The National Green Tribunal’s suo motu intervention in the fatal explosion at Detox India Pvt. Ltd. underscores a critical evolution in environmental and occupational liability jurisprudence. Beyond punishing regulatory violations, the Tribunal has now explicitly mandated that compensation for workplace fatalities must reflect the full moral and economic loss to families, not merely statutory minimums.
Background & Facts
The Dispute
A storage tank explosion at Detox India Pvt. Ltd.’s hazardous waste facility in Ankleshwar, Gujarat, killed four workers during welding operations on its corroded 75 KL feed tank. The incident occurred due to the presence of flammable vapors and absence of critical safety infrastructure, including breather valves and condensers, in violation of Gujarat Pollution Control Board guidelines.
Procedural History
- 03 December 2024: Fatal explosion occurs; news report triggers NGT’s suo motu cognizance.
- 23 December 2024: NGT Principal Bench impleads Detox India Pvt. Ltd. and other entities as respondents.
- 06 February 2025: Directorate of Industrial Safety and Health (DISH) is added as Respondent No.6.
- 07 August 2025: DISH files reply affidavit confirming the cause of explosion and issuing inspection directives.
- 05 April 2025: District Magistrate’s report confirms negligence, corrosion, and non-compliance with safety norms.
- 02 April 2025: Detox India files additional affidavits detailing ex-gratia payments to families.
Relief Sought
The Tribunal seeks a comprehensive calculation of compensation payable to the families of the deceased workers, in accordance with the principles laid down in Sarla Verma v. Delhi Transport Corporation, beyond the statutory payouts under the Employees’ Compensation Act.
The Legal Issue
The central question was whether compensation for workplace fatalities arising from environmental and industrial negligence must be calculated under the full tort-based principles of Sarla Verma, even when statutory compensation under the Employees’ Compensation Act has already been paid.
Arguments Presented
For the Petitioner (Suo Motu Initiated by NGT)
While no formal petitioner exists, the Tribunal, acting on its own motion, argued that statutory compensation under the Employees’ Compensation Act is a minimum floor, not a ceiling. The Tribunal invoked its powers under the National Green Tribunal Act, 2010 to ensure just, equitable, and holistic redressal for environmental and occupational harm, citing the right to life under Article 21 and the polluter pays principle.
For the Respondent/State
Respondent No.5, Detox India Pvt. Ltd., contended that it had already discharged its legal obligations by paying ex-gratia compensation of ₹30 lakh to each family and statutory compensation under the Employees’ Compensation Act and ESIC. It argued that no further liability arises, and the Tribunal lacks jurisdiction to impose additional civil compensation beyond what is statutorily mandated.
The Court's Analysis
The Tribunal rejected the notion that statutory compensation absolves an employer of broader liability. It emphasized that the Employees’ Compensation Act provides a no-fault, expedited remedy for dependents, but does not extinguish the right to claim full damages under civil law for wrongful death caused by negligence. The Court explicitly relied on Sarla Verma v. Delhi Transport Corporation, which established a structured, multi-factor approach to calculating compensation based on the victim’s age, income, personal and living expenses, and future prospects.
"The compensation under the Employees’ Compensation Act is a statutory benefit, not a substitute for the full measure of damages that the law recognizes for loss of life."
The Tribunal noted that Detox India’s failure to install breather valves, its neglect of tank corrosion, and the absence of HAZOP studies constituted gross negligence. The fact that the unit was closed under Section 31(A) of the Air (Prevention and Control of Pollution) Act, 1981 and faced criminal charges under Section 7(A)(2)(A) of the Factories Act, 1948 further reinforced the gravity of the breach. The Tribunal held that environmental harm and occupational safety are inextricably linked, and compensation must reflect the totality of loss - not just the minimum mandated by labor statutes.
The Verdict
The National Green Tribunal ruled in favor of the deceased workers’ families. It held that compensation under Sarla Verma is mandatory and must be calculated separately from statutory payouts. The Tribunal directed Detox India Pvt. Ltd. to submit a detailed tabular computation of compensation already paid and the additional amount due under Sarla Verma principles by 02 February 2026.
What This Means For Similar Cases
Compensation Must Reflect Full Economic Loss
- Practitioners must now argue that statutory compensation under the Employees’ Compensation Act is not exhaustive in cases of gross negligence or environmental harm.
- In NGT proceedings, claimants should file affidavits quantifying loss using the Sarla Verma formula: age, income, multiplier, personal expenses, and future prospects.
- Employers cannot rely on ex-gratia payments to discharge their full liability.
Environmental Regulators Must Enforce Holistic Accountability
- The NGT’s invocation of polluter pays principle alongside occupational safety norms sets a precedent for integrated enforcement.
- Pollution Control Boards and Industrial Safety Departments must coordinate compensation assessments, not just penalize.
- Closure orders and criminal charges should be accompanied by civil compensation mandates.
Procedural Compliance Is Non-Negotiable in Hazardous Industries
- Companies operating hazardous waste facilities must maintain documented HAZOP studies, corrosion inspections, and gas monitoring systems.
- Absence of breather valves, condensers, or safety audits will now be treated as prima facie evidence of negligence in compensation proceedings.
- Legal counsel should advise clients to proactively implement safety audits and maintain digital logs to rebut allegations of negligence.
