The Supreme Court on Monday has asked the High Court of Andhra Pradesh to expeditiously decide the pleas of LG Polymers pending before it seeking access to the plant and challenging its sealing, while also restraining the disbursal of the deposit amount of 50 crores by LG Polymers for 10 days.

A three-judge bench of Justice UU Lalit, Justice Mohan M Shantanagoudar and Justice Vineet Saran heard the plea taking on record a statement by LG Polymers that they intend to challenge the NGT order of June 1, 2020, and issued the following directions:

• Requested the High Court to decide by the end of next week three applications by the LG Polymers regarding access to the plant,  and for the company to respond to various committees that have been set up by different authorities in the wake of May 7, 2020, gas leak.
• Puts on hold for 10  days the June 1, 2020 order of NGT directing the appropriation of Rs. 50 crores so that it could be put to some use.
• LG Polymers will move the Andhra Pradesh High Court for the release of the passports of their Directors currently deposited with authorities.

During the hearing today, Senior Adv Mukul Rohatgi appearing on behalf of the Petitioner informed the Court that there are two pleas, one challenging the NGT Order and the other challenging the Andhra Pradesh HC order.

While taking the bench through orders passed by the HC order which had sealed the plant at Vizag, he stated that directors of the Company were told to deposit their passports and the High Court has no jurisdiction to pass such order. Further, As directed by the SC, 30 personnel had tried to enter the plant, 2 of whom were lawyers. The DM effectuating this, said that professionals cannot enter.

Justice Lalit questioned Rohatgi if at any point they had asked for permission from authorities to take out the dangerous gas. Rohatgi responded by that stating that it has been sealed and its a highly specialised plant. The condition of sealing the plant, without expert opinion by the High Court is misplaced.

Regarding the NGT order, Rohatgi stated that numerous committees have been appointed to monitor the issue. The Collector had no reason to disallow entry of two personnel just because they were lawyers, specially after the Apex Court had directed the entry of 30 personnel into the plant.

In response to Justice Lalit’s statement that the NGT order hasn’t be challenged before the Supreme Court, Rohatgi informed that they are challenging the order of sealing the Plant at Vizag and deposition of passports by Directors.

We are not criminals that we’ll run away!, Rohatgi said.

In response to Rohatgi’s contention that the order of sealing of the plant was unconstitutional, the Bench stated that the order wasn’t unconstitutional, and refused to get into the issue at the present juncture.

‘If anything it was the fault of the manufacturers that led to the gas leak’, the Bench said.

The SC on the previous hearing had refused to immediately interfere with NGT order which had constituted a five-member fact-finding committee and had also directed ‘LG Polymers’ to deposit Rs 50 crores for damage caused by a gas leak in Visakhapatnam, in which at least 12 people were killed. The Court, while sending the case to the High Court for further consideration, had directed the Vizag based LG Polymers to submit a list of 30 personnel to the District Collector who would be allowed access to the Plant Premises, on request by Senior Advocate Mukul Rohatgi

The National Green Tribunal in its order in first week of June, had held that the LG Polymers India Pvt. Limited has strict and absolute liability for the environmental damage and consequential loss including to life and public health.

The NGT had suomoto 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 had 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, had 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 had 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 had laid down further directions which were 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 had listed the case for further hearing on 3rd November, 2020.

-India Legal Bureau

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

A three-judge bench comprising Justice U.U. Lalit, Justice Mohan M. Shanatanagoudar and Justice Vineet Saran today said this when Senior Counsel Mukul Rohatgi appearing for LG polymers submitted that they had approached Court against the NGT order 3 days ago. The appellants had moved the NGT regarding legalities, he further submitted.

He further informed the bench that the High Court had itself become a committee and has sealed the plant premises. Moreover access is available only to the High Court and the order of sealing was not passed when they were present in the Court and were neither informed, submitted Rohatgi.

The bench observed that there were certain issues which required consideration by the High Court, therefore the bench said that it will record the observations and send it to High Court for further consideration. Rohatgi submitted that the appellant wanted to participate and was not running away. Moreover, there could be more problems if they are denied access to the premises .

He further prayed for emergency access and submitted that the appeallants wished to file transfer petition after a week before the High Court.

The bench however said that the transfer petition would not be heard by the Supreme Court, but would be heard by the High Court or NGT.

The SC on the previous hearing refused to immediately interfere with NGT order which had constituted a five-member fact-finding committee and had also directed ‘LG Polymers’ to deposit Rs 50 crores for damage caused by a gas leak in Visakhapatnam, in which at least 12 people were killed.

LG Polymers had raised questions over setting up of several committees by the High Court, NHRC and Central government into the gas leakage incident of May 7. The Court said that the matter can be raised before the NGT on June 1.

The bench has listed the matter for next hearing on June 8.

Read the order here;

-India Legal Bureau

The premises of LG Polymers plant at Venkatapuram have been sealed as per the directives of Andhra Pradesh High Court. The premises have been sealed by the Officials of Police and Revenue department.

The officials have locked the main gate and some police personnel have been stationed at the premises to guard and prevent any unforeseen situation at the plant. Every official investigation the case has been directed by the court to write their names on a register before entering through the main gate of the plant.

The division bench of the High Court taking suo-motu cognizance of the Styrene Gas leak in Visakhapatnam which claimed 12 lives and leaving 500 others hospitalized with serious ailments had directed the State Government to seal the premises of LG Polymers in Visakhapatnam and not to permit the directors of the company to leave the country without the court’s permission.

The bench had enquired as to how the company was allowed to transport 13,000 tones styrene monomer after the gas leak incident and registration of FIR against the same. The bench had further enquired as to who gave the permission to the company to shift the styrene without a magisterial inquiry after the investigation team was formed.

The victims of the gas leak incident have been asking the Court to close down the plant.

-India Legal Bureau

The Supreme Court on Tuesday has refused to interfere with NGT’s order forming a fact-finding committee to look into the Vizag Gas leakage tragedy at LG Polymer earlier this month that claimed 11 lives and left over two dozens maimed or grievously injured.

LG Polymer had questioned before the Supreme Court the setting up of several committees by the Andhra Pradesh High Court, the National Human Rights Commission and the Central government to look into the matter. The NGT had recommended the formation of a committee headed by  former judge of the Andhra Pradesh High Court B Seshasayana Reddy  to look into the gas leakage incident of May 7.

The apex court said today that the matter can be raised before the NGT on June 1. The National Green Tribunal (NGT) had directed LG Polymers India to deposit an initial amount of ₹50 crore for the damage caused. The green panel also constituted a five-member fact-finding committee, to be headed by a former A.P. High Court judge, to probe the incident and furnish a report to the tribunal.

Today, Senior Advocate Mukul Rohtagi informed the Court that they have deposited the amount of 50 crore as ordered by the NGT, but the question is of Committee constituted by the NGT. Our plant is closed and committee constituted by NGT visited the plant three time without any prior notice, he contended.

Whether NGT can order Suo Motu proceeding, when it does not have a jurisdiction asked Sr adv Mukul Rohtagi to which Justice Lalit replied, Jurisdiction issue can be raised before the NGT. “Since the matter is seized with the NGT, we grant liberty to petitioner to raise arguments before NGT when it is listed on June 1,” said the three- judge bench of Justices UU Lalit, Mohan M Shatanangoudar & Vineet Saran.

The Court noted in its order, “In Compliance of the NGT Order, the appellant has deposited an amount of 50 crore. questions raised by the appellant are purely legal in nature. Give liberty to appellant before NGT to raise the appropriate concerns before the next date which is 1st June, 2020.”

“The committee may specifically report on the sequence of events, causes of failure and persons and authorities responsible, extent of damage to life, human and non-human, public health and environment – including water, soil and air, steps to be taken for compensation of victims and restitution of the damaged property and environment and the cost involved,” the NGT bench had said.

The directions came after the green panel took suo motu cognisance of the gas leak incident that left at least 11 people dead and affected several others.

-India Legal Bureau

The National Green Tribunal in a suo motu cognizance on styrene gas leak case which occurred in Visakhapatnam has directed LG Polymers to deposit an amount of Rs 50 Crores as an initial amount with the District Magistrate for causing damage to life, public health and environment.

The bench comprising headed by Justice Adarsh Kumar Goel observed that “Styrene gas is a hazardous chemical as defined under Rule 2(e) read with Entry 583 of Schedule I to the Manufacture, Storage and Import of Hazardous Chemical Rules, 1989. The Rules require on-site and off-site Emergency Plans to ensure prevention of damage. There appears to be failure to comply with the said Rules and other statutory provisions.”

The bench further observed that the Leakage of Styrene gas which is hazardous in nature at such a scale having adversely affected public health and environment attracts the principle of ‘Strict Liability’ against LG polymers which is liable to restore the damage caused under the Environment Law, apart from other statutory liability. 

Moreover the Tribunal also stated that statutory authorities will also be made accountable for their lapses in authorizing and regulating such activities.  

Accordingly, the Tribunal has issued notice to Andhra Pradesh State PCB, District Magistrate, Vishakhapatnam, Central Pollution Control Board (CPCB), Ministry of Environment, Forests & Climate Change (MoEF&CC) and LG Polymers India Pvt., Limited.

The bench also sought a report from a five member committee  which shall be aided by the  District Magistrate, Vishakhapatnam, and Regional Office, Andhra Pradesh State PCB to  enable their fact-finding and reporting.  The report is to be submitted before the next date of hearing via email  at judicial-ngt@gov.in.

The committee is to specifically report on:

• The sequence of events
•  Causes of failure and persons and authorities responsible therefor
•  Extent of damage to life, human and non-human; public health; and environment – including, water, soil, air
•  Steps to be taken for compensation of victims and restitution of the damaged property and environment, and the cost involved
•  Remedial measures to prevent recurrence; f. Any other incidental or allied issues found relevant.

The bench has listed the matter for next hearing on May 18.

-India Legal Bureau