Nagin Nanda ORDER
1. Proceedings in this matter arise out of an incident dated 03.06.2020 at Dahej, District Bharuch, Gujarat. Version of the applicants is that a massive blast took place in chemical factory run by respondent No. 1, Yashashvi Rasayan Pvt. Ltd. ("The Company") on account of a fire in the storage tank of the factory. The factory is manufacturing several hazardous chemicals, including Methanol and Xylene, which find mention in the Schedule to the Manufacture, Storage and Import of Hazardous Chemical Rules, 1989 (The 1989 Rules) resulting in deaths, injuries, displacement of inhabitants and damage to the property. As per relied upon media reports, bodies of some of the workers inside the factory were charred beyond recognition. About 4800 inhabitants of the nearby villages had to be moved to safer place1 on account of the incident. The company has revenue in the range of Rs. 100 crores for the year ending 31.03.2018.2 According to the applicant, the Company is owned by the Patel Group, having large financial resources.
2. As per report furnished to this Tribunal, by the Committee of experts, the number of deaths in the incident is 11. Victims with grievous injuries are found to be 22, with simple injuries 28 (leading to hospitalisation) and with minor injuries 43 (who were not hospitalised)3. Houses damaged due to blast have been found to be 3754 and persons shifted/displaced on account of apprehended danger are 32414. Damage has also been found to the air and water5 in the vicinity. Detailed reference to the facts, as found by the Committee constituted by this Tribunal, will be made in the later part of the judgment.
3. This application has been filed by an NGO, located at Surat. The applicant has also referred to another recent shocking incident of 07.05.2020 in the factory of L.G. Polymers India at Vishakhapatnam where 12 persons died and several others were injured. It is stated that on 08.05.2020, the Central Pollution Control Board (CPCB) issued a circular requiring all the State PCBs to undertake safety audit of industries before they reopened after the COVID-19 situation. The industries dealing with hazardous chemicals were required to ensure that all safety protocols are followed and requisite equipment is operationalized and manpower is duly trained for handling such chemicals. On 11.05.2020, Maharashtra State PCB issued an identical circular specifically requiring the hazardous and chemical handling units to provide information with regard to onsite and off-site emergency plans, safety audit reports and action taken in pursuance of such report. It is stated that the company failed to follow requisite precautions and safety protocols. The company is thus strictly and absolutely liable for the damage caused to the human lives, human health, property and the environment in violation of environmental norms, particularly the mandate of the 1989 Rules and the Chemical Accidents (Emergency, Planning, Preparedness and Response) Rules, 1996 (1996 Rules) and the circular issued by the CPCB.
4. The matter was first heard on 08.06.2020, after advance notice to the concerned parties. Finding, prima-facie, failure of the Company and the statutory authorities, the Tribunal passed an interim order of compensation to the victims, pending report of a fact-finding Expert Committee, headed by Justice B.C. Patel, former Chief Justice of Delhi High Court. The observations in the said order are:
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4. It is undisputed during the hearing that the company is engaged in the manufacture of hazardous chemicals and is covered by the 1989 Rules and the 1996 Rules. It has to prepare and follow onsite and off-site emergency plan which is required to be duly audit........