Case Note & Summary
This appeal arose from a dispute between builders and chemical manufacturers, including Bayer India Ltd, concerning construction activity near chemical factories in Thane. In the aftermath of the Bhopal disaster, chemical manufacturers approached the Bombay High Court in pending writ petitions filed by builders. In Writ Petition No.4497/90, the High Court required the Municipal Corporation to re-examine building plans considering section 46 of the Maharashtra Regional and Town Planning Act. The manufacturers brought the matter to the Supreme Court, which permitted them to file review petitions before the High Court. The High Court dismissed their intervention application and directed the Municipal Corporation to permit construction, but on a further interlocutory application, the Supreme Court on 24.2.1993 directed the High Court to dispose of the review application and maintain status quo, thereby preventing construction within one kilometre of the factory premises. On 26.9.1994, the High Court disposed of the review application by imposing restrictions: no additions or modifications for completed or under-construction buildings; prohibition on further construction within one kilometre radius where no actual construction had commenced; continuation of stay for further permissions; and vacation of stay only where construction had commenced. The builders appealed against these directions. The Supreme Court heard the appeals on several occasions and formed a prima facie view that giving immunity to industrialists through such blanket prohibition caused injustice to residents, as it adversely affected the right to reside while leaving existing inhabitants exposed to risk. The Court considered whether industrialists should shift their factories or whether relocation should be examined. Respondents argued that relocation was not possible logistically, financially or otherwise. The Court recognized that it lacked expertise to decide relocation and that the matter required an expert authority under the Environment Protection Act, 1986. The Court directed the Central Government to constitute an Authority under section 3(3) of the Environment Protection Act, 1986 within one month, with all necessary powers, to examine and decide all relevant issues including relocation, and to submit a report to the Central Government within three months after affording reasonable opportunity of hearing to concerned parties. The Court further directed the Bombay Municipal Corporation to proceed with the plans submitted by the appellants and to re-examine the grant of sanction on the basis of existing rules and bye-laws, but to await the result of the Authority's report. The review petitions filed by respondents before the High Court were allowed to be withdrawn and stood dismissed, and the impugned directions of the High Court automatically lapsed. The appeals were disposed of with no order as to costs.
Headnote
A) Constitutional Law - Right to Life and Environment - Article 21 of the Constitution of India - Chemical industries pose inherent risk to life of nearby residents, and any probable accident may cause annihilation of large number of inhabitants - Court observed that Bhopal disaster showed tragedy that chemical industries can cause, and no risk can be taken; therefore protective measures and deeper examination of relocation were necessary - Held that lives of inhabitants around factories were in great jeopardy, and relocation needed deeper probe by an expert authority (Paras 1,5). B) Environmental Law - Relocation of Hazardous Industries - Section 3(3) of Environment Protection Act, 1986 - Central Government to constitute an Authority under Section 3(3) within one month, with all necessary powers under the Act, to examine and decide all relevant issues including relocation of chemical factories; Authority to submit report to Central Government within three months after hearing concerned parties - Held that because relocation involved logistical, financial and other factors requiring deeper probe, an expert authority was appropriate and necessary (Paras 4,6). C) Municipal Law - Building Plan Approval - Section 46 of Maharashtra Regional and Town Planning Act - Bombay Municipal Corporation directed to proceed with plans submitted by appellants and to re-examine grant of sanction on basis of existing rules and bye-laws, but to await report of Authority before final decision - Held that review petitions filed by respondents stood dismissed on withdrawal, and impugned directions of High Court automatically lapsed (Paras 2,7,8).
Issue of Consideration
Whether blanket prohibition on construction within one kilometre radius of chemical factories was justified in light of the right to reside under Article 21 and whether relocation of such hazardous industries required expert examination under the Environment Protection Act, 1986.
Final Decision
The Supreme Court directed the Central Government to constitute an Authority under Section 3(3) of the Environment Protection Act, 1986 within one month from receipt of the order, with all necessary powers under the Act. The Authority was to submit its report to the Central Government within three months after examining and deciding all relevant issues, including those mentioned by the Court, after affording reasonable opportunity of hearing to concerned parties. Follow-up actions were to be taken as per recommendations. The Bombay Municipal Corporation was directed to proceed with the plans submitted by appellants and re-examine grant of sanction on the basis of existing rules and bye-laws, but to await the report of the Authority. Review petitions filed by respondents before the High Court stood dismissed on withdrawal, and the impugned directions of the High Court automatically lapsed. Appeals were disposed of with no order as to costs.
Law Points
- Right to life under Article 21 of the Constitution
- Environmental protection
- Sustainable development
- Relocation of hazardous industries
- Authority under Section 3(3) of Environment Protection Act
- 1986
- Re-examination of building plans
- Buffer zone around chemical factories



