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Facts of the Case

Petition was filed in public interest by Vellore Citizens Welfare Forum against pollution caused by enormous discharge of untreated effluents by the tanneries and other industries in the State of Tamil Nadu.
Environmental damage caused by the same included non-availability of potable water to the residents near Palar river which included around 59 villages as well as causing nearly 35,000 hectares of agricultural land in the Tanneries Belt to become partially or totally unfit for cultivation
Tanneries had already been notice either to construct common effluent treatment plants (CETPS) for a cluster of industries or to set up individual pollution control devices and given substantial subsidies for the same but no action was taken.
Despite all possible assistance rendered by various expert bodies the tanneries have failed to control the pollution generated by them

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Rio Declaration 1992

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 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.

Rio Declaration Contd

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 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 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.

The Court’s Decision

The Court mentioned the Rio summit and affirmed the principle of Sustainable Development as well as its salient features like " Precautionary Principle" and "Polluter Pays" .
It cited Art 21,47, 48A and 51A(g) of the Constitution to include these principals.
It interpreted the "Polluter Pays" principle as absolute liability for harm to the environment extending not only to compensate the victims of pollution but also the cost of restoring the environmental degradation.

The Court’s Descision contd

The Court directed the Central Government to take immediate action to create an authority or authorities under Section 3(3) of the Environment Act with adequate powers to control pollution and protect the environment.
The authority was to implement the "precautionary principle" and the "polluter pays" principle and to recover compensation under two heads namely, for reversing the damage caused to the ecology and for payment to individuals affected by the same.
It directed the Madras High Court to constitute a special Bench "Green Bench" to deal with this case as well as any environmental matters and to pass any appropriate order/orders in view of the court’s directions.