M.C. MEHTA v. KAMAL NATH AND ORS (3)

Citation: [2002] 2 S.C.R. 477

Court: Supreme Court of India

Bench: M.B. SHAH, DORAISWAMY RAJU

Judgment text

M. C. MEHTA v. KAMAL NATH AND ORS. MARCH 15, 2002 [M. B. SHAH AND DORAISWAMY RAJU, JJ. ] Environmental Law : Exemplary damages-Imposition of-Polluter Company-Held guilty of endangering environment-Undertaking by Company to bear a fair share of the project cost of ecological restoration-Held, Company liable to pay l exemplary damages-Quantified at Rs. I0 lakhs. Exemplary damages-Imposition-Purpose of-Held, is not only to ·punish the individual concerned, but also to serve as a deterrent to others. This Court in MC. Mehta v. Kamal Nath, [1997] l SCC 388 (main case) had enumerated various activities of Span Motels Private Limited (SMPL) to be illegal which constituted interference with the natural flow of river Beas resulting in degradation of environment, and ordered SMPL to pay compensation for restitution of the environment and ecology and issued notice as to why pollution fine be not levied on it, in addition.

SMPL challenged the legality of proposed levy of fine on the ground that it could not be punished with fine without trial before competent Court and unless that court found it guilty. This Court accepting the plea ofSMPL withdrew the notice for levy of fine but issued fresh notice for payment of exemplary damages in addition to damages. Thereafter SMPL contended that they could not be held guilty of having committed any illegality and of having interferred with or endangering the environment or ecology to warrant exemplary damages; and that it would be unjust and harsh to impose any further liability in the form of exemplary damages in view of the fact that the Company had undertaken to bear a fair share of the project cost of ecological restoration. Quantifying the exemplary damages and leaving the quantum of liability of damages to be determined separately, the Court HELD : 1. 1. The question as to the imposition of exemplary damages and the liability of Span Motels Pvt. Ltd.

(SMPL) has to necessarily depend upon the earlier findings of this Court that the Motel by constructing walls . "'- J and bonds on the river banks and in the river bed had interfered with the flow of the river and their liability to pay the damages on the principle of "Polluter pays" and also as an inevitable consequence thereof. The basis for their liability to be saddled with the exemplary costs has been firmly and irreversibly laid down in the main judgment itself and there is no escape for SMPL, in this regar;d. The Court has to necessarily proceed further only on those facts and position oflaw, found and declared. It is impermissible to claim for a reversal of the findings or any reconsideration of the nature, character ,... and legality or propriety of activities of SMPL. (484-F; 485-B; 484-A-B] ~ 1. 2. It would be both in public interest as well as in the interest ofjustice to fix the quantum of exemplary damages payable by SMPL at Rupees Ten Lakhs only.

This amount is fixed keeping in view the undertaking given by r them to. bear a fair share of the project cost of ecological restoration which would be quite separate and apart from their liability for the exemplary damages. The amount of special damages of Ten Lakhs rupees, shall be remitted to the State Government in the Department of Irrigation and Public Health to the Commissioner/Secretary for being utilized only for the flood protection works in the area of Beas river affected by the action of SMPL. ~ ~ (485-D-E; 485-G) 2. The rnrious laws in force to prevent, control pollution and protect environment and ecology provide for different categories of punishment in the nature of imposition of fine as well as or imprisonment or either of them, depending upon the nature and extent of violation. Keeping in view all these and the very object underlying the imposition of imprisonment and fine under >-.

the relevant laws to be not only to punish the individual concerned but also to serve as a d. eterrent to others to desist from indulging in such wrongs which are almost similar to the purpose and aim of awarding exemplary damages. [485-C-D) CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 182 of 1996. (Under Article 32 of the Constitution of India) N. C. Kochhar, V. C. Mahajan, G. L. Sanghi and Rajeev Dutta, M. C. ) Mehta, Vijay Panjwani, Naresh K. Sharma, C. V. Subba Rao, B. V. Balaram Das, N. S. Vashisht, Ms. Geetanjali Mohan, Devinder Singh (NP) and •' Chandra Prakash Pandey for the appearing parties. The Judgment of the Court was delivered by RAJU, J. The above matter has been set down for hearing before us pursuant to the orders passed by this Court (Justice S. Saghir Ahmad and Justice Doraiswamy Raju) on May 12, 2000 and the consequent Notice issued to the Executive Director, Mis Span Motels Pvt. Ltd. at Manali, and the Executive Director, Span Motels Pvt. Ltd.

, Operations Headquarters at New Delhi, calling upon them to show cause as to why in addition to damages, exemplary damages be not awarded for having committed the various acts set out and enumerated in detail in the main judgment reported in M. C. Mehta v. Kamal Nath and Ors. , [1997] l SCC 388 wherein it was held as hereunder: "39. We, therefore, order and direct as under: 1. The public trust doctrine, as discussed by us in this judgment is a part of the law of the land. 2. The prior approval granted by the Government of India, Ministry of Environment and Forest by the letter dated 24. 11. 1993 and the lease deed dated l l. 4. 1994 in favour of the Motel are quashed. The similar to the purpose and aim of awarding exemplary damages, it would be both in public interest as well as in the interests of justice to fix the quantum of exemplary damages payable by Span Motels Pvt. Ltd. at Rupees Ten. lakhs only.

This amount we are fixing keeping in view the undertaking given by them to bear a fair share of the project cost of ecological restoration which would be quite separate and apart ftom their liability for the exemplary damages. The question relating to the said quantum of liability for damages on the principle of "polluter pays", as held by this Court against the Span Motels Pvt. Ltd. and undertaken by them, will be determined separately and left open for the time being. The amount, of special damages of Ten lakhs of rupees, shall be remitted to the State Government in the Department of Irrigation and Public Health to the Commissioner/Secretary for being utilized only for the flood protection works in the area of Beas river affected by the action of Span Motels Pvt. Ltd. K. K. T. Petition disposed of.