46 councillors of the Morbi Nagar Palika sought to intervene in the matter, apprehending that the State was likely to take over the civic body after observations made by the Court.
The bench also noted that the compensation amounts declared by the State were abysmally low and needs to be realistic, just and cater to the need of the hour.
A bench of Chief Justice Aravind Kumar and Justice Ashutosh J Shastri said the incident where hundreds of citizens died an untimely death was disheartening.