Polycyclic aromatic hydrocarbons (PAHs) are wide spread industrial pollutants that are released into the environment from burning of coal, distillation of wood, operation of gas works, oil refineries, vehicular emission, and combustion process. In this study a lipolytic bacterium was isolated from mixed stover compost of Saccharum munja and Brassica campestris. This strain was identified by both classical and 16S ribosomal DNA sequencing method and designated as Serratia marcesencs L-11. HPLC-based quantitation revealed 39- 100% degradation of PAH compounds within seven days. Further its ability to produce catechol 1, 2-dioxygenase (1.118 μM mL(-1) h(-1)) and biosurfactants (0.88 g L(-1)) during growth in PAH containing medium may be responsible for its PAH-degradation potential. This novel bacterium with an ability to produce lipases, biosurfactant and ring cleavage enzyme can prove to be useful for in-situ degradation of PAH compounds.