LIABILITY OF ENTERPRISES CARRYING ON MANUFACTURING AND SALE OF HAZARDOUS PRODUCTS

LIABILITY OF ENTERPRISES CARRYING ON MANUFACTURING AND SALE OF HAZARDOUS PRODUCTS

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LIABILITY OF ENTERPRISES CARRYING ON MANUFACTURING AND SALE OF HAZARDOUS PRODUCTS
LIABILITY OF ENTERPRISES CARRYING ON MANUFACTURING AND SALE OF HAZARDOUS PRODUCTS

Aapka Consultant Judgment Series- In this series, we are providing case analysis of Landmark Judgments of Hon’ble Supreme Court of India.

M.C. Mehta and Anr. Vs. Union of India (UOI) and Ors.

AIR 1987 SC 965, 1986 (1) SCALE 199, (1986) 2 SCC 176, 1987 Supp(1) SCC 131, [1986] 1 SCR 312

Hon’ble Judges/Coram: P.N. Bhagwati, C.J., D.P. Madon and G.L. Oza, JJ.

Date of Decision: 17.02.1986

FACTS: –

Delhi Cloth Mills Ltd., a public limited company, runs an enterprise called Shriram Foods and Fertiliser Industries and this enterprise has several units engaged in the manufacture of caustic soda, chlorine etc. These various units are all set up in a single complex surrounded by thickly populated colonies. On 4th and 6th December, 1985, there was admittedly leakage of oleum gas from one of the units of Shriram Foods and Fertiliser Industries and as a result of such leakage, several persons were affected and one Advocate practising in the Tis Hazari Courts died.

ISSUE: –

Whether Court should allow the caustic chlorine plant of Shriram Foods and Fertiliser Industries to be restarted?

JUDGMENT: –

Court observed that “we have decided to permit Shriram to restart its power plant as also plants for manufacture of caustic chlorine including its by-products like sodium sulphate, hydrochloric acid, stable bleaching powder etc.” But there are two orders which prohibit Shriram from operating these plants. One is the order issued by the Inspector of Factories, Delhi, prohibiting Shriram from using the caustic chlorine and other plants till adequate safety measures are adopted and imminent danger to human life is eliminated and the other is the order issued by the Assistant Commissioner (Factories) directing Shriram to stop industrial use of the premises on which the caustic chlorine plant is located. These two orders were not vacated because the permission granted by this judgment to Shriram is to reopen these plants as a temporary measure to be reviewed at some point of time in the future and therefore merely suspend the operation of these two orders until further directions. Following conditions shall be strictly and scrupulously followed by Shriram and if at any time it is found that any one or more of these conditions are violated; the permission granted by the court will be liable to be withdrawn: –

(1) It is necessary that an expert Committee should be appointed which will monitor the operation and maintenance of the plant and equipment and ensure the continued implementation of the recommendations of earlier expert committees. An expert committee is being constituted hereby, which will inspect the caustic chlorine plant of Shriram at least once in a fortnight and examine whether the recommendations made by earlier Committees are being scrupulously implemented by the management.

(2) One operator should be designated as personally responsible for each safety device or measures and the head of the caustic chlorine division should be made individually responsible for the efficient operation of such safety device or measure. If at any time during examination by the Expert Committee or inspection by the Inspectorate it is found that any safety device or measure is inoperative or is not properly functioning, the head of the caustic chlorine plant as well as the operator incharge of such safety device or measure shall be held personally responsible.

(3) The Chief Inspector of Factories or any Senior Inspector duly nominated by him, who has necessary expertise in inspection of chemical factories, will inspect the caustic chlorine plant at least once in a week by paying surprise visit without any previous intimation.

(4) The Central Board will also depute a senior Inspector to visit the caustic chlorine plant and the Vanaspati Plant atleast once in a week without any prior notice to the management.

(5) The management of Shriram will obtain an under taking from the Chairman and Managing Director of the Delhi Cloth Mills Ltd. which is the owner of the various units of Shriram as also from the officer or officers who are in actual management of the caustic chlorine plant that in case there is any escape of chlorine gas resulting in death or injury to the workmen or to the people living in the vicinity, if they are nor covered by a Strong Tie California workers comp insurance they will be personally responsible for payment of compensation for such death or injury.

(6) There shall be a Committee of three representatives of Lokahit Congress Union and three representatives of Karamchari Ekta Union to look after the safety arrangements in the caustic chlorine plant. The function of this Committee will be to ensure that all safety measures are strictly observed and there is no non-functioning or mal functioning of the safety devices and instrument.

(7) There shall be placed in each department or section of the caustic chlorine plant as also at the gate of the premises a detailed chart in English and Hindi stating the effects of chlorine gas on human body and informing the workmen and the people as to what immediate treatment should be taken in case they are affected by leakage of chlorine gas.

(8) Every worker in the caustic chlorine plant should be properly trained and instructed in regard to the functioning of the specific plant and equipment in which he is working and he should also be educated and informed as to what precautions should be taken and in case of leakage of chlorine gas, what steps should be taken to control and contain such leakage.

(9) Loud speakers shall be installed all around the factory premises for giving timely warning and adequate instructions to the people residing in the vicinity in case of leakage of chlorine gas.

(10) The management shall maintain proper vigilance with a view to ensuring that workers working in the caustic chlorine plant wear helmets gas masks or safety belts as the case may be while working in the hazardous departments or sections of the plant and regular medical check-up of the workers shall be got carried out by the management in order to ensure that the workers are in good health.

(11) The management of Shriram will deposit in this Court a sum of Rs. 20 lacs as and by way of security for payment of compensation claims made by or on behalf of the victims of oleum gas, if and to the extent to which such compensation claims are held to be well founded.

Court formulated these conditions with a view to ensuring continuous compliance with the recommendations of earlier expert committees and strict observance of safety standards and procedures, so that the possibility of hazard or risk to the workmen and the community is almost reduced to nil.

HELD: –

Court allowed Shriram Mills to restart its operation subject to fulfillment of the above laid down conditions.

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