NGT holds LG Polymers Strictly & Absolutely Liable For Gas Leak And Environmental Damage

The National Green Tribunal on Monday has held that the LG Polymers India Pvt. Limited (“the Company”) has strict and absolute liability for the environmental damage and consequential loss including to life and public health.

The NGT has suo moto initiated the proceedings on the basis of media reports to the effect that leakage of hazardous gas Styrene took place at 03:45 AM on 07.05.2020, from a chemical factory owned by the South Korean company LG Polymers India Pvt. Limited resulting in death of 11 persons (now 12) and hospitalization of more than 100 people, of whom at least 25 were then reported to be serious. These fatalities and injuries were reportedly likely to increase. More than 1000 persons were reported sick. There was also damage to environment and habitat.

The Central Government and the State PCB unequivocally said that the company did not have the requisite Environmental Clearance. There is also clear violation of the 1989 Rules. Liability of the company is strict and absolute in the circumstances. The report of the Joint Committee constituted by the Tribunal filed on 28.05.2020 is supported by clinching material consistent with the stand of the MOEFF&CC and state PCB.

Acting upon the plea, the bench comprising of Justice Adarsh Kumar Goel, Justice Sheo Kumar Singh & Dr. Nagin Nanda, observed that the company has operated without EC and the State PCB on account of its ignorance of law or otherwise gave ‘Consent to Establish’ and ‘Consent to Operate’ in violation of law. There is violation of 1989 Rules. Liability of the Company is strict and absolute under the law. Burden of proof to show that it has no liability is on the company. Overwhelming material establish the liability of the company. The amount deposited has thus to be appropriated towards part liability and interim compensation subject to further orders after giving further opportunity to the company.

The NGT further held that Safety of citizens and environment are of prime concern. Any economic or industrial activity, however necessary, has to be consistent with the safety of human beings and the environment. The damage to human life, human health and environment has to be restored by applying the ‘Sustainable Development’ principle, of which ‘Precautionary’ and ‘Polluter Pays’ principles are part.

The NGT bench has laid down further directions which are as follows:-

• The amount of Rs. 50 crores deposited by the Company with the District Magistrate, Vishakhapatnam will stand appropriated towards part liability and interim compensation to be spent for restoration of the environment and compensation for victims in accordance with the restoration plan to be prepared.
• Final quantification of compensation may be assessed by a Committee comprising representatives of MoEF&CC, CPCB and NEERI. The said Committee will be at liberty to associate/co-opt any other expert institution or individual.
• The Chief Secretary, Andhra Pradesh may identify and take appropriate action against persons responsible for failure of law in permitting the Company to operate without statutory clearances within two months and give a report to this Tribunal.
• In view of the stand of the State PCB and the Company that it will not recommence its operation without requisite statutory clearances, we direct that if any such statutory clearances are granted and the Company proposes to recommence, this aspect must be brought to the notice of this Tribunal so that compliance of law is ensured.  
• The MoEF&CC may also constitute an Expert Committee to suggest ways and means to revamp monitoring mechanism to check and prevent violation of environmental norms and preventing any such recurrence in future in any of the establishments dealing with hazardous chemicals.

The NGT has listed the case for further hearing on 3^rd November, 2020.

-India Legal Bureau