Professional Documents
Culture Documents
Liability 1
Liability 1
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Ors. MANU/DE/0136/2003; Union of India (UOI) vs. Prabhakaran Vijaya Kumar and Ors.
MANU/SC/7608/2008; Jay Laxmi Salt Works (P) Ltd. vs. State of Gujarat MANU/SC/0692/1994;
Smt. Sarla Verma and Ors. vs. Delhi Transport Corporation and Anr. MANU/SC/0606/2009;
Chairman, Grid Corporation of Orissa Ltd. (Gridco) and Ors. vs. Smt. Sukamani Das & Anr.
MANU/SC/0572/1999;
Tamil
Nadu
Electricity
Board
vs.
Sumathi
and
Others
MANU/SC/0338/2000; S.P.S. Rathore vs. State of Haryana and Ors. MANU/SC/0370/2005;
Darshan & Others (Smt.) vs. Union of India & Ors. MANU/DE/0103/1999; Varinder Prasad vs.
B.S.E.S. Rajdhani Power Limited and Ors. MANU/DE/0253/2012; Chob Singh vs. Govt. of NCT of
Delhi and Anr. MANU/DE/1686/2012; Smt. Gunwant Kaur and Ors. vs. Municipal Committee,
Bhatinda and Ors. MANU/SC/0397/1969; ABL International Ltd. and Anr. vs. Export Credit
Guarantee Corporation of India Ltd. and Ors. MANU/SC/1080/2003; Anandi Mukta Sadguru
Shree Muktajee Vandas Swami Suvarna Jayanti Mahotsav Smarak Trust and Ors. vs. V.R. Rudani
and Ors. MANU/SC/0028/1989; S. Radhika Sameena vs. The S.H.O., Habeebnagar Police
Station, Hyderabad and Ors. MANU/AP/0143/1996; Sadhu Varahala Babu and Ors. vs.
Government of A.P., Co-operation Department and Ors. MANU/AP/0470/2005; General Manager,
Kerala State Road Transport Corporation, Trivandrum vs. Mrs. Susamma Thomas and others
MANU/SC/0389/1994; Sube Singh vs. State of Haryana and Ors. MANU/SC/0821/2006; Oriental
Insurance Co. Ltd. vs. Ram Prasad Varma and Ors. MANU/SC/0030/2009; Municipal Corporation
of Delhi, Delhi vs. Association of Victims of Uphaar Tragedy and Ors. MANU/SC/1255/2011; U.P.
State Road Transport Corporation and Ors. vs. Trilok Chandra and Ors. MANU/SC/1154/1996;
Raj Kumar vs. Ajay Kumar and Anr. MANU/SC/1018/2010; C.K. Subramania Iyer and Ors. vs. T.
Kunhikuttan Nair and Six Ors. MANU/SC/0011/1969; R.D. Hattangadi vs. M/s. Pest Control
(India) Pvt. Ltd. and Others MANU/SC/0146/1995; Oriental Insurance Co. Ltd. vs. Vijay Kumar
Mittal and Ors. MANU/DE/7978/2007; Harinder Kaur vs. Add.District and Sessions Judge and
Ors. MANU/DE/3320/2012
Authorities Referred:
Torts by Michael Jones, 4th Edn. p. 247; Fleming on 'Torts' 6th Edn. p. 302; Clerk and Lindsell,
'Torts', 14th Edn.; Winfield and Jolowiez on 'Tort', 13th Edn. P. 425
Disposition:
Disposed off
Citing Reference:
Discussed
14
Mentioned
40
Relied On
Case Note:
Employees' Compensation Act, 1923
Section 4A r/w 8(i) - Article 21, 226 of Constitution of India, 1950 - Writ petition Compensation - Death - Injuries - Fire incident - Fire broke out in the factory - Near
relatives of petitioner nos. 1 to 7 died, and petitioner no 8 was injured - At the time of
incident they were working in the factory premises of respondent no 2 - Occurrence has
been recorded in the FIR - Respondent No.2 has denied his negligence and the nature of
activity allegedly found in the premises - Respondent No.2 has also denied the cause of
the fire and the relationship of workmen and employer - Factory was being run in an
illegal manner in a "low rise residential building" - Neither permission from Respondent
No.1 to run the unit has not been claimed nor requisite municipal licenses or fire
clearances has been taken - Respondent no 1 has been utterly negligent in discharging its
statutory obligations and in ensuring that the citizen's fundamental rights - Incident has
occurred due to the use and presence of a highly inflammable liquid - Cause of fire in the
premises of respondent no.2 is of no relevance to fix the liability of the respondents Strict liability focuses on the nature of the
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defendants activities, rather than on the way in which it is carried out - Held,
respondents would be liable, irrespective of their being/not being any negligence.
JUDGMENT
Vipin Sanghi, J.
1. The present writ petition under Article 226 of the Constitution of India has been preferred by
the petitioners for issuance of an appropriate writ, order or direction, directing the respondents
to pay the petitioners suitable amount of compensation with interest, for loss of lives and
injuries suffered in a tragic fire incident in a factory/business premises of respondent No. 2. An
unfortunate fire incident took place on 25.01.2011 in the premises of M/s. Amazing Creation
Garment Export Factory at Tughlakabad area of South Delhi, where 14 workmen died and 5
other workmen were injured. The FIR of the said incident was registered on 26.01.2011 with PS
Govindpuri, u/s. 287 ,337 ,338 ,304-A IPC as FIR No. 23/2011.
2. Petitioner no. 1 is the father of the deceased workman Amir Siddiqui, petitioner no. 2 is the
husband of the deceased workman Lalita Devi, petitioner no. 3 is the father of deceased
workman Shabbo, petitioner no. 4 is the father of the deceased workman Mohd. Nizamuddin,
petitioner no. 5 is the husband of deceased workman Suman Devi, petitioner no. 6 is the father
of the deceased workman Mohd. Rais, petitioner no. 7 is the father of the deceased workman
Alam, and petitioner no. 8 is the injured workman Rizwan in person. The deceased workmen
along with petitioner no. 8 were working as "helper" with M/s. Amazing Creation, dealing in the
manufacture and packing of garments and export of various type of garments - according to the
petitioners and, dealing in dry cleaning, according to respondent No. 2. According to the
petitioners, the duties performed by the workmen included the acts of thread cutting, ironing,
and chemical washing of the garments for export.
3. The respondent no. 1 is the State (NCT of Delhi) and respondent no. 2 is the owner of the
factory, M/S. Amazing Creations Co, Mr. Shamim Khan.
4. It is the case of the petitioners that on the fateful day of the fire accident, all the deceased
workmen and the injured workmen were working on the fifth floor of the factory, when suddenly
the boiler in the hall area of the said floor burst, resulting into a massive fire. Due to highly
inflammable liquid being stored near the boiler, the fire spread rapidly-engulfing the area where
the workers had been working. The petitioners further allege that due to the narrow staircase,
and placement of generator near the staircase, the workmen could not escape from the fire.
Moreover, the walls and roof of the floor were made of fibre sheet, which aggravated the fire,
trapping all the workmen in its embrace. The petitioners claim that the loss of life and injuries to
the injured has resulted in severe impairment of the fundamental right to life guaranteed by
Article 21 of the Constitution of India, and the said accident took place due to the acts and
omissions of the respondents.
5. Ld. Counsel for the petitioners submit that the
has miserably failed to discharge their statutory
respondent no. 2 from running the said factory in
to fire prevention, building bye laws, labour laws
of the workmen.
6. Ld. Counsel for the petitioners further submit that even after the fire incident, the various
agencies of respondent no. 1 have been lackadaisical in their attitude to grant compensation for
the incident, or initiate appropriate and prompt action against respondent no. 2 and have,
instead, been passing the buck to each other.
7. The petitioners' grievance is that they have been running from pillar to post to secure
compensation from respondent no. 1 and its agencies, but to no avail. The petitioners first
approached the Hon'ble Chief Minister Lt. Governor of Delhi vide letter dated 11.03.2011 which
was forwarded to the Deputy Commissioner, Labour, (South), Government of NCT to enquire
about the status regarding the complaints of the petitioners. The Petitioners again wrote a letter
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dated 14.03.2011 to the concerned authorities of respondent no. 1 and further sent another
complaint vide letter no. 07.05.2011 to the Commissioner of Police.
8. However, there was no response from respondent no. 1 and, finally, on 22.06.2011 a letter
was sent by the Deputy Labour Commissioner, (South), Government of NCT of Delhi addressed
to the Public Grievance Cell, Office of the Chief minister, Delhi through which it was informed to
the petitioners that a notice dated 04.02.2011, and another dated 03.032011 was sent to the
respondent no. 2/factory owner demanding compensation, and regarding the issuance of
Recovery Certificate of compensation amount of Rs. 79,74,841/- alongwith interest and penalty
thereon. Via the said letter, the petitioners came to know that respondent no. 1 had directed
respondent no. 2 to deposit a sum of Rs. 5,00,000 in respect of each dead workman, and Rs.
50,000 in respect of each injured workman as provisional compensation in accordance with
section 4A r/w section 8(i) of the Employees' Compensation Act, 1923 (Act).
9. The letter dated 03.03.2011 was sent by the Deputy Labour Commissioner, (South),
Government of NCT to the respondent no. 2, upon which the wife of respondent no. 2- factory
owner filed a reply seeking four weeks time. Respondent No. 1, thereafter, issued a recovery
certificate dated 21.03.2011 to the District Collector requesting to initiate recovery proceedings
against respondent no. 2/factory owner to recover the compensation amount of Rs. 79,74,841
plus interest at the rate of 12% from the date of the accident till the date of payment along with
penalty of 50% on the principal amount of each workmen.
10. Ld. Counsel for the petitioners submits that an ex-gratia amount of Rs. 1,00,000 was
granted to the kin of the deceased workmen, and Rs. 20,000 to all the injured workmen by the
SDM, Kalkaji, South Delhi. All the Petitioners, except petitioner no. 1& 4 have accepted the
aforesaid ex-gratia compensation.
11. The petitioners submit that despite the issuance of Recovery Certificate dated 21.03.2011issued by the Deputy Labour Commissioner, (South), Government of NCT of Delhi/respondent
no. 1, no action has been taken on the same till date, and no money has been received by the
petitioners till date.
12. The Ld. Counsel for the petitioner submits that all the petitioners are destitute persons and
were dependent upon the deceased persons and therefore speedy justice should be meted to
them.
13. The Ld. Counsel for the petitioners submits they cannot be relegated to the remedy under
the Act, because the deceased workmen died due to the negligence attributable to the
respondents, and the same resulted in serious infraction of the most valuable of the
fundamental rights of the deceased and injured workmen. Moreover, its a blatant case of
negligence on the part of the respondents, which resulted in the aforesaid accident, and the
things speak for themselves.
14. Ld. Counsel for the petitioner further submits that that the amount of compensation
calculated under the Act is grossly inadequate and nothing but a travesty of justice. The said
Recovery Certificate has also been challenged by respondent no. 2 before this court, and notice
has been issued to respondent no. 1. Thus, the compensation may be granted in terms of the
Motor Vehicles Act, 1988 (MV Act)
15. The petitioner has placed heavy reliance on a division bench judgment of this court in Jaipur
Golden Gas Victim Association v. Union of India & Ors. MANU/DE/2712/2009 : [164(2009) DLT
346 DB] wherein compensation was granted in terms of the MV Act to the victims of the Jaipur
Golden fire tragedy. In this case, the petitioners had approached the Court with the plea that a
huge fire broke out in the godown of respondent no. 5. In the said godown, respondent no. 5
had stored a consignment of rodent killing pesticides, which contained Aluminium Phosphate
and Zinc Phosphate. The officials of respondent no. 5 along with fire brigade officials poured
water over the fire in a bid to extinguish it. Aluminium Phosphate and Zinc Phosphate reacted
with water, resulting in emission of highly poisonous Phosphine Gas which continued to emit till
7th April, 2004. Due to inhalation of the aforesaid gas, about thirty five persons living in the
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neighbourhood of respondent No. 5's godown were taken unwell and were rushed to the
hospital with symptoms of breathlessness, pain in chest, vomiting, diarrhea, nausea and
stomach ache. In all four persons died due to exposure to chemical gases that were emitted
during the fire in respondent No. 5's godown. The petitioners relied upon the medical record of
the deceased/injured. The court found that respondent No. 5 was using the premises as a
godown without any prior mandatory statutory permission. There had been violation of Section
417 of the Delhi Municipal Corporation Act. The court relied upon the DD entry and FIR lodged
by the police. The court also relied upon the FSL reports and subsequent opinion of a doctor
from a government hospital, which indicated the cause of death of one of the victims.
16. The court held that not only the respondent godown owner was liable, but also respondent
MCD was equally liable as it was negligent in discharging its statutory function and ensuring
that citizens' right to health and pollution free environment was not infringed. The court dealt
with various issues with regard to the maintainability of writ proceedings; award of monetary
relief in writ proceedings; power to mould the relief in writ jurisdiction; the applicability of the
principle contained in Rylands v. Fletcher (1868) LR 3 HL 330 and in the case of M.C. Mehta &
Anr. v. Union of India & Ors., MANU/SC/0092/1986 : 1987 (1) SCC 395 and, inter alia, held as
follows. Though the extract is rather lengthy, I consider it appropriate to quote the same in
extenso on account of it being very relevant, scholarly and lucid.
PRESENT WRIT PETITION IS MAINTAINABLE
41. As far as the maintainability of present writ petition against respondent no. 5 is
concerned, it is submitted that Article 226 of Constitution makes no distinction
between a public function and a private function. In U.P. State Cooperative Land
Development Bank Ltd. v. Chandra Bhan Dubey and Ors. reported in:
MANU/SC/0872/1999 : 1999 1 SCC 741 the Supreme Court held as under:
27....When any citizen or person is wronged, the High Court will step in
to protect him, be that wrong be done by the State, an instrumentality
of the State, a company or a cooperative society or association or body
of individuals, whether incorporated or not, or even an individual. Right
that is infringed may be under Part III of the Constitution or any other
right which the law validly made might confer upon him. But then the
power conferred upon the High Courts under Article 226 of the
Constitution is so vast, this Court has laid down certain guidelines and
self-imposed limitations have been put there subject to which the High
Courts would exercise jurisdiction, but those guidelines cannot be
mandatory in all circumstances....
42. Moreover, in our opinion, the present writ petition is maintainable as
undoubtedly respondent-MCD has been remiss and negligent in discharging its
statutory obligations and in ensuring that a citizen's fundamental right to health and
pollution free environment was not infringed. Consequently, present writ petition is
maintainable.
Monetary Relief Can be Awarded In The Present Writ Petition
43. As far as respondent No. 5's submission that no writ petition for money claim is
maintainable is concerned, we are of the view that the same is untenable in law. In
our opinion, the Constitution does not place any fetter on the exercise of
extra ordinary jurisdiction of the Court and reliefs to be granted under such
extra ordinary jurisdiction is left to the discretion of the Court in the light
of facts and circumstances of each case. Moreover in the present case what
has been sought is award of compensation and not payment of monetary
claim.
Compensation can Be Awarded in Article 226 Proceedings
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44. It is further well settled that proceedings under Article 226 of the
Constitution of India, enable the courts, to reach out to injustice, and make
appropriate orders, including directions to pay damages or compensation.
The Supreme Court in Dwarka Nath v. Income Tax Officer and Anr. reported in:
MANU/SC/0166/1965 : AIR 1966 SC 81 held as under:
(4)....This article is couched in comprehensive phraseology and it ex facie
confers a wide power on the High Courts to reach injustice wherever it is
found. The Constitution designedly used a wide language in describing the
nature of the power, the purposes for which and the person or authority
against whom it can be exercised. It can issue writs in the nature of
prerogative writs as understood in England; but the scope of those writs
also is widened by the use of the expression "nature", for the said
expression does not equate the writs that can be issued in India with those
in England, but only draws in analogy from them. That apart, High Courts
can also issue directions, orders or writs other than the prerogative writs. It
enables the High Courts to mould the reliefs to meet the peculiar and
complicated requirements of this country. Any attempt to equate the scope
of the power of the High Court under Article 226 of the Constitution with
that of the English Courts to issue prerogative writs is to introduce the
unnecessary procedural restrictions grown over the years in a
comparatively small country like England with a unitary form of
Government to a vast country like India functioning under a federal
structure. Such a construction defeats the purpose of the article itself. To
say this is not to say that the High Courts can function arbitrarily under this
Article. Some limitations are implicit in the article and others may be
evolved to direct the article through defined channels. This interpretation
has been accepted by this Court in T.C. Basappa v. Nagappa:
MANU/SC/0098/1954 : 1955-1 SCR 250 : AIR 1954 SC 440 and Irani v.
State of Madras: MANU/SC/0080/1961 : 1962-
46. The concept of compensation under public law, for injuries caused due
IndraprasthaUniversity
47.
48. It is pertinent to mention that this Court has also awarded compensation in writ
50. The principle of liability without fault was enunciated in Ryland v. Fletcher
reported in (1868) LR 3 HL 330. Facts of the said case were that defendant, who
owned a mill, constructed a reservoir to supply water to the mill. This reservoir was
constructed over old coal mines, and the mill owner had no reason to suspect that
these old diggings led to an operating colliery. The water in the reservoir ran down
the old shafts and flooded the colliery. Blackburn J. held the mill owner to be liable,
on the principle that the person who for his own purposes brings on his land and
collects and keeps there anything likely to do mischief if it escapes, must keep it at
his peril, and if he does not do so, he is prima facie answerable for all the damage
which is the natural consequence of its escape. On appeal this principle of liability
without fault was affirmed by the House of Lords (per Cairns, J.) but restricted to
non-natural users.
51. To oppose the application of Ryland v. Fletcher rule the only submission
advanced by respondent No. 5 before us was that running of a godown per se is not
an inherently dangerous or hazardous industry and further the cause of fire could
not be attributed to negligence of respondent No. 5.
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52. But the fact is that the Rule in Rylands v. Fletcher (supra) was
54. Moreover, in our opinion, the dispute raised with regard to cause of fire
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such hazardous or inherently dangerous activity as an appropriate item of its overheads. Such hazardous or inherently dangerous activity for private profit can be
tolerated only on condition that the enterprise engaged in such hazardous or
inherently dangerous activity indemnifies all those who suffer on account of the
carrying on of such hazardous or inherently dangerous activity regardless of
whether it is carried on carefully or not. This principle is also sustainable on the
ground that the enterprise alone has the resource to discover and guard against
hazards or dangers and to provide warning against potential hazards. We would
therefore hold that where an enterprise is engaged in a hazardous or inherently
dangerous activity and harm results to anyone on account of an accident in the
operation of such hazardous or inherently dangerous activity resulting, for example,
in escape of toxic gas the enterprise is strictly and absolutely liable to compensate
all those who are affected by the accident and such liability is not subject to any of
the exceptions which operate vis--vis the tortious principle of strict liability under
the rule in Rylands v. Fletcher (supra).
18. The Division Bench in Jaipur Golden Gas Victim Association (supra) further observed:
56. A Division Bench of this Court in the case of Association of Victims of Uphaar
57. In fact, the Supreme Court in Union of India (UOI) v. Prabhakaran Vijaya Kumar
and Ors. reported in MANU/SC/7608/2008 : 2008 (9) SCC 527 referred to Ryland v.
Fletcher rule and after pointing out its limitations, reiterated the principle of strict
liability in M.C. Mehta case (supra) as under:
21. Rylands v. Fletcher (supra) in fact created a new legal principle (the
23. Thus in cases where the principle of strict liability applies, the
defendant has to pay damages for injury caused to the plaintiff, even
though the defendant may not have been at any fault.
24. The basis of the doctrine of strict liability is two fold (i) The people
the risk of damage that their activities generate and (ii) it operates as a
loss distribution mechanism, the person who does such hazardous
activity (usually a corporation) being in the best position to spread the
loss via insurance and higher prices for its products (vide 'Torts' by
Michael Jones 4th Edn. p. 267).
25. As pointed out by Clerk and Lindsell (see 'Torts', 14th Edn.) "The
fault principle has shortcomings. The very idea suggests that
compensation is a form of punishment for wrong doing, which not only
has the tendency to make tort overlap with criminal law, but also and
more regrettably, implies that a wrongdoer should only be answerable to
the extent of his fault. This is unjust when a wholly innocent victim
sustains catastrophic harm through some trivial fault, and is left
virtually without compensation....
xxxxxxxx
58. In Jay Laxmi Salt Works (P) Ltd. v. State of Gujarat reported in:
MANU/SC/0692/1994 : (1994) 4 SCC 1 the Supreme Court held as under:
9....What is fundamental is injury and not the manner in which it
has been caused. 'Strict liability', 'absolute liability', 'fault liability, and
neighbour proximity', are all refinements and development of law by
English courts for the benefit of society and the common man. Once
the occasion for loss or damage is failure of duty, general or
specific, the cause of action under tort arises. It may be due to
negligence, nuisance, trespass, inevitable mistake etc. It may be
even otherwise. In a developed or developing society the concept of
duty keeps on changing and may extend to even such matters as was
highlighted in Donoghue v. Stevenson MANU/UKHL/0001/1932 : 1932
AC 562 : 1932 All ER Rep 1 where a manufacturer was held responsible
for injury to a consumer. They may individually or even collectively give
rise to tortuous liability.
Since the appellant suffered loss on facts found due to action of
respondent's officers both at the stage of construction and
failure to take steps even at the last moment it was liable to be
compensated.
(emphasis supplied)
19. After discussing the entire law as it stands on the concept of "strict liability" the court in the
above cited judgment held as under:
From the undisputed facts, it is apparent that respondent No. 5 was engaged in an
inherently dangerous or hazardous activity as it had stored chemical pesticides and
consequently, its duty of care was absolute. Accordingly, the exceptions to strict
liability as evolved in Ryland v. Fletcher rule are not applicable. Therefore,
respondent No. 5 is liable to compensate the victims of the gas and fire tragedy in
accordance with the strict liability principle evolved by the Supreme Court in M.C.
Mehta case (supra).
20. The petitioner further relies on a judgment of this court in Kamla Devi v. Government of
NCT of Delhi & Anr. MANU/DE/0733/2004 : 114 (2004) DLT 57. In this case, the court granted
compensation on the death of a deceased electrician, due to an explosion caused by terrorist
activity. The court further held that public law demands, as distinct from private law tort
remedy, is that crime victims be given compensation even in no fault situations by state, as it is
the breach of constitutional guarantee under Article 21 of the constitution. The petitioner relies
on the following paragraphs:
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5.
Let us see who are the persons responsible for the wrong. Primarily it is the terrorist
who was assembling the bomb. Next, it is the State as it failed in living up to its
guarantee that "no person shall be deprived of his life.. except according to procedure
established by law". The State failed to prevent the terrorist from harming innocent
citizens like Uday Singh. Terrorism itself is an indicia of the inability of the State to curb
resentment and to quell fissiparous activities. Social malaise in itself is a reflection of the
State's inefficiency in dealing with the situation in a proper manner. Apart from the
general inability to tackle the volatile situation, in this case, the State agencies failed in
their duty to prevent terrorists from entering Delhi. It was their responsibility to see that
dangerous explosives such as RDX were not available to criminals and terrorists. The
incident occurred as there was a failure on the part of state to prevent it. There was
failure of intelligences they did not pick up the movement of this known and dangerous
terrorist. So, it would be extremely difficult even to suggest that the State did not fail in
its duty towards the late Uday Singh and his family. The other players in this sad drama
could be the owner of the Guest House. Did he take due care in permitting such a
dangerous person to enter and reside in the guest house? Did he maintain his guest
house in good repair so as to have prevented the same from collapsing under the impact
of the explosion? Then, the municipal officials may also be roped in. Did they inspect the
property from time to time? Did they take any action if the building was in any way not
in accordance with the regulations and law? Did they find the building to be structurally
sound? Of course, these are questions which need a thorough investigation and cannot
be gone into in this writ petition. But, this does not mean that without these questions
being answered the petitioner is to be left without a remedy.
6.
A crime has been committed. A wrong has been done and a citizen has lost his life
because the State was not vigilant enough. A fundamental right has been violated. But,
mere declarations such as these will not provide any succour to the petitioner.
She needs to be compensated. It is too late in the day to now suggest, that in a
situation such as this, the petitioner should be relegated to the ordinary civil courts
to seek her tort law remedy.
7. It is true that the cases which came up before the Supreme Court related to
custodial death, death of school children on a picnic, death of a passenger in a train
as a result of the inaction on the part of the railway employees. In all these cases it
could be said that the victims were under some sort of State custody, punitive or
protective. It could be argued that Uday Singh was not in any such situation. He
died as a result of a terrorist act and, perhaps, contributed, in part, due to the
structural defect in the guest house building. What has the State got to do with
this? I am afraid, the State has everything to do with this. The state owed a duty to
protect the life and liberty of an innocent citizen such as Uday Singh. The State
owes a duty to the widow (Kamla Devi) and the child (Mukesh), now that Uday
Singh has been snatched away from them, that they live their lives with dignity.
Compensation, in this case, would not only be a balm on their scars, it would also
provide them with hope or the future. The fact of the matter is that Uday Singh lost
his life on account of an act of terrorism. The State failed to prevent it. The Primary
duty of the State is to maintain peace and harmony amongst its citizens. If for some
reason, it is unable to put the lid on simmering discontent, then it is its duty to
protect innocent citizens from harm. If it fails in this duty, then it must compensate
the citizens who have been wronged.
Finally, the court culls up the following principles:
21. The principles which emerge can be summarized as follows:1. Whenever an innocent citizen is killed as a result of a crime, particularly when it is an
act of terror or communal violence or a case of custodial death, the State would have
failed in its public duty to ensure the guarantee enshrined in Article 21 of the
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Constitution.
2. The modern trend and the international norm is to focus on the victims of crime
(and their families) by, inter alia, ensuring that they are promptly compensated by
the State in adequate measure under a well-laid out Scheme.
3. In India, there is no such criminal injury compensation scheme in place and the
4. In such a situation the High Court, in exercise of its powers under article 226 of
the Constitution can and ought to direct the State to compensate the crime victim
and/or his family.
21. The petitioners have filed an additional affidavit in compliance of the order dated
14.03.2013 of this court in the present writ petition where they have calculated the quantum of
compensation for each petitioner separately in terms of the MV Act whilst placing reliance on a
Supreme Court judgment of Sarla Verma amd Ors. v. Delhi Transport Corporation and Anr.,
MANU/SC/0606/2009 : (2009) 6 SCC 121
22. Ld. Counsel further submits that the respondent no. 1 in the counter affidavit to the writ
petition has not given parawise reply to the same. The averments made in the writ petition have
not been denied by them.
23. Lastly, Ld. Counsel for the petitioner has handed over in this court a copy of the Delhi
Victims Compensation Scheme, 2011 (The Scheme) framed by the Lt Governor of National
Capital Territory of Delhi in exercise of the powers conferred by Section 357A of the Code of
Criminal Procedure, 1973 for the purpose of providing compensation to the victims or their
dependent(s) who have suffered loss or injury or require rehabilitation as a result of an offence.
Ld. Counsel has also handed over a copy of the reply of the Delhi State Legal Services Authority
(DLSA), to information sought under the Right to Information Act, 2005, on the number of
victims who have been granted compensation in compliance to the Scheme, and also the
categories of cases in which the DLSA has granted compensation till may 2013. The Ld. Counsel
points out from the reply that 72 victims have been compensated so far, and in 4 cases
compensation has been granted in writ petitions against MCD and BSES.
24. Ld. Counsel has further prayed during his arguments that this court may direct the State to
formulate a comprehensive Victims of Crime Compensation Scheme for timely and justifiable
relief to the victims, in line with the Criminal Injuries Compensation Scheme 2001- as prevalent
in UK and other countries, in terms of the General Assembly Declaration of Basic Principles of
Justice for Victims of Crime and Abuse of Power.
25. Counter affidavit on behalf of respondent no. 1 has been filed by Mr. V.S. Arya, Joint Labour
Commissioner, District South, Labour Department. It is admitted in the counter affidavit that on
25.01.2011, a fire accident did occur in the premises of M/S. Amazing Creation Garment Factory
at Tughlakabad area in South Delhi, and that an F.I.R. was lodged on 26.01.2011 at P.S.
Govindpuri.
26. It is further stated in the counter affidavit that Employee's Compensation Commissioner had
initiated a suo moto action by issuing notice dated 04.02.2011 to the employer of the M/S.
Amazing Creation Garment Export Factory for depositing the amount of compensation to the
tune of Rs. 5,00,000 in respect of each deceased workmen, and Rs. 50,000 in respect of each
injured workmen within 3 days from issue of notice. Recovery Certificate dated 21.03.2011 was
issued for Rs. 79,74,841/- along with interest @ 12% p.a. from the date of accident till
payment along with penalty of 50% of the principal amount. The respondent no. 1 has objected
to the application of the Sarla Verma (supra) on the ground that the formula prescribed therein
is applicable only on the claims filed before the MACT, and not on the claims under the Act.
Therefore, the compensation should be calculated as per the provisions of Section 4 of the Act.
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27. The Respondent no. 2 claims that there are disputed questions of facts involved in this case,
which cannot be adjudicated on the basis of affidavits of parties-in the absence of cogent
evidence and without leading evidence, and without conducting cross-examination and,
therefore, the appropriate remedy would be to initiate a civil action.
28. He further states that the fire report dated 27.03.2012 has failed to ascertain the exact
cause of fire and, therefore, he cannot be held liable in the absence of conclusive facts.
Respondent no. 2 has completely denied responsibility for the incident and has further stated
that he was only running a "dry cleaning business" in the premise which is not a
"manufacturing" process. As such, the provisions of the Act are not applicable. He has further
asserted that no manufacturing activity was carried out in the said premises, and there was no
employer-employee relationship, or master-servant relationship between him and the
deceased/injured workmen. He avers that he himself is one of the victims of the accident and
has filed his medical reports to that effect. He further claims that the place of the accident has
been sealed by the police/SDM for the purpose of investigation and the title deeds of the
property have been seized. As such, he does not have the means to survive himself and even
the State has not extended any help to him for rehabilitation and better treatment.
29. Respondent no. 2 in his counter affidavit has stated that there has been a gross violation of
natural justice in passing the Recovery Certificate by Commissioner, Workmen Compensation
(CWC), without giving any opportunity of being heard to the respondent no. 2.
30. Ld. Counsel for respondent no. 2 has submitted that in view of the decision in Grid Corporation
of Orissa Ltd. v. Sukamani Das, MANU/SC/0572/1999 : 1997 (7) SCC 298, this petition is not
maintainable. In this case, respondent's husband died due to electrocution and the respondent
claimed compensation on ground of negligence of appellant authority i.e. GRIDCO as they failed in
their duty to maintain the electricity transmission line. The appellant authority denied the liability on
the ground that the wire had snapped due to thunderbolt and lightening, and not because of the
negligence as proper guarding was provided for the electricity line and also pleaded that the writ
petition was not maintainable because disputed questions of facts were involved. The writ petition
was allowed by the High Court, but on appeal to the Supreme court, the decision was reversed. The
following paragraphs from the judgment are relied on:
6.
In our opinion, the High Court committed an error in entertaining the writ petitions
even though they were not fit cases for exercising power under Article 226 of the
Constitution. The High Court went wrong in proceeding on the basis that as the deaths
had taken place because of electrocution as a result of the deceased coming into contact
with snapped live wires of the electric transmission lines of the appellants, that
"admittedly prima facie amounted to negligence on the part of the appellants". The High
Court failed to appreciate that all these cases were actions in tort and negligence was
required to be established firstly by the claimants. Mere fact that the wire of the electric
transmission line belonging to the appellant No. 1 had snapped and the deceased had
come into contact with it and had died was not by itself sufficient for awarding
compensation. It also required to be examined whether the wire had snapped as a result
of any negligence of the appellants and under which circumstances the deceased had
come into contact with the wire. In view of the specific defences raised by the appellants
in each of these cases they deserved an opportunity to prove that proper care and
precautions were taken in maintaining the transmission lines and yet the wires had
snapped because of circumstances beyond their control or unauthorised intervention of
third parties or that the deceased had not died in the manner stated by the petitioner.
These questions could not have been decided properly on the basis of affidavits only. It
is the settled legal position that where disputed questions of facts are involved a petition
under Article
circuit had occurred and his wife died. The following paragraphs are relied upon:
19. Where the compensation had been claimed on account of death and injury on
the basis of constitutional wrong but not due to electrocution, the approach of the
Supreme Court has been different. Some of the prominent decisions are Rudul shah
V. State of Bihar MANU/SC/0380/1983 : (1983) 3 SCR 508, Nilabeti Behera, D.K.
Basu v. State of West Bengal (MANU/SC/0157/1997 : 1997) 1 SCC 416 and
Chairman Railway Board V. Chandrima Das. However, it has been held that in cases
of electrocution involving disputed questions of fact, a writ petition under Article 226
is not maintainable. it is in the electrocution cases as can be seen ...that the
approach has been different.....The net result is that in cases involving claim for
compensation on account of death due to electrocution, where the facts are
disputed, the Supreme Court has held that a writ petition for payment of
compensation is not maintainable under Article 226 of the Constitution. The remedy
in such cases will obviously be only before civil court.
xxxxxxxxxx
.....this court has no other option but to hold that the writ petition in the facts and
circumstances which involves disputed questions of facts is not maintainable and
the petitioner will have to approach the Civil Court to claim compensation for the
death of his wife on account of alleged negligence of the respondents...
32. Further, the respondent no. 2 submits that respondent no. 1 has not denied any allegations
in the petition, and, therefore, have allegedly admitted their negligence. Consequently, they
alone have the constitutional liability and obligation to pay the complete monetary
compensation to the petitioners.
33. The respondent no. 2 in response to the additional affidavit of claim for compensation by
the petitioners, has also averred that 8 petitioners have filed the present petition, whereas 5
others have filed their cases before the Employee's Compensation Commissioner (South
District), Delhi. It is pertinent to mention here that that respondent no. 2 has only provided
certain case nos. that he claims are pending, and has not filed any document to show this. In
the same affidavit, respondent no. 2 has also denied the particulars of the petitioners with
regard to their age, marital status, employment, income, salary etc.
34. The respondent no. 2 also submits that a writ petition under Article 226 of the Constitution
is only maintainable against the State-who have a constitutional duty and obligation to protect
the fundamental rights of the people.
35. The petitioners in their rejoinder have denied having filed any claim petition under the Act,
as averred by the respondent no. 2 in his counter affidavit.
36. The petitioners submit that the respondent no. 2 was given a fair opportunity to be heard,
before issuance of the Recovery Certificate. He was, in fact, issued a show cause notice by the
District Collector's office of the Deputy Labour Commissioner, South, Govt. of NCT to which the
respondent no. 2 had replied by stating that he does not own any movable or immovable
properties. Further, it is clear from the F.I.R. that the accident had taken place due to the
negligent acts of the respondents, inter alia, by not keeping the machine boiler etc in proper
condition by the owner of the factory and by permitting the running of the factory premises in a
highly congested and residential premises without clearances by the fire department, the
municipality and the labour department.
37. The petitioners have placed on record the compensation claimed on the basis of the
judgment in Sarla Verma (supra). They have also claimed interest @ 7.5% p.a. from date of
filing of the writ petition upto the date of payment in addition to costs as granted in the case of
Jaipur Golden Gas Victims Association v. UOI & Ors. (Supra).
38. The respondent no. 1, has calculated the compensation according to the provisions of the
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Act, as follows:
39. Also, it has been stated that as per Section 4A(3)(b) of the ECA, interest @ 12% is also
payable.
40. It is well settled by now that a writ court can award compensation while exercising the
extraordinary constitutional jurisdiction. The question has been dealt with extensively by the
Supreme Court in Rudul Shah v. State of Bihar MANU/SC/0380/1983 : (1983) 3 SCR 508, Smt.
Nilabati Behera v. State of Orissa & Ors. MANU/SC/0307/1993 : (1993) 2 SCC 746, D.K. Basu v.
Union of India MANU/SC/0157/1997 : (1997) 1 SCC 416, Chairman, Grid Corporation of Orissa
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Ltd. (GRIDCO) and Ors. (Supra), Tamil Nadu Electricity Board v. Sumathi and Ors.
MANU/SC/0338/2000 : (2000) 4 SCC 543, S.P.S. Rathore v. State of Haryana
MANU/SC/0370/2005 : (2005) 10 SCC 1 and by this court in Jaipur Golden (supra) and Kamla
Devi (supra).
41. The position that emerges from the afore mentioned decisions is that at least in cases,
where the relevant facts are not in dispute; there is established negligence in the acts and
omissions of the respondent authority/authorities on the face of the record, and; there is
consequent deprivation of a fundamental right of the petitioner, the writ court may award
monetary compensation.
42. In Darshan & Others v. Union of India & Others, MANU/DE/0103/1999 : 200 ACJ 578, the
deceased had died of drowning after falling into an open manhole. The Division bench of this
court held as follows:
Coming to instant case, it is one of res ipsa loquitur, where the negligence of the
instrumentalities of the State and dereliction of duty is writ large on the record in
leaving the manhole uncovered. The dereliction of duty on their part in leaving a
death trap on a public road led to the untimely death of Skattar Singh. It deprived
him of his fundamental right under Article 21 of the Constitution of India. The scope
and ambit of Article 21 is wide and far reaching. It would, undoubtedly, cover a case
where the State or its instrumentality failed to discharge its duty of care cast upon
it, resulting in deprivation of life or limb of a person. Accordingly, Article 21 of the
Constitution is attracted and the petitioners are entitled to invoke Article226 to
claim monetary compensation as such a remedy is available in public law, based on
strict liability for breach of fundamental rights.
43. In the case of Varinder Prased v. BSES Rajdhani Power Ltd. and Others,
MANU/DE/0253/2012 : 2012(127) DRJ 630, this court took into account its earlier decision in
Ram Kishore v. MCD MANU/DE/8223/2007 : 2007(97) DRJ 445, to hold that a writ petition to
claim compensation is maintainable under Article 226 of the constitution of India, in case there
is a violation of fundamental rights. In Varinder Prasad (supra) an unfortunate boy died in an
accident, when the shed of the house, where under he was playing, collapsed on him. This court
in several other cases as well viz. Chob Singh v. Govt. of NCT of Delhi and Anr.
MANU/DE/1686/2012 : 192 (2012) DLT 100, Santu Ram & Anr. v. State and Ors. in W.P. (C)
768/2009 has granted compensation.
44. In Subramanium and Anr. V. Delhi Metro Rail Corporation and Ors. in W.P. No. 5024/2007
this court held as under:
10....the courts in India have over a period of time unshackled its conservative approach
of not entertaining causes while exercising extraordinary original jurisdiction under
Article 226 of the Constitution, in such like cases. The rigour of conservatism has been
relaxed, not only in the field of civil wrongs that is, torts, but also in the area of
contracts where State or its instrumentalities are parties. As a matter of fact, the courts
have gone to the extent of saying that it would be incorrect to state that where facts are
disputed, a writ court would not have jurisdiction to entertain a petition under Article
226 of the Constitution. It is one thing to say that the court in its discretion may not
entertain a petition in which disputed questions of fact arise for consideration, it is
another thing to contend that a court does not have jurisdiction to entertain a petition
which raises disputed questions of fact. The latter proposition is now discarded by the
Supreme Court. [See. Smt. Gunwant Kaur & Ors. Vs. Municipal Committee Bhatinda &
Ors.: MANU/SC/0397/1969 : (1969) 3 SCC 769 and ABL International Ltd. and Anr. Vs.
Export Credit Guarantee Corporation of India Ltd. and Ors.: MANU/SC/1080/2003 :
(2004) 3 SCC 553
10.1 The approach, with regard to civil wrongs committed by officers of the State or
the instrumentalities of the State are on no different footing where claims are based
on strict liability. While there is no gainsaying that, an affected person could
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vindicate his right qua a civil wrong committed on him, by instituting a civil suit, a
claim in public law for compensation, for unconstitutional deprivation of the
fundamental right to life, would also be available to him. This claim would be in
addition to the claim available in private law for damages caused on account of
tortious acts of the public servants. Compensation, if any, would be paid by
constitutional courts for 'established infringement of rights granted under Article 21
of the Constitution.
10.2 In this behalf, the courts have eschewed the policy of relegating an aggrieved
party to a remedy of a civil suit, where there is established violation of the victim's
right under Article 21 of the Constitution, on the ground that it may be long drawn
and cumbersome, and at times, result in illusory relief to the victim's family. The
power conferred on the court, whether under Article 32 or Article 226 of the
Constitution is exercised, where the violation of the fundamental right is gross and
patent-it affects a large number of persons, or it would be unjust or unduly harsh
and oppressive either on account of the poverty of the claimant or his socially and
economically disadvantaged position, to relegate him to a civil action for
infringement of his rights.
45. In the present case, it is not in dispute that the near relatives of petitioner nos. 1 to 7 died,
and petitioner no. 8 was injured due to the breakout of a fire while they were working in the
factory premises of respondent no. 2. The occurrence of the said incident has been recorded in
the FIR and subsequent charge sheet has also been filed by the police. Respondent No. 1 has
admitted the said incident. Even respondent No. 2 has admitted the incident-as he claims that
he was also injured in the said incident, though he denies his negligence and also the nature of
activity allegedly found in the premises, the cause of the fire and the relationship of workmen
and employer. Whether, or not, the unit was a manufacturing unit, or only a dry cleaning unit-as
claimed by respondent no. 2 is not at all relevant to my mind.
46. There is no dispute that the said factory/unit was being run in an illegal manner in a "low
rise residential building", as is evident from the fire report. Neither respondent no. 1, nor
respondent no. 2 have claimed that the former had permitted the use of the building for
commercial/manufacturing purpose, nor respondent no. 2 has disclosed that he had obtained
the requisite municipal licenses or fire clearances before running his unit. It is not their claim
that the activity was being run in a proper manner, and that there were checks and measures in
place. The factory/unit seems to be operating from 2005 in flagrant violation of all statutory
laws, rules and regulations. There is no explanation offered by the Respondent no. 1 as to how
an export factory, or a dry cleaning unit (as claimed by respondent no. 2) storing and using
highly inflammable substances was permitted to run in a residential building in a congested
area. There can be no denying the fact that respondent no. 1 owed a duty of care towards
public, so that no action or inaction on their part causes harm to the citizens. Even after the
incident, they have not done anything substantial to provide relief to the petitioners, except for
sending letters and reminders. It is absolutely clear that respondent no. 1 has been utterly
negligent in discharging its statutory obligations and in ensuring that the citizen's fundamental
rights to life was not infringed.
47. Though from a perusal of the report of the Assistant Electrical Inspector dated 08.04.2011 it
is seen that the electrical installation of the premises was found completely burnt out/damaged,
and the exact cause of fire could not be ascertained, however, from the perusal of the copy of
charge sheet filed in the court of Sh Samar Vishal, MM Saket Courts, it appears that the incident
has occurred due to the use and presence of a highly inflammable liquid. The relevant extract
there from reads as follows:
In the investigation carried out so far, it was found that the accused (respondent no. 2)
had been using a highly flammable liquid for washing of the prepared garments on the
fourth floor of the building which did not have any proper ventilation and the 4th floor of
the building was used for washing of the garments on 25.01.2011 at about 4 pm with
solvent and the solvent spread in the air and the electrical spark which came from the
hydro machine in which the washed garments were being dried, caused fire which
caused a big sound resulting in engulfing the workers
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working there and falling off the roof of the 4th floor of the building. Hence, there
are sufficient evidences against the accused Shamim of Column No. 11 and the
challan against him is prepared u/s. 287/285/337/338/304A IPC. The case may be
heard please.
48. Further, it is clear from the FSL report no. 2011/C-1123 dated 24.06.2011, that on gas
chromatography examination most of the exhibits "were found to contain residue of kerosene"
which is a highly inflammable liquid.
49. The cause of fire in the premises of respondent no. 2 is of not relevance to fix the liability of
the respondents. I may only refer to para 54 of the judgment in Jaipur Golden (supra) which
has been extracted herein above. As observed by the Supreme Court in Prabhakaran Vijaya
Kumar & Ors. (supra) (taken note of in para 57 of Jaipur Golden (supra)), strict liability focuses
on the nature of the defendants activities, rather than on the way in which it is carried out.
Therefore, the respondents would be liable, irrespective of their being/not being any negligence.
I may, however, hasten to add that there is sufficient undeniable evidence on record to conclude
that there has been immense neglect and dereliction of duty by the respondent authorities i.e. a
duty of care - owed to those serving in the unit of respondent no. 2.
50. Respondent no. 2's contention that he being a private person, therefore a writ is not
maintainable against him is unfounded. In Anadi Mukta Sadguru Shree Muktajee Vandas Swami
Suvarna Jayanti Mahotsav Smarak Trust and Ors. v. V.R. Rudani and Ors.
MANU/SC/0028/1989 : AIR 1989 SC 1607:
The words "Any parson or authority" used in Article 226 are therefore, not to be
confined only to statutory authorities and instrumentalities of the State. They may
cover any other person or body performing public duty. The form of the body
concerned is not very much relevant. What is relevant is the nature of the duty
imposed on the body. The duty must be judged in the light of positive obligation
owed by the person or authority to the affected party. No matter by what means the
duty is imposed. If a positive obligation exists mandamus cannot be denied
51.
52. In Sandhu Varahala Babu and Ors. v. Government of Andhra Pradesh, Co operation
Department and Ors., MANU/AP/0470/2005 : 2005(5) ALT 126. In para 35 of the said judgment
the court summarized as follows:
(1) Article 226 empowers the High Court to issue writs to 'persons' or 'authorities' to
enforce ordinary rights.
(2) An order can be issued against private persons by granting appropriate relief
under Article 226 of the Constitution.
xxxxxxxxxx
(5) A writ can be maintained under Article 226 if there is flagrant violation of the
principles of natural justice, which are required to be followed under a statute.
(6) The power of the High Court is not confined only to issue of writs to a public
authority. It can also issue directions to enforce any of the fundamental rights or for
any other purpose.
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(7) The scope of Article 226 has been widened by maintaining the writ petition
against other authorities and persons also.
53. As noticed above, the issue stands settled by, inter alia, Jaipur Golden (supra). There have
been several instances where high courts have issued writs against private persons when
fundamental rights of a person have been violated.
54. Moreover, in the present case, the petitioners are also seeking relief against the respondent
State on account of their failure to take steps to prevent the horrible incident. Had the State
been vigilant, the factory/unit could not have been set up or operated in a low rise residential
premises. Had the State been vigilant, fire protection mechanisms, proper fire escape, clear
passages and ventilation would have been ensured. Had the State been vigilant, respondent No.
2 would not have been permitted to store highly inflammable substances without license and
without making proper arrangement therefor. Neither of the respondents paid heed to these
aspects, which is what led to the incident. The liability of the State is coextensive with that of
respondent no. 2.
55. In these proceedings, this court is not examining the validity of the Recovery Certificate in
question. The same is the subject matter of a separate writ proceedings initiated by respondent
no. 2. In my view, whatever be the outcome of the said recovery proceedings, the petitioners
right to claim compensation from the respondents cannot be denied. If, eventually, the
compensation found legally due against respondent no. 2 is found to be higher than that
awarded in these proceedings, the compensation realized in these proceedings would be
adjustable.
56. Respondent no. 2's next contention that he was running a Dry Cleaning business, and hence
it cannot be termed as a manufacturing business, thereby excluding him from the purview of
the Act, appears to be an attempt on his part to escape his liability for the said incident under
the Act. I do not consider it necessary to get embroiled in this dispute, which may be resolved
in other appropriate proceedings i.e. under the Act or under the I.P.C. Prima face, though, it
appears from the F.I.R. that respondent no. 2 was in fact running an export factory at the
premises of the fire accident. The same records:
...on inspecting the house it was found that in the house, the work of cutting
clothes, pressing and finishing used to be carried out
(Translated from Hindi)
57. Further, a copy of the reply dated 25.07.2011 sent by the Additional Deputy Commissioner
of Police (South East), New Delhi to Deputy Secretary, Delhi Minorities Commission has been
filed in this court, also shows that he may have been running an export factory. The reply says:
" Enquiry has been got conducted through ACP, Kalkaji which revealed that on
25.01.2011 at about 5.00 PM an incident of fire in Gali no. 8, RZ H. No. 58-1, TKD
Extension, New Delhi took place where a garment export factory in the name and
style of Amazing Creations was being run. Immediately all the 19 injured persons
were evacuated and sent to Safdarjung and JPN hospitals in Private and PCR
vans...During enquiry it revealed that 14 persons succumbed to their burn injuries
at the JPN & safdarjung hospital....
....The establishment is registered with Ministry of Commerce and Industry vide
Certificate of Import/Export Code dated 07.06.2010 ... The factory was established
in 2005 as per certificate issued by Apparel Export Promotion Council.
58. As noticed above, to grant compensation in these proceedings, it is not necessary to
determine the issue whether a garment manufacturing unit or a dry cleaning unit was being run
in the premises. The liability would, in either case, fall on the respondents since they have failed
to exercise due care and caution that they were obliged to, under the law.
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59. In any event, it is clear that respondent no. 2 was carrying out an inherently
dangerous/hazardous activity and, therefore, the principle of "strict liability" evolved by the
Supreme Court in M.C. Mehta (supra) and followed in Jaipur Golden (supra) would apply. In
light of the above discussions and precedents, this writ petition for grant of compensation is
maintainable against both the respondents, and the petitioners are entitled to grant of
compensation for the undeniable right to life of the near relatives of the petitioner nos. 1 to 7
and of petitioner no. 8.
60. Now, I proceed to consider the method of calculation to be applied for the computation for
quantum of damages to be granted in the present case.
61. In General manager, Kerala State Road Transport Corporation, Trivandrum v. Mrs. Susamma
Thomas & Ors. MANU/SC/0389/1994 : (1994) 2 SCC 176, the Supreme Court held as under:
The determination of the quantum must answer what contemporary society "would
deem to be a fair sum such as would allow the wrongdoer to hold up his head
among his neighbours and say with their approval that he has done the fair thing".
The amount awarded must not be niggardly since the "law values life and limb in a
free society in generous scales." All this means that the sum awarded must be fair
and reasonable by accepted legal standards.
62. The Supreme Court in Sube Singh v. State of Haryana MANU/SC/0821/2006 : AIR 2006 SC
1117 has held that:
It is thus now well settled that award of compensation against the State is an
appropriate and effective remedy for redress of an established infringement of a
fundamental right under Article 21, by a public servant. The quantum of
compensation will, however, depend upon the facts and circumstances of each case.
Award of such compensation (by way of public law remedy) will not come in the way
of the aggrieved person claiming additional compensation in a civil court, in
enforcement of the private law remedy in tort, nor come in the way of the criminal
court ordering compensation under Section 357 of Code of Civil Procedure
63. In Oriental Insurance Co Ltd. v. Ram Prasad Varma & Ors. MANU/SC/0030/2009 : 2009(2)
SCC 712, the Supreme held that "just" must be given its logical meaning. Though, the
compensation awarded cannot be a bonanza or a source of profit but in considering as to what
would be just and equitable, all facts and circumstances must be taken into consideration.
64. The Supreme court in Association of
MANU/SC/1255/2011 : AIR 2012 SC 100 held:
Victims
of
Uphaar
Tragedy
and
Ors.
Therefore what can be awarded as compensation by way of public law remedy need
not only be a nominal palliative amount, but something more.
65. The accident in question is not covered by the provisions of the MV Act. In my view, the MV Act
cannot, therefore, be invoked for purpose of calculation of damages to which the petitioners may be
entitled to. The decision in Sarla Verma (supra) was rendered in a case arising under the MV Act. The
petitioners have not shown as to how the principles for computation of damages under the said Act
can be extended to claim for compensation when the same is not arising out of accident involving a
motor vehicle. I may note that in Jaipur Golden (supra), the petitioners had claimed compensation in
accordance with the MV Act. However, it appears that there was no opposition to the said manner of
computation of damages and the court awarded compensation as framed by the petitioners.
Pertinently, in Kamla Devi (supra), this court applied its mind to the aforesaid aspect from para 17
onwards. This court referred to U.P. State Road Transport Corporation v. Trilok Chandra
MANU/SC/1154/1996 : (1996) 4 SCC 30, wherein the Supreme Court had observed that calculation
of compensation and the amount worked out in the Schedule suffers from several defects and that
neither the tribunals nor the courts can go by the ready reckoner. It can only be used as a guide.
This court, therefore, held that the structured formula given in the 2nd Schedule to the MV Act
cannot be relied upon as a ready reckoner, but this
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does not mean that it has to be debunked altogether. For instance, it may be used for arriving
at the appropriate multiplier.
66. The court applied the principle that the petitioner would be eligible to receive a standard
compensation for the fatal injury caused to the deceased. Over and above the same, the
petitioners were held entitled to receive additional compensation in respect of loss of
dependency.
67. In Kamla Devi (supra), the court held as under:
5. The compensation to be awarded by the Courts, based on international norms
and previous decisions of the Supreme Court, comprises of two parts:-
(1) 'standard compensation' or the so-called 'conventional amount' (or sum) for
non-pecuniary losses such as loss of consortium, loss of parent, pain and suffering
and loss of amenities; and
time to time to counter inflation and the consequent erosion of the value of the
rupee. Keeping this in mind, in case of death, the standard compensation in 1996 is
worked out at Rs. 97,700/-. This needs to be updated for subsequent years on the
basis of the Consumer Price Index for Industrial Workers (CPI-IW) brought out by
the Labour Bureau, Government of India.
loss of earnings for which the multiplier method is to be employed. The table given
in Schedule II of the MV Act, 1988 cannot be relied upon, however, the appropriate
multiplier can be taken there from. The multiplicand is the yearly income of the
deceased less the amount he would have spent upon himself. This is calculated by
dividing the family into units- 2 for each adult member and 1 for each minor. The
yearly income is then to be divided by the total number of units to get the value of
each unit. The annual dependency loss is then calculated by multiplying the value of
each unit by the number of units excluding the two units for the deceased adult
member. This becomes the multiplicand and is multiplied by the appropriate
multiplier to arrive at the figure for compensation of pecuniary loss of dependency.
8.
The total amount paid under 6 and 7 above is to be awarded by the Court along with
simple interest thereon calculated on the basis of the inflation rate based on the
Consumer Prices as disclosed by the Government of India for the period commencing
from the date of death of the deceased till the date of payment by the State.
9. The amount paid by the State as indicated above would be liable to be adjusted
against any amount which may be awarded to the claimants by way of damages in a
civil suit or compensation under the Criminal Procedure Code.
68. Applying the aforesaid principle, the compensation to which each of the petitioners would be
entitled would be as follows:
69. The standard compensation has to be awarded by taking the base amount as Rs. 50,000/in 1989, as mentioned in Kamla Devi (supra). The said amount would require to be adjusted for
Jan 2011 when the deaths of the near relatives of Petitioner no. 1 to 7 occured, based on the
Consumer Price Index for Industrial Workers (CPI -1W), published by Labour Bureau, Govt. of
India (Bureau). The average CPI (IW) for the year 1989, (in which as afore mentioned, the
standard compensation was of Rs. 50,000) is 171 with the base year being 1982 (having being
indexed at 100). The said index chart with base year 1982, ranges from 1988 to 2005. Indexes
from 2006 onwards have been fixed by the Labour Bureau with base year 2001 (having being
indexed at 100). To integrate i.e. to link the new series of CPI (IW) with base year 2001 and
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previous series, with base year 1982, the Bureau has fixed the linking factor at 4.63. Therefore,
to arrive at index numbers from 2006 onwards with base year 1982, the original values as
provided for in the new series are multiplied with the link factor of 4.63.
70. In the present case, the index for the year January 2011, is 188 (with base year 2001). To
arrive at the index value for January 2011 with base year 1982, the said index of 188 is
multiplied by 4.63, which comes to 870. Therefore, the standard compensation, as per inflation
corrected value comes to (50,000x870/171)= Rs. 2,54,385.97
71. As far as the pecuniary compensation is concerned, the appropriate multiplier is taken from
the MV Act, the last drawn wages as claimed by the petitioners no. 1 to 7 is used for calculating
the multiplicand. It is relevant to mention here that respondent no. 2 has simply made a bald
denial of the last drawn wages without putting anything on record to prove the contrary.
72. Accordingly, the total compensation as per Kamla Devi (supra) is calculated as under:
^ Family Units: 2 units for each adult member and 1 unit for each minor member
* Value of Each unit: Yearly income/total number of family units
# Multiplicand: Annual income of the deceased - Amount he would have spent on himself @
Pecuniary Compensation: Multiplier x Multiplicand
$ Total compensation: Standard Compensation + Pecuniary Compensation
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73. I may observe that the amount granted to petitioner no. 3 and petitioner no. 7 is more than
what they have claimed. The said discrepancy has arisen because, in their claim, they seem to
have taken the wrong multiplier while calculating the amount of compensation.
74. As far as the quantum of compensation to be granted to petitioner no. 8, who has been
injured in the accident, this court will base its compensation based on the guidelines provided
by the Supreme Court in Raj Kumar V. Ajay Kumar & Anr. MANU/SC/1018/2010 : 2011 (1) SCC
343, though dealing with a case of motor accident, the court considered the "General Principles
relating to compensation in injury cases". It was observed as under:
General principles relating to compensation in injury cases 5..... The object of awarding
damages is to make good the loss suffered as a result of wrong done as far as money
can do so, in a fair, reasonable and equitable manner. The court or tribunal shall have to
assess the damages objectively and exclude from consideration any speculation or fancy,
though some conjecture with reference to the nature of disability and its consequences,
is inevitable. A person is not only to be compensated for the physical injury, but also for
the loss which he suffered as a result of such injury. This means that he is to be
compensated for his inability to lead a full life, his inability to enjoy those normal
amenities which he would have enjoyed but for the injuries, and his inability to earn as
much as he used to earn or could have earned. (See C.K. Subramonia Iyer v. T.
Kunhikuttan Nair: MANU/SC/0011/1969 : AIR 1970 SC 376, R.D. Hattangadi v. Pest
Control (India) Ltd.: MANU/SC/0146/1995 : 1995
(1) Expenses
(2) Loss of earnings (and other gains) which the injured would have
made had he not been injured, comprising:
10. The possession of one's own body is the first and most valuable of all human
rights and while awarding compensation for bodily injuries this primary element is
to be kept in mind. Bodily injury is to be treated as a deprivation which entitles a
claimant to damages. The amount of damages varies on account of gravity of bodily
injury. Though it is impossible to equate money with human suffering, agony and
personal deprivation, the Court and Tribunal should make an honest and serious
attempt to award damages so far as money can compensate the loss. Regard must
be given to the gravity and degree of deprivation as well as the degree of awareness
of the deprivation. Damages awarded in personal injury cases must be substantial
and not token damages.
11. The general principle which should govern the assessment of damages in
personal injury cases is that the Court should award to injured person such a sum
as will put him in the same position as he would have been in if he had not
sustained the injuries.
(5) Disfigurement.
(6) Discomfort or inconvenience, hardship, disappointment, frustration
and mental stress in life.
76. This court has also taken note of the above judgments and granted compensation in
accordance with the same in Harinder Kaur v. Add. District and Sessions Judge and Ors.
MANU/DE/3320/2012 : 2012 (131) DRJ 63.
77. Therefore, Petitioner no. 8 is granted the following amounts under Pecuniary and non
pecuniary damages:
78. It is pertinent to mention here that the petitioner no. 8 has put nothing on record to
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substantiate his claims under A(i). Claim under A(ii) and A (iii) is calculated based on his last drawn
wages. However, following claims has not been objected to by the respondents, therefore, the same
is taken as it is claimed. Though as can be ascertained from the F.I.R. that he has suffered 80%-90%
burn according to MLC No. 11256/11, and therefore, the compensation under A(iii) should be higher,
if we assume, that the effect of the disablement on the petitioner on his actual future earning
capacity should be at least more than 50%. But the petitioner himself has claimed "20% presumptive
permanent disability taken on account of 80%-90% burn injuries as per F.I.R.", it is granted
accordingly. The Court in Vijay Kumar Mittal (supra) cited various examples from decided cases
wherein non pecuniary damages had been awarded in varied circumstances. These instances show
that in cases of bodily injury, the non pecuniary damages have varied between Rs. 2.80 lakhs to Rs.
4 lakhs. Thus, the claim of petitioner no. 8 under non pecuniary damages seems to be justified and
the same is awarded accordingly.
79. It goes without saying that the same is without prejudice to the petitioners to claim additional
compensation, if they are so entitled in law, in other appropriate proceedings. The compensation that
may have already been received, or that may be realized under this judgment would be adjusted
against any further compensation to which they are held entitled to. It shall be open to the
petitioners to realize the compensation from either of the respondents.
80. The petitioners shall be entitled to an interest @7.5% p.a. from the date hereof till the date
of realization of the amount.
81. So far as the petitioner's plea that this court should direct the framing of a scheme for
compensation to the victims is concerned, I am not inclined to issue any such direction in the
present writ petition, as I am concerned with the specific disputes raised in the present petition.
If the petitioners are so minded, it is open to them to initiate appropriate public interest petition
in that respect. Petition stands disposed of in the aforesaid terms.
1
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