An industry during manufacturing operation had caused major leakage of harmful gas and was ordered to be closed down by the Central Polluton Control Board due to loss and damage to the people of nearby area. Can that ind

In Shriram Foods and Fertilizer Industries and another v. Union of India and Others [(1986) 1 Comp. LJ 25 (SC)] . The Supreme Court considered a writ petition seeking re-commencement of manufacturing operations in the plant especially after the manufacturing operations were ordered to be closed down because of a major leakage of oleum gas. The Supreme Court allowed the re-commencement of manufacturing operations subject to the condition that the chairman and managing director of the company and also the officers who were in actual management of the plant concerned gave an undertaking that in case there was any escape of chlorine gas resulting in death or injury to the people living in the vicinity as well as to any workman, they shall be personally liable for payment of compensation for such death or injury. The Supreme Court, however, clarified that if the escape of gas took place as a result of 'vis majeur' or sabotage or where the officer proves that he had exercised all due diligence to prevent the escape of the gas, he shall be entitled to be indemnified by the company.