SC stays Madras HC order to shut down Sterlite’s plant

October 01, 2010 07:13 pm | Updated November 03, 2016 08:07 am IST - New Delhi

The Supreme Court on Friday stayed a Madras High Court judgment ordering closure of the copper plant of Sterlite Industries (India) Ltd. at Tuticorin and discharge of its workers on payment of compensation.

A Bench of Justices R.V. Raveendran and H.L. Gokhale stayed the judgment given by a High Court Division Bench of Justice Elipe Dharma Rao and Justice Paul Vasanthakumar on September 28. Senior counsel C.A. Sundaram appeared for Sterlite Industries.

It issued notice to the Union of India, Tamil Nadu government, Tamil Nadu Pollution Control Board and others, who were petitioners before the High Court, and directed the matter to be listed for further hearing on October 18. In its special leave petition, the company pointed out that the order was passed on public interest petitions filed 14 years ago in 1996, when allegations were made on violation of pollution control and environment norms by it. Between 1996 and 1999, the High Court issued various directions. All were complied with.

The plant was being operated for more than a decade with the consent and approval of statutory authorities without complaints. The TNPCB had informed the High Court that the company had complied with all statutory conditions. The company had a turnover of Rs.13,000 crore, about 2.3 lakh shareholders, 1,100 employees and 2,500 people employed indirectly. It was the largest manufacturer and exporter of copper.

The High Court had ignored the fact that order of complete closure was irremediable. It had ignored the very purpose of orders passed involving pollution control — to ensure pollution control norms are followed. The judgment was based on apprehensions, assumptions and presumptions. None of the petitions related to an actual incident of violation of pollution norms. Not a single complaint had been filed against the company. Closure would result in irreparable loss and have serious consequences. the SLP prayed for quashing the impugned judgment and an interim stay of its operation.

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