National Green Tribunal
News Item Titled "Paint Factory Fire In ... vs . Yashyashvi Rasayan Pvt. Ltd. & Anr., Oa ... on 25 April, 2024
Item No. 14 Court No. 1
BEFORE THE NATIONAL GREEN TRIBUNAL
PRINCIPAL BENCH, NEW DELHI
Original Application No. 171/2024
News item titled "Paint factory fire in Delhi's Alipur claims 11 lives 4
injured" appearing in The Times of India dated 16.02.2024
Date of hearing: 25.04.2024
Date of Uploading: 14.05.2024
CORAM: HON'BLE MR. JUSTICE PRAKASH SHRIVASTAVA, CHAIRPERSON
HON'BLE DR. A. SENTHIL VEL, EXPERT MEMBER
Respondent: Ms. Jyoti Mendiratta & Ms. Ananya Basudha, Advs. for DM, North
(GNCTD)
Mr. Narender Pal Singh & Ms. Anjali, Advs. for DPCC
Ms. Tejaswini Chandrasekhar, Adv. for CPCB (Through VC)
ORDER
1. This original application was registered suo moto on the basis of the news item titled "Paint factory fire in Delhi's Alipur claims 11 lives 4 injured" appearing in Times of India dated 16.02.2024. News item discloses the details of a massive fire broke out at paint factory at Dayalpur Market in north Delhi's Alipur Area in which atleast 11 persons had died and 04 others were injured. News discloses that blaze was so strong that walls of the houses adjacent to the factory were impacted and those who had died were completely charred. Apart from the paint factory, few shops and rehabilitation centre running inside the structure had collapsed.
2. Tribunal in the order dated 19.02.2024 had expressed that incident seem to have involved hazardous substance and there was violation of the provisions of Public Liability Insurance Act, 1991 (for short PLIA Act, 1991) and there was substantial issue relating to compliance of 1 environmental norms. accordingly, concerned parties were impleaded and notices were issued to them.
3. Reply on behalf of Delhi Pollution Control Committee (for short DPCC) and Central Pollution Control Board (for short CPCB) have been filed.
4. We have heard Learned Counsel for the parties on the issue of grant of compensation to the family members of the deceased.
5. Under Section 15 (1) of the National Green Tribunal Act, 2010, Tribunal has the power to grant compensation to the victims of pollution and other environmental damage arising under scheduled enactments.
6. In terms of Section 17, in a case where death or injury to any person (other than a workman) or damage to any property or environment results from an accident or the adverse impact of an activity or operation or process, under any scheduled enactment, person responsible is liable to pay such relief or compensation for death, injury or damage, under heads specified in Schedule II of the Act, as per the determination by the Tribunal.
7. Schedule-II of the NGT, Act, 2010 covers death, permanent, temporary, total or partial disability or other injury in addition to the other heads.
8. Public Liability Insurance Act, 1991 (for short PLIA) is one of the schedule enactments under the NGT, Act, 2010. Section 2 (a) of PLIA defines accident to mean an accident involving a fortuitous or sudden or unintended occurrence while handling any hazardous substance. Section 4 requires every owner to take insurance policy before starting of any hazardous substance. Other provisions of the Act provide for 2 payment of compensation in case of death or injury in the accident covered under the enactment and procedure thereof. In terms of Section 8 a right to claim relief under sub-section (1) of section 3 in respect of death of, or injury to, any person or damage to any property is in addition to any other right to claim compensation in respect thereof under any other law in force.
9. In the present case, reply dated 23.04.2024 has been filed by DPCC disclosing that in compliance of the order of the Tribunal dated 19.02.2024 a joint inspection by officials of CPCB, DPCC and District Magistrate (North Delhi) was carried out on 05.04.2024 and it was found that factory where the incident took place was located in a densely populated area and was being run illegally. Factory was manufacturing paint using chemicals/substances in non-conforming area. It is also stated that the cause of fire incident was welding activity being carried out in the factory in the presence of drums filled with chemicals/substances. When fire broke out inside the factory premises, chemicals fell on the roads and drains and fire spread rapidly even outside resulted in death of 11 persons and injury to 04. Reply further states that FIR was registered and that there was violation of provisions of Manufacture, Storage, Import of Hazardous Chemicals Rules, 1989 (for short MSIHC Rules, 1989).
10. Reply also refers to the order of the Hon'ble Supreme Court dated 07.05.2004 passed in WP (C) No.4677/1985 in the matter of M.C. Mehta V. Union of India & Ors., directing closure of all the industrial units in residential/non-confirming areas in Delhi on or after 01.08.1990 and imposing restrictions. It also refers to order of the Hon'ble Supreme Court dated 13.12.1995 in the same matter, imposing restriction on authorities in grant any license/permission in non-confirming/residential areas. 3
11. Relevant part of reply of the DPCC submitted on 23.04.2024 is as under:-
"4. That following are that point wise response based on the observation/ facts provided to joint committee by Delhi Police, Delhi Fire Service and Municipal Corporation of Delhi:-
a) Cause of incident: As informed by local residents/eye witness, fire incident took place on 15.02.2024 at around 5:20 PM. The cause of the fire incident was the welding activity carried out in the said factory and due to the presence of drums filled with chemicals/substances, the fire broke out inside the factory premises and then the chemicals fell on the roads and drains and the fire spread rapidly even outside. On the day of the incident, 11 casualties were reported and 04 were injured.
Further, the report of Forensic Science Laboratory is yet to come, which may reveal the chemicals being used in making the paint. Vide e-mail dated 12.04.2024, DPCC has sought observatory report of Forensic Science Laboratory of the incident from the Deputy Commissioner of Police (North). The response from Delhi Police is awaited.
b) Compensation to the Victims: The District Magistrate (North), confirmed through e-mail dated 12.04.2024, that administrative approval for compensation has been accorded by the Competent Authority. The final disbursement of the compensation to the victims is under process.
c) Compliance of Environmental Norms by the unit in Question:
DPCC informed that the unit is in a non-conforming area, which is under the purview of MCD. It was informed by MCD vide report dated 12.04.2024 that the unit was not known to them prior to the fire in incident and also informed that the unit used to make paints using some chemicals/substances.
d) Action taken against the illegal factory for Violation of Environmental Norms:
(i) FIR registered by Delhi Police.
(ii) It was submitted by DPCC that the son of the factory owner is currently in Jail for violation of law and the factory owner had also died in the fire incident.
(iii) The MCD has surveyed 24 units in the Alipur area and served them show cause notices. Out of 24 units, 21 units have been vacated and 03 units have been sealed by MCD with the help of Delhi Police."4
12. A separate report has been filed by CPCB on 24.04.2024. Report of the CPCB also mentions that paint unit in question was operating illegally and industrial activity carried out by the unit was mixing of chemicals/paints and manufacturing of pain products.
13. Along with the report of the DPCC, sanction order dated 16.04.2024 issued by Sub-Divisional Magistrate (Alipur) has been enclosed disclosing the following details of compensation sanction to the family members of deceased person:-
"
S. No. NAME OF Name of Relationship IFSC CODE Account No. Name of Amount DECEASED Next Kin of victim Bank of with Next of Deceased Kin 1 Smt. Babit Husband 10,00,000 Ram Surat Indian Singh ID1B000 S216 6263462565 Singh Bank 2 Smt. Devta Son Sarva 10,00,000 PUNBOS Prasad UP Brij Kishore UPGBS 91000100035292 Gramin Bank 3 Pankaj Aarti Husband CIC00K H IRI 5400320011535 Dist. Co- 10,00,000 Kumar Operative Bank Ltd.
4 Vishal Paramshila Husband IDIBOOG 9628 50471741 654 Allahabad 10,00,000
Gaund Bank
5 Anil Thakur Ragini Devi Husband IBKL00 01206 12061040 IDBI Bank 10,00,000
Thakur 00185509
6 Shubham Raju Son IDIB000 T581 50087787 Allahabad 5,00,000
505 Bank
7 Kripa Ram Kali Husband BARBO 50670100 Bank of 10,00,000
Shankar DIHAUP 003211 Baroda
8 Ram Kaliya son BKID00 1660 46601051 Bank of 10,00,000
Parvesh Devi 0000496 India
Kumar
9 Harish Sumitra Husband 3,00,000
Bank of
Chander Devi BARBODIHAUP 50678100000645
Baroda
Yadav
"
14. Above facts clearly reveal that unit was dealing with Hazardous substance. In terms of the provisions of NGT Act, PLIA, 1991, and Order of the NGT dated 29.03.2024 in OA No. 220/2023: In re: news item published in The Indian Express dated 14.03.2023 titled "Ludhiana: Three workers dead, two critical as fire breaks out in hosiery factory family members of victims are entitled to receive the compensation. 5
15. Tribunal in the matter of OA 220/2023 by order dated 29.03.2023 considering the similar issue, after taking of earlier judgments on the point has held:-
"3. Question for consideration is the directions that are called for under section 15 of the NGT Act for compensation to the victims and for remedial environmental safety measures required to be followed to prevent such incidents in future.
4. Several such incidents have been considered earlier by this Tribunal1 and directions issued to pay compensation to the heirs of 1
1. In re: Gas Leak at LG Polymers Chemical Plant in RR Venkatapuram Village Visakhapatnam in Andhra Pradesh, OA No. 73/2020 decided on 01.06.2020.
2. Aryavart Foundation through its President vs. Yashyashvi Rasayan Pvt. Ltd. & Anr., OA No. 85/2020 (Earlier OA 22/2020) (WZ) decided on 03.02.2021.
3. Bonani Kakkar vs. Oil India Limited & Ors., OA No. 43/2020(EZ) decided on 19.02.2021.
4. News item published in the local daily "Economic Times" dated 30.06.2020 titled "Another Gas Leakage at Vizag Factory kills two, critically injures four...", OA No. 106/2020 decided on 22.12.2020.
5. News item published in the "Indian Express" dated 01.07.2020 titled "Tamil Nadu Neyveli boiler blast: 6 dead, 17 injured", OA No. 108/2020 decided on 22.12.2020.
6. News item published on 13.07.2020 in the local daily named "India Today" titled "Massive fire engulf Vizag chemical plant, explosions heard, injuries reported", OA No. 134/2020 decided on 22.12.2020.
7. News item published in the "Times of India" dated 20.11.2020 entitled "Six killed as blast tears through Malda Plastic recycling factory", OA No. 272/2020 decided on 18.12.2020.
8. News item published in the "Indian Express" dated 23.11.2020 entitled "Maharashtra: Two Killed, eight injured in methane gas leak in sugar factory",OA No. 274/2020 decided on 16.08.2021.
9. In RE: News item published in the local daily "Indian Express Sunday Express" dated 28.06.2020 titled "Gas Leak in Agro Company Claims life of one", O.A No. 107/2020 decided on 08.01.2021.
10. In re : News item published in Navbharat Times dated 24.12.2020 titled "Gas leaks in IFFCO Plant, 2 Officers dead", O.A. No. 04/2021 decided on 04.06.2021.
11. In re: News item published in The Indian Express dated 07.01.2021 titled "Four workers dead due to toxic gas leak in Rourkela Steel Plant", O.A. No. 09/2021 decided on 11.02.2021.
12. In re: News item published in The News Indian Express dated 12.02.2021 titled "At least 19 dead in Virudhunagar firecracker factory blast, more than 30 injured, O.A. No. 44/2021 decided on 03.03.2022.
13. In re: News item published in Times Now News dated 23.02.2021 titled "Karnataka: Six killed in quarry blast in Hirenagavalli, Chikkaballapur", O.A. No. 59/2021 decided on 22.04.2022.
14. In re: News item published in The Hindu dated 23.02.2021 titled "Two dead, 5 missing in fire at UPL Plant", O.A. No. 60/2021 decided on 14.12.2021.
15. In re: News item published in The Times of India dated 28.02.2021 titled "Delhi : Man charred to death as illegal factory catches fire", O.A. No. 65/2021 decided on 31.08.2021.
16. In re: News item published in The Hindu dated 14.03.2021 titled "Safety lapses led to reactor blast at pharma unit", OA No. 79/2021 decided on 31.08.2021.
17. In Re: News item published in the "Indian Express" dated 04.11.2020 titled "Ahmedabad: Nine killed as godown collapses after factory blast", OA No. 258/2020 decided on 23.03.2021.
18. In re: News item published in The Times of India dated 08.06.2021 titled "18, mostly women, killed in fire at Pune chemical unit", OA 130/2021 decided on 01.02.2022.
19. Rakesh Suresh Chandra Kapadia v. Gujarat Pollution Control Board & Ors., OA No. 31/2021 (WZ), decided on 08.11.2021.
20. In re: News item published in The Hindustan Times dated 17.06.2021, titled "Blast in firecracker unit in Maharashtra's Palghar, at least 10 injured", OA No. 134/2021 decided on 25.06.2021.
21. In re: News item published in The Indian Express dated 12.07.2021 titled "Six killed in factory fire:
Owner held, raids on to nab second accused", OA No. 171/2021 decided on 07.09.2021.
22. In re: News item published in The Indian Express dated 07.01.2022 titled "Gujarat: At least 06 dead, 20 sick after gas leak at industrial area in Surat", OA No. 05/2022 decided on 18.01.2022.
23. In re: News item published in India Today dated 26.12.2021 titled "7 dead in boiler explosion at noodle factory in Bihar's Muzaffarpur, probe ordered", OA No. 02/2022 decided on 22.04.2022.
24. In re: News item published in The Economic Times dated 21.12.2021 titled "3 dead, 44 injured in flash fire at IOC's Haldia refinery", OA No. 440/2021 decided on 07.01.2022.6
the deceased in view of absolute liability principle laid down in MC Mehta, (1987) 1 SCC 395 at the rate of Rs. 20 lakhs each and to the injured at varying rates depending upon the extent of injuries, following Sarla Verma (2009) 6 SCC 121 and Uphaar Cinema (2011) 14 SCC 481.The Tribunal also held that where Project Proponent fails to pay, it is the liability of State Authorities to pay compensation and recover the same from the Project Proponent.
5. In O.A. No. 110/2023, In re : News item published in Business Standard dated 09.02.2023 titled "Blast at JSPL‟s Raigarh plant kills two workers, two others injured" dated 28.02.2023, the Tribunal has reiterated the said view as follows:
"15. In OA 09/2021, "In re: News item published in The Indian Express dated 07.01.2021 titled "Four workers dead due to toxic gas leak in Rourkela Steel Plant", vide order dated 11.02.2021, it was held that bar under section 17 of the NGT Act will not apply when compensation under Workmen Compensation has not been paid as is the situation herein. Observations from the said order are extracted below:
"On due consideration, we are unable to accept the submission of learned ASG that bar of section 17 NGT Act is applicable. The deceased are not, even according to the RSP, covered by the definition of „workmen‟ under the Workmen Compensation Act. RSP has not paid them on that basis. Applicability of ESI Act does not exclude the NGT Act as section 17 is not attracted to such a case. Moreover, unless expressly excluded, jurisdiction of this Tribunal for victims of violation of environmental norms stands. For this, section 33 of the NGT Act provides for overriding effect of the said Act. Thus, the RSP can be required to provide
25. In re: News item published in The Tribune dated 22.02.2022 titled "7 killed in blast at firecrackers factory in Himachal Una", OA No. 143/2022 decided on 08.03.2022.
26. In re: News item published in Hindustan Times dated 05.03.2022 titled "Bhagalpur: 14 dead in firecracker unit blast", OA 198/2022 decided on 27.05.2022.
27. In re: News item published in The Times of India dated 12th April, 2022, titled "Six killed in chemical factory blast in Gujarat",OA No. 272/2022 decided on 12.04.2022.
28. In re: News item in NDTV dated 14.04.2022 titled "6 killed, 12 injured after fire breaks out at Andhra Pradesh Pharma Unit", OA No. 284/2022 decided on 20.04.2022.
29. In re : News item published in Business Standard dated 09.02.2023 titled "Blast at JSPL's Raigarh plant kills two workers, two others injured", OA No. 110/2023 decided on 28.02.2023
30. In re: news item in NDTV dated 28.02.2023 titled "2 Dead, 2 Injured in Explosion at Gujarat Pharma Company", OA No. 150/2023 decided on 15.03.2023
31. In re: News item published in Newspaper The Hindu dated 07.03.2023 titled "Three children die during illegal mining in West Bengal", OA No. 204/2023 decided on 28.03.2023 7 compensation to the heirs of the deceased under section 15 of the NGT Act. Liability to pay compensation for an entity engaged in hazardous activity is absolute as per law laid down in M.C. Mehta, (1987) 1 SCC 395. Minimum such liability is as per restitution principle, though deterrent compensation can be awarded, depending on a fact situation. In awarding such compensation, compensation paid under any other provision can certainly be excluded. Thus, in the present case, the heirs of the deceased will be entitled to compensation which we propose to determine minus the compensation, if any, which may have been paid under any other provision. Needless to say that victims of such accident are normally, as in the present case also, poorest of the poor. Stand that death was by negligence of the victims is untenable and even if true, absolute liability is not excluded at least on restitution basis. Prima facie, the stand of RSP is not acceptable in absence of showing compliance of statutory safeguards under the 1989 Rules framed under the EP Act, which can be enforced by this Tribunal. No details of mock drills have been filed nor onsite and offsite plans produced. We are not debarring the RSP from producing the same before the Committee which we are appointing. The fact remains that there is much to be desired in terms of statutory compliances."
6. In recent order dated 28.03.2023 in O.A. No. 204/2023, In re:
News item published in Newspaper The Hindu dated 07.03.2023 titled "Three children die during illegal mining in West Bengal", the Tribunal has reiterated as under:-
"8. Further, vide order dated 11.06.2021 passed in O.A. No. 44/2021 titled as In re: News item published in The News Indian Express dated 12.02.2021 titled "At least 19 dead in Virudhunagar firecracker factory blast, more than 30 injured" the Tribunal held:-
"xxx .......................................xxx......................................xxx
9. ...Compensation can be assessed on reasonable basis guided by restitution principle atleast at floor level, leaving other remedies of the victims open. Thus, broadly agreeing with the Committee, we direct that the scale of compensation should be Rs.20 lakhs in respect of each of the deceased victims and Rs.15 lakhs to persons who have burns in excess of 50% and Rs.10 lakhs for persons who have burns from 25 to 50% and Rs.5 lakhs for persons who have injuries between 5 to 25%. Victims who were treated as outpatients and who had but minor degree of burns or other forms of simple injuries shall be paid Rs.2 lakhs."
7. Prima facie, on same pattern compensation has to be paid to heirs of the deceased without prejudice to higher claim being raised 8 at any other forum. In absence of information about the extent of injuries to the two injured, compensation is liable to be paid at least at the rate of Rs. 10 lakhs to each of the injured. Thus, compensation of Rs. 80 lakhs is payable by the Project Proponent. In view of Section 17 of the NGT Act, if compensation has been paid under Workmen's Compensation Act, 1923/Employees State Insurance Act, 1948, remedy before this Tribunal is not be available. However, we are not passing final order without notice to the project proponent (PP) and further enquiry. With regard to compliance of safety norms, matter has to be gone into after further enquiry."
16. Accordingly following the above order, we are of the opinion that family members of each of the deceased person are entitled to receive compensation of Rs. 20 Lacs without prejudice to higher claim that may be raised in any other forum. Hence, differential amount will be paid by SDM (Alipur) within two months with the right to recover it from project proponent.
17. OA is accordingly disposed off.
Prakash Shrivastava, CP Dr. A. Senthil Vel, EM April 25, 2024 Original Application No. 171/2024 JG.
9