National Green Tribunal

Aryavart Foundation through its President and Ors. Vs. Yashyashvi Rasayan Pvt. Ltd. & Ors.

MANU/GT/0025/2021

03.02.2021

Environment

Companies dealing with hazardous substance must forthwith pay compensation for deaths & injuries to victims as per WCA, 1923 wherever applicable or the principle of restitution wherever applicable

Matter arises out of an incident occurred in Bharuch district of Gujarat. The respondent factory is the manufacturer of several hazardous chemicals, including Methanol and Xylane which are hazardous to life and property as mentioned in schedule to the Manufacturer, Storage and Import of Hazardous Chemical Rules, 1989. According to applicants, a massive blast took place in the factory on account of a fire in the storage tank of the factory resulting to death of 11 and grievous and simple injuries to 22 and 28 respectively. Along with this damage has also been found in the air and water in the vicinity.

The issue in the matter was what should be the measure of liability of an enterprise which is engaged in a hazardous or inherently dangerous industry if by reason of an accident occurring in such industry, personas die or are injured and whether damage caused to the environment is an important aspect.

NGT directed to conduct safety audits of all such establishments having potential for such accidents and directed the Chief Secretaries of all the States and Union territories to evolve a mechanism to ensure that the companies dealing with hazardous substance must forthwith pay compensation for deaths and injuries to the victims a least as per Workmen Compensation Act, 1923 wherever applicable or the principle of restitution laid down in this regard.

The NGT further affirmed that the pollution control board and District Magistrate must assess the cost of restoration of the environment which should be recovered from the company.

Tags : Compensation Hazardous Substance

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