Supreme Court Acts on Dahej Industrial Accident Compensation
The Supreme Court of India has directed the Gujarat High Court to commence suo motu proceedings aimed at identifying and compensating victims of the tragic Dahej industrial accident that occurred in May 2022. This instruction follows an existing National Green Tribunal (NGT) ruling, which the Supreme Court has upheld, to disburse compensation to the affected individuals.
In connection with this case, a sum of ₹3,27,82,418 was previously deposited with the Supreme Court’s registry. This amount was designated for compensating victims of the explosion and fire at Bharat Rasayan’s pesticide facility in Dahej, Gujarat. The deposit was made after the company, in August 2024, reported difficulties in locating some of the beneficiaries.
Bench Outlines the Need for Swift Compensation
On Wednesday, the Supreme Court’s bench, led by Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and V Mohana, emphasized that the inability to trace beneficiaries should not lead to an indefinite delay in compensation payments. The bench stated, “The earlier inability to trace the beneficiaries cannot defeat, or indefinitely postpone, disbursal. We cannot accept the bald-faced plea taken by the appellant-company that the claimants are not traceable.”
Urging the Gujarat High Court to take immediate action, the Supreme Court requested the Chief Justice of the Gujarat High Court to initiate suo motu proceedings to identify the remaining beneficiaries and ensure they receive their rightful compensation. This includes verifying the identities and entitlements of injured persons and the legal heirs of three deceased employees, as named in the NGT judgment.
Execution of the Court’s Directives
The Gujarat High Court has been authorized to ascertain the division of compensation among the legal heirs without reopening the compensation amounts determined by the NGT. The High Court may seek assistance from Bharat Rasayan, relevant authorities, and the District Legal Services Authority at Bharuch, and may also publish notices if needed. Each verified beneficiary is to receive compensation with proportionate interest.
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The fixed deposit is set to mature on September 17 and will be renewed for one year or until the compensation is fully disbursed, whichever occurs first. Post-verification, the Gujarat High Court’s Registrar General will provide the Supreme Court Registry with the beneficiaries’ details for the transfer of funds.
Background of the Dahej Industrial Accident
The unfortunate incident at the Bharat Rasayan plant on May 17, 2022, resulted in the death of eight people and injuries to several others. On May 29, 2024, the NGT’s Western Zone Bench in Pune approved additional compensation totaling ₹2,75,92,936 for the legal heirs of three deceased employees—Sudhansusekhara Baman Sadhangi, Kundan Kumar Jha, and Amit Kailasrao Bijawe—and ₹17,60,000 for the injured.
Despite Bharat Rasayan’s challenge of this compensation order before the Supreme Court, the company was instructed in August 2024 to comply. However, due to difficulties in tracing beneficiaries, the company deposited the compensation with the Supreme Court registry.
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Clarifications Sought and Future Steps
The Supreme Court recently noted that Bharat Rasayan’s appeal was concluded on August 7, 2024, with the Court dismissing interference with the environmental compensation component. The Gujarat Pollution Control Board was directed to utilize this compensation per its disclosed plan. However, the issue of disbursing the ₹3.27 crores remained unresolved, prompting the registry to seek further instructions, resulting in the current directive to the Gujarat High Court.
[Read Order]
