M.C. Mehta v. Kamal Nath & Ors Country/Territory India Type of court National - higher court Date Mar 15, 2002 Source UNEP, InforMEA Court name Supreme Court of India Seat of court New Delhi Judge ShahRaju Reference number (2002) INSC 137 Language English Subject Water Keyword Liability/compensation Abstract This decision related to an earlier decision by the Supreme Court in the same matter. The court had learned that the private company "Span Motels Pvt. Ltd." had built a motel on the bank of the River Beas on land leased by the Indian Government in 1981. Span Motels had also encroached upon an additional area of land adjoining this leasehold area, and this area was later leased out to Span Motels. The motel had used earthmovers and bulldozers to turn the course of the River Beas, create a new channel and divert the river’s flow. The course of the river was diverted to save the motel from future floods. The case was finally decided by this court by its judgment dated December 13, 1996. In a later decision, the court had directed a fresh notice be issued to M/s Span Motel to show cause why in addition to damages, exemplary damages be not awarded for having committed the acts set out in the main judgment. M/s Span Motels (P) Ltd. contended that the action taken and construction works executed by them at heavy cost were meant to protect not only their own property but the property of the State and the same was also in the interests of those on the basin and banks of both sides of the river and therefore, they could not be held guilty of having committed any illegalities and interfered with the environment in the place to warrant the levy of exemplary damages against them. Finally, it was contended that they had already spent considerable sum of their own money for the protective and relief measures undertaken by them and it would be unjust and harsh to impose upon them any further liability in the shape of exemplary damages. The Supreme Court was of the view that the question as to the imposition of exemplary damages and the liability of Span Motels Pvt. Ltd. in this regard had to necessarily depend upon the earlier findings of this Court that the Motel by constructing walls and bunds on the river banks and in the river bed had interfered with the flow of the river and their liability to pay the damages on the principle of "Polluter pays". The basis for their liability to be saddled with the exemplary costs had been firmly and irreversibly already laid down in the main judgment itself and there was no escape for the Span Motels Pvt. Ltd. in this regard. The question remaining for further consideration relating to the award of exemplary damages was only as to the quantum. The court emphasized the very object underlying the imposition of fine under the relevant laws was not only to punish the individual concerned but also to serve as a deterrent to others to desist from indulging in such wrongs. The court fixed an amount of exemplary damages keeping in view the undertaking given by Span Motels Pvt. Ltd. to bear a fair share of the project cost of ecological restoration which would be quite separate and apart from their liability for the exemplary damages. Full text 137.html References Cites M.C. Mehta v. Kamal Nath and Ors Jurisprudence | National - higher court | India | May 12, 2000 Keyword: Liability/compensation, Polluter pays principle Source: UNEP, InforMEA