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IN THE HIGH COURT OF ORISSA AT CUTTACK
Sanjeeb K Panigrahi, J.
M/S. Shanti Construction Sambalpur Pvt. Ltd. - Petitioner
Versus
State of Odisha and Ors. - Opposite Parties
W.P.(C) No.18697 of 2025
Decided On : 22-01-2026
| Table of Content |
|---|
| 1. petitioner seeks to quash ngt order (Para 1 , 2) |
| 2. petitioner claims violations of natural justice (Para 3) |
| 3. ngt's jurisdiction challenged by petitioner (Para 4) |
| 4. court reviews maintainability of writ petition (Para 5 , 6 , 7) |
| 5. high court may entertain writ despite alternative remedy (Para 8) |
| 6. ngt's adjudicatory role is non-delegable (Para 9) |
| 7. environmental impact of extraction within ngt's remit (Para 10 , 11) |
| 8. substantial questions raised over environmental matters (Para 12) |
| 9. violation of natural justice in ngt proceedings (Para 13 , 14 , 15) |
| 10. ngt must retain adjudicatory responsibilities (Para 16 , 17) |
| 11. potential conflict of interest in committee composition (Para 18) |
| 12. statutory breaches in mining activity examined (Para 19 , 20) |
| 13. compensation must link to actual environmental harm (Para 21 , 22 , 23) |
| 14. writ petition allowed due to procedural illegality (Para 24) |
| 15. ngt order quashed and parties directed to pursue rights (Para 25 , 26) |
JUDGMENT :
Sanjeeb K Panigrahi, J.
1. In this Writ Petition, the petitioner seeks a direction from this Court to quash the order dated 02.05.2025 passed by the National Green Tribunal, Eastern Zone, Kolkata in O.A. No. 167/2023/EZ, and to restrain the respondents from taking any coercive steps for recovery of environmental compensation pursuant thereto.
I. FACTUAL MATRIX OF THE CASE
2. The brief facts of the case are as follows:
(i) The petitioner is a company incorporated under the Companies Act and is represented through its deponent, claiming residence within the territorial jurisdiction of the Orissa High Court and asserting that the cause of action arose within such jurisdiction.
(ii) East Coast Railway, as Opposite Party No. 8, awarded the petitioner a railway track laying work along with bridge work through Letter of Acceptance dated 01.06.2022 followed by a formal contract agreement dated 25.10.2022.
(iii) An Original Application being O.A. No. 167/2023/EZ was filed before the National Green Tribunal, Eastern Zone Bench, Kolkata by certain persons describing themselves as social workers and local villagers, alleging illegal extraction of minor minerals such as earth and morrum by the petitioner from Government land in Tangi-Choudwar Tahasil, District Cuttack, for the railway work.
(iv) In the NGT proceedings, several public authorities including the State Pollution Control Board, Collector Cuttack, Revenue Department and Forest Department were arrayed as respondents on allegations of inaction despite complaints.
(v) The NGT, by order dated 23.11.2023, constituted a Joint Committee comprising senior scientist or officer of the State Pollution Control Board, District Mining Officer Cuttack, Collector Cuttack or representative not below ADM, and Divisional Forest Officer Cuttack, with the Board as the nodal body for logistics and for filing the inspection report on affidavit, and directions to recommend penalty, environmental compensation, and remedial measures if violations were found.
(vi) Pursuant to the NGT order, the Committee visited the site on 18.12.2023 and noted excavation of morrum or laterite from alleged plots and surrounding areas, and also recorded that pits were water-filled, which affected ascertainment of depth and quantification at that time.
(vii) The Committee requested the Mining Officer, being a member and competent authority, to conduct a detailed scientific survey to assess the actual quantity excavated from specified plots and surrounding areas, and a report was thereafter prepared and filed before the NGT through the Board’s affidavit.
(viii) The Joint Committee report recommended environmental compensation and also compensation as per the Odisha Minor and Minerals Compensation Rules, 2016, and the petitioner filed objections before the NGT.
(ix) The NGT disposed of the Original Application by order dated 02.05.2025 directing the State respondents and the State Pollution Control Board, Odisha to take action against the petitioner for recove
The NGT must adhere to principles of natural justice and cannot abdicate its adjudicatory role to committees; fair hearing is essential in decisions regarding environmental compensations.
Environmental compensation must adhere to principles of natural justice and proportionality, ensuring that penalties correlate with actual damage and supported by robust evidence.
The National Green Tribunal must comply with principles of natural justice, ensuring parties have the opportunity to present their case before any adverse decisions are made.
The National Green Tribunal retains exclusive jurisdiction to assess environmental compensation, and its orders cannot be stayed by writ jurisdiction.
(1) Observance of Principles of Natural Justice by NGT is mandatory.(2) Recommendations made by an Expert Committee are not binding on NGT – They are only by way of assistance to enable NGT to arrive....
The National Green Tribunal's jurisdiction under Section 16 permits aggrieved parties to challenge environmental clearances to ensure compliance with ecological protection standards.
The court emphasized the necessity of adhering to principles of natural justice, ruling that failure to provide a hearing before determining environmental compensation invalidated the original order.
The NGT cannot delegate its core adjudicatory functions to administrative expert committees and must adjudicate on environmental issues within its jurisdiction.
The court recognized that procedural unfairness by the National Green Tribunal can justify the maintainability of a writ petition despite statutory alternative remedies existing.
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