[Vizag Gas Leak] Supreme Court allows LG Polymers to withdraw sale proceed deposits from District Collector Visakhapatnam

  • Shruti Kakkar
  • 06:42 PM, 08 May 2021

Read Time: 08 minutes

The Full Judge bench of Justice UU Lalit, Justice Indira Banerjee & Justice KM Joseph has allowed LG Polymers to withdraw the deposits of the sale proceeds from the district collector, Visakhapatnam subject to furnishing security with the Registrar General of Andhra Pradesh at Amravati. 

The sale shall be effected & after the sale proceeds are deposited, the applicant shall be at liberty to withdraw the proceeds subject to furnishing adequate security to the Registrar General of Andhra Pradesh High Court. Rest of the directions issued by the Court remain unchanged.”, the Court ordered. 

Senior Advocate Mukul Rohatgi & Advocate Anuj Berry appeared for LG Polymers, Advocate Mr Rajiv Nayyar appeared for Andhra Pradesh Pollution Control Board & Advocate Mr Sumon & Advocate Mr Mahfooz A. Nazki appeared for the State of Andhra Pradesh. ASG Aishwarya Bhati appeared for CBI. 

Senior Counsel Mr Mukul Rohatgi while denying Ld Senior Advocate Mr YV Prasad, Amicus Curiae’s submissions that 585 people were injured submitted that the company was ready to redress every person & also assured that LG Polymers would not sell the plant & machinery without Court’s leave.

Advocate Anuj Berry appearing for LG Polymers also contended that the only the proceedings before the National Green Tribunal were deferred & that the Committee appointed by the National Green Tribunal to probe into the Vizag gas leak was doing its job.

The Bench in the present matter was hearing a challenge against the order dated April 6, 2021 passed by the Andhra Pradesh High Court as per which the Division Bench of Chief Justice Arup Kumar Goswami & Justice C. Praveen Kumar had permitted lying in the sealed premises of LG Polymers by directing to deposit the sale proceeds before the District Collector, Visakhapatnam who would keep the same in a fixed deposit in the name of District Collector.

Along with these directions, the Bench had also issued other directions namely: 

1) Respondent No.8 may submit a list of employees for the purpose of entry into the sealed premises of respondent No.8 for undertaking preliminary works relating to the sale of inventory as indicated in Annexure-A to the Memo dated 17.11.2020, to the District Collector, Visakhapatnam.

2) In the event of finding prospective buyers, if such prospective buyers want to inspect the items lying in the sealed premises, a list of such persons on behalf of the prospective buyers may be submitted before the District Collector, Visakhapatnam, for his approval.

3) A Committee is constituted with the Joint Chief Environmental Engineer (Zonal Officer at Visakhapatnam under the A.P. Pollution Control Board), Joint Chief Inspector of Factories, Visakhapatnam, and Deputy Chief Controller of Explosives, Petroleum and Explosives Safety Organization, Visakhapatnam, for the purpose of permitting sale of inventory, as indicated in Annexure-A to the Memo dated 17.11.2020, lying in the sealed factory premises, subject to such terms and conditions, as may be imposed by them.

4) The District Collector and the members of the Committee so constituted shall render necessary assistance during the entire process.

On the last date of hearing, the full judge bench of Justice UU Lalit, Justice Indira Banerjee & Justice KM Joseph issued notice returnable on May 7, 2021. Further the Bench also directed to serve notice to Mr. Mahfooz A. Nazki, learned Advocate who normally appears for the State of Andhra Pradesh & intimation to Mr YV Ravi Prasad, learned Senior Advocate, appointed as Amicus Curiae by the High Court.

Senior Advocate Mr Mukul Rohatgi representing LG Polymers had earlier submitted that according to the Government circular, the compensation disbursed to the heirs of those who lost their lives & to those who sustained injuries was to the tune of Rs 37.1 crore & 50 crore were deposited by the petitioner pursuant to the directions issued by the National Green Tribunal & therefore the impugned direction should not have been issued by the High Court.

Case Title: M/s. LG Polymers India Pvt. Ltd. V. State Of Andhra Pradesh & Ors.| SLP(C) No. 6600-6603/2021