Harda Factory Blast | Madhya Pradesh HC Allows Owners To Object To Victims' Claims For Injuries, Loss Of Property Before NGT
In a plea questioning the claims of victims allegedly affected in an explosion in a firecracker factory in Harda, the Jabalpur bench of the Madhya Pradesh High Court permitted factory owners to raise their objections regarding genuineness of claimants in respect of their injuries and quantum to be paid for destruction of houses, before the National Green Tribunal Bhopal.
In doing so, the court also said that if the petitioner raises such objections the NGT shall consider them as per law, and added that the administration may disburse the compensation in death cases as directed by NGT.
Disposing of the plea, a division bench of Justice Sanjeev Sachdeva and Justice Vinay Saraf in its order said, "It would be open to the petitioner to raise the objection with regard to classification, genuineness of claimants/victims in respect of the injuries; and the categorization, classification and quantum to be paid to individual for loss of property and destruction of houses and displacement. In case, such an objection is raised by the petitioner, NGT shall consider the same in accordance with law".
Background
In the present case, the petitioners are brothers who were running four firecracker factories under licenses issued in terms of the Explosive Rules, 2008. On February 6 this year, a series of explosion occurred in the firecracker factory of the petitioners, which caused huge explosion and blast affecting several persons and houses. Thereafter, an FIR was lodged against the petitioners upon the allegation that there was huge quantity of explosive material kept in the shop, which was not properly managed and there was no safety provision, which led to the explosion and fire incident.
Thereafter, National Green Tribunal (NGT), Bhopal took suo motu cognizance on February 6 and passed an interim order directing payment of interim compensation to the victims on the same day. NGT observed that more than 60 houses were damaged in the incident and more than 100 houses were forced to vacate. It also observed that 13 persons died and more than 50 persons were injured. Therefore, owners were directed to immediately pay and deposit the amount as interim compensation to the victim.
In compliance of the NGT's order, the Collector Harda calculated the liabilities against the factory owners and ordered to deposit the amount with District Environment Compensation Fund failing which coercive action is to be taken against the petitioners. Further, the Collector calculated the liabilities against the petitioners and also initiated confiscation of the various properties of the petitioners worth Rs. 9 crores for generating money by putting them to auction. Against these orders the petitioners moved the high court.
Before the high court the counsel for the petitioners submitted that present petition was filed assailing the action of NGT, which was in violation of principles of natural justice and therefore the petition is maintainable and availability of appeal is no bar.
The counsel for the petitioners submitted that NGT awarded ex-parte interim compensation in highly arbitrary and unlawful manner and at the time when the order was passed, no material was available with NGT and the order was passed only on the basis of media reports.
It was contended that the number of persons who were injured and those that sustained grievous injuries is disputed. Moreover, the Collector also passed the orders arbitrarily in violation of principles of natural justice and without issuance of any notice to the petitioners and granting any opportunity of hearing. It is argued that no parameters were laid down by NGT to determine as to which individual would fall in the category of grievously injured or having suffered simple injury so as to be entitled to the amount quantified by NGT and the examination of the record shows that the authorities have not correctly examined the individuals for the purposes of their classification and entitlement.
Thus, the Petitioners prayed for opportunity to be granted to place the objections as noticed hereinabove before the NGT with regard to the injury cases, damage to houses and displacements of individuals from houses. With regard to the death cases, it was submitted that the Petitioners have no objection to disbursement of compensation to the legal heirs of the deceased.
Meanwhile the Advocate General appearing for the State questioned the maintainability of the petition and submitted that the petitioners have challenged the order passed by NGT which is appealable under Section 14 and 22 of the NGT Act and therefore the petition before the high court was not maintainable as alternate efficacious remedy is available to the petitioner.
With respect to the petitioners objection pertaining to the injury cases, damage to houses and displacement cases, the advocate general submitted that the cases have been duly verified by the Collector and all documents and reports have been made available to the counsel for the petitioners. He however, submitted that it is open to the Petitioners to raise such objections before the NGT and for the NGT to consider them in accordance with Law
Findings
The high court however observed that the explosion took place on February 6 and the NGT passed the order on that very date. It said, "Clearly, at the time of passing of the impugned order, neither the injured had been identified nor the nature of injuries had been determined. Similarly, with regard to the damage to houses and displacement of persons is concerned, there was no identification or determination.”
With regard to the issue of maintainability of the writ petition, the court observed, “In the instant case main grievance of the petitioners are that ex-parte order was passed without affording any opportunity of hearing by which liability of more than Rs. 15 crores have been saddled against the petitioners and the impugned order was passed in violation of principles of natural justice, consequently this court deemed it proper to entertain the writ petition and issued notices. In view of the judgment delivered by Apex Court in the matter of Madhya Pradesh High Court Advocates Bar Association (supra), Veena Gupta (supra) and Whirlpool Corporation (supra) objection regarding maintainability of writ petition is overruled and writ petition is held maintainable.”
Disposing of the plea the high court further said:
- In so far as the offer of petitioner for making arrangement of a higher amount towards the auction of the property vis-a-vis the bid received, it is open to the petitioner to place such a proposal before the NGT and for the NGT to consider the same, in accordance with law.
- The interim order dated 23.04.2024 staying disbursal of the amount is modified and vacated to the limited extent pertaining to the death cases. It would be open to the administration to disburse the death compensation as directed by the NGT.
- Further it would be open to the NGT to consider disbursal of the amount in respect of injury cases and cases pertaining to loss to property and displacement of individuals, taking into consideration the objection of the petitioner, if any raised before the NGT.
Case Title: Somesh Agrawal And Others v/s The State Of Madhya Pradesh And Others, Writ Petition No. 5160 of 2024
Citation: 2024 LiveLaw (MP) 336