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Our Legal Correspondent

CHENNAI, Feb. 2

LEATHER tanners in Dindigul district of Tamil Nadu have moved the Madras High Court seeking a direction to the Tamil Nadu Government to pay the compensation, which was ordered by the Loss of Ecology Authority to be paid to the agriculturists for the damages caused and for reversal of ecology, and the said amount could be recovered from the tanners in easy instalments.

In their writ petitions, which were admitted by the First Bench comprising the Chief Justice, Mr. B. Subhashan Reddy, and Ms Justice A. Subbulakshmy, the tanners also sought an order from the court that pending disposal of a representation made by them, the District Collector, Dindigul, might be restrained by the authority from proceeding further in pursuance of its award dated September 27, 2001 granting the compensation to the agriculturists. The Bench ordered notice returnable in three weeks. According to the petitioner, two writ petitions were filed seeking further relief by declaring that the collection of one per cent charges on the f.o.b. value on the semi-finished leather (EI leather) by the State Trading Corporation of India Ltd, was without authority and illegal.

The petitioner said that the 7th respondent (Loss of Ecology Authority) passed an award on March 7, 2001 determining compensation payable by the tanners of Vellore district, amounting to Rs 3,93,38,613 to the farmers and for reversal of ecology. Likewise by its order dated September 27, 2001, the tanners in Dindigul district were directed to pay a sum of Rs 24,56,997 as compensation to the farmers.

The tanners made a representation to the Authority (7th respondent) stating, inter alia, that the industry, which consisted of cottage units, was economically hit due to unprecedented recession resulting in falling exports to the US and countries connected with the US. Also, the industry had to face competition from China. Thus, the industry would not be able to make the payment of the compensation ordered within the stipulated time.

In the representation it was also suggested that the State Government should come forward to pay the compensation and then recover it from the polluters in easy instalments.

Pending disposal of the representation, the District Collector, Dindigul, might be restrained from proceeding further in pursuance of its award. The petitioner prayed that the collection of 1 per cent by the STC from exporters of semi-finished leather on f.o.b. value was without authority, and therefore illegal, and therefore was liable to be refunded to the respective members of the petitioner association.

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