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TMI Blog2004 (5) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Nandesari Industrial Estate, Baroda were made parties to the proceedings, apart from the State of Gujarat, Central Pollution Control Board, Gujarat Industrial Development Corporation and Nandesari Industries Association. The High Court also issued notices to the financial institutions or banks in respect of these proceedings. On May 5, 1995 the High Court appointed a Committee under the Chairmanship of Dr. V.V. Modi to ascertain the position with regard to the extent of pollution in Nandesari Industrial Estate. A Common Effluent Treatment Plant (CETP) was erected by the GIDC in Nandesari Industrial Estate on the contribution made by the industrial units in the Nandesari Industrial Estate to the extent of about ₹ 300 lakhs. Inasmuch as CETP was not achieving the required parameters laid down by the GPCB, the High Court, by an order made on 7.8.1996, appointed NEERI as a consultant to assess the treatment facilities and to provide suitable rectification measures for upgrading the CETP and effluent treatment plant facilities. Dr.Committee made a report on 7.9.1996. The High Court restrained several industries from removing their products from their plant without p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and the betterment of the agriculture and livestock in the said villages with certain additional directions in this regard. It is now submitted before us by the appellants that a court has no power to either impose penalty or fine or make any levy for general betterment unless the statute authorized the same; that, however, in awarding damages it is permissible to make the same exemplary or penal; that award of damages is way of restitution for the damage caused to victims and for restoration or restitution and for restoration of ecology by way of punishment; that, unless a finding is given by the High Court that there had been degradation of environment, question of restitution or awarding damages could not arise; that there is no finding of degradation of environment and, therefore, it is not open to the High Court to impose 1% of the turnover by way of damages. The appellants relied upon a decision of this Court in Vellore Citizens' Welfare Forum vs. Union of India Ors., 1996 (5) SCC 647, in support of this contention. Their argument is that principle of 'polluter to pay' cannot be applied unless a finding has been given that the industrial unit concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard of 1% of turnover was adopted for closure of polluting units and payment of compensation by such units for polluting river and land; that the basis of this decision in that case was that the polluting industrial units were not meeting GPCB norms and the continued violation of the law by industrial units had become a habit; that after elaborate discussion, the High Court had concluded that these industries had caused pollution and, therefore, gave certain directions, including for closure of the industrial units until they observe GPCB norms; that the directions given by the High Court regarding closure and payment of compensation were complied with by the industrial units and this Court did not interfere with the order made by the High Court, therefore, the methodology adopted by the High Court in Pravinbhai Jashbhai Patel's case (supra) can be applied to other industrial units which are causing pollution; that, after investigation made by the Committee or by an expert body there were reports that the industrial units were causing pollution by not complying with the norms prescribed by GPCB and High Court, in fact, noticed that a number of units have voluntarily agreed to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause such compensation must have a deterrent effect and such damage not only extends to restitution for the harm to the environment to compensate the victims of the pollution but also cost of restoring the environment by degradation. This Court reiterated the principle of polluter to pay to the effect that one of the principles is to levy damages of a certain percentage of total turnover and the right to a clean and hazardless environment has been recognised as a fundamental right under Article 21 of the Constitution. The Court has innovated new methods and strategies for the purpose of securing enforcement of fundamental rights. The fact that the industrial units in question have not conformed with the standards prescribed by GPCB cannot be seriously disputed in these cases. But the question is whether that circumstance by itself can lead to the conclusion that such lapse has caused damage to environment. No finding is given on that aspect which is necessary to be ascertained because compensation to be awarded must have some broad co-relation not only with the magnitude and capacity of the enterprise but also with the harm caused by it. May be, in a given case the perc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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