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PRINCIPLE: Whosoever by his act or omission causes environmental pollution shall be held liable for any loss caused by such pollution. It shall be no defence in such cases that all due diligence or reasonable care was taken while carrying out the act or omission in question.
FACTS: Hari is carrying on a chemical and fertilizer industry near a bank of a river. In order to prevent and control any kind of harm to the environment, suitable waste treatment and disposal plants were installed in the factory. Due to some sudden mechanical/technical problem, these plants ceased to work properly and, therefore, caused environmental pollution, which ultimately caused substantial harm to the environment and to the people living around the factory. Victims of such pollution file a suit for suitable remedy.

A
Victims cannot succeed as necessary precautions to prevent any harm were taken by Hari
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B
Victims cannot succeed as the mechanical/technical problem was sudden and, therefore, beyond the control of Hari
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C
Victims can succeed as it is the duty of Hari to see that no harm is caused to the environment/people die to his activity under any circumstances
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D
Victims could succeed if treatment/disposal plant were not installed in the factory
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Solution

The correct option is C Victims can succeed as it is the duty of Hari to see that no harm is caused to the environment/people die to his activity under any circumstances
The Polluter Pays principle that was introduced by the OECD in 1972 states that the person liable for damages caused to the environment is liable to compensate for the damage caused and return the environment in its original state irrespective of the intent. This principle has been applied in a number of cases in India to establish absolute liability of the polluter. In the case of Indian Council for Enviro-Legal Action v Union of India the Court held that once the industrial activity carried out is inherently dangerous, the person carrying out such activity is liable to make good the loss caused to any person by his activity, irrespective of the fact that he took reasonable care while carrying out his activity. Chemical and fertilizer industry deals with inherently dangerous substances, so absolute liability is established.

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Q. DIRECTIONS (71-80): This section consists of fifty(50)questions. Each question consists of legal propositions/ principles (hereinafter referred to as 'principle') and facts These principles have to be applied to the given facts to arrive at the most reasonable conclusion Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true for the purposes of this section In other words, in answering the following questions, you must not rely on any principles except the principles that are given here in below for every question. Further you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem solving ability even if the "most reasonable conclusion" arrived at may be unacceptable for any other reason. It is not the objective of this section to test your knowledge of law.
Principle: Whosoever by his act or omission causes environmental pollution shall be held liable for any loss caused by such pollution. It shall be no defence in such cases that all due diligence or reasonable care was taken while carrying out the act or omission in question.
Facts: Hari is carrying on a chemical and fertilizer industry near a bank of a river. In order to prevent and control any kind of harm to the environment, suitable waste treatment and disposal plants were installed in the factory. Due to some sudden mechanical/ technical problem, these plants ceased to work properly and, therefore, caused environmental pollution, which ultimately caused substantial harm to the environment and to the people living around the factory. Victims of such pollution file a suit for suitable remedy.
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