Supreme Court has refused to interfere with the National Green Tribunal's (NGT) order granting relief and compensation to the victims of a toxic gas leak incident that occurred at the Rourkela Steel Plant in 2021. The apex court bench, comprising Justices S. Ravindra Bhatt and Justice Aravind Kumar, dismissed an appeal filed by the Rourkela Steel Plant challenging the NGT's compensation award.

The central question before the court was whether the NGT had jurisdiction to exercise its authority when the matter was covered under the Employees' State Insurance (ESI) Act. The appellant argued that the ESI Act excluded the jurisdiction of the NGT as it provided exclusive remedies for victims under Sections 46, 52, and 53.

The appellant relied on Sections 53 and 61 of the ESI Act to support their claim that employees who received benefits under the Act were not entitled to similar benefits under any other legislation. They contended that compassionate appointments had been given to the relatives of the deceased workers earning wages up to ₹40,000 per month, and monthly compensation was being provided to the family members for their upkeep.

However, the court acknowledged that there was merit in the appellant's submission regarding the jurisdiction of the tribunal, but given the peculiar circumstances of the case, it chose not to interfere with the compensation awarded by the NGT. The court kept the question of law open for future consideration.

The appellant further argued that Section 17 of the NGT Act, 2010, specifically excluded its applicability to "workmen" as defined under the Workmen's Compensation Act, 1923. The appellant pointed out that the term "workman" had been substituted with "employee" by the Workmen's Compensation (Amendment) Act, and the deceased workers in this case qualified as "employees" under the Employee's Compensation Act, 1923.

The NGT, in its decision, held that the Act's applicability did not exclude the jurisdiction of the NGT to award compensation under Section 17. The tribunal observed that the deceased workers, employed under a contractor, were not covered by the definition of "workman/employee" in the Workmen’s/Employee’s Compensation Act, 1923, but were covered by a wider definition under the ESI Act. The NGT ruled that it had the jurisdiction to provide relief and compensation under Section 17 of the NGT Act.

The incident in question involved a leakage of toxic gas CO (Carbon Monoxide) at the Coal Chemicals Department of the Rourkela Steel Plant on January 6, 2021, resulting in the death of workers employed by 'Star Constructions,' a maintenance contractor firm.

The NGT, taking suo moto cognizance of the incident after it was covered by the Indian Express, ordered compensation of ₹30 lakhs, ₹20 lakhs, and ₹15 lakhs for the deceased workers, holding that the liability to pay compensation for entities engaged in hazardous activities is absolute, as laid down in M.C. Mehta v. Union of India (1987).

In light of the Supreme Court's decision, the compensation award granted by the NGT stands, and the Rourkela Steel Plant has been directed to deposit the specified amounts within 8 weeks.

Case citation: Rourkela Steel plant v. OPCB

Click here to read/download orderhttps://main.sci.gov.in/supremecourt/2021/6464/6464_2021_8_56_45308_Order_21-Jul-2023.pdf