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SUPREME COURT OF INDIA
Sudhanshu Dhulia, J.B. Pardiwala, JJ.
M/s Indian Oil Corporation Limited - Appellant(s)
Versus
V.B.R. Menon & Others - Respondent(s)
CIVIL APPEAL NO. 421 OF 2022 WITH CIVIL APPEAL NO. 494 OF 2022 CIVIL APPEAL NO. 1695 OF 2022, CIVIL APPEAL NO. 2039 OF 2022 CIVIL APPEAL NO. 1758 OF 2022 CIVIL APPEAL NO. 1912 OF 2022
Decided On : 14-03-2023
Fact of the Case:
The case involved an appeal by oil marketing companies against an order passed by the NGT directing them to obtain Consent to Establish (CTE) and Consent to Operate (CTO) for new retail petroleum outlets.Finding of the Court:
The court found that while the NGT had the power to issue directions to protect the environment, it was not necessary to make obtaining CTE and CTO mandatory. It modified the impugned directions issued by the NGT in this regard.Issues:
The main issue was whether the NGT had jurisdiction to direct the Central Pollution Control Board (CPCB) to make obtaining CTE and CTO mandatory for all petroleum retail outlets across India.Ratio Decidendi:
The court held that while the NGT had power under Section 5A of the Environment (Protection) Act, 1986, it was not reasonable or necessary to make obtaining CTE and CTO mandatory. Instead, it directed CPCB to ensure strict adherence to its guidelines for setting up new petroleum pumps.Final Decision:
The court disposed of the appeals by directing CPCB to ensure compliance with Vapour Recovery System installation timelines but set aside directions making CTE and CTO mandatory.JUDGMENT :
J.B. PARDIWALA, J.
Since the issues raised in all the captioned appeals are the same and the challenge is also to the self same order passed by the National Green Tribunal, Southern Zone, Chennai, (for short, “NGT, Chennai”), those were taken up for hearing analogously and are being disposed of by this common judgment and order.
2. For the sake of convenience, the Civil Appeal No. 2039 of 2022 is treated as the lead matter.
3. This appeal is filed by an oil marketing company viz. the Reliance BP Mobility Limited incorporated under the Companies Act, 2013 and is directed against the judgment and order dated 23.12.2021 passed by the NGT, Chennai in the Original Application No. 138 of 2020 (SZ) insofar as the impugned order directs the Central Pollution Control Board (CPCB) as well as the State Pollution Control Boards to issue directions to make it mandatory to obtain Consent to Establish (“CTE”) and the Consent to Operate (“CTO”) for new retail petroleum outlets as well as the existing retail petroleum outlets.
FACTUAL MATRIX:
4. It appears from the materials on record that the respondent No. 2 herein Mr. V.B.R. Menon, a resident of Chennai, filed the Original Application No. 138 of 2020 (SZ) before the NGT, Chennai raising the issue in regard to the non-installation of Vapour Recovery Systems (VRS) in the petroleum outlets by the oil marketing companies (OMCs). In the Original Application No. 138 of 2020, the applicant (respondent No. 2 herein) prayed for the following reliefs:-
“Reliefs:
A. Injunct the respondents 5 to 9 from commissioning and operating any new petroleum retail outlets in Tamil Nadu without installing Vapour Recovery Systems, Stage 1 and 2 in good working condition, pending disposal of this application and
B. Pass such further order or orders as may fit proper and necessary in the facts and circumstances of the case
Prayer
A. Direct the respondent oil marketing companies R5 to R-9 to install and operate Vapour Recovery Systems, Stage 1 and 2, in good working condition before opening and commissioning of any new petroleum retail outlets in Tamil Nadu.
B. Direct the respondent oil marketing companies R-5 to R-9 to install and operate Vapour Recovery Systems Stage 1 and 2, in all the existing petroleum outlets in Tamil Nadu within a time schedule to be prescribed by this Hon’ble Tribunal for each city, town and rural area situated in Tamil Nadu.
C. Pass such further order or orders as may be fit proper and necessary in the facts and circumstances of the case and thus render justice.”
5. The basis for filing of the original application as aforesaid before the NGT, Chennai was the order passed by the Principal Bench of the NGT in the Original Application No. 147 of 2016 wherein the Principal Bench of the NGT issued directions to install Stage-I and Stage-II vapour recovery devices (VRD) at all fuel stations, distribution centers, terminals, railway loading/unloading facilities and airports in the National Capital Territory of Delhi. Vide order dated 28.09.2018 passed in the O.A. No. 147 of 2016 by the Principal Bench of the National Green Tribunal, the time line of installation of VRD was extended.
6. The NGT, Chennai adjudicated the O.A. No. 138 of 2020 (SZ) and disposed of the same vide order dated 23.12.2021 by issuing the following directions :-
“69. In the result, this application is disposed of as follows :-
i. We made it clear that all the Retail Petroleum Outlets which are located in cities having more than 10 Lakh population should have installed the VRS mechanism which are having turnover of more than 300 KL/Month and above, as insisted by the Central Pollution Control Board in consultation with the Ministry of Petroleum and Natural Gas as per circular dated 12.12.2016. If any of the Retail Petroleum Outlets had not installed the same within the time frame fixed by the CPCB or extended by the Hon’ble
AI
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