SUPREME COURT OF INDIA

Before:- P. Venkatarama Reddi and P.P. Naolekar, JJ.

IAs Nos. 27, 34-36 in WP (C) No. 967 of 1989. D/d. 17.3.2005.

Indian Council For Enviro-Legal Action - Petitioner

Versus

Union of India and others - Respondents

A. Constitution of India, Articles 21, 32, 136, 142, 141, 137, 129, 14, 48A and 51A(g) - Environment Protection - Polluter pays principle - Attachment and sale of polluter's property - Financial institutions advancing loans to polluter given notice of said attachment and sale - Plea that Managing Directors/Directors are not personally liable and they are not prepared to or are not in a position to deposit any amount - Managing Directors of polluting companies directed to furnish details of the personal assets held by them as on date on which order was passed in Indian Council for Enviro-Legal Action case, (1996) 3 SCC 212 i.e. 13-2-1996 and details of transfers of funds, if any, effected thereafter, by next date of hearing.

[Para 5]

B. Environment Protection - Polluter pays principle - Compensation for loss suffered by citizenry - Remedial measures for damages caused by polluting industries - State Government directed to submit a report to the court by the next date of hearing, regarding the steps contemplated to be taken by them in a phased manner for repairing the damage.

[Para 3]

Cases Referred :-

Indian Council for Enviro-Legal Action v. Union of India, 1996 (3) SCC 212 in WP (C) No. 967 of 1989, order dated 13-2-1996.

ORDER

P. Venkatarama Reddi and P.P. Naolekar, JJ. - Before directing the sale of the movable assets and machinery of Respondents 4 to 8 companies which are placed under attachment by virtue of this Court's order dated 13-2-1996, Indian Council for Enviro-Legal Action v. Union of India, 1996 (3) SCC 212 in WP (C) No. 967 of 1989, etc. and finalising the modalities of sale, it is desirable to put on notice the financial institutions/banks who, as secured creditors have instituted proceedings against the companies for recovery before the Debt Recovery Tribunal of Bombay and Jaipur.

2. Hence, notice returnable in four weeks be issued to the following parties:

1. IFCI Ltd., having its registered office at IFCI Tower, 76, Nehru Place, New Delhi.

2. Industrial Development Bank of India, having its head office at IDBI Tower, Cuffe Parade, Mumbai.

3. ICICI Ltd., having its registered office at 163, Backbay Reclamation, Mumbai 400 020.

4. Central Bank of India, Zonal Office, Link House, 4, Bahadur Shah Zafar Marg, New Delhi 110 002.

3. The Rajasthan State Government viz. the Department of Environment and the Finance Department shall also submit a report to the Court by the next date of hearing, regarding the steps contemplated to be taken by them in a phased manner for repairing the damage caused by the polluting industries of Respondents 4 to 8, in the interests of the rural population affected by the pollution. The State Government should come forward with definite proposals for allocation of certain amount for taking up immediate remedial measures.

4. Appropriate directions in regard to the sale of properties and recovery of the amount from Respondents 4 to 8 companies and their Managing Directors/Directors will be considered after hearing further arguments. We may note that the counsel for Respondents 4 to 8 companies, while expressing that they have no objection for sale of the properties of the companies, maintained that the Managing Directors/Directors are not personally liable and they are not prepared to or are not in a position to deposit any amount. Suffice it to state that this aspect requires further consideration.

5. We, however, direct the Managing Directors of Respondents 4 to 8 companies to furnish the details of the personal assets held by them on the date of the order passed by this Court i.e. on 13-2-1996, and the details of the transfer, if any, effected thereafter, by the next date of hearing. The State Government may also cause enquiries to be made regarding the assets held by the Managing Directors/Directors of Respondents 4 to 8 companies.

6. We also direct that Criminal Appeal No. 92 of 2004, pending in the Court of the Sessions Judge, Udaipur, against the conviction of Mr O.P. Aggarwal and Silver Chemicals Co. be disposed of within a period of three months.

7. Copies of this order should be sent to all concerned. Post the matter in the first week of May, 2005.

Court Masters.

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