COMPANY LAW

COMPANY LAW
PROJECT REPORT

TOPIC: Shanti Prasad Jain v. Kalinga Tubes Ltd., AIR 1965

SC 1535

SUBMITTED BY: SUBMITTED TO:

NAVEEN RANA Ms. ARTI CHIBBER
273/21 | SECTION-E UILS | PU
BCOMLLB | 8TH SEM
UILS | PU

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ACKNOWLEGDEMENT

The success and final outcome of this project required a lot of guidance and assistance and I
am extremely privileged to have gotten the same along with the completion of my project. I
have taken efforts in this project. However, it could not have been possible without the kind
help and support of many individuals. I would like to extend my sincere thanks to them. I am
highly indebted for providing me support to Ms. Arti chibber opportunity to do the project
work and providing all the necessary support and guidance which made me complete the
project duly. I would also like to express my gratitude to my parents and friends who helped
me a lot in finalizing this project within the limited time frame as well as for their kind
cooperation and encouragement which helped me excel.

NAVEEN RANA

273/21

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INDEX

Sr. Particulars Page no.

1 Introduction 4
2 Principles & Implementation 4
3 Case Law 8
4 Bibliography 10

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1. INTRODUCTION

¶ Earth Summit, 1992

(UNCED)-

The Rio Earth Summit officially

known as the United Nations
Conference on Environment and
Development (UNCED) was
held in Rio de Janeiro, Brazil,
from June 3 to 14, 1992
bringing together representatives from 172 countries, 108 heads of state, 2,400 delegates
from various Non-Governmental Organisations (NGOs), and over 10,000 journalists in an
unprecedented gathering. A parallel NGO meeting, attended by 17,000 NGO representatives,
made suggestions to the Earth Summit.
¶ What was the agenda?- The Earth Summit in Rio had the primary goal of producing a
wide agenda and new blueprint for international action on environmental and development
concerns that would help shape international cooperation and development policy in the
twenty-first century by addressing pressing global environmental issues and promote
sustainable development.
¶ Rio Declaration- The Rio Declaration on Environment and Development was produced at
the 1992 Earth Summit. The Rio Declaration on Environment and Development is a
collection of principles that establishes states' rights and obligations in the fields of
environmental preservation and development. According to the Rio Declaration, countries
have the freedom to use natural resources inside their borders as long as their actions do not
harm the environment of neighbouring countries.

2. PRINCIPLES & IMPLEMENTATION

¶ The Rio Declaration reaffirmed the Stockholm Convention of 1972 and vowed to build
upon it. More than 175 countries were signatories to the Rio Declaration.
¶ According to the Rio Declaration, long-term economic growth is only possible if it is
connected to environmental conservation. If this is to be accomplished, countries must form a
new global partnership that includes governments, citizens, and important sectors of society.

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Human society must work together to create international accords that safeguard the global
environment while also promoting responsible development.
¶ Review- A review of the Rio principles was conducted by the UN Division for Sustainable
Development for the 5th session of CSD in 1997 ("Rio+5"). Some of the principles have
given rise to considerable amount of literature. While the underlying causes for the success of
specific principles may be understood by experts in various fields of international law and
sustainable development, a short and simple but all-encompassing summary seems to be
missing. Yet, understanding why some of the principles have not succeeded in passing the
test of inclusion in international and national law, or at least become the basis for accepted
normal practices is critical to furthering sustainable development.

¶ Certain principles were established in recognition of the Earth's intrinsic and interconnected
character as our home-
Principle 1- Human beings are at the centre of concerns for sustainable development. They
are entitled to a healthy and productive life in harmony with nature.
Principle 2- States have, in accordance with the Charter of the United Nations and the
principles of international law, the sovereign right to exploit their own resources pursuant to
their own environmental and developmental policies, and the responsibility to ensure that
activities within their jurisdiction or control do not cause damage to the environment of other
States or of areas beyond the limits of national jurisdiction.
Principle 3- The right to development must be fulfilled so as to equitably meet
developmental and environmental needs of present and future generations.
Principle 4- In order to achieve sustainable development, environmental protection shall
constitute an integral part of the development process and cannot be considered in isolation
from it.
Principle 5- All States and all people shall cooperate in the essential task of eradicating
poverty as an indispensable requirement for sustainable development, in order to decrease the
disparities in standards of living and better meet the needs of the majority of the people of the
world.
Principle 6- The special situation and needs of developing countries, particularly the least
developed and those most environmentally vulnerable, shall be given special priority.
International actions in the field of environment and development should also address the
interests and needs of all countries.
Principle 7- States shall cooperate in a spirit of global partnership to conserve, protect and
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restore the health and integrity of the Earth's ecosystem. In view of the different contributions
to global environmental degradation, States have common but differentiated responsibilities.
The developed countries acknowledge the responsibility that they bear in the international
pursuit of sustainable development in view of the pressures their societies place on the global
environment and of the technologies and financial resources they command.
Principle 8- To achieve sustainable development and a higher quality of life for all people,
States should reduce and eliminate unsustainable patterns of production and consumption and
promote appropriate demographic policies.
Principle 9- States should cooperate to strengthen endogenous capacity-building for
sustainable development by improving scientific understanding through exchanges of
scientific and technological knowledge, and by enhancing the development, adaptation,
diffusion and transfer of technologies, including new and innovative technologies.
Principle 10- Environmental issues are best handled with the participation of all concerned
citizens, at the relevant level. At the national level, each individual shall have appropriate
access to information concerning the environment that is held by public authorities, including
information on hazardous materials and activities in their communities, and the opportunity
to participate in decision-making processes. States shall facilitate and encourage public
awareness and participation by making information widely available. Effective access to
judicial and administrative proceedings, including redress and remedy, shall be provided.
Principle 11- States shall enact effective environmental legislation. Environmental standards,
management objectives and priorities should reflect the environmental and developmental
context to which they apply. Standards applied by some countries may be inappropriate and
of unwarranted economic and social cost to other countries, in particular developing
countries.
Principle 12- States should cooperate to promote a supportive and open international
economic system that would lead to economic growth and sustainable development in all
countries, to better address the problems of environmental degradation. Trade policy
measures for environmental purposes should not constitute a means of arbitrary or
unjustifiable discrimination or a disguised restriction on international trade. Unilateral actions
to deal with environmental challenges outside the jurisdiction of the importing country should
be avoided. Environmental measures addressing trans boundary or global environmental
problems should, as far as possible, be based on an international consensus.
Principle 13- States shall develop national law regarding liability and compensation for the
victims of pollution and other environmental damage. States shall also cooperate in an
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expeditious and more determined manner to develop further international law regarding
liability and compensation for adverse effects of environmental damage caused by activities
within their jurisdiction or control to areas beyond their jurisdiction.
Principle 14- States should effectively cooperate to discourage or prevent the relocation and
transfer to other States of any activities and substances that cause severe environmental
degradation or are found to be harmful to human health.
Principle 15- In order to protect the environment, the precautionary approach shall be widely
applied by States according to their capabilities. Where there are threats of serious or
irreversible damage, lack of full scientific certainty shall not be used as a reason for
postponing cost-effective measures to prevent environmental degradation.
Principle 16- National authorities should endeavour to promote the internalization of
environmental costs and the use of economic instruments, taking into account the approach
that the polluter should, in principle, bear the cost of pollution, with due regard to the public
interest and without distorting international trade and investment.
Principle 17- Environmental impact assessment, as a national instrument, shall be
undertaken for proposed activities that are likely to have a significant adverse impact on the
environment and are subject to a decision of a competent national authority.
Principle 18- States shall immediately notify other States of any natural disasters or other
emergencies that are likely to produce sudden harmful effects on the environment of those
States. Every effort shall be made by the international community to help States so afflicted.
Principle 19- States shall provide prior and timely notification and relevant information to
potentially affected States on activities that may have a significant adverse trans boundary
environmental effect and shall consult with those States at an early stage and in good faith.
Principle 20- Women have a vital role in environmental management and development.
Their full participation is therefore essential to achieve sustainable development.
Principle 21- The creativity, ideals and courage of the youth of the world should be
mobilized to forge a global partnership in order to achieve sustainable development and
ensure a better future for all.
Principle 22- Indigenous people and their communities and other local communities have a
vital role in environmental management and development because of their knowledge and
traditional practices. States should recognize and duly support their identity, culture and
interests and enable their effective participation in the achievement of sustainable
development.
Principle 23- The environment and natural resources of people under oppression, domination
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and occupation shall be protected.

Principle 24- Warfare is inherently destructive of sustainable development. States shall
therefore respect international law providing protection for the environment in times of armed
conflict and cooperate in its further development, as necessary.
Principle 25- Peace, development and environmental protection are interdependent and
indivisible.
Principle 26- States shall resolve all their environmental disputes peacefully and by
appropriate means in accordance with the Charter of the United Nations.
Principle 27- States and people shall cooperate in good faith and in a spirit of partnership in
the fulfilment of the principles embodied in this Declaration and in the further development
of international law in the field of sustainable development.

¶ The 1992 United Nations Conference on Environment and Development (UNCED), also
known as the Rio Earth Summit or Rio Summit, marked a turning point in global
environmental discourse. Through the principles it established the concept of sustainable
development, aiming to balance environmental protection, economic growth, and social
equity for future generations.

3. CASE LAW- Vellore Citizen Welfare Forum v/s Union of India decided on 7.4.2016
(Writ Petition (C) No. 914 of 1991)

¶ Facts of the case- This was the first case in which the Supreme Court used the idea of
"sustainable development". The Vellore Citizens Welfare Forum, an NGO, filed a PIL under
Article 32 of the Indian Constitution, highlighting the pollution caused by untreated sewage
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discharged by tanneries and industries in Tamil Nadu. This sewage, dumped into agricultural
and open lands, ultimately flows into the Palar River, the main water source for the region.
The pollution has rendered the entire surface and subsoil water of the river unfit for use,
leading to water scarcity for the population. A survey by the Tamil Nadu Agricultural
University Research Centre found that over 35,000 hectares of agricultural land in the
tanneries belt have become unsuitable for cultivation due to chemical and dye contamination,
affecting soil quality and groundwater. Out of 467 wells surveyed, 350 were found
contaminated. Additionally, only 443 out of 584 tanneries had sought approval for their
operations from the board, indicating non-compliance with regulations.

¶ Issue Raised- Whether the tanneries should be permitted to keep on working at the expense
of environment and health & lives of lakhs of individuals?

¶ Judgment- The Supreme Court’s judgment here was a landmark decision addressing the
pollution caused by tanneries and other industries in Tamil Nadu. The court recognised the
severity of the pollution and the urgent need for action to protect the environment and the
health of the residents. The Supreme Court directed the central government to establish an
authority under the Environment Protection Act, applying the precautionary and polluter pays
principles. It imposed fines on tanneries, mandated common treatment facilities, ordered the
closure of non-compliant unit and affirmed the Tamil Nadu Pollution Control Board’s
guidelines and directed the formation of a “Green Bench” in the Madras High Court. The
case set important precedents for environmental protection and enforcement in India.

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BIBLIOGRAPHY

 Testbook.com
 Un.org
 Studylegaldocu.in
 Legallearning.com
 Environmental Law book via Lexis Nexis by Justice T S Doabia

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