Case: U.P. Pollution Control Board Vs. Dr. Bhupendra Kumar Modi &amp; Another

The State Board for Prevention and Control of Water Pollution was constituted on 03.02.1975 by the Government of U.P. and it has been named as - U.P. Pollution Control Board (hereinafter referred to as "the Board") which is the appellant herein vide notification No. 2179/9-2-100-74 dated 13.07.1982. On the application submitted by M/s Modi Carpets Ltd., Raebareli, seeking consent to discharge effluent, the appellant-Board granted conditional consent to discharge their trade effluent in the river Sai. Since the conditions of consent were not being complied with by M/s Modi Carpets Ltd., a letter dated 30.4.1983 was sent by the appellant-Board to M/s Modi Carpets Ltd., Raebareli informing that non-compliance of the consent conditions is an offence under Section 44 of the Act. On 07.06.1983, the inspection of unit of M/s Modi Carpets Ltd. was done by the officers of the Board wherein it was found that polluted trade effluent was being discharged into the river Sai through drain without any treatment and construction of effluent treatment plant was yet to be started. On 19.01.1984, the Board again sent a letter to M/s Modi Carpets Ltd. that conditions of the consent order dated 22.1.1983 were not complied with. Again it was reiterated that non-compliance of the conditions of consent would be an offence under Section 44 of the Act. On 13.09.1984, the unit was again inspected by the officers of the Board and it was found that effluent was being discharged without any treatment. For this, Modi Carpets Ltd. sent a reply dated 18.10.1984 to the appellant-Board giving clarifications for not complying with the consent conditions and the same was considered and rejected by the Board on 31.10.1984 on the ground that the unit was not complying with the prescribed standards, consent conditions and also the application was incomplete in various aspects.4) Since M/s Modi Carpets Ltd. was not complying with the provisions of the Act and there was violation of Sections 25 & 26 of the Act, a complaint under Section 44 was filed by the Board through its Assistant Environmental Engineer against respondent No.1 as well as other persons namely, Chairman, Vice-Chairman, Managing Director, Joint Managing Director, Directors, General Manager, Commercial Manager and Company Secretary of M/s Modi Carpets Ltd. before the C.J.M., Raebareli. It was specifically mentioned in the complaint that the aforesaid persons are responsible for the conduct of the business of the company and for their monetary benefits continued to discharge noxious and polluting trade effluent of the company without complying with the conditions of consent and mandatory provisions of law. A petition under Section 482 of the Criminal Procedure Code was filed before the High Court of Judicature at Allahabad being Criminal Misc. Petition No. 14119 of 1985 by M/s Modi Carpets Ltd. & Ors. for quashing the aforesaid complaint and also for other reliefs. Vide order dated 5.11.1985, the High Court stayed further proceedings in the complaint case. On the objection of the Board that the Principal Bench at Allahabad had no territorial jurisdiction to decide the petition, the first respondent herein filed a petition under Section 482 of the Crl.P.C. before Lucknow Bench of the High Court being Crl. Misc. Case No. 1347 of 2001. In the said petition, it was alleged that the first respondent, Dr. Bhupendra Kumar Modi, Joint Managing Director was not concerned with day-to-day business of the company and cannot be prosecuted for the offence committed by the Company, hence, it was prayed that Complaint Case No. 44 of 1988 filed by the appellant-Board be quashed.5) The appellant-Board filed a counter affidavit before the High Court wherein it was stated that the complaint could not be quashed at the initial stage and whether a person is responsible for conduct of day-to-day business of the Company or not, is a question which has to be decided by evidence. In any event it was stated that the complaint discloses materials to proceed further.6) By impugned order dated 29.11.2004, the High Court quashed the complaint so far as it related to respondent No.1 on the main ground that there was no material on record to show that respondent No.1 was, at the relevant time, incharge and responsible to the company for conduct of its business. Aggrieved by the said judgment of the Lucknow Bench, the appellant-Board has filed the above appeal by way of special leave.

Court's reasoning:
In the light of the above discussion and in view of the specific averments in the complaint as referred to by us in the earlier paragraphs coupled with the statutory provisions, namely, Sections 25, 26, 44 and 47 of the Act, we are unable to share the view expressed by the High Court in quashing the complaint insofar as the first respondent herein. Accordingly, we set aside the same. The Special Judicial Magistrate (Pollution) is directed to proceed with the complaint and dispose of the same in accordance with law. If the first respondent herein applies for dispensing with his personal presence in the Court, after making the first appearance, the Special Court can exempt him from continuing to appear in the Court by imposing any condition which the Court deems fit. Subject to the above observation, we set aside the impugned judgment of the High Court and direct the Special Judicial Magistrate (Pollution) to proceed with the case in accordance with law and dispose of the same as expeditiously as possible. We make it clear that we have not expressed anything on the merits of the contents of the complaint and it is for the Special Court to decide the same in accordance with law.