JUDGMENT :

DHANANJAYA Y. CHANDRACHUD, J.

1. Admit.

2. This appeal arises from a judgment of the National Green Tribunal “Tribunal” at its Southern Zone Bench at Chennai dated 16 August 2016. The Tribunal allowed the appeal of the respondent in part and held that the invocation of the bank guarantees furnished to the appellant at the behest of the respondent was unwarranted and that the amount should be refunded to the respondent.

3. Since reliefs in terms of the other prayers were declined by the Tribunal, the issue which falls for consideration is whether the Tribunal was justified in interfering with the invocation of three bank guarantees issued to the appellant and in directing the appellant to refund the amounts covered by them to the respondent.

4. The respondent commenced its operations in 1995 for the manufacture and sale of instant coffee. It was granted consent under the Water (Prevention and Control of Pollution) Act 1974. On 6 August 2008, the Union Government amended the Environment (Protection) Rules, 1986 to specify discharge standards for the coffee industry.

5. Complaints were received by the appellant and by the District Collector, Guntur in regard to the environmental