CLAT 2020 Legal Reasoning: LG Polymers Gas Leak

On 7th May 2020, a major leakage of Styrene gas was reported from the plasticsmanufacturing plant 'LG Polymers' located on the outskirts of the Visakhapatnam city. The accident took place when the cooling system of a polymers plant got clogged due to the mismanagement of factory workers and resulted in turning the city into a gas chamber. The gas which leaked was styrene gas, which is a ‗hazardous chemical‘ under Rule 2(e) plus Entry 583 of Schedule I of the Manufacture, Storage and Import of Hazardous Chemical Rules 1989.

Principle 1: Polluter Pays Principle
The 'Doctrine of Polluter Pays' is a well-established principle of environmental law, which places an obligation of compensating the damage to the people who ought to reimburse it and also have the capacity to disburse it. The principle explicitly affirms that the person who damages or destructs the environment has the absolute obligation to bear the cost of meliorating the environment. In Enviro Legal Action v. Union of India case, the Apex Court of India held that the polluter is legally responsible to reimburse the individual sufferers as well as pay for the revitalization of the damaged environment.

Principle 2: Principle of Strict Liability
The principle of Strict Liability was established in the year 1868 in the case of Rylands v. Fletcher, where the Court held that any person who uses his/her land in an 'unnatural manner' and who keeps any 'hazardous substance' on such premises would be held liable under the principle of strict liability for any 'damage' occurred on the 'escape' of such perilous substance. However, the person is liable only when there is non-natural use of land; the principle also restricts liability when the escape is due to an act of strangers, Act of God, for example a natural calamity; due to the person injured or when it happens with the consent of the person injured or with statutory authority.

Principle 3: Principle of Absolute Liability
The absolute liability is a stringent form of Strict Liability as it is devoid of any exceptions that were mentioned under the earlier principle. for the first time in the case of M.C. Mehta v. Union of India. This principle implies that whenever an enterprise is engaged in any dangerous or hazardous activity that threatens the people working in the enterprise and those living nearby, it owes an absolute and non-delegable duty to the community that no harm will be caused. If harm is indeed caused, the enterprise will have to compensate for damages, and can‘t use exceptions provided in the case of strict liability. The enterprise can‘t claim that the harm has not been caused due to negligence (absence of due care) or that it had taken all reasonable precautions.

A company ABC limited operates an industrial chemical plant in the city of Azadnagar. Due to an earthquake on July 22, 2020, the valves of the reactors in the plant get damaged due to which the operators could not properly transport the hazardous gas for chemical vaporisation, resulting in the gas leakage. The gas leakage resulted in the death of 12 workers of the plant and also some people living nearby the Plant. In this situation, in order to decipher the liability of ABC Limited, choose the best option:

The incident clearly happened because of the damage caused by an earthquake – an act of God. So, the polluter can be exempted from liabilities under the Strict Liability principle. However, the Polluter pays and Absolute liability principle impose a liability for the very damage caused, irrespective of the circumstances that led to it.

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