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Tuesday, July 31, 2012

M/s Best Oasis Ltd., the owner of the vessel in question, that huge demurrage charges are being incurred by the ship owner each day. We are of the view that once clearance has been given by the State Pollution Control Board, State Maritime Board as well as the Atomic Energy Regulatory Board for the vessel to beach for the purpose of dismantling, it has to be presumed that the ship is free from all hazardous or toxic substances, except for such substances such as asbestos, thermocol or electronic equipment, which may be a part of the ship’s superstructure and can be exposed only at the time of actual dismantling of the ship. The reports have been submitted on the basis of actual inspection carried out on board by the above-mentioned authorities, which also include the Customs authorities. The Atomic Energy Regulatory Board has come up with suggestions regarding the removal of certain items of the ship during its dismantling. The suggestions are reasonable and look to balance the equities between the parties. 13. We, therefore, dispose of the two IAs which we have taken up for hearing and direct the concerned authorities to allow the ship in question to beach and to permit the ship owner to proceed with the dismantling of the ship, after complying with all the requirements of the Gujarat Maritime Board, the Gujarat Pollution Control Board and Atomic Energy Regulatory Board. It is made clear that if any toxic wastes embedded in the ship structure are discovered during its dismantling, the concerned authorities shall take immediate steps for their disposal at the cost of the owner of the vessel, M/s Best Oasis Ltd., or its nominee or nominees. 14. Before parting with the matter, we would like to emphasize that in all future cases of a similar nature, the concerned authorities shall strictly comply with the norms laid down in the Basel Convention or any other subsequent provisions that may be adopted by the Central Government in aid of a clean and pollution free maritime environment, before permitting entry of any vessel suspected to be carrying toxic and hazardous material into Indian territorial waters.


|REPORTABLE             |

                        IN THE SUPREME COURT OF INDIA
                         CIVIL ORIGINAL JURISDICTION

                          I.A. NOS.61 & 62 OF 2012

                                     IN

                      WRIT PETITION (C) No.657 of 1995



1 RESEARCH FOUNDATION FOR SCIENCE,           … PETITIONER


2 TECHNOLOGY AND NATURAL RESOURCE


3 POLICY


           VS.



           2 UNION OF INDIA & ORS.                            …
RESPONDENTS






                                  O R D E R



ALTAMAS KABIR, J.


1.    On 6th July, 2012, Writ Petition (Civil) No.657 of 1995 filed  by  the
Research Foundation for Science, Technology  and  Natural  Resources  Policy
was disposed of by this Court.  I.A. No.61 of 2012 which had been  filed  by
M/s Best Oasis Ltd. on 9th May, 2012, and I.A. No.62 of 2012 filed by  Gopal
Krishna on 18th  June,  2012,  were  heard  separately  since  in  the  said
applications relief was prayed for in  respect  of  a  specific  ship  named
“Oriental Nicety” (formerly known as Exxon Valdez), which had  entered  into
Indian territorial waters and had  sought  the  permission  of  the  Gujarat
Pollution Control Board and the Gujarat Maritime Board to allow the ship  to
beach for the purpose of dismantling.  Such  relief  would,  of  course,  be
subject to compliance with all the formalities as required by the  judgments
and orders passed by this Court on 14th October, 2003, 6th  September,  2007
and 11th September, 2007 in the Writ  Petition.   The  Applicant,  M/s  Best
Oasis Ltd. is the purchaser of the said ship.

2.    Another prayer was for a direction to the above-mentioned  Authorities
and the Atomic Energy Regulatory Board to inspect the ship and to permit  it
to enter into Indian territorial waters and allow it  to  anchor  in  Indian
waters, which has been  rendered  redundant,  since,  as  submitted  by  Ms.
Hemantika Wahi, learned Standing Counsel for the State of Gujarat, the  said
stages have already been completed and the ships is anchored  outside  Alang
Port.

3.    After the application had been  filed,  the  Union  of  India  in  its
Ministry of Environment and Forests, and the Gujarat  Maritime  Board,  were
directed to file their respective responses thereto.

4.    Appearing on  behalf  of  the  Union  of  India  in  its  Ministry  of
Environment and Forests, Mr. Ashok Bhan, learned Senior Advocate,  submitted
that an affidavit had been affirmed by Shri M. Subbarao, Director,  Ministry
of Environment and Forests, in which it had been disclosed that a  Technical
Expert Committee  (TEC)  had  been  appointed  pursuant  to  the  directions
contained in the order dated 6th September, 2007, passed by  this  Court  in
the Writ Petition.  The said Committee Report dealt  in  great  detail  with
the hazards associated with the ship  breaking  industry,  occupational  and
health issues, social welfare activities of  workers,  occupational  hazards
associated with  breaking  of  different  categories  of  ships  of  special
concern, handling of hazardous material and the  role  and  responsibilities
of various defaulters. Mr. Bhan submitted that the said Report also  focused
on  ships  of  special  concern  in  assessment  of  hazardous  wastes   and
potentially hazardous materials.  It was urged  that  a  definite  procedure
for anchoring, beaching and breaking of ships had  been  laid  down  in  the
Report of the Committee which is applicable to ship-breaking  activities  in
all the coastal States of India. In fact, it was pointed  out  by  Mr.  Bhan
that the procedures recommended by the Committee were already in  force  and
in terms of  the  order  dated  6th  September,  2007,  the  Report  of  the
Committee is to remain in force until a comprehensive Report,  incorporating
the recommendations of the Committee,  was  formulated.   In  addition,  Mr.
Bhan submitted that  in  compliance  with  this  Court’s  order  dated  14th
October,  2003,  the  Union  of  India,  in  its  Ministry  of  Steel,   has
constituted  an   Inter-Ministerial   Standing   Monitoring   Committee   to
periodically review the status of implementation of the  recommendations  of
the Technical Expert Committee.

5.    Mr. Bhan  submitted  that  the  provisions  of  the  Basel  Convention
relating to the disposal of hazardous wastes  are  being  strictly  followed
and as far as the  present  ship  is  concerned,  it  was  for  the  Gujarat
Maritime Board, which is the concerned local authority to  take  a  decision
for anchoring and subsequent  beaching  and  dismantling  of  the  ship,  in
strict compliance with the directions contained in the order passed by  this
Court on 6th September, 2007.

6.    Mr. Bhan also referred to an  affidavit  affirmed  on  behalf  of  the
Ministry of Shipping, in which it was stated that for  permitting  a  vessel
to anchor, inspection is to be carried out by the State  Maritime  Board  in
consultation with the State Pollution Control Board and Customs  Department.
 In the affidavit, it has been specifically averred that  an  inspection  of
the vessel had been carried out by the Gujarat Maritime  Board  and  it  was
found that the ship had been converted from an oil tanker to a bulk  carrier
in 2008 and there was no sign of any hazardous/toxic substance on board.  It
was also  stated  in  the  affidavit  that  the  Board  had  given  its  “no
objection”  for  beaching  of  the  ship  and  the  Ministry  of   Shipping,
therefore, had no say in the matter.

7.    Appearing for the Gujarat Pollution Control  Board,  Gandhinagar,  Ms.
Hemantika Wahi submitted that in keeping with the  directions  contained  in
the order passed by this Court on 6th September, 2007, an  Inter-Ministerial
Committee  and  Standing  Monitoring  Committee  to  review  the  status  of
implementation of the directions of this Court from time to time,  had  been
constituted.  However, as a matter  of  precaution,  the  Gujarat  Pollution
Control Board had not recommended that permission be granted to  the  vessel
in question to anchor, until further orders were passed  by  this  Court  in
the pending Writ Petition.  Ms. Wahi submitted that in the order  dated  6th
September,  2007,  this  Court  had  recommended  the   formulation   of   a
comprehensive code to govern the procedure to be adopted to allow  ships  to
enter into Indian territorial waters and to beach at any  of  the  ports  in
India for the purpose of dismantling. However,  till  such  code  came  into
force, the officials of the Gujarat  Maritime  Board,  the  concerned  State
Pollution Control Board,  officials  of  the  Customs  Department,  National
Institute of Occupational Health and the  Atomic  Energy  Regulatory  Board,
could oversee the arrangements. Ms. Wahi submitted that the application  for
recommendation for anchoring could be  decided  in  view  of  the  aforesaid
order dated 6th September, 2007, and the TEC Report which had been  accepted
by this Court vide the said order, with liberty to file a  response  to  the
application at a later stage, if required.

8.    Ms. Wahi then referred to the affidavit  affirmed  on  behalf  of  the
Gujarat Maritime Board by Capt. Sudhir Chadha, Port Officer, Ship  Recycling
Yard, in the Gujarat Maritime Board at Alang.  Ms. Wahi  submitted  that  in
terms of the directions given on 25th June, 2012, on the application of  M/s
Best Oasis Ltd., the Gujarat Maritime Board instructed the company to  bring
the vessel to the Port area of Alang for  inspection.   Ms.  Wahi  submitted
that when the vessel arrived outside the Port area of Alang  on  30th  June,
2012, officers of all concerned departments, including the Gujarat  Maritime
Board, the Gujarat Pollution Control Board, Customs  Department,  Explosives
Department, Atomic Energy Regulatory  Board,  went  on  board  the  ship  to
inspect and ascertain that there was no  hazardous/toxic  substance  on  it.
Ms. Wahi submitted that upon inspection,  nothing  hazardous  or  toxic  was
discovered on the vessel, which was found  to  be  in  conformity  with  the
documents  submitted  for  desk  review.   The   Gujarat   Maritime   Board,
therefore, certified that the ship  was  fit  for  breaking/dismantling  and
beaching permission would be given after following the procedure  laid  down
by TEC and approved by this Court in its order dated 6th September, 2007.

9.    The recommendations of the Gujarat  Maritime  Board  and  the  Gujarat
Pollution Control Board to allow the vessel to  beach  at  Alang  was  hotly
contested  by  Mr.  Sanjay  Parikh,  learned  Advocate  appearing  for   the
Petitioner,  Research  Foundation  for  Science,  Technology   and   Natural
Resources Policy.  Mr.  Parikh  urged  that  while  disposing  of  the  Writ
Petition on 6th July, 2012, this Court had directed the Union of  India  and
the Respondents concerned to follow the procedure which had been  laid  down
in the  Basel  Convention  in  the  matter  of  ship-breaking,  which  often
generated large quantities of toxic waste.  Mr. Parikh submitted  that  none
of the safeguards which had been put in place by the  Basel  Convention  had
been complied with or followed in permitting the Oriental  Nicety  to  enter
into Indian territorial waters.  Mr. Parikh submitted that under  the  Basel
Convention, the country of export of the ship was  required  to  inform  the
country of import of the movement of the ship in question and  that  it  was
non-hazardous and non-toxic. Mr. Parikh submitted that in the  instant  case
such intimation was neither given nor was the  ship  certified  to  be  free
from hazardous and toxic substances.

10.   It was also urged that the owners  of  the  vessel  were  required  to
obtain clearance from the Government of India to bring the ship into  Indian
territorial waters, which was dependent upon the  availability  of  landfill
facilities, as also facilities for beaching.  Mr. Parikh submitted  that  it
is only after completion of the aforesaid requirements, that the ship  could
be allowed entry into Indian territorial waters and to beach at any  of  the
ship-breaking yards at any of the Ports designated for  such  purpose.   Mr.
Parikh submitted that in the absence of proper  compliance  with  the  norms
laid down in the Basel  Convention,  the  vessel  ought  not  to  have  been
permitted to enter into Indian territorial waters or the Port area at  Alang
by the Gujarat Pollution Control Board and the Gujarat Maritime Board.   Mr.
Parikh further submitted that now the vessel had  been  permitted  to  enter
the Alang Ship-breaking Yard, further steps to  dismantle  the  ship  should
not be permitted, without definite steps being taken to  ensure  that  there
were no hazardous substances on board the ship or that the ship  itself  was
not a hazardous object.

11.   Mr. Parikh further submitted that if during  the  dismantling  of  the
ship any toxic or hazardous materials were found on board the  ship  or  was
found to be an integral part of the ship,  adequate  precautionary  measures
should be taken immediately to neutralize the same  either  by  incineration
or by creating adequate landfills for disposal of such waste.

12.   We have carefully considered the submissions made  on  behalf  of  the
respective parties in the  light  of  the  submissions  made  on  behalf  of
Applicant, M/s Best Oasis Ltd., the owner of the vessel  in  question,  that
huge demurrage charges are being incurred by the ship owner  each  day.   We
are of the view that once clearance has been given by  the  State  Pollution
Control Board, State Maritime Board as well as the Atomic Energy  Regulatory
Board for the vessel to beach for the purpose of dismantling, it has  to  be
presumed that the ship is free  from  all  hazardous  or  toxic  substances,
except for  such  substances  such  as  asbestos,  thermocol  or  electronic
equipment, which may be a part of  the  ship’s  superstructure  and  can  be
exposed only at the time of actual dismantling of  the  ship.   The  reports
have been submitted on the basis of actual inspection carried out  on  board
by  the  above-mentioned  authorities,  which  also  include   the   Customs
authorities.   The  Atomic  Energy  Regulatory  Board  has  come   up   with
suggestions regarding the removal of certain items of the  ship  during  its
dismantling.  The  suggestions  are  reasonable  and  look  to  balance  the
equities between the parties.


13.   We, therefore, dispose of the two IAs  which  we  have  taken  up  for
hearing and direct the concerned authorities to allow the ship  in  question
to beach and to permit the ship owner to proceed  with  the  dismantling  of
the ship, after complying with all the requirements of the Gujarat  Maritime
Board, the Gujarat Pollution Control  Board  and  Atomic  Energy  Regulatory
Board.  It is made clear that if any  toxic  wastes  embedded  in  the  ship
structure are discovered during its dismantling, the  concerned  authorities
shall take immediate steps for their disposal at the cost of  the  owner  of
the vessel, M/s Best Oasis Ltd., or its nominee or nominees.


14.   Before parting with the matter, we would like  to  emphasize  that  in
all future cases of  a  similar  nature,  the  concerned  authorities  shall
strictly comply with the norms laid down in  the  Basel  Convention  or  any
other subsequent provisions that may be adopted by  the  Central  Government
in  aid  of  a  clean  and  pollution  free  maritime  environment,   before
permitting entry of any vessel suspected to be carrying toxic and  hazardous
material into Indian territorial waters.

14.   There will be no order as to costs.



                                                     ………………………………………………………J.
                                     (ALTAMAS KABIR)


                                                     ………………………………………………………J.
                                     (J. CHELAMESWAR)
New Delhi
Dated: 30th July, 2012.