[2015 Kinara Hotel Blaze] Bombay HC Orders BMC to Pay ₹50L to Each Victim’s Family

While holding the Brihanmumbai Municipal Corporation (BMC) grossly negligent, the Bombay High Court has directed it to pay Rs 50 lakh as compensation to the families of eight young adults who died in a 2015 fire at Hotel City Kinara in Mumbai’s Kurla area.

A division Bench comprising Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla passed the ruling in a plea moved by the families of the eight deceased individuals who had died during the tragic incident. The plea before the court sought compensation for the loss and had also challenged the 2017 Lokayukta order that had dismissed their complaint for lack of compensation and accountability.

While allowing the petition filed by the families, the High Court set aside and quashed the Lokayukta’s order.

"In the present case, various breaches of the license conditions were committed by Kinara. These breaches increased the danger of fire in Kinara. Respondent No.2 received complaints in that regard, carried out inspections, and was fully aware of the said fire safety violations committed in Kinara. Despite being aware of such fire safety violations, Respondent No.2 did not take any action against Kinara," the Court held.

The incident dates back to October 2015, when a fire broke out at Hotel City Kinara in Kurla, Mumbai, which led to the death of eight young individuals who were dining on the mezzanine floor.

As per the investigation, it was revealed that the said floor, which could be used only for storage purposes as per the eating house license, was being used to serve patrons, and LPG cylinders were illegally stored there.

Prior to the fire incident, there had been multiple inspections which revealed stark violations of safety norms. These inspections showed that Kinara was operating without a Fire NOC from the Chief Fire Officer (CFO), had made illegal structural modifications, and was using gas cylinders without authorisation.

Before the High Court, the petitioners argued that there had been gross negligence on the part of BMC officials. Despite multiple inspections, petitioners contended, no action was taken.

Opposing the contentions, the BMC contended that the fire was triggered by the hotel owner's illegal LPG storage and that the civic body had no direct role in the incident. It further asserted that compensation claims in such cases should be decided by civil courts, not through writ petitions.

Taking note of the submissions of both sides, the Court noted that in the incident at hand, except for one victim who was gainfully employed, all others were around 20 years old and were pursuing engineering. Hence, they had a full working life ahead of them.

Proceeding on the premise that they would have earned a respectable salary during their lifetime, the Court held: "Considering inflation and the interest that the said sum of Rs. 30 lakhs would have earned over a period of 10 years, the compensation payable to each of the Petitioners, in 2025, would be Rs. 50 lakhs."

Noting that the breach of statutory duties on the part of BMC was the direct and proximate cause of the fire at Kinara, the Court said, "If Respondent No.2 had performed its statutory duties, the fire at Kinara would not have taken place. It is in these circumstances that we have held Respondent No.2 liable to pay compensation."

Holding the civic body accountable, the Court added, "The Hon’ble Supreme Court has clearly held that when breach of a statutory duty by a public authority leads to violation of fundamental rights under Article 21 of the Constitution of India, the public authority is liable to pay compensation."

Accordingly, the court disposed of the present petition.

Case Title: Rekha P Thapar vs State of Maharashtra