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Report of Court of Inquiry of Anjan Hill Mine of Ms Secl

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Report of the Court of Inquiry constituted by Government of India (Ministry of Labour & Employment) by means of notification dated 28th February 2011. Chairman: Hon‟ble Justice P. Vishwanatha Shetty, Former Judge, High Court of Karnataka Assessors: (i) Shri Shiv Kumar Dubey, General Secretary, Bhartiya Koyala Khadan Mazdoor Sangh (ii) Shri Satinder Kumar, Former Chief Inspector of Mines, Government of India Justice P. Vishwanatha Shetty (Retd) Page 1 of 236 1.0 Introduction: 1.1 An accident occurred at Anjan Hill Mine of M/s South Eastern Coalfields Ltd in Korea District, Chhattisgarh State on 6th May 2010 at about 11:30 am causing death of 14 persons, inflicting serious bodily injuries to 5 persons and minor injuries to 26 persons. With reference to the said accident, the Court of Inquiry has been instituted by the Government of India. 1.2 The Government of India appointed a Court of Inquiry with Hon‟ble Justice P. Vishwanatha Shetty, former Judge, High Court of Karnataka as Chairman and Shri S. K. Dubey & Shri S. Kumar as assessors to hold an inquiry into causes and circumstances attending the accident and present a report within a period of three months, by means of Notification no. S.O. 456 (E) dated 28th February 2011 published in the Gazette of India (Extra Ordinary) on 1st March 2011. It is useful to refer to the relevant portion of the notification which reads as herein below: “S.O.456 (E) - Whereas an accident has occurred in the Anjan Hill Mine of M/s South Eastern Coalfields Limited, in District Korea of Chhattisgarh state on 6th May 2010 causing loss of lives. And whereas the Central Government is of the opinion that a formal inquiry into the causes and the circumstances attending the accident ought to be held. Now therefore, in exercise of the powers conferred by sub-section (1) of Section 24 of The Mines Act, 1952 (35 of 1952), Central Government hereby appoints Justice P. Vishwanatha Shetty (Retd.), Former Judge, High Justice P. Vishwanatha Shetty (Retd) Page 2 of 236 Court, Karnataka to hold such inquiry and present a report within a period of three months. The Central Government also appoints the following persons as assessor in holding of the inquiry, namely- (i) Shri Shiv Kumar Dubey, General Secretary, Bhartiya Koyala Khadan Mazdoor Sangh. (ii) Shri Satinder Kumar, Ex Chief Inspector of Mines. [F. No. Z-16025/85/2010-ISH-II] A. C. Pandey Joint Secretary to the Government of India” 1.3 Shri M. Satyamurty, Deputy Director Mines Safety was appointed as Secretary to the Court of Inquiry vide Ministry of Labour and Employment‟s letter No. letter no. Z-16025/85/2010-ISH-II dated 8th March 2011. 1.4 By means of subsequent notification dated 7th June 2011, the period given to the Court of Inquiry was extended from 28th May 2011 to 27th August 2011 or till the date/day on which the report of inquiry is submitted, whichever is earlier. Thereafter, by means of another notification dated 6th September 2011, the period given to the Court of Inquiry was further extended till 27th September 2011. 1.5 On receipt of first notification on 14th March 2011, Hon‟ble Justice P. Vishwanatha Shetty assumed the charge as Chairman of the Court of Inquiry on 15th March 2011. Both the assessors also assumed the charge on the said date. 2.0 Before the Court of Inquiry proceeds to discuss the causes and circumstances attending to the accident that occurred on 6th May 2010, it Justice P. Vishwanatha Shetty (Retd) Page 3 of 236 will be useful to refer to the background of Anjan Hill Mine and also the background of the management which has been carrying on mining operations at Anjan Hill Mine. Background of the Mine 2.1 Anjan Hill Mine, part of Chirimiri Area of M/s South Eastern Coalfields Limited, (hereinafter referred to as SECL), is in Korea District of Chhattisgarh State and located at about 225 km from Bilaspur and at a distance about 8 km from Chirimiri Township. 2.1.1 It is on record that Anjan Hill Mine was being managed and exploited by SECL, which is a subsidiary company of M/s Coal India Limited (CIL), a public sector undertaking of the Government of India. The SECL was incorporated under the Companies Act, 1956, as public limited company on 28th November 1985. SECL is carrying on mining operations in an area spread out in 92 mines, out of which 70 are underground mines, located in the States of Chhattisgarh and Madhya Pradesh. It is on record that in all the mines put together the manpower strength of SECL is to the tune of about 79,000 (seventy nine thousands) and that of in Anjan Hill Mine, the manpower strength including senior officers is 1,050 (one thousand and fifty). Out of them workmen alone would constitute about 900 (nine hundred). 2.1.2 All the persons employed by SECL are associated with coal production either directly or indirectly by providing support to production activities. The manpower including direct and indirect work force can be broadly described Justice P. Vishwanatha Shetty (Retd) Page 4 of 236 in to three categories, namely Managerial, Supervisory and Workmen. Currently 62,355 (sixty two thousands) Workmen, 14,592 (fourteen thousand five hundred ninety two) Supervisors and 2,657 (two thousand six hundred fifty seven) Officers are engaged in coal production activities. 2.1.3 The production of SECL & that of Anjan Hill Mine and net profit of SECL & that of Anjan Hill Mine for the last five years have been as follows: PRODUCTION (in thousand tonnes) NET PROFIT (in Rs crore) YEAR SECL Anjan Hill Mine SECL Anjan Hill Mine 2009-10 108,010 379 3,063.57 1.52 2008-09 101,150 281 1,817.93 - 16.00 2007-08 93,790 273 2,067.37 - 2.40 2006-07 88,500 249 1,777.82 - 0.09 2005-06 83,056 231 1,286.12 0.46 Background of Management 2.2 Both the holding company and the subsidiary company are managed by separate Board of Directors. Though the Chairman cum Managing Director of SECL was the Chief Executive Officer of the company, one of the Directors on the Board was nominated as owner of Anjan Hill Mine under Section 76 of the Mines Act, 1952 (hereinafter referred to as the Act). Mine was managed by a qualified Mine Manager. Several officials administratively placed between the nominated owner and mine manager are discharging direct and supporting functions of the management of the company and acting as agents / deemed agents in respect of Anjan Hill mine. 2.2.1 As mandated by Section 17 of the Act, duly qualified person was being appointed as Manager for exercising control over the mine and one Shri J. N. Justice P. Vishwanatha Shetty (Retd) Page 5 of 236 Dash was appointed as manager of Anjan Hill Mine. In the hierarchy of corporate management functioning, notwithstanding their statutory obligations and duties of overall management, control, supervision imposed on the Manager, he has to report about the functioning of the mine to his superior officer in the mine called as Sub-Area Manager or Agent. Section 2(c) of Act defines „Agent‟. The said section reads as follows: 2.2.1.1 Section 2(c): "agent", when used in relation to a mine, means every person, whether appointed as such or not, who, acting or purporting to act on behalf of the owner, takes part in the management, control, supervision or direction of the mine or of any part thereof. 2.2.2 The duties and responsibilities of owner, agent and manager are set out in Section 18 of the Act. It is useful to extract Section 17 of the Act which provides for appointment of manager and Section 18 of the Act which provides for duties and responsibilities of owner, agent and manager 2.2.2.1 Section 17: Managers. (1) Save as may be otherwise prescribed, every mine shall be under a sole manager who shall have the prescribed qualification and the owner or agent of every mine shall appoint a person having such qualification to be the manager: Provided that the owner or agent may appoint himself as manager if he possesses the prescribed qualifications. (2) Subject to any instructions given to him by or on behalf of the owner or agent of the mine, the manager shall be responsible for the overall Justice P. Vishwanatha Shetty (Retd) Page 6 of 236 management, control, supervision and direction of the mine and all such instructions when given by the owner or agent shall be confirmed in writing forthwith. (3) Except in case of an emergency, the owner or agent of mine or anyone on his behalf shall not give, otherwise than through the manager, instructions affecting the fulfillment of his statutory duties, to a person, employed in a mine who is responsible to the manager. 2.2.2.2 Section 18: Duties and responsibilities of owners, agents and managers. (1) The owner and agent of every mine shall each be responsible for making financial and other provisions and for taking such other steps as may be necessary for compliance with the provisions of this Act and the regulations, rules, bye-laws and orders made thereunder. (2) The responsibility in respect of matters provided for in the rules made under clauses (d), (e) and (p) of section 58 shall be exclusively carried out by the owner and agent of the mine and by such person (other than the manager) whom the owner or agent may appoint for securing compliance with the aforesaid provisions.
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