Introduction of Case

• A writ petition was filed by M.C Mehta, a social activist

lawyer, he sought closure for Shriram Industries as it was
engaged in manufacturing of hazardous substances and
located in a densely populated area of Kirti Nagar. While
the petition was pending, on 4 and 6 December 1985,
there was leakage of oleum gas from one of its units
which caused the death of an advocate and affected the
health of several others. The incident took place on
December 4, 1985.
Issues -:
1.Whether such hazardous industries to be
allowed to operate in such areas
2.If they are allowed to work in such areas,
whether any regulating mechanism be evolved.
3.Liability and amount of compensation how to
be determined.
 Decision
Chief Justice Bhagwati showed his deep concern for the safety of the people of
the Delhi from the leakage of hazardous substances like the one here – oleum
gas. He was of the opinion that we cannot adopt the policy to do away with
chemical or hazardous industries as they also help to improve the quality of
life, a sin this case this factory, was supplying chlorine to Delhi Water Supply
Undertaking which is used to maintain the wholesomeness of drinking water.
Thus industries even if hazardous have to be set up since they are essential for
economic development and advancement of well being of the people
 Some of the conditions formulated by the
government were -:
• The Central Pollution Control Board to appoint an inspector to inspect and see
that pollution standards set under the Water Act and Air Act to be followed.
• To constitute Worker's Safety Committee
• Industry to publicize the effects of chlorine and its appropriate treatment
• Instruct and train its workers in plant safety through audio visual programme,
install loudspeaker to alert neighbors in the event of leakage of gas
• Workers to use safety devices like masks and belts
• And that the workers of Shriram to furnish undertaking from Chairman of DCM
Limited, that in case of escape of gas resulting in death or injury to workmen or
people living in vicinity they will be "personally responsible " for payment of
compensation of such death or injury .
 Extra Conditions

• The Court also directed that Shriram industries would deposit Rs 20 lakhs and to
furnish a bank guarantee for Rs. 15 lakhs for payment of compensation claims of
the victims of oleum gas if there was any escape of chlorine gas within three
years from the date of order resulting in death or injury to any workmen or living
public in the vicinity . The quantum of compensation was determinable by the
District Judge , Delhi .It also shows that the court made the industry "absolutely
liable " and compensation to be paid as when the injury was proved without
requiring the industry to be present in the case .
THANK YOU