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2024 Supreme(SC) 37

SUPREME COURT OF INDIA
B.R. GAVAI, ARAVIND KUMAR, JJ.
The State of Himachal Pradesh & Ors. – Appellants
Versus
Yogendera Mohan Sengupta & Anr. – Respondents
Civil Appeal Nos. 5348-5349 of 2019 with Transferred Case (C) No. 2 of 2023
Decided on : 11-01-2024

Advocates appeared:
For the Appellant(s) : Mr. Rishi Malhotra, AOR Mr. Himanshu Tyagi, AOR
For the Respondent(s): Mr. Sanjay Parikh, Sr. Adv. Mr. Rahul Choudhary, Adv. Ms. Srishti Agnihotri, AOR Ms. Itisha Awasthi, Adv. Ms. Sanjana Grace Thomas, Adv. Ms. Tara Elizabeth Kurien, Adv. Mr. P.V. Surendranath,Sr.Adv. Mr. Subhash Chandran K.R.,Adv. Mr. Biju P Raman, AOR Ms. Krishna L.R.,Adv. Mr. John Thomas Arakal,Adv. Mr. Sawan Kumar Shukla,Adv. Ms. Lekha Sudhakar,Adv. Mr. Sanjay Jain, AOR Mr. Subodh Kr. Pathak, Adv. Mr. Shashi Ranjan, Adv. Mr. Pawan Kumar Sharma, Adv. Mr. Akash Swami, Adv. Mr. V. Elangovan, Adv. Mr. Dharmendra Kumar Sinha, AOR
Advocates appeared:
For the Appellant :Mr. Rishi Malhotra, Mr. Himanshu Tyagi, Advocates
For the Respondent:Mr. Sanjay Parikh, Mr. Rahul Choudhary, Ms. Srishti Agnihotri, Ms. Itisha Awasthi, Ms. Sanjana Grace Thomas, Ms. Tara Elizabeth Kurien, Mr. P.V. Surendranath, Mr. Subhash Chandran K.R., Mr. Biju P Raman, Ms. Krishna L.R., John Thomas Arakal, Mr. Sawan Kumar Shukla, Ms. Lekha Sudhakar, Mr. Sanjay Jain, Mr. Subodh Kr. Pathak, Mr. Shashi Ranjan, Mr. Pawan Kumar Sharma, Mr. Akash Swami, Mr. V. Elangovan, Mr. Dharmendra Kumar Sinha, Advocates

IMPORTANT POINTS
(1) Court cannot be permitted to usurp functions assigned to the Executive, Legislature or subordinate legislature – Courts cannot issue directions to Legislature for enacting laws in a particular manner or for amending Acts or Rules.
(2) Binding Precedent – A decision is only an authority for what it actually decides – Essence of the decision is its ratio and not every observation found therein.
(3) There is need for maintaining balance between development and protection/preservation of environmental ecology.


Headnote:

(A) Constitution of India – Article 162 – Himachal Pradesh Municipal Corporation Act, 1994 – Sections 18, 19 and 20 – Distinction between legislative function and administrative function – Distinction between two has usually been expressed as “one between general and particular” – Legislation is process of formulating a general rule of conduct without reference to particular cases and usually operating in future – Whereas, administration is process of performing particular acts of issuing particular orders or of making decisions which apply general rules to particular cases – Rule-making is normally directed towards formulation of requirements having a general application to all members of a broadly identifiable class; whereas an adjudication, on other hand, applies to specific individuals or situations – Preparation of draft development plan under Section 18 of TCP Act, finalization of same under Section 19 of TCP Act by Director and grant of approval by State under Section 20 of TCP Act are all legislative functions – Exercise of power for preparation, finalization and approval of development plan is a power exercised by delegatee for enacting a subordinate piece of legislation – When TCP Act empowers State Government and Director to exercise powers to enact a piece of delegated legislation, NGT could not have imposed fetters on such powers and directed it to exercise its powers in a particular manner. (Paras 49, 50, 51, 61 and 70)

(B) Constitution of India – Article 309 read with Articles 32 and 226 – Extent of judicial interference in legislative business – Neither High Courts while exercising powers under Article 226 of Constitution nor this Court while exercising powers under Article 32 of Constitution can direct legislature or its delegatee to enact a law or subordinate legislation in a particular manner – Constitution of India recognizes independence and separation of powers amongst three branches of State viz. Legislature, Executive and Judiciary – Each of branches are co-equal – Judiciary is entrusted with function to ensure that laws enacted by Legislature are within four corners of Constitution of India and that Executive acts within four corners of Constitution of India and laws enacted by Legislature – However, giving a direction or advisory sermons to Executive in respect of sphere which is exclusively within domain of Executive or Legislature would neither be legal nor proper – Court cannot be permitted to usurp functions assigned to the Executive, Legislature or subordinate legislature – Court cannot also assume a supervisory role over rule-making power of Executive under Article 309 of Constitution of India – Courts cannot issue directions to Legislature for enacting laws in a particular manner or for amending Acts or Rules – It is for Legislature to do so – Power to enact legislation is a plenary constitutional power which is vested in Parliament and State Legislatures. (Paras 65, 66, 68 and 69)

(C) Precedent – Binding Precedent – A decision is only an authority for what it actually decides – Essence of the decision is its ratio and not every observation found therein – A deliberate judicial decision arrived at after hearing an argument on a question which arises in case or is put in issue would constitute a precedent. (Paras 74 and 75)

(D) Constitution of India – Articles 32, 141 and 226/227 – Power of judicial review – High Courts exercise power of judicial review over all Tribunals which are situated within its jurisdiction – Power vested in High Courts to exercise judicial superintendence over decisions of all Courts and Tribunals within their respective jurisdictions is also part of basic structure of Constitution – Tribunals will have power to handle matters involving constitutional issues – Continuation of proceedings by NGT during pendency of writ petitions before High Court was not in conformity with principles of judicial propriety. (Paras 102, 104, 106 and 109)

(E) Environment Protection – There is need for maintaining balance between development and protection/preservation of environmental ecology – While ensuring developmental activities so as to meet demands of growing population, it is also necessary that issues with regard to environmental and ecological protection are addressed too – If any of citizens has any grievance that any provision is detrimental to environment or ecology, it is always open to raise challenge to such an independent provision before appropriate forum – Such challenge can be considered in accordance with law. (Paras 113, 122 and 124)

Facts of the case:

Present appeals challenge Judgment and order dated 16th November 2017 (First order of NGT) passed by National Green Tribunal, Principal Bench, New Delhi in Original Application (OA) No. 121 of 2014, whereby various directions were issued by NGT, and order dated 16th July 2018 passed by NGT in Review Application No. 8 of 2018, whereby review sought of first order of NGT by present appellants was dismissed.

Findings of Court:

Development plan has been finalized after undergoing the rigorous process including that of inviting objections and suggestions at two stages, giving the hearing to such objectors and suggestions and after considering the same. If any of citizen has any grievance that any provision is detrimental to the environment or ecology, it is always open to raise a challenge to such an independent provision before the appropriate forum. Such a challenge can be considered in accordance with law. But, in our view, the development plan, which has been finalized after taking recourse to the statutory provisions and undergoing the rigors thereto, cannot be stalled in entirety thereby putting the entire developmental activities to a standstill.

Result : Directions issued.

Judgement Key Points

Key Points: - Courts cannot usurp the functions of the Executive or Legislature, nor can they issue directions to enact or amend laws in a particular manner (!) (!) (!) . - The preparation, finalization, and approval of a development plan under the relevant Town and Country Planning Act constitute legislative functions (!) (!) . - A Tribunal, being a body created by statute with limited jurisdiction, cannot impose fetters on the legislative powers of the State or its delegatee (!) (!) . - The power of judicial review and superintendence over Tribunals vested in High Courts is an integral part of the basic structure of the Constitution (!) (!) . - It is contrary to the principles of judicial propriety for a Tribunal to continue proceedings and pass orders when a High Court is already in seisin of the same matter (!) (!) . - There is a need to maintain a balance between developmental requirements and the protection of environmental ecology (!) (!) . - If a citizen has a grievance regarding specific provisions of a development plan, they may challenge such independent provisions before the appropriate forum in accordance with the law (!) . - The development plan finalized after following statutory procedures, including public consultation, cannot be stalled in its entirety (!) . - Orders passed by the National Green Tribunal that interfered with the legislative process and ignored the pendency of High Court proceedings were set aside (!) .

What is the extent of judicial interference in legislative business and the power of a Tribunal to direct a legislative body to exercise its functions in a particular manner?

What is the distinction between legislative and administrative functions in the context of the preparation and approval of a development plan?

What is the scope of judicial propriety when a Tribunal continues proceedings while a High Court is already seized of the same issue?


JUDGMENT :

B.R. Gavai, J.

INDEX

I

INTRODUCTION

II.

FACTS

III.

SUBMISSIONS

IV.

CONSIDERATION

A.

Legislative Scheme of the TCP Act.

B.

Nature of functions/powers of the Authorities under Chapter-IV of the TCP Act.

C.

Whether the NGT could have issued directions to the legislative body to exercise its legislative functions in a particular manner?

D.

Whether observations in Para 47 of the Mantri Techzone Private Limited (supra) would operate as res judicata?

E.

Development Plan 2041.

F.

Whether the NGT was justified in passing the order dated 14th October 2022 when the High Court was seized of the same issue during the pendency of Civil Writ Petition No.5960 of 2022?

G.

Balancing the need for Development and Protection of the Environment.

V.

CONCLUSION

I. INTRODUCTION

Civil Appeal Nos. 5348-5349 OF 2019

1. These appeals challenge the judgment and order dated 16th November 2017 (hereinafter referred to as the "first order of NGT") passed by the National Green Tribunal, Principal Bench, New Delhi (hereinafter referred to as the "NGT") in Original Application (OA) No. 121 of 2014, whereby various directions were issued by the NGT, and the order dated 16th July 2018 passed by the NGT in Review Application No. 8 of 2018, whereby the review sought of the first order of NGT by the present appellants was dismissed.

Transferred Case (C) No. 2 of 2023

2. The draft development plan for 22,450 hectares of Shimla Planning Area (hereinafter referred to as "SPA") which was finalized vide a notification dated 16th April 2022, came to be stayed by the NGT, vide an interim order dated 12th May 2022. By the said order, it restrained the appellants herein from taking any further steps in pursuance of the draft development plan of the SPA. The State of Himachal Pradesh and its instrumentalities-appellants herein preferred Civil Writ Petition (CWP) No. 5960 of 2022 titled State of Himachal Pradesh and another v. Yogendra Mohan Sengupta and Others before the High Court of Himachal Pradesh challenging the said interim order. Despite the pendency of the said writ petition, the NGT, vide its final order dated 14th October 2022 (hereinafter referred to as the "second order of NGT") in OA No. 297 of 2022, held that the draft development plan, being in conflict with the first order of NGT, was illegal and cannot be given effect to. Thereafter by an amendment in the said CWP No. 5960 of 2022, the second order of NGT also came to be challenged before the High Court of Himachal Pradesh. On 14th November 2022, this Court passed an order in Civil Appeal Nos. 5348-5349 of 2019 transferring the said CWP No. 5960 of 2022 from the High Court of Himachal Pradesh to itself, which came to be re-numbered as Transferred Case (C) No. 2 of 2023.

II. FACTS

Facts giving rise to filing of Civil Appeal Nos.5348-5349 of 2019:

3. Facts, in brief, giving rise to the filing of Civil Appeal Nos. 5348-5349 of 2019, are as follows:

3.1 The Himachal Pradesh Town & Country Planning Act, 1977 (hereinafter referred to as "TCP Act") was enacted by the State of Himachal Pradesh in the year 1977. Vide Government Notification dated 30th November 1977, the SPA came to be constituted. The State of Himachal Pradesh, in exercise of powers conferred upon it by Section 87 of the TCP Act, enacted the Himachal Pradesh Town & Country Planning Rules, 1978 (hereinafter referred to as "1978 Rules"). The existing land use for SPA was notified by a notice dated 29th December 1977 and was adopted by another notice dated 14th March 1978.

3.2 The interim development plan for SPA was approved by a notification dated 24th March 1979 for the period 1979-2001. Vide notification dated 11th August 2000 issued by the Department of Town & Country Planning (Government of Himachal Pradesh), further amen

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