An establishment contributing to economy of country and providing livelihood to hundreds of people, held, cannot be closed down for technical irregularity of shifting its site without prior environmental clearance, without opportunity to establishment to regularise its operation by obtaining requisite clearances and permissions, even though establishment may not otherwise be violating pollution laws, or pollution, if any, can conveniently and effectively be checked. Held, In passing the impugned order the High Court overlooked the consequences of closure of an integrated steel plant with a work force of 300 regular and 700 contractual workers. The High Court also failed to appreciate that the judgment of this Court in Alembic Pharmaceuticals (supra) was distinguishable on facts. Furthermore, continuance of the interim orders allowing operation of an industrial establishment or even the grant of revised EC to the industrial establishment cannot stand in the way of action against that establishment for contraventions, including the imposition of penalty, on the principle ‘polluter pays’.

[Electrosteel Steels Ltd. v. Union of India, (2023) 6 SCC 615]

 

Case Comment: The High Court overlooked the consequences of closure of an integrated steel plant with a work force of 300 regular and 700 contractual workers for the technical irregularity of shifting its site without prior environmental clearance.  While these are indeed relevant concerns, can we regard that these are adequate reasons to overlook non-compliance with the law when there are no harms visualised and no remedies taken in advance? The principle ‘polluter pays’ thus becomes pollute and pay.

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