STATEMENT OF FACTS

● The management of Kerala Chemicals limited, a State owned chemical factory which
was running in loss, decided to manufacture a new product. Methyl Iso Cynate (M.I.C) a
chemical which has high demand in the international market. The management aimed to
overcome the financial crisis faced by them by exporting the new product. They decided
to manufacture the new product, Methyl Iso Cynate (M.I.C) in a new plant installed
within the factor site.
● There was an expert-report to the effect that if Methyl Iso Cynate was produced
negligently, it would be highly hazardous to human being and would create serious
environmental problem.
● The factory was located in the heart of a major city. However, a river which was the
major source of water for the inhabitants flows nearby the factory site.
● A group of inhabitants who were members of People’s union for Environmental
Protection, a registered society, brought the matter before the High Court, challenging the
action of the company to prevent the authorities from manufacturing Methyl Iso Cynate.
● The management contented that their action was in public interest and they have taken
adequate precaution to prevent and accidents. They also contented that if they are
prevented, it may affect the life of the substantial number of workers of the factory, who
depend solely on the wages from the factory for their livelihood. There were more than
3000 workers in the factory