
notice issued by the Central Government proposing the
determination of the said amount. Within six weeks from this
day, Respondents 4 to 8 shall submit their explanation,
along with such material as they think appropriate in
support of their case, to the Secretary, Ministry of
Environment and Forests, Government of India, [M.E.F.]. The
Secretary shall thereupon determine the amount in
consultation with the experts of his Ministry within six h
weeks of the submission of the explanation by the said
Respondents. The orders passed by the Secretary, [M.E.F.]
shall be communicated to Respondents 4 to 8 - and all

concerned - and shall also be placed before this Court.
Subject to the Orders, if any, passed by this Court, the
said amount shall represent the amount which Respondents 4
to 8 are liable to pay to improve and restore the a
environment in the area. For the purpose of these
proceedings, the Secretary, [M.E.F.] and Respondents 4 to 8
shall proceed on the assumption that the affected area is
350 ha, as indicated in the sketch at Page 178 of NEERI
Report. In case of failure of the said respondents to pay
the said amount, the same shall be recovered by the Central
Government in accordance with law. The factories, plant,
machinery and all other lmmovable assets of Respondents 4 to
8 are attached herewith. The amount so determined and b
recovered shall be utilised by the M.E.F. for carrying out
all necessary remedial measures to restore the soil, water
sources and the environment in general of the affected area
to its former state.
2. On account of their continuous, persistent and insolent
violations of law, their attempts to conceal the sludge,
their discharge of toxic effluents from the Sulphuric Acid
Plant which was allowed to flow through the sludge, and c
their non-implementation of the Orders of this Court - all
of which are fully borne out by the expert committees’
Reports and the findings recorded hereinabove - Respondents
4 to 8 have earned the dubious distinction of being
characterised as "rogue industries". They have inflicted
untold misery upon the poor, unsuspecting villagers,
despoiling their land, their water sources and their entire
environment - all in pursuance of their private profit. They d
have forfeited all claims for any consideration by this
Court. Accordingly, we herewith order the closure of all the
plants and factories of Respondents 4 to 8 located in
Bichhri village. The R.P.C.B. is directed to seal all the
factories/units/plants of the said respondents forthwith. So
far as the Sulphuric Acid Plant is concerned, it will be
closed at the end of one week from today, within which
period Respondent No.4 shall wind down its operations so as e
to avoid risk of any untoward consequences, as asserted by
Respondent No.4 in Writ Petition (C) No.76 of 1994. It is
the responsibility of Respondent No.4 to take necessary
steps in this behalf. The R.P.C.B. shall seal this unit too
at the end of one week from today. The re-opening of these
plants shall depend upon their compliance with the
directions made and obtaining of all requisite permissions
and consents from the relevant authorities. Respondents 4 to f
8 can apply for directions in this behalf after such
compliance.
3. So far as the claim for damages for the loss suffered
by the villagers in the affected area is concerned, it is
open to them or any organization on their behalf to
institute suits in the appropriate civil court. If they file
the suit or suits in forma pauperize, the State of Rajasthan
shall not oppose their applications for leave to sue in
forma pauperize.
g
4. The Central Government shall consider whether it would
not be appropriate, in the light of the experience gained,
that chemical industries are treated as a category apart.
Since the chemical industries are the main culprits in the
matter of polluting the environment, there is every need for
scrutinizing their establishment and functioning more
rigorously. No distinction should be made in this behalf as
between a large-scale industry and a small-scale industry or h
for that matter between a large-scale industry and a medium-
scale industry. All chemical industries, whether big or
small, should be allowed to be established only after taking

into considerations all the environmental aspects and their
functioning should be monitored closely to ensure that they
do not pollute the environment around them. It appears that
most of these industries are water-intensive industries. If a
so, the advisability of allowing the establishment of these
industries in arid areas may also require examination. Even
the existing chemical industries may be subjected to such a
study and if it is found on such scrutiny that it is
necessary to take any steps in the interests of environment,
appropriate directions in that behalf may be issued under
Sections 3 and 5 of the Environment Act. The Central
Government shall ensure that the directions given by it are
implemented forthwith. b
5. The Central Government and the R.P.C.B. shall file
quarterly Reports before this Court with respect to the
progress in the implementation of Directions 1 to 4
aforesaid.
6. The suggestion for establishment of environment courts
is a commendable one. The experience shows that the
prosecutions launched in ordinary criminal courts under the
provisions of the Water Act, Air Act and Environment Act c
never reach their conclusion either because of the work-load
in those courts or because there is no proper appreciation
of the significance of the environment matters on the part
of those in charge of conducting of those cases. Moreover,
any orders passed by the authorities under Water and Air
Acts and the Environment Act are immediately questioned by
the industries in courts. Those proceedings take years and
years to reach conclusion. Very often, interim orders are d
granted meanwhile which effectively disable the authorities
from ensuring the implementation of their orders. All this
points to the need for creating environment courts which
alone should be empowered to deal with all matters, civil
and criminal, relating to environment. These courts should
be manned by legally trained persons/judicial officers and
should be allowed to adopt summary procedures. This issue,
no doubt, requires to be studied and examined indepth from e
all angles before taking any action.
7. The Central Government may also consider the
advisability of strengthening the environment protection
machinery both at the Center and the States and provide them
more teeth. The heads of several units and agencies should
be made personally accountable for any lapses and/or
negligence on the part of their units and agencies. The idea
of an environmental audit by specialist bodies created on a f
permanent basis with power to inspect, check and take
necessary action not only against erring industries but also
against erring officers may be considered. The idea of an
environmental audit conducted periodically and certified
annually, by specialists in the field, duly recognised, can
also be considered. The ultimate idea is to integrate and
balance the concern for environment with the need for
industrialisation and technological progress.
Respondents 4 to 8 shall pay a sum of Rupees fifty
g
thousand by way of costs to the petitioner which had to
fight this litigation over a period of over six years with
its own means. Voluntary bodies, like the petitioner,
deserve encouragement wherever their actions are found to be
in furtherance of public interest. The said sum shall be
deposited in this Court within two weeks from today. It
shall be paid over to the petitioner.
Writ Petition (C) No.967 of 1989 is allowed with the h
above directions with costs as specified hereinabove.
In view of the decision in Writ Petition (C) No.967 of

1989, the writ petition is dismissed.
No costs.
In view of the decision in Writ Petition (C) No.967 of a
1989, no separate Orders are necessary in this petition. The
writ petition is accordingly dismissed.
No costs.
In view of the decision in Writ Petition (C) No.967 of
1989, no separate Orders are necessary in this petition. The
writ petition is accordingly dismissed.
No costs.
b
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