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DEEPAK NITRITE V. STATE OF GUJARAT

DEEPAK NITRITE V. STATE OF GUJARAT

(2004) 6 SCC 402

FACTS

  • A petition was filed before the Gujarat HC and order dated 9-5-1997, was passed.
  • The petition was in public interest alleging large-scale pollution caused by industries located in Gujarat Industrial Development Corporation (GIDC) Industrial Estate at Nandesari, in Gujarat. The arguments advanced by the State of Gujarat were that the effluents discharged by the concerned industries into the effluent-treatment project had exceeded certain parameters that were established by the Gujarat Pollution Control Board, hence causing damage to the environment. The High Court directed the industries to pay “1% of the maximum annual turnover of the preceding 3 years” towards compensation and advancement of the environment in a fixed period of time.
  • This Gujarat High Court decision dated 9-5-1997, was appealed in the present case before the Supreme Court.

CONTENTION

Appellant

The appellants claimed that the Court does not possess the authority to grant restitution by way of damages, unless the statute authorises it; furthermore, unless a finding to the effect of environmental damages caused by the concerned industry, is passed by the Court, damages cannot be imposed. The appellants relied on Vellore Citizens Welfare Forum v. Union of India to advance their case.

ISSUE

  • Whether the mere violation of a statutory requirement merited the award of compensation, or whether actual damage caused had to be proved.
  • Whether there existed an actual finding of damage to the environment, basis which restitution or restoration by way of compensation was ordered?
  • Whether the “1% of the turnover” formula is appropriate and applicable to the present cases?

HELD

The Apex court held that the mere fact of the industrial units not conforming with the standards prescribed by the Gujarat Pollution Control Board, does not merit the determination that such non-compliance has resulted in environmental degradation. The fact of actual damage must be proved on its own merit. The High Court was directed to investigate the non-compliance matters further and examine broadly, whether damage has been caused due to non-compliance.