The Supreme Court has directed Hindustan Agro Chemical Ltd (HACL) to pay Rs38.50 crore with compound interest since 1997 for the remediation cost for over 350 acres of land in Bichhri in Rajasthan where hundreds of villagers and workers at its unit suffered tremendous health problems and the village land was ruined due to indiscriminate discharge of sulphuric acid from its Oleum plant.
The court also imposed a cost of Rs10 lakh on HACL for keeping the litigation alive even though the apex court had in 1997, disposed its petition seeking review of the progressive judgment in 1996 that the polluter must pay for the damage done to human beings and the environment.
This judgment has put HACL under legal obligation to pay Rs188 crore, based on the compound interest, for the remedial cost within two months.
A bench of Justice Dalveer Bhandari and Justice HL Dattu said HACL must be absolutely liable to compensate for such harm, and it cannot say that it had taken all reasonable care and that the harm occurred without any negligence on its part.
Noted lawyer Shanti Bhushan, who is the co chairman of the Lokpal Bill drafting committee, appeared for HACL and pleaded for a judicial commission to examine the problem being faced by the people in Bichhri and to point out the remedial measures.
However, the court rejected his arguments and observed: “This is indeed a very serious matter concerning the sanctity and credibility of the judicial system in general and of the apex court in particular.”
The judges also remarked on the peculiarity of the case where, even after fifteen years of the final judgment, “the litigation has been deliberately kept to avoid compliance of the judgment”.