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The Public Liability Insurance Act, 1991

Madhya Pradesh · state statute
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THE PUBLIC LIABILITY INSURANCE ACT, 1991 
  
  
1. Short title and commencement.—(1) This Act may be called the Public 
Liability Insurance Act, 1991.tc "1. Short title and commencement.—(1) This Act 
may be called the Public Liability Insurance Act, 1991." 
(2) It shall come into force on such date1 as the Central Government may, by 
notification, appoint.tc "(2) It shall come into force on such date1 as the Central 
Government may, by notification, appoint." 
  
  
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     1.   Came into force on 1st April, 1991, vide G.S.R. 253, dated 27th March, 1991. 
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2. Definitions.—In this Act, unless the context otherwise requires,—tc " 2. 
Definitions.—In this Act, unless the co ntext otherwise requires,—"  
1[(a)   “accident” means an accident involving a fortuitous or sudden or 
unintended occurrence while handling any hazardous substance resulting in 
continuous or intermittent or repeated exposure to death of, or injury to, 
any person or damage to any property but does not include an accident by 
reason only of war or radio-activity;]tc " 2[(a) “accident” means an accident 
involving a fortuitous or sudden or unintended occurrence while handling 
any hazardous substance resulting in continuous or intermittent or repeated 
exposure to death of, or injury to, any person or damage to any property 
but does not include an accident by reason only of war or radio-activity;]"
 
(b)   “Collector” means the Collector having jurisdiction over the area in 
which the accident occurs;tc " (b) “Collector” means the Collector having 
jurisdiction over the area in which the accident occurs;" 
(c)   “handling”, in relation to any hazardous substance, means the 
manufacture, processing, treatment, package, storage, transportation by 
vehicle, use, collection, destruction, conversion, offering for sale, transfer or 
the like of such hazardous substance;tc " (c) “handling”, in relation to any 
hazardous substance, means the manufacture, processing, treatment, 
package, storage, transportation by vehicle, use, collection, destruction, 
conversion, offering for sale, transfer or the like of such hazardous 
substance;" 
(d)   “hazardous substance” means any substance or preparation which is 
defined as hazardous substance under the Environment (Protection) Act, 
1986 (29 of 1986), and exceeding such quantity* as may be specified, by 
notification, by the Central Government;tc " (d) “hazardous substance” 
means any substance or preparation which is defined as hazardous 
substance under the Environment (Protection) Act, 1986 (29 of 1986), and 
exceeding such quantity* as may be specified, by notification, by the 
Central Government;" 
(e)   “insurance” means insurance against liability under sub-section (1) of 
section 3;tc " (e) “insurance” means insurance against liability under sub-
section (1) of section 3;" 
(f)   “notification” means a notification published in the Official Gazette;tc " 
(f) “notification” means a notification published in the Official Gazette;" 
1[(g)   “owner” means a person who owns, or has control over handling, 
any hazardous substance at the time of accident and includes—tc " 2[(g) 
“owner” means a person who owns, or has control over handling, any 
hazardous substance at the time of accident and includes—"  
(i)   in the case of a firm, any of its partners;tc " (i) in the case of a 
firm, any of its partners;" 
(ii)   in the case of an association, any of its members; andtc " (ii) in 
the case of an association, any of its members; and" 
(iii)   in the case of a company, any of its directors, managers, 
secretaries or other officers who is directly in charge of, and is 
responsible to, the company for the conduct of the business of the 
company;]tc " (iii) in the case of a company, any of its directors, 
managers, secretaries or other officers who is directly in charge of, 
and is responsible to, the company for the conduct of the business of 
the company;]" 
(h)   “prescribed” means prescribed by rules made under this Act;tc " (h) 
“prescribed” means prescribed by rules made under this Act;" 
2[(ha)   “Relief Fund” means the Environmental Relief Fund established 
under section 7A;]tc " 1[(ha) “Relief Fund” means the Environmental Relief 
Fund established under section 7A;]" 
(i)   “rules” means rules made under this Act;tc " (i) “rules” means rules 
made under this Act;" 
(j)   “vehicle” means any mode of surface transport other than railways.tc " 
(j) “vehicle” means any mode of surface transport other than railways." 
COMMENTStc "COMMENTS" 
Clause (e) of section 2 of the Environment (Protection) Act, 1986 (29 of 1986) defines “hazardous 
substance” as follows:tc "Clause (e) of section 2 of the Environment (Protection) Act, 1986 (29 of 1986) 
defines “hazardous substance” as follows\:" 
         (e)   “hazardous substance” means any substance or preparation which, by reason of its chemical or 
physico-chemical properties or handling, is liable to cause harm to human beings, other than living 
creatures, plants, micro-organism, property or the environment; 
  
  
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     1.   Subs. by Act 11 of 1992, sec. 2 (w.r.e.f. 31-1-1992). 
     *   For the quantities specified by the Central Government see Appendix I. 
     2.   Ins. by Act 11 of 1992, sec. 2 (w.r.e.f. 31-1-1992). 
--------------------------- 
 3. Liability to give relief in certain cases on principle of no fault.—(1) Where 
death or injury to any person (other than a workman) or damage to any property 
has resulted from an accident, the owner shall be liable to give such relief as is 
specified in the Schedule for such death, injury or damage. 
(2) In any claim for relief under sub-section (1) (hereinafter referred to in this 
Act as claim for relief), the claimant shall not be required to plead and establish that 
the death, injury or damage in respect of which the claim has been made was due to 
any wrongful act, neglect or default of any person.tc "(2) In any claim for relief 
under sub-section (1) (hereinafter referred to in this Act as claim for relief), the 
claimant shall not be required to plead and establish that the death, injury or 
damage in respect of which the claim has been made was due to any wrongful act, 
neglect or default of any person." 
Explanation.—For the purposes of this section,—tc " Explanation.—For the 
purposes of this section,—"  
(i)   “workman” has the meaning assigned to it in the Workmen's 
Compensation Act, 1923 (8 of 1923);tc " (i) “workman” has the meaning 
assigned to it in the Workmen's Compensation Act, 1923 (8 of 1923);" 
(ii)   “injury” includes permanent total or permanent partial disability or 
sickness resulting out of an accident.tc " (ii) “injury” includes permanent 
total or permanent partial disability or sickness resulting out of an accident." 
COMMENTS 
Clause (n) of section 2 of the Workmen's Compensation Act, 1923 defines "workman" as follows:—tc 
"Clause (n) of section 2 of the Workmen's Compensation Act, 1923 defines \"workman\" as follows\:—"  
(n)   “workman” means any person (other than a person whose employment is of a casual nature and 
who is employed otherwise than for the purposes of the employer's trade or business) who is—  
(i)   a railway servant as defined in section 3 of the Indian Railways Act, 1890 (9 of 1890), not 
permanently employed in any administrative, district or sub-divisional office of a railway and not 
employed in any such capacity as is specified in Schedule II, or 
(ii)   employed in any such capacity as is specified in Schedule II, 
whether the contract of employment was made before or after the passing of this Act and whether 
such contract is expressed or implied, oral or in writing; but does not include any person working 
in the capacity of a member of the Armed Forces of the Union; and any reference to a workman 
who has been injured shall, where the workman is dead, include a reference to his dependants or 
any of them. 
  
4. Duty of owner to take out insurance policies.—(1) Every owner shall take 
out, before he starts handling any hazardous substance, one or more insurance 
policies providing for contracts of insurance whereby he is insured against liability to 
give relief under sub-section (1) of section 3:tc "4. Duty of owner to take out 
insurance policies.—(1) Every owner shall take out,  before he starts handling any 
hazardous substance, one or more insurance policies providing for contracts of 
insurance whereby he is insured against liability to give relief under sub-section (1) 
of section 3\:"
 
Provided that any owner handling any hazardous substance immediately before 
the commencement of this Act shall take out such insurance policy or policies as 
soon as may be and in any case within a period of one year from such 
commencement.tc "Provided that any owner handling any hazardous substance 
immediately before the commencement of this Act shall take out such insurance 
policy or policies as soon as may be and in any case within a period of one year from 
such commencement." 
(2) Every owner shall get the insurance policy, referred to in sub-section (1), 
renewed from time to time before the expiry of the period of validity thereof so that 
the insurance policies may remain in force throughout the period during which such 
handling is continued.tc "(2) Every owner shall get the insurance policy, referred to 
in sub-section (1), renewed from time to time before the expiry of the period of 
validity thereof so that the insurance policies may remain in force throughout the 
period during which such handling is continued."
 
1[(2A) No insurance policy taken out or renewed by an owner shall be for an 
amount less than the amount of the paid-up capital of the undertaking handling any 
hazardous substance and owned or controlled by that owner, and more than the 
amount, not exceeding fifty crore rupees, as may be prescribed.tc "1[(2A) No 
insurance policy taken out or renewed by an owner shall be for an amount less than 
the amount of the paid-up capital of the undertaking handling any hazardous 
substance and owned or controlled by that owner, and more than the amount, not 
exceeding fifty crore rupees, as may be prescribed." 
Explanation.— For the purposes of this sub-section, “paid-up capital” means, in 
the case of an owner not being a company, the market value of all assets and stocks 
of the undertaking on the date of contract of insurance.tc "Explanation.— For the 
purposes of this sub-section, “paid-up capital” means, in the case of an owner not 
being a company, the market value of all assets and stocks of the undertaking on the 
date of contract of insurance." 
(2B) The liability of the insurer under one insurance policy shall not exceed the 
amount specified in the terms of the contract of insurance in that insurance policy.tc 
"(2B) The liability of the insurer under one insurance policy shall not exceed the 
amount specified in the terms of the contract of insurance in that insurance policy." 
(2C) Every owner shall also, together with the amount of premium, pay to the 
insurer, for being credited to the Relief Fund established under section 7A, such 
further amount, not exceeding the sum equivalent to the amount of premium, as 
may be prescribed.tc "(2C) Every owner shall also, together with the amount of 
premium, pay to the insurer, for being credited to the Relief Fund established under 
section 7A, such further amount, not exceeding the sum equivalent to the amount of 
premium, as may be prescribed."
 
(2D) The insurer shall remit to the authority specified in sub-section (3) of 
section 7A the amount received from the owner under sub-section (2C) for being 
credited to the Relief Fund in such manner and within such period as may be 
prescribed and where the insurer fails to so remit that amount, it shall be 
recoverable from the insurer as arrears of land revenue or of public demand.]tc 
"(2D) The insurer shall remit to the authority specified in sub-section (3) of section 
7A the amount received from the owner under sub-section (2C) for being credited to 
the Relief Fund in such manner and within such period as may be prescribed and 
where the insurer fails to so remit that amount, it shall be recoverable from the 
insurer as arrears of land revenue or of public demand.]"
 
(3) The Central Government may, by notification, exempt from the operation of 
sub-section (1) any owner, namely:—tc "(3) The Central Government may, by 
notification, exempt from the operation of sub-section (1) any owner, namely\:—"  
(a)   the Central Government;tc " (a) the Central Government;" 
(b)   any State Government;tc " (b) any State Government;" 
(c)   any corporation owned or controlled by the Central Government or a 
State Government; ortc " (c) any corporation owned or controlled by the 
Central Government or a State Government; or" 
(d)   any local authority:tc " (d) any local authority\:" 
Provided that no such order shall be made in relation to such owner unless a fund 
has been established and is maintained by that owner in accordance with the rules 
made in this behalf for meeting any liability under sub-section (1) of section 3.tc 
"Provided that no such order shall be made in relation to such owner unless a fund 
has been established and is maintained by that owner in accordance with the rules 
made in this behalf for meeting any liability under sub-section (1) of section 3."
 
COMMENTStc "COMMENTS" 
Before handling hazardous substance, every owner of such substance must take out insurance policy and 
get it renewed within the period of its validity. Any owner who has been handling hazardous substance 
before 1-4-1991 (the date of commencement of this Act) is expressly required to take out insurance policy 
within one year from such commencement, i.e. till 31-3-1992.tc "Before handling hazardous substance, 
every owner of such substance must take out insurance policy and get it renewed within the period of its 
validity. Any owner who has been handling hazardous substance before 1-4-1991 (the date of 
commencement of this Act) is expressly required to take out insurance policy within one year from such 
commencement, i.e. till 31-3-1992." 
Sub-sections (2B), (2C) and (2D) speak of liability and duties of an insurer. Sub-section (3) deals with 
exemption of any owner from taking out insurance in certain circumstances.tc "Sub-sections (2B), (2C) 
and (2D) speak of liability and duties of an insurer. Sub-section (3) deals with exemption of any owner 
from taking out insurance in certain circumstances." 
  
  
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     1.   Ins. by Act 11 of 1992, sec. 3 (w.r.e.f. 31-1-1992).tc " 1. Ins. by Act 11 of 1992, sec. 3 (w.r.e.f. 
31-1-1992)." 
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5. Verification and publication of accident by Collector.—Whenever it 
comes to the notice of the Collector that an accident has occurred at any place within 
his jurisdiction, he shall verify the occurrence of such accident and cause publicity to 
be given in such manner as he deems fit for inviting applications under sub-section 
(1) of section 6.tc "5. Verification and publication of accident by Collector.—
Whenever it comes to the notice of the Collector that an accident has occurred at any 
place within his jurisdiction, he shall verify the occurrence of such accident and cause 
publicity to be given in such manner as he deems fit for inviting applications under 
sub-section (1) of section 6." 
COMMENTStc "COMMENTS" 
Where an accident has occurred at any place within the jurisdiction of the Collector, it shall be his duty to 
verify the occurrence of accident and to invite applications under section 6(1) by causing publicity. 
  
6. Application for claim for relief.—(1) An application for claim for relief may 
be made—tc " 6. Application for claim for relief.—(1) An application for claim for 
relief may be made—"  
(a)   by the person who has sustained the injury;tc " (a) by the person who 
has sustained the injury;" 
(b)   by the owner of the property to which the damage has been caused;tc 
" (b) by the owner of the property to which the damage has been caused;" 
(c)   where death has resulted from the accident, by all or any of the legal 
representatives of the deceased; ortc " (c) where death has resulted from 
the accident, by all or any of the legal representatives of the deceased; or" 
(d)   by any agent duly authorised by such person or owner of such 
property or all or any of the legal representatives of the deceased, as the 
case may be:tc " (d) by any agent duly authorised by such person or owner 
of such property or all or any of the legal representatives of the deceased, 
as the case may be\:" 
Provided that where all the legal representatives of the deceased have not joined 
in any such application for relief, the application shall be made on behalf of or for the 
benefit of all the legal representatives of the deceased and the legal representatives 
who have not so joined shall be impleaded as respondents to the application.tc 
"Provided that where all the legal representatives of the deceased have not joined in 
any such application for relief, the application shall be made on behalf of or for the 
benefit of all the legal representatives of the deceased and the legal representatives 
who have not so joined shall be impleaded as respondents to the application." 
(2) Every application under sub-section (1) shall be made to the Collector and 
shall be in such form, contain such particulars and shall be accompanied by such 
documents as may be prescribed.tc "(2) Every application under sub-section (1) shall 
be made to the Collector and shall be in such form, contain such particulars and shall 
be accompanied by such documents as may be prescribed." 
(3) No application for relief shall be entertained unless it is made within five 
years of the occurrence of the accident.tc "(3) No application for relief shall be 
entertained unless it is made within five years of the occurrence of the accident." 
COMMENTStc "COMMENTS" 
An injured person or his authorised agent; an owner of the property (whose property is damaged) or his 
authorised agent; the deceased's legal representative; or an agent of the legal practitioner, may make an 
application for claim for relief under section 3(1) in Form-I prescribed under rule 4 to the Collector, within 
5 years of the occurrence of the accident. 
7. Award of relief.—(1) On receipt of an application under sub-section (1) of 
section 6, the Collector shall, after giving notice of the application to the owner and 
after giving the parties an opportunity of being heard, hold an inquiry into the claim 
or, each of the claims, and may make an award determining the amount of relief 
which appears to him to be just and specifying the person or persons to whom such 
amount of relief shall be paid.tc "7. Award of relief.—(1) On receipt of an 
application under sub-section (1) of section 6, the Collector shall, after giving notice 
of the application to the owner and after giving the parties an opportunity of being 
heard, hold an inquiry into the claim or, each of the claims, and may make an award 
determining the amount of relief which appears to him to be just and specifying the 
person or persons to whom such amount of relief shall be paid."
 
(2) The Collector shall arrange to deliver copies of the award to the parties 
concerned expeditiously and in any case within a period of fifteen days from the date 
of the award.tc "(2) The Collector shall arrange to deliver copies of the award to the 
parties concerned expeditiously and in any case within a period of fifteen days from 
the date of the award." 
1[(3) When an award is made under this section,—tc "1[(3) When an award is 
made under this section,—"  
(a)   the insurer, who is required to pay any amount in terms of such award 
and to the extent specified in sub-section (2B) of section 4, shall, within a 
period of thirty days of the date of announcement of the award, deposit that 
amount in such manner as the Collector may direct;tc " (a) the insurer, who 
is required to pay any amount in terms of such award and to the extent 
specified in sub-section (2B) of section 4, shall, within a period of thirty 
days of the date of announcement of the award, deposit that amount in 
such manner as the Collector may direct;"
 
(b)   the Collector shall arrange to pay from the Relief Fund, in terms of 
such award and in accordance with the scheme under section 7A, to the 
person or persons referred to in sub-section (1) such amount as may be 
specified in that scheme;tc " (b) the Collector shall arrange to pay from the 
Relief Fund, in terms of such award and in accordance with the scheme 
under section 7A, to the person or persons referred to in sub-section (1) 
such amount as may be specified in that scheme;" 
(c)   the owner shall, within such period, deposit such amount in such 
manner as the Collector may direct.]tc " (c) the owner shall, within such 
period, deposit such amount in such manner as the Collector may direct.]" 
(4) In holding any inquiry under sub-section (1), the Collector may, subject to 
any rules made in this behalf, follow such summary procedure as he thinks fit.tc "(4) 
In holding any inquiry under sub-section (1), the Collector may, subject to any rules 
made in this behalf, follow such summary procedure as he thinks fit." 
(5) The Collector shall have all the powers of a Civil Court for the purpose of 
taking evidence on oath and of enforcing the attendance of witnesses and of 
compelling the discovery and production of documents and material objects and for 
such other purposes as may be prescribed; and the Collector shall be deemed to be 
a Civil Court for all the purposes of section 195 and Chapter XXVI of the Code of 
Criminal Procedure, 1973 (2 of 1974).tc "(5) The Collector shall have all the powers 
of a Civil Court for the purpose of taking evidence on oath and of enforcing the 
attendance of witnesses and of compelling the discovery and production of 
documents and material objects and for such other purposes as may be prescribed; 
and the Collector shall be deemed to be a Civil Court for all the purposes of section 
195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)." 
(6) Where the insurer or the owner against whom the award is made under sub-
section (1) fails to deposit the amount of such award within the period specified 
under sub-section (3), such amount shall be recoverable from the owner, or as the 
case may be, the insurer as arrears of land revenue or of public demand.tc "(6) 
Where the insurer or the owner against whom the award is made under sub-section 
(1) fails to deposit the amount of such award within the period specified under sub-
section (3), such amount shall be recoverable from the owner, or as the case may 
be, the insurer as arrears of land revenue or of public demand." 
(7) A claim for relief in respect of death of, or injury to, any person or damage to 
any property shall be disposed of as expeditiously as possible and every endeavour 
shall be made to dispose of such claim within three months of the receipt of the 
application for relief under sub-section (1) of section 6.tc "(7) A claim for relief in 
respect of death of, or injury to, any person or damage to any property shall be 
disposed of as expeditiously as possible and every endeavour shall be made to 
dispose of such claim within three months of the receipt of the application for relief 
under sub-section (1) of section 6." 
2[(8) Where an owner is likely to remove or dispose of his property with the 
object of evading payment by him of any amount of the award, the Collector may, in 
accordance with the provisions of rules 1 to 4 of Order XXXIX of the First Schedule to 
the Code of Civil Procedure, 1908 (5 of 1908), grant a temporary injunction to 
restrain such act.]tc "2[(8) Where an owner is likely to remove or dispose of his 
property with the object of evading payment by him of any amount of the award, the 
Collector may, in accordance with the provisions of rules 1 to 4 of Order XXXIX of the 
First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), grant a temporary 
injunction to restrain such act.]" 
COMMENTS 
This section specifies—tc "This section specifies—"  
(i)   procedure for inquiry and disposal of an application made under section 6; 
(ii)  period for payment of amount; 
(iii) powers of the Collector, while dealing with the application made to him; 
(iv) mode of recovery of amount if in arrears; and 
(v)  time for disposal of the claim for relief. 
  
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     1.   Subs. by Act 11 of 1992, sec. 4 (w.r.e.f. 31-1-1992).tc " 1. Subs. by Act 11 of 1992, sec. 4 
(w.r.e.f. 31-1-1992)." 
     2.   Ins.  by Act 11 of 1992, sec. 4 (w.r.e.f. 31-1-1992).tc " 2. Ins.  by Act 11 of 1992, sec. 4 (w.r.e.f. 
31-1-1992)."
 
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[7A. Establishment of Environmental Relief Fund.—(1) The Central 
Government may, by notification, establish a fund to be known as the Environmental 
Relief Fund. 
(2) The Relief Fund shall be utilised for paying, in accordance with the provisions 
of this Act and the scheme made under sub-section (3), relief under the award made 
by the Collector under section 7.tc "(2) The Relief Fund shall be utilised for paying, in 
accordance with the provisions of this Act and the scheme made under sub-section 
(3), relief under the award made by the Collector under section 7." 
(3) The Central Government may, by notification, make a scheme specifying the 
authority in which the Relief Fund shall vest, the manner in which the Relief Fund 
shall be administered, the form and the manner in which money shall be drawn from 
the Relief Fund and for all other matters connected with or incidental to the 
administration of the Relief Fund and the payment of relief therefrom.]tc "(3) The 
Central Government may, by notification, make a scheme specifying the authority in 
which the Relief Fund shall vest, the manner in which the Relief Fund shall be 
administered, the form and the manner in which money shall be drawn from the 
Relief Fund and for all other matters connected with or incidental to the 
administration of the Relief Fund and the payment of relief therefrom.]"
 
COMMENTStc "COMMENTS" 
When the Collector makes an award under section 7, the amount of relief shall be paid out of the 
Environmental Relief Fund established and maintained under this section. 
  
--------------------------- 
     1.   Ins. by Act 11 of 1992, sec. 5 (w.r.e.f. 31-1-1992).tc " 1. Ins. by Act 11 of 1992, sec. 5 (w.r.e.f. 
31-1-1992)."
 
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8. Provisions as to other right to claim compensation for death, etc.—(1) 
The right to claim relief under sub-section (1) of section 3 in respect of death of, or 
injury to, any person or damage to any property shall be in addition to any other 
right to claim compensation in respect thereof under any other law for the time being 
in force. 
(2) Notwithstanding anything contained in sub-section (1), where in respect of 
death of, or injury to, any person or damage to any property, the owner, liable to 
give claim for relief, is also liable to pay compensation under any other law, the 
amount of such compensation shall be reduced by the amount of relief paid under 
this Act.tc "(2) Notwithstanding anything contained in sub-section (1), where in 
respect of death of, or injury to, any person or damage to any property, the owner, 
liable to give claim for relief, is also liable to pay compensation under any other law, 
the amount of such compensation shall be reduced by the amount of relief paid 
under this Act." 
COMMENTStc "COMMENTS" 
The right to claim relief under section 3(1) is in addition to any other right to claim compensation in 
respect of death, injury or damages under any other law for the time being in force.tc "The right to claim 
relief under section 3(1) is in addition to any other right to claim compensation in respect of death, injury 
or damages under any other law for the time being in force." 
Under certain circumstances, the amount of relief paid under this Act shall be liable to deduction. 
9. Power to call for information.—Any person authorised by the Central 
Government may, for the purposes of ascertaining whether any requirements of this 
Act or of any rule or of any direction given under this Act have been complied with, 
require any owner to submit to that person such information as that person may 
reasonably think necessary.tc "9. Power to call for information.—Any person 
authorised by the Central Government may, for the purposes of ascertaining whether 
any requirements of this Act or of any rule or of any direction given under this Act 
have been complied with, require any owner to submit to that person such 
information as that person may reasonably think necessary." 
COMMENTStc "COMMENTS" 
The owner shall be bound to submit any information to be required by the person authorised for the 
purposes of ascertaining whether any requirements of this Act or of any rule or of any direction given 
under this Act have been complied with. 
10. Power of entry and inspection.—Any person, authorised by the Central 
Government in this behalf, shall have a right to enter, at all reasonable times with 
such assistance as he considers necessary, any place, premises or vehicle, where 
hazardous substance is handled for the purpose of determining whether any 
provisions of this Act or of any rule or of any direction given under this Act is being 
or has been complied with and such owner is bound to render all assistance to such 
person. 
COMMENTStc "COMMENTS" 
The Central Government may authorise any person to enter and inspect any place, premises or vehicle 
where hazardous substance is handled at all reasonable time and with necessary assistance. 
11. Power of search and seizure.—(1) If a person, authorised by the Central 
Government in this behalf, has reason to believe that handling of any hazardous 
substance is taking place in any place, premises or vehicle, in contravention of sub-
section (1) of section 4, he may enter into and search such place, premises or 
vehicle for such handling of hazardous substance. 
(2) Where, as a result of any search under sub-section (1) any handling of 
hazardous substance has been found in relation to which contravention of sub-
section (1) of section 4 has taken place, he may seize such hazardous substance and 
other things which, in his opinion, will be useful for, or relevant to, any proceeding 
under this Act:tc "(2) Where, as a result of any search under sub-section (1) any 
handling of hazardous substance has been found in relation to which contravention of 
sub-section (1) of section 4 has taken place, he may seize such hazardous substance 
and other things which, in his opinion, will be useful for, or relevant to, any 
proceeding under this Act\:" 
Provided that where it is not practicable to seize any such substance or thing, he 
may serve on the owner an order that the owner shall not remove, part with or 
otherwise deal with, the hazardous substance and such other things except with the 
previous permission of that person.tc "Provided that where it is not practicable to 
seize any such substance or thing, he may serve on the owner an order that the 
owner shall not remove, part with or otherwise deal with, the hazardous substance 
and such other things except with the previous permission of that person." 
(3) He may, if he has reason to believe that it is expedient to do to prevent an 
accident dispose of the hazardous substance seized under sub-section (2) 
immediately in such manner as he may deem fit.tc "(3) He may, if he has reason to 
believe that it is expedient to do to prevent an accident dispose of the hazardous 
substance seized under sub-section (2) immediately in such manner as he may deem 
fit." 
(4) All expenses incurred by him in the disposal of hazardous substances under 
sub-section (3) shall be recoverable from the owner as arrears of land revenue or of 
public demand. 
  
COMMENTS 
In exercise of the powers conferred by section 19 of the Act, the Central Government has delegated the 
powers and functions vested in it under sections 9, 10 and 11 to the State Governments to exercise the 
same within their respective jurisdiction and to the Central Pollution Control Board for the whole of India, 
subject to the condition that the Central Government may revoke such delegation of powers in respect of 
all or any one or more of the State Governments or the Central Pollution Control Board, or may itself 
invoke the provisions of the above sections of the Act, if in the opinion of the Central Government such 
course of action is necessary in public interest. [Vide S.O. 780(E), dated 15th November, 1991 published 
in the Gazette of India, Extra., Pt. II, Sec. 3(ii), dated 15th November, 1991, p. 2].
 
  
12. Power to give directions.—Notwithstanding anything contained in any 
other law but subject to the provisions of this Act, the Central Government may, in 
exercise of its powers and performance of its functions under this Act, issue such 
directions in writing as it may deem fit for the purposes of this Act to any owner or 
any person, officer, authority or agency and such owner, person, officer, authority or 
agency shall be bound to comply with such directions.tc "12. Power to give 
directions.—Notwithstanding anything contained in any other law but subject to the 
provisions of this Act, the Central Government may, in exercise of its powers and 
performance of its functions under this Act, issue such directions in writing as it may 
deem fit for the purposes of this Act to any owner or any person, officer, authority or 
agency and such owner, person, officer, authority or agency shall be bound to 
comply with such directions."
 
Explanation.—  For the removal of doubts, it is hereby declared that the power to 
issue directions under this section includes the power to direct—tc " Explanation.—  
For the removal of doubts, it is hereby declared that the power to issue directions 
under this section includes the power to direct—"  
(a)   prohibition or regulation of the handling of any hazardous substance; 
ortc " (a) prohibition or regulation of the handling of any hazardous 
substance; or" 
(b)   stoppage or regulation of the supply of electricity, water or any other 
service.tc " (b) stoppage or regulation of the supply of electricity, water or 
any other service." 
COMMENTStc "COMMENTS" 
In exercise of the powers conferred by section 19 of the Act, the Central Government has delegated the 
powers vested in it under section 12 of the Act to the respective State Governments, to exercise the same 
within their respective jurisdiction subject to the condition that the Central Government may invoke such 
delegation of powers in respect of all or any one or more of the State Governments or may itself invoke 
the provisions of above section of the Act, if in the opinion of the Central Government such a course of 
action is necessary in public interest. [Vide S.O. 779(E), dated 15th November, 1991 published in the 
Gazette of India, Extra., Pt. II, Sec. 3(ii), dated 15th November, 1991, p. 2].
 
13. Power to make application to Courts for restraining owner from 
handling hazardous substances.—(1) If the Central Government or any person 
authorised* by that Government in this behalf has reason to believe that any owner 
has been handling any hazardous substance in contravention of any of the provisions 
of this Act, that Government or, as the case may be, that person may make an 
application to a Court not inferior to that of a Metropolitan Magistrate or a Judicial 
Magistrate of first class for restraining such owner from such handling. 
(2) On receipt of the application under sub-section (1), the Court may make such 
order as it deems fit.tc "(2) On receipt of the application under sub-section (1), the 
Court may make such order as it deems fit." 
(3) Where under sub-section (2), the Court makes an order restraining any 
owner from handling hazardous substance, it may, in that order—  
(a)   direct such owner to desist from such handling;tc " (a) direct such 
owner to desist from such handling;" 
(b)   authorise the Central Government or, as the case may be, the person 
referred to in sub-section (1), if the direction under clause (a) is not 
complied with by the owner to whom such direction is issued, to implement 
the direction in such manner as may be specified by the Court.tc " (b) 
authorise the Central Government or, as the case may be, the person 
referred to in sub-section (1), if the direction under clause (a) is not 
complied with by the owner to whom such direction is issued, to implement 
the direction in such manner as may be specified by the Court." 
(4) All expenses incurred by the Central Government, or as the case may be, the 
person in implementing the directions of Court under clause (b) of sub-section (3), 
shall be recoverable from the owner as arrears of land revenue or of public 
demand.tc "(4) All expenses incurred by the Central Government, or as the case may 
be, the person in implementing the directions of Court under clause (b) of sub-
section (3), shall be recoverable from the owner as arrears of land revenue or of 
public demand." 
COMMENTStc "COMMENTS" 
On receipt of an application from the Central Government or the person authorised in this behalf, a 
Metropolitan Magistrate or a Judicial Magistrate of the First Class can make any order to restrain the 
owner from handling any hazardous substance in contravention of any of the provisions of this Act; and 
may recover any expenses incurred under section 13(3)(b) as arrears of land revenue on public 
demand.tc "On receipt of an application from the Central Government or the person authorised in this 
behalf, a Metropolitan Magistrate or a Judicial Magistrate of the First Class can make any order to restrain 
the owner from handling any hazardous substance in contravention of any of the provisions of this Act; 
and may recover any expenses incurred under section 13(3)(b) as arrears of land revenue on public 
demand." 
  
  
------------------------- 
       *   For list of officers authorised by the Central Government see Appendix II. 
------------------------- 
  
14. Penalty for contravention of 1[sub-section (1) or sub-section (2) or sub-section 
(2A) or sub-section (2C)] of section 4 or failure to comply with directions under 
section 12.—(1) Whoever contravenes any of the provisions of 1[sub-section (1) or sub-
section (2) or sub-section (2A) or sub-section (2C)] of section 4 or fails to comply with 
any direction issued under section 12, he shall be punishable with imprisonment for a 
term which shall not be less than one year and six months but which may extend to six 
years, or with fine which shall not be less than one lakh rupees, or with both. 
(2) Whoever, having already been convicted of an offence under sub-section (1), is 
convicted for the second offence or any offence subsequent to the second offence, he 
shall be punishable with imprisonment for a term which shall not be less than two years 
but which may extend to seven years and with fine which shall not be less than one lakh 
rupees. 
(3) Nothing contained in section 360 of the Code of Criminal Procedure, 1973 (2 of 
1974), or in the Probation of Offenders Act, 1958 (20 of 1958), shall apply to a person 
convicted of an offence under this Act unless such person is under eighteen years of age. 
COMMENTS 
An order of release on probation comes into existence after the accused is convicted of 
the offence; D.P.O., S. Rly. (in re:); AIR 1975 SC 2216. 
The age of the accused on the date of conviction is to be seen; Nawal Singh v. State of 
Uttar Pradesh, 1985 FAJ 337. 
A revisional court can also pass an order under section 360(4) of the Code of Criminal 
Procedure, 1973; Sukchand Harijan v. State of Orissa, 1983(3) Crimes 47 (Ori). 
  
————— 
   1.  Subs. by Act 11 of 1992, sec. 6, for “sub-section (1) or sub-section (2)” (w.r.e.f. 31-
1-1992). 
15. Penalty for failure to comply with direction under section 9 or order 
under section 11 or obstructing any person in discharge of his functions 
under section 10 or 11.—If any owner fails to comply with direction issued under 
section 9 or fails to comply with order issued under sub-section (2) of section 11, or 
obstructs any person in discharge of his functions under section 10 or sub-section 
(1) or sub-section (3) of section 11, he shall be punishable with imprisonment which 
may extend to three months, or with fine which may extend to ten thousand rupees, 
or with both.tc "15. Penalty for failure to comply with direction under section 
9 or order under section 11 or obstructing any person in discharge of his 
functions under section 10 or 11.—If any owner fails to comply with direction 
issued under section 9 or fails to comply with order issued under sub-section (2) of 
section 11, or obstructs any person in discharge of his functions under section 10 or 
sub-section (1) or sub-section (3) of section 11, he shall be punishable with 
imprisonment which may extend to three months, or with fine which may extend to 
ten thousand rupees, or with both." 
COMMENTS 
Non-compliance with the directions under section 9 or order under section 11 or obstructing any person in 
discharge of his functions under section 10 or 11, is punishable with imprisonment upto three months, or 
with fine upto ten thousand rupees or with both. 
16. Offences by companies.—(1) Where any offence un der this Act has been 
committed by a company, every person who, at the time the offence was committed, 
was directly in charge of, and was responsible to, the company for the conduct of the 
business of the company, as well as the company, shall be deemed to be guilty of 
the offence and shall be liable to be proceeded against and punished accordingly:tc 
"16. Offences by companies.—(1) Where any offence under this Act has been 
committed by a company, every person who, at the time the offence was committed, 
was directly in charge of, and was responsible to, the company for the conduct of the 
business of the company, as well as the company, shall be deemed to be guilty of 
the offence and shall be liable to be proceeded against and punished accordingly\:" 
Provided that nothing contained in this sub-section shall render any such person 
liable to any punishment provided in this Act, if he proves that the offence was 
committed without his knowledge or that he exercised all due diligence to prevent 
the commission of such offence.tc "Provided that nothing contained in this sub-
section shall render any such person liable to any punishment provided in this Act, if 
he proves that the offence was committed without his knowledge or that he 
exercised all due diligence to prevent the commission of such offence."
 
(2) Notwithstanding anything contained in sub-section (1), where an offence 
under this Act has been committed by a company and it is proved that the offence 
has been committed with the consent or connivance of, or is attributable to any 
neglect on the part of, any director, manager, secretary or other officer of the 
company, such director, manager, secretary or other officer shall also be deemed to 
be guilty of that offence and shall be liable to be proceeded against and punished 
accordingly.tc "(2) Notwithstanding anything contained in sub-section (1), where an 
offence under this Act has been committed by a company and it is proved that the 
offence has been committed with the consent or connivance of, or is attributable to 
any neglect on the part of, any director, manager, secretary or other officer of the 
company, such director, manager, secretary or other officer shall also be deemed to 
be guilty of that offence and shall be liable to be proceeded against and punished 
accordingly." 
Explanation.— For the purposes of this section,—tc " Explanation.— For the 
purposes of this section,—"  
(a)   “company” means any body corporate and includes a firm or other 
association of individuals;tc " (a) “company” means any body corporate and 
includes a firm or other association of individuals;" 
(b)   “director”, in relation to a firm, means a partner in the firm. 
17. Offences by Government Departments.—Where an offence under this Act 
has been committed by any Department of Government, the Head of the Department 
shall be deemed to be guilty of the offence and shall be liable to be proceeded 
against and punished accordingly:tc "17. Offences by Government 
Departments.—Where an offence under this Act has been committed by any 
Department of Government, the Head of the Department shall be 

Excerpt shown. Open the full act in Lexace.

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