{"id":337629,"date":"2024-12-20T12:00:41","date_gmt":"2024-12-20T06:30:41","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=337629"},"modified":"2024-12-26T10:20:12","modified_gmt":"2024-12-26T04:50:12","slug":"mp-high-court-directs-ngt-to-scrutinise-compensation-claims-in-firecracker-factory-explosion-case-scc-times","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/12\/20\/mp-high-court-directs-ngt-to-scrutinise-compensation-claims-in-firecracker-factory-explosion-case-scc-times\/","title":{"rendered":"MP High Court directs NGT to scrutinise compensation claims in Firecracker Factory Explosion case"},"content":{"rendered":"
\n

Madhya Pradesh High Court:<\/span> In a writ petition filed by the owner of firecracker factory, where a tragic explosion led to multiple fatalities, injuries, and property damage; challenging various orders issued by the National Green Tribunal (NGT) and the District Collector, a Division Bench of Sanjeev Sachdeva and Vinay Saraf,*<\/span> JJ., refused to quash the impugned orders at this stage, but granted the petitioners liberty to approach NGT for reconsideration. The Court directed the NGT to scrutinize compensation claims and ensure appropriate classification of victims.<\/p>\n

In the instant matter, the petitioners, brothers, operated four firecracker factories with valid licenses under the Explosives Rules, 2008. A major explosion occurred at the factory on 06-02-2024, causing fatalities, injuries, and property damage. A FIR was registered, citing improper safety measures and violations of explosive regulations.<\/p>\n

On the same day, the National Green Tribunal (NGT) took suo motu cognizance and directed interim compensation to victims, i.e., ₹15 lakh per death, ₹5 lakh per grievous injury or house damage, ₹3 lakh per minor injury and ₹2 lakh for displaced persons. Vide order dated 12-02-2024, the Collector calculated ₹15.80 crores as compensation to be deposited by petitioners. Vide order dated 23-02.-024, another liability of ₹2.43 crores was assessed, initiating confiscation and auctioning of petitioners’ properties worth ₹9 crores.<\/p>\n

The petitioners contended that though an appeal under Sections 14 and 22 of the NGT Act is available, the writ petition is maintainable due to violation of principles of natural justice and cited Veena Gupta<\/span> v. Central Pollution Control Board<\/span>, 2024 SCC online SC 103<\/a> and Whirlpool Corporation<\/span> v. Registrar of Trade Marks, Mumbai<\/span>, (1998) 8 SCC 1<\/a>. It was contended that the NGT orders were ex-parte, based on media reports without adequate verification. It was contended that the compensation awarded by NGT was arbitrary, unverified, and lacks medical\/technical records. It was argued that the orders issued by the Collector were passed without notice or hearing, thereby violating natural justice. The petitioners emphasised on the errors in categorising injuries and assessing property damage. The petitioners further contended that the grievous injury claims are unsupported by medical evidence, compensation for minor injuries, damaged houses and double compensation for family members of displaced households lacked proper scrutiny.<\/p>\n

However, the respondents contended that the impugned writ petition is not maintainable due to the alternative remedy of appeal under the NGT Act and cited Municipal Corporation of Greater Mumbai v. Ankita Sinha<\/span>, (2022) 13 SCC 401<\/a>, which supports the bar on High Court intervention when statutory remedies exist. It was contended that the petitioners negligently handled dangerous explosives, leading to severe damage to life and property. It was contended that the compensation awarded was reasonable and based on the gravity of the incident. It was further contended that the recovery proceedings by the collector are lawful, given the severity of violations and losses.<\/p>\n

While citing M.P. High Court Advocates Bar Association<\/span> v. Union of India<\/span>, 2022 SCC OnLine SC 639<\/a> and Veena Gupta<\/span> (Supra), the Court asserted that NGT’s ex-parte orders violating natural justice warrant High Court intervention under Article 226<\/a> of the Constitution of India<\/a>. The Court upheld its jurisdiction under Articles 226 and 227 despite the availability of alternate remedies, citing the exceptional circumstances. The Court also reaffirmed the importance of adhering to natural justice principles in proceedings affecting substantial rights.<\/p>\n

The Court noted that the at the time of passing of the impugned order by the NGT, “neither the injured had been identified nor the nature of injuries had been determined. Similarly, with regard to the damage to houses and displacement of persons is concerned, there was no identification or determination.”<\/span> The Court noted that the NGT acted beyond its jurisdiction by imposing liabilities without proper factual verification.<\/p>\n

The Court stated that the petitioners should have been allowed to present objections before the NGT for recalibration of compensation, particularly in cases of injuries and property damage. The Court acknowledged the valid concerns regarding injury and property damage claims and directed re-examination of injury claims and property damage by an independent and neutral authority.<\/p>\n

The Court held that the present writ petition is maintainable despite the availability of alternative remedy. The Court disposed of the petition with the following directions —<\/p>\n

    \n
  1. \n

    Petitioners can raise objections regarding the classification, genuineness of claimants, categorization, and quantum of compensation for injuries, property loss, and displacement. The NGT must consider these objections per the law.<\/p>\n<\/li>\n

  2. \n

    Petitioners are permitted to present their proposal to deposit a higher amount (Rs. 3 crores) before the NGT. The NGT must evaluate this proposal lawfully.<\/p>\n<\/li>\n

  3. \n

    Interim stay on disbursal (order dated 23-04-2024) was modified to allow compensation disbursement for death cases.<\/p>\n<\/li>\n

  4. \n

    The NGT may disburse amounts for injuries and property loss\/displacement, considering objections raised by the petitioners.<\/p>\n<\/li>\n<\/ol>\n

    [Somesh Agrawal<\/span> v. State of M.P.<\/span>, 2024 SCC OnLine MP 8512<\/a>, Decided on 16-12-2024<\/span>]<\/p>\n

    *Judgment by Justice Vinay Saraf<\/span><\/strong><\/p>\n\n

    Advocates who appeared in this case :<\/p>\n

    Shri Naman Nagrath, Senior Advocate with Shri Anvesh Shrivastava, Counsel for the Petitioners<\/p>\n

    Shri Prashant Singh, Advocate General with Shri H.S. Ruprah, Additional Advocate General; Shri Amit Seth, Additional Advocate General and Shri B.D. Singh, Deputy Advocate General, Counsel for the Respondent\/ State<\/p>\n

    Shri Sandeep Kumar Shukla, Counsel for the Respondent No. 3<\/p>\n

    Shri Vikram Johri, Counsel for the Respondent No. 6<\/p>\n

    Ms. Avani Bansal, Counsel for the Respondent intervenor<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    When the NGT passed the impugned order, the injured persons were not identified, nature of injuries was not determined and damage to houses and displacement of persons was also not identified or determined.<\/p>\n","protected":false},"author":67514,"featured_media":317738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2728,76645,76644,70629,70944,7201,76642,7091,5381,76643,71203],"class_list":["post-337629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-compensation","tag-firecracker-factory-explosion","tag-jurisdictional-overreach-of-ngt","tag-justice-sanjeev-sachdeva","tag-justice-vinay-saraf","tag-madhya-pradesh-high-court","tag-maintainability-of-writ-petition","tag-national-green-tribunal","tag-ngt","tag-validity-of-compensation-orders","tag-violation-of-natural-justice"],"yoast_head":"\nMP High Court directs NGT to scrutinise compensation claims in Firecracker Factory Explosion case | SCC Times<\/title>\n<meta name=\"description\" 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state of affairs”: Madhya Pradesh HC takes suo motu cognizance of alleged illegal felling of 488 trees near Bhopal","author":"Sonali Ahuja","date":"October 31, 2025","format":false,"excerpt":"The Court remarked that the news article displayed a shocking state of affairs wherein 488 trees were sought to be axed despite the NGT declining such an action and repeated orders by the Court.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Felling Of 488 Trees","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Felling-Of-488-Trees.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Felling-Of-488-Trees.webp?resize=350%2C200&ssl=1 1x, 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Further, a part of that area was adjacent to a city forest, i.e., trees already existed there.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Illegal Tree Felling Case","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Illegal-Tree-Felling-Case.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Illegal-Tree-Felling-Case.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Illegal-Tree-Felling-Case.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Illegal-Tree-Felling-Case.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":337071,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/12\/11\/karnataka-hc-sets-aside-ngt-order-passed-without-following-principles-of-natural-justice\/","url_meta":{"origin":337629,"position":2},"title":"Non-compliance of natural justice principles, an exception to Rule of Discretion vis-a-vis exercise of HC\u2019s jurisdiction under Art. 226: Karnataka HC","author":"Editor","date":"December 11, 2024","format":false,"excerpt":"Court reiterated out that availability of an alternative remedy, would not be an embargo on the High Court\u2019s power to entertain the petition under Article 226 in certain contingencies.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Karnataka High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Karnataka-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Karnataka-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Karnataka-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Karnataka-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":233324,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/04\/ngt-rejects-plea-of-party-responsible-for-the-adversity-caused-by-its-chemical-plant-blast-orders-to-deposit-rs-25-crores-compensation\/","url_meta":{"origin":337629,"position":3},"title":"NGT rejects plea of party responsible for the adversity caused by its chemical plant blast; Orders to deposit Rs 25 crores compensation","author":"Editor","date":"August 4, 2020","format":false,"excerpt":"National Green Tribunal(NGT) : The coram of Justice Adarsh Kumar Goel, Chairperson and Justice S.P. Wangdi, Judicial Member and Dr Nagin Nanda, Expert Member, dismissed the application for modification of the order of tribunal and ordered the party to make the deposit payment immediately. On 3-06-2020, the chemical factory of\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"NGT","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/07\/NGT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":366100,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/08\/mp-hc-seeks-photos-with-gps-location-of-253-allegedly-transplanted-trees\/","url_meta":{"origin":337629,"position":4},"title":"\u201cPhotos show trees not transplanted, rather cut completely\u201d: MP HC directs State to file photos with GPS location of 253 allegedly transplanted trees out of 488 illegally cut trees","author":"Sonali Ahuja","date":"November 8, 2025","format":false,"excerpt":"\u201cThe photographs placed on record of alleged transplanted trees show that none of the trees have been transplanted, rather the trees have been cut completely.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"253 allegedly transplanted trees","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/253-allegedly-transplanted-trees.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/253-allegedly-transplanted-trees.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/253-allegedly-transplanted-trees.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/253-allegedly-transplanted-trees.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":210200,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/02\/18\/sc-refuses-to-order-reopening-of-vedantas-tuticorin-sterlite-plant\/","url_meta":{"origin":337629,"position":5},"title":"SC sets aside NGT order to reopen Vedanta’s Tuticorin Sterlite plant; No order on reopening of the plant [Full Report]","author":"Prachi Bhardwaj","date":"February 18, 2019","format":false,"excerpt":"Supreme Court: The bench of\u00a0RF Nariman and Navin Sinha, JJ has\u00a0refused to allow reopening of Vedanta\u2019s Sterlite plant in Tamil Nadu\u2019s Tuticorin, which was at the centre of massive protests over pollution concerns. It, however, granted the company liberty to approach the Madras High Court. The Vedanta group was, hence,\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/337629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67514"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=337629"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/337629\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/317738"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=337629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=337629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=337629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}