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2024 Supreme(Mad) 426

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S. Sundar, Senthilkumar, JJ.
Chennai Petroleum Corporation Limited and Others – Petitioner
Versus
National Green Tribunal Southern Zone and Others – Respondents
WP.Nos. 25531, 27502, 27536, 29008, 29256 & 29545 of 2023 & WMP. Nos. 24923, 24924, 26946, 26947, 26978, 26979, 28582, 28583, 28864 & 29174 of 2023
Decided On : 14-03-2024

Advocate Appeared:
V. Vijaya Mehanath, Venkataswamy Babu, SPC, S. Anitha, Spl.GP., M. Swarnalatha, V. Gunasekar, SC, E.C. Ramesh, SC, S.T. Raja, SC, M. Vijayan for M/s. King & Patridge, Jayesh B Dolia, A.G. Abhishek, Venkataswamy Babu, SPC, S. Anitha, Spl.GP., M. Swarnalatha, V. Gunasekar, D.B.R. Prabhu, SC, S.T.Raja, SC, Jayesh B. Dolia, P. Wilson, Senior counsel, S.T. Raja, Jayesh B. Dolia, Senior counsel for M/s. Aiyar & Dolia, Advocates.

IMPORTANT POINT
The main legal point established in the judgment is that any liability for environmental damages should be based on an assessment of individual industry's impact and should not be a uniform levy based on turnover, as it would be in violation of principles of natural justice.

Headnote:

Environment - National Green Tribunal Judgment - Water and Air Acts - [Water and Air Acts] - The court discussed the directions issued by the National Green Tribunal related to monitoring pollution, installation of pollution control measures, and creation of a corpus fund for environmental restoration. The court found that the direction to contribute 1% of Annual Turnover by the industries was in violation of principles of natural justice and quashed the said direction.

Fact of the Case:

The writ petitions were filed by industrial establishments in North Chennai to quash direction No.18 in paragraph No.53 of the judgment of the National Green Tribunal, Southern Zone, Chennai, related to environmental regulations and contributions to a corpus fund for environmental restoration.

Finding of the Court:

The court found that the direction to contribute 1% of Annual Turnover by the industries was in violation of principles of natural justice and quashed the said direction. The court emphasized that any liability for environmental damages should be based on an assessment of individual industry's impact and should not be a uniform levy based on turnover.

Issues: The main issue was the validity of direction No.18 of paragraph No.53 of the National Green Tribunal judgment, specifically related to the contribution of 1% of Annual Turnover by the industries for environmental restoration.

Ratio Decidendi: The court held that the direction to contribute 1% of Annual Turnover by the industries was in violation of principles of natural justice and quashed the said direction. The court emphasized that any liability for environmental damages should be based on an assessment of individual industry's impact and should not be a uniform levy based on turnover.

Final Decision: The writ petitions were allowed, and direction No.18 of paragraph No.53 of the judgment dated 20.07.2023 passed by the National Green Tribunal, Southern Zone, Chennai in Original Application No.256/2020 [SZ] was quashed. The court clarified that this order does not prevent the Tribunal or law enforcement agencies from fixing liability on petitioners for causing environmental damages if permissible in law and after following due procedure.

ORDER :

S.S. Sundar, J.

(Common Prayer:- Writ petitions filed under Section 226 of the Constitution of India calling for the records in respect of the judgment dated 16 WP.Nos.25531, 27502, 27536, 29008, 29256 & 29545/2023 20.07.2023 passed in Original Application No.256/2020 [SZ] by the National Green Tribunal, Southern Zone, Chennai and quash the direction No.18 of paragraph No.53 of the said judgment.)

1. All the above writ petitions are filed by the Industrial Establishments who have established their industries in North Chennai and have filed writ petitions for issuance of a writ of certiorari to quash the direction No.18 in paragraph No.53 of the judgment of the National Green Tribunal, Southern Zone, Chennai, dated 20.07.2023 in Original Application No.256/2020.

2. The petitioner in WP.No.25531/2023 is a Public Sector Undertaking and is one of the leading group companies of Indian Oil, to produce fuels and lube base stocks. The petitioner Corporation is primarily engaged in the production of fuel products, lubricants and petrochemical feed stocks and meeting the demand of petroleum products in South India along with other refineries.

3. The petitioner in WP.No.27502/2023 is a joint venture company between the Tamil Nadu Industrial Development Corporation Limited [TIDCO], wholly owned by the Government of Tamil Nadu and Southern Petrochemical Industrial Corporation Limited [SPIC]. The petitioner is having three manufacturing facilities for Liner Alkyl Benzene Plant [LAB], Heavy Chemicals Division [HCD] and ECH-Propylene Oxide Plant [ECH-PO] in Manali. LAB is engaged in the manufacture of Lineer Alkyl Benzene using kerosene and benzene as the primary raw material. HCD Plant manufactures caustic soda, chlorine, hydrogen, hydrochloric acid and sodium hypochlorite. The ECH-PO Plant manufactures propylene oxide and produces chlorinated organics as by products. All the 3 units obtained consent to operate under Water and Air Act from TNPCB and subsequently renewed upto 31.03.2024.

4. The petitioner in WP.No.27536/2023 is a petrochemical manufacturing company and is an Associate Sector Enterprise of Tamil Nadu Industrial Development Corporation Limited [TIDCO], wholly owned by the State Government and produces Propylene Glycol, Polyols, similar petrochemicals and also propylene Oxide, the feedstock for the said products.

5. The petitioner in WP.No.29008/2023 is a Joint Venture Company of NTPC Ltd., [Central Public Sector Undertaking] and the Tamil Nadu Generation and Distribution Corporation Limited [Tamil Nadu State Government Undertaking]. The petitioner Company has established the power project at Vallur, Vellivoyal Chavadi for generating 1500 MW of electricity generated by thermal power. The Tamil Nadu State is the major beneficiary of the project receiving 71.24% of power generated by the petitioner.

6. The petitioner in WP.No.29256/2023 is a company wholly owned by the Government of Tamil Nadu. It is a service oriented organization providing electricity to the entire population of Tamil Nadu and it is a public utility company. The consumer base of the petitioner company includes Agriculture and Hut services, Domestic category and the Commercial and HT consumers.

7. The petitioner in WP.No.29545/2023 is a Public Sector Undertaking. It is engaged in the manufacturing of fertilizers, both urea and complex to be sold under subsidized cost to the farmers.

8. It is the specific case pleaded by the petitioners that the petitioners have obtained Environmental Clearances and CREZ Clearance apart from Consent to operate from the Tamil Nadu Pollution Control Board [TNPCB]. The petitioners have claimed that they have provided/installed equipments and devices and infrastructures, to control pollution, to meet the statutory requirements and in adherence to the directions of TNPCB. The petitioners have also given particulars of the devices to control/prevent pollution and satisfy the norms both under the Water and Air Acts by spending substantial

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