SCHOOL OF EXCELLENCE IN LAW (SOEL)

VARIOUS LIABILITY OF PARTIES IN NI ACT

IN
BANKING LAW
By

KISHOREMANI.M

HD20059

5TH YEAR AND BCALLB(HONS)

“B” SEC

To

K. INDUMATHI

BANKING LAW FACULTY

STUDENT SIGNATURE FACULTY SIGNATURE

 Performance Report
ENVIRONMENTAL PRTOECTION ACT, 1986

For Assignment

Date of Student Faculty

S.No Submission Signature Signature Marks Remarks

For Presentation

Date of Student Faculty

S.No Presentation Signature Signature Marks Remarks
 SYNOPSIS

SL.NO TABLE OF CONTENT PAGE NO

1 ABSTRACT
2 INTRODUCTION

3 OBJECTIVES
4 ENVIRONMENT AND CONSTITUTION OF INDIA

5 MAJOR PROVISIONS OF THE ACT AND ITS POWERS

6 LAND MARK CASE LAWS

7 CONCLUSION
8 REFERENCES
 ENVIRONMENTAL PROTECTION ACT,1986

ABSTRACT
The environmental awareness needs to be cultivated in any society to be an ideal society, or rather to be more
precise, in other words, an ideal society means the society which has the environmental awareness. There is no
dearth of legislation on environmental protection in India but their enforcement has not been satisfactory. There
is a need for the effective and efficient enforcement of the Constitutional mandate and other environmental
legislation. The Bhopal gas tragedy of 1984 compelled the enactment of the Environment Protection Act (EPA),
1986. The clauses of the EPA vested this new ministry with powers to take the required measures ‘to protect
and improve the environment’. This includes regulating industrial activities, delegating responsibilities to
specialized agencies and creating standards for managing environmental quality. This research paper is focused
on the study of the effectiveness of environmental laws for environmental protection in India.

The ‘Environment’ is very important for us to understand because it constitutes our surroundings and affects our
ability to live on the earth. It comprises of the air we breathe, the water that covers most of the earth’s surface,
the plants and animals around us, and much more. It is therefore, very important to understand and appreciate
the importance of ‘environment’ in our daily life. In recent years, scientists have been carefully examining the
various ways by which people affect the ‘Environment’. They have found that we are causing air pollution,
deforestation, acid rain, and other problems that are dangerous both to the earth and to ourselves.
INTRODUCTION

Man has tried to take nature to a considerable extent and his endeavour to conquer nature has succeeded. The
concern over the environment has grown as the quality is degrading. It has been evidenced by increasing
pollution, the loss of biodiversity, loss of vegetal cover, growing risks of environmental accidents and also the
harmful chemicals in the ambient atmosphere has possessed a threat to the environment.

Due to its growing risks, various legislations are being propounded by the government. Various Acts related to
a specific type of pollution have been passed in the India legislature. The most important statute is the
Environmental Protection Act, 1986, as it is the general legislation for the protection of the environment.

It was enacted under Article 253 of the Indian constitution and the expression in the say of environmental
quality was taken at the United Nation Conference on the Human Environment held at Stockholm in June 1972.
The government of India strongly voiced against the environmental concerns and further passed many Acts
related to the environment.

Two international conferences on Environment and development - one at Stockholm in 1972 and another at Rio
de Janerio in 1992 - have influenced environmental policies in most countries, including India. Many countries
and international agencies have accepted the polluter pays principle, the precautionary principle and the concept
of intergenerational equity as guidelines for designing environmental policies. Soon after the Stockholm
Conference, many Acts were introduced i.e. The Wildlife (Protection) Act, 1972; The Water (Prevention and
Control of Pollution) Act, 1974; The Air (Prevention and Control of Pollution) Act, 1981etc. Within five years
of Stockholm Declaration, the Constitution of India was amended to include Protection and Improvement of
Environment as constitutional mandate. The protection and improvement of environment is now a fundamental
duty under the Constitution (Amendment Act of 1976. Govt., of India has set up a National Committee on
Environmental Planning and Coordination . Government of India’s programme for environment included the
programme for cleaning the rivers including Ganga and Yamuna. Prime Minister, Sh. Rajiv Gandhi constituted
Central Ganga Authority for the purpose of pollution control of Ganga. The enactment of Environment
(Protection) Act, 1986 was the immediate off-shoot, of this programme.

OBJECTIVES

The Environmental Protection Act, 1986 (EPA) was passed with the following objects:

(i) It was enacted to implement the decisions which were made at the United Nation Conference on the Human
Environment held at Stockholm in June 1972.

(ii) Creation of authority for government protection.

(iii) Coordinating the activities of various regulating agencies which is done under the existing law.

(iv) The main task is to enact general laws for environmental protection, which could be unfolded in areas of
severe environmental hazards.

(v) Providing deterrent punishment to those who inculcate in endangering the human environment, safety and
health.

(vi) The main goal for the environment should be sustainable development and it can be regarded as one of the
goals for Environment Protection Act, 1986.

(vii) Sustainable development includes achieving the object and the purpose of the act as well as the protection
of life under Article 21 of the Indian Constitution.

ENVIRONMENT AND CONSTITUTION OF INDIA

In the Constitution of India, specific provisions for the protection of the environment have been incorporated by
the Constitution (42 Amendment) Act, 1976. Now, it is an obligatory duty of the State and every citizen to
protect and improve the environment. The Directive Principles of State Policy contain specific provisions
enunciating the State’s commitment for protecting the environment. Initially, the Constitution of India had no
direct provision for environmental protection. Global consciousness for the protection of environment in the
seventies, Stockholm Conference and increasing awareness of the environmental crisis prompted the Indian
Government to enact 42nd Amendment to the Constitution in 1976. The Constitution was amended to introduce
direct provisions for protection of environment. This 42nd Amendment added Article 48-A to the Directive
Principles of State Policy. Further Article 51-A (g) which deals with Fundamental Duties of the citizens states
“It shall be the duty of every citizen of India to protect and improve the natural environment including forests,
lakes, rivers and wildlife and to have compassion for living creatures.” Thus, protection and improvement of
natural environment is the duty of the State (Article 48-A) and every citizen (Article 51- A (g)). Article 253 of
the Constitution of India states that Parliament has power to make any law for the whole or any part of the
country for implementing any treaty, agreement or convention with any other country In simple words this
Article suggests that in the wake of Stockholm Conference of 1972, Parliament has the power to legislate on all
matters linked to the preservation of natural environment. Parliament’s use of Article 253 to enact Air Act and
Environment Act confirms this view. These Acts were enacted to implement the decisions reached at Stockholm
Conference.
MAJOR PROVISIONS OF THE ENVIRONMENT (PROTECTION) ACT, 1986

The Environment (Protection) Act, 1986 is an Act to provide for the protection and improvement of
environment and for matters connected therewith. WHEREAS decisions were taken at the United Nations
Conference on the Human Environment held at Stockholm in June, 1972, in which India participated, to take
appropriate steps for the protection and improvement of human environment; and whereas it is considered
necessary further to implement the decisions aforesaid in so far as they relate to the protection and improvement
of environment and the prevention of hazards to human beings, other living creatures, plants and property. The
Major Provisions of the Act can be summarized as under.

Power of Central Government to Take Measures to Protect and Improve Environment

Subject to the provisions of Environment (Protection) Act, 1986 (hereinafter referred as “Act”, the Central
Government shall have the power to take all such measures as it deems necessary or expedient for the purpose
of protecting and improving the quality of the environment and preventing, controlling and abating
environmental pollution . In particular, and without prejudice to the generality of the provisions of sub-section
(1), such measures may include measures with respect to all or any of the following matters, namely .

1. Co-ordination of actions by the State Governments, officers and other authorities.

2. Under this Act, or the rules made there under; or.

3. Under any other law for the time being in force which is relatable to the objects of this Act.

4. Planning and execution of a nation-wide programme for the prevention, control and abatement of
environmental pollution.

5. Laying down standards for the quality of environment in its various aspects.

6. Laying down standards for emission or discharge of environmental pollutants from various sources
whatsoever: Provided that different standards for emission or discharge may be laid down under this clause
from different sources having regard to the quality or composition of the emission or discharge of
environmental pollutants from such sources.

7. Restriction of areas in which any industries, operations or processes or class of industries, operations or
processes shall not be carried out or shall be carried out subject to certain safeguards.

8. Laying down procedures and safeguards for the prevention of accidents which may cause environmental
pollution and remedial measures for such accidents.

9. Laying down procedures and safeguards for the handling of hazardous substances.
10. Examination of such manufacturing processes, materials and substances as are likely to cause environmental
pollution.

11. Carrying out and sponsoring investigations and research relating to problems of environmental pollution.

12. Inspection of any premises, plant, equipment, machinery, manufacturing or other processes, materials or
substances and giving, by order, of such directions to such authorities, officers or persons as it may consider
necessary to take steps for the prevention, control and abatement of environmental pollution.

13. Establishment or recognition of environmental laboratories and institutes to carry out the functions entrusted
to such environmental laboratories and institutes under this Act.

14. Collection and dissemination of information in respect of matters relating to environmental pollution;

15. Preparation of manuals, codes or guides relating to the prevention, control and abatement of environmental
pollution.

16. Such other matters as the Central Government deems necessary or expedient for the purpose of securing the
effective implementation of the provisions of this Act.

SCOPE AND COMMENCEMENT OF THE ACT

The Environment Protection Act, 1986 extends to whole India and it came into force on 19th November.

Section 2 of the Environmental protection Act, 1986 (EPA) deals with some of the information about the
definition of the Act and these definitions are as follows:

“Environment” the word environment includes water, air, land and also the inter-relation between their
existence. It also includes human beings and other living creatures such as plants, micro-organisms and
property.

“Environmental Pollutants” means any substance in solid, liquid or gaseous form which in consideration is
injurious to the health of living beings.

“Handling” means any substance which is in the relation of being manufactured, processed, collected, used,
offered for sale or like of such substance.

“Environmental Pollution” includes the presence of environmental pollutants in the environment.

“Hazardous substance” includes the substance or the preparation by which the physical-chemical property is
liable to harm the human beings or other living creatures such as plants, microorganisms and the property.
“Occupier” is in the relation of factory or any other premises which means a person who has control over the
affairs of it.

From the above definitions given the Environmental protection Act tends to cover a wide range of matters
related to the environment protection.

Power of the Central government for measures to protect and improve the Environment

It is the power vested in the central government that they can take any reasonable and valid steps and measures
for the purpose of the protection and improvement of the quality of the environment. These measures are taken
for the prevention, control and abatement of environmental Pollution.

Such measures may include measures with respect to all namely as follows.

1. Laying down the standards for the quality of the standards of the environment.

2. Coordination of actions which are obliged to the state officers and other authorities under any law.

3. Execution and proper planning of the worldwide national programme for the prevention, controlling and
the abatement of environmental pollution.

4. Restrictions to be applied in any of the industries, process and any operation shall be carried out.

5. It is the power and the duty of the government to lay down the procedure to carry forward safeguards for
the prevention of many inevitable accidents which may inculcate in more environmental pollution.

6. Proposal of remedies should be put forward for the protection and prevention of further incidents.

7. Duty and power to lay down the procedures and safeguards to handle the hazardous substance.

8. Examination of manufacturing processes should be done, materials, substances which are likely to cause
environmental pollution.

9. Power to inspect at various premises, equipment, material and the substances and power to direct the
authorities for the prevention and control of environmental pollution.

10. To collect the dissemination in the respect of information related to environmental pollution.

11. Preparation of the manuals, codes, guides which are considered suitable enough for controlling
environmental pollution.

12. One of the most important tasks is to establish the laboratories.

 13. Serving other matters which are necessary for the central government to deal for the effective
implementation of the Environmental Protection Act, 1986.

Under Section 3 of the following act, the central government has the power to authorize or constitute other
authorities for the accurate implementation of powers and duties which are mentioned above.

Section 3 of the Environmental Protection Act holds importance due to the fact of a better regulatory
mechanism.

In the case of Vellore Citizens’ Welfare Forum v Union of India, the Supreme Court has directed the central
government to constitute the ‘authority’ for the implementation of powers under section 3(3). Thus, the Court
directed while keeping in the notice about the degrading quality of the environment that authorities should
implement the ‘precautionary principle’ and ‘pollution pay principle’.

Power to give direction

The central government in the exercise of powers designated by the Act can issue the directions in writing to
any of the person or any officer. They shall be bound to comply with these given directions.

The powers to issue directions will include the power to direct which are as follows:

(i) The direction of closure, prohibition or the regulation of any industry and its operational process.

(ii)direction for the stoppage or regulation of the supply of electricity, including any other services.

M. C. Mehta v. Union of India (Ganga River Pollution Case)

 On a PIL filed by the Mr. M. C. Mehta U/A 32 of Indian Constitution, it was observed by the Supreme
Court that water of River Ganga was highly toxic near Kanpur city- as the Tanneries in the area were
discharging their untreated effluents into the River.Also, nine nallahs were discharging sewage effluents
and sludge into the river. Similarly, dead bodies and half-burnt bodies were also been thrown into the
river. Also, the water supply and sanitary conditions in the entire city was inadequate and not up to the
marks of a normal city.

 The petitioner demanded the issuance of a writ/order/direction to restrain the State of U.P from letting
out trade effluents into River Ganga.

 It was contended by the respondents that the Tanneries from the Kanpur city- due to their lack of
physical facilities and technical know-how and funds- it was not possible for them to install the proper
treatment facilities.
  The Court rejecting their contentions said that “the financial capacity of a tannery should be considered
irrelevant while requiring them to establish primary trea6tment plants… Just like an industry which
cannot pay minimum wages to its workers cannot be allowed to exist, the tannerieswhich cannot set up a
primary treatment plant cannot be permitted to continue.”

 Further, the court observed that the contents of iron and manganese were higher from the ISI limits of
river water which was found to be very harmful for consumption.

 The court ordered the Tanneries which did not appeared before the court should stop functioning and
before they restart , they must install pre-treatment machineries for trade effluents.

 Therefore, the court held the Kanpur Mahanagarpalika liable and also passed several direction for the
PCA (Prevention, Control and Abatement) of pollution of River Ganga, some of which were:

 Increase of size of sewers in labor colonies;

 Construction of several numbers of latrines and urinals;

 Preventing the throwing the dead bodies and half-burnt bodies or ashes after Funeral ceremonies into the
river;

 Installing treatment plants in tanneries and other factories;

 Observe the ‘Keep the village clean week’

 Addition of slides relating to importance and purity of water in the theatre at the time of intervals.

Sachidanad Pandey v. State of West Bengal

 There was in Alipore- a zoological garden which was in the outskirts of the Calcutta city but overtime
the city has grown so much so that now the Zoological garden is in the heart of the city.

 In May 1980, the Taj Group of Hotels wanted to construct a five-star hotel in that area. Accordingly, it
was proposed that a four-acre land could be carved out from the Zoological garden for the construction
of the hotel.

 Later on looking at the blueprint of the hotel, the Managing Committee of the Zoo raised various
objections which were withdrawn later after a compromise. This compromise was settled on the terms of
construction of not a 60-storey hotel but a garden hotel.
 Accordingly, 5 petitioners filed a PIL to restrain the Zoo authorities from giving this land to the Hotel
Group. The Single Bench High Court judge dismissed the petition and the same was confirmed by the
Division Bench of the same High Court.

 Hence, the Appeal was preferred u/A136 to the Supreme Court.

 It was argued from the petitioner’s side that the Principles of Natural Justice has not been observed and
those who were interested in the welfare of the zoo were not heard in the matter before the decision was
taken.

 This however, was rejected by the court referring to trhe fact that all required precautions have been
taken by the Taj Group.

 The Apex Court in unequivocal terms pronounced that “whenever the matter of ecology is brought
before the Court, the Court are not to shrug its shoulders saying that it is a matter for policy making
authority.”

 But the court at the same time also observed that the approach of the Taj Group of hotels has been
credibly fair as they have given all the assurances to preserve the Zoo and its inmates. They also agreed
to build a garden hotel keeping in view the ecology of the area and for the protection of the migratory
birds.

 The appeal was therefore, dismissed and the construction was allowed.

Tarun Bharat Sangh, Alwar v. Union of India

 The petitioners have brought this PIL for enforcement of certain notifications under the WPA, 1972;
EPA, 1986; and various Forests Laws in areas declared as Reserved Forests in Alwar District of
Rajasthan.

 The area now more popular as the Sariska Tiger Park has been declared as the Game Reserve, a
Sanctuary, a National Park, a Reserved forests and a Protected Area.

 Thus it is very obvious that any mining activity in that area shall be contrary to and impermissible as
under the Forest Conservation Act of 1980

 The Government of Rajasthan has illegally and arbitrarily issued about 400 mining licenses and thereby
enabled them to carry on the mining operations- which according to the petitioners will tend to degrade
and diminish the ecology of the area.
 The Court after observing various laws and facts went on praising the importance and beauty of the
ecology and its resources and said that “every source from which man has increased his power has been
used to diminish the prospects of his successors.”

 The Court directed the Central Government to act under Sec 3 of the EPA, 1986 and appoint a
Committee to ensure the enforcement of the above laws and to prevent devastation of the environment
and wild life within the protected area. The committee shall access the damage alone to the environment
and wildlife and make appropriate recommendations to this Court as to ascertain the remedial measures.

 The Court further declared that no mining activity can be carried out in the said area.

Pradeep Krishnen v. Union of India

 The petitioner filed a PIL U/A 32 challenging constitutional validity of an order issued by the State of
M.P. permitting collection of Tendu leaves from sanctuaries and National Parks by villagers living
around the boundaries – contending it to be contravening the provisions of WPA, 1972 and violative of
Fundamental Rights and Fundamental Duties.

 He further contended that illegal felling of trees and excessive grazing has led to loss of vegetation
cover.

 He also argued that the State of M.P. had rightfully imposed a ban previously in the year 1992 but the
said ban was lifted because of the growing business pressures.

 The petitioners contended that by lifting the said previous ban the State has ignored the Flora and Fauna
of the area and further that the presence of human beings is a huge threat to the environment and wildlife
of the area.

 The court highlighted the importance of Art. 48A and Art 51 A (g).

 Further, the court held that for the tribal to acquire any rights over the forest land in the sanctuaries and
national parks- proper procedures have to be followed under the WPA, 1972. Till such procedure is
complete, the State government cannot bar entry of the villagers or tribal into the Forest- until such entry
is likely to result in the destruction or damage to the environment of the area.

T. Damodar Rao v. Special Officer, Municipal Corporation, Hyderabad

 The question involved in this case whether the Life Insurance Co. can legally use that land owned by
them in a recreational zone for residential purposes which was an act contrary to the developmental
plans of the Municipal Corporation of Hyderabad.
  In this case, the writ petition was filed by some of the residents who lived around the Park claiming that
construction of residential colony in an area reserved for recreational purposes amounts to violation of
their Right to Life u/A 21.

 The court in this case held that any construction of residential house on the land allotted for recreational
park would upset the environmental balance of the area.

 The court directed the Government to remove any such construction on recreational zones.

The Environment (Protection) Rules, 1986

The rules of Environment protection came into force on 19th November 1986 and these rules provide for the
following:

1. The standards of quality of air, soil and water for various areas and purposes of environment.

2. The standard set up to know about the limits of the environmental pollutants.

3. Rules include the procedure and safeguards needed to handle the hazardous substance.

4. Restrictions and some prohibitions on handling the hazardous substances in different areas and premise

5. The procedures and safeguards required for the prevention of accidents which may cause environmental
pollution and also the remedies for it.

6. The prohibition and restrictions possessed on the location of industries in different areas.

Prevention, Abatement and Control of Environmental Pollution

Section 7 of the Environment Protection Act 1986 suggest that no person in the country shall be carrying any of
the activity or operation in which there is a large emission of gases or other substances which may lead to
excess environmental pollution.

Section 7 of the act provides certain standards that ought to be maintained in which it is a must that no person is
allowed to damage the environment and if a person is found guilty for causing damage to the environment by
polluting the pollution pay principle.

He can be asked for the ‘exemplary damages’ if he is found guilty of damaging the environment.

Section 8 provides that any person who is handling the hazardous substance needs to comply with the
procedural safeguards.
If the emission is to a very large extent or is apprehended through an accident, the person responsible for it is
obliged to mitigate from that place in order to reduce the environmental pollution.

He is also required to give an intimation to the higher authorities regarding the same and for that one receipt of
remedies shall be required to prevent or to mitigate the environmental pollution.

In subsection (1), it is also provided that if a person wilfully delays or obstructs the person designated by the
central government, he will be charged guilty under this act.

Procedure to be followed for the legal proceedings under the Environmental Protection Act

The following procedure needs to be followed for the legal proceedings.

1. The notice must be delivered to the occupier or his agent and it must indicate the intention or the
analysis of the issue of a particular case.

2. Samples of the extent of pollution to be checked must be taken in the presence of the occupier or the
agent.

3. The sample should be sent directly to the laboratory without any delay in the process.

4. The sample should be kept in a container with a label on it and it should have the signature of both the
occupier party and the person taking the sample.

The central government must recognise at least one or two laboratories under this act and the report of analysis
can be used as evidence of the facts stated in any procedure done under this act.

Penalty for the Contravention of Rules and orders of this Act

As it was stated earlier that the most important goal of the environmental protection act is to provide for the
punishment of the offence of endangering the human environment, safety and health.

Section 15 states that any person who is not complying to the provisions stated in this act and its failure or
contravention will make him liable and punishable as the following:

1. In terms of imprisonment up to the extension of the time span of five years.

2. With fine which may extend to the term of one lakh rupee.

3. Or the liable person has to deal with both of the punishments.

4. If the contravention of the offence that continues for one year, the punishment can extend up to seven
years.
Section 24 a provision that if any offence is punishable under the Environment Protection Act and also under
other Act, then the person shall not be liable under the Environment Protection Act, 1986.

This particular section reduces the punishment extent as other Act includes lesser punishment.

Offences by the Companies and the Governmental Departments

Section 16 of the Environmental Protection Act, 1986 explains the principle of vicarious liability of the
Incharge person such as directors, Managers and secretary etc for if the offence is committed by any company.

He is not held liable for the following:

1. If the offence is committed without his knowledge.

2. If he has taken diligent care to prevent the commission of the offence.

Illustration: If any company which is emitting some hazardous substance out of its industry and is taking care
of the standard level of the harm produced to the environment and if the offence committed by the industry is
not in knowledge of person taking the liability, then the person will not stand as liable.

There cannot be a liability on his part if he proves the following.

1. That the offence was committed without his knowledge.

2. If he has exercised the diligent care to prevent the commission of any offence.

Who can make a complaint?

A complaint can be filed by two parties:

1. The central government or any authority associated with the government.

2. Any person who has given the notice of complaint within the term of sixty days of the alleged offence or
the has the intention to make the complaint to governmental authority or the central government.

Bars to the jurisdiction

The Act has barred the civil court to entertain any proceedings in respect of any action taken by the central
government. Most of the cases in India, pertaining to Environmental Law have to come before the courts in the
form of Public Interest Litigation (PIL) and can be filed in High Courts and Supreme Courts.
CONCLUSION

The right to environment is firmly entrenched in, and has contributed to the development of, domestic
environmental jurisprudence in India. Its origin has been traced to decisions of the higher judiciary, where the
right to environment was explicitly or implicitly interpreted to flow from the fundamental right to life or the
duties of the State in DPSP, and/or based on a combined reading of the fundamental right to life, DPSP and the
fundamental duty of citizens. The right to environment continues to provide the substantive and/or procedural
basis for the decisions of the Supreme Court, High Courts, and the NGT. Many of these decisions do not deal
with a specific ‘right to environment’; instead, they address different components of the right [47] . With excess
use of natural resources and fossil fuel, the government introduced environment law for the protection of water,
land, soil, public health and flora and fauna, it was in 1980s that the law was formed, taking into considered the
situation for that time when urbanization was limited compared to what it is now, the growing population
requires access to basic needs for which more land, water and food is required, which has resulted in excess
deforestation, water pollution and air pollution due to increase in the transport on the road. Looking at the
current situation where India is one of the most vulnerable country when it comes to climate change and
environment degradation, a reformation in the laws are required as there is no limit on the part of Humans in the
use of environment and nature, leading to climate. Though many other Acts related to Environment have been
introduced to the Indian legislature but the Environment Protection Act, 1986 has been drafted to cover all the
aspects and problems of environment and hence, it is said to be beneficial to understand the provisions related
to an environment specifically.