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Can an operator be liable for environmental damage notwithstanding that the polluting activity is operated within permit limits?

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Can an operator be liable for environmental damage notwithstanding that the polluting activity is operated within permit limits?

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An operator could be held liable if it causes other environmental damages, above or beyond the ambit of the conditions prescribed by the environmental permit. The Oleum Gas Leakage case is an illustration in point. Though the Shriram Industries was in compliance with the Air Act and situated in a designated air pollution control area, the Supreme Court of India held the company liable for the accidental leakage of oleum gas. It is in the Shriram Industries case that the Supreme Court evolved the two far-reaching environmental liability concepts discussed above (at question 4.1), that is, the ‘absolute’ liability principle, and the ‘deep pocket theory’. Generally, in tort, a polluter could be held liable even if he would have operated within permit limits.

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