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2013 Supreme(All) 1764

ALLAHABAD HIGH COURT
BEFORE : VINEET SARAN AND MUSHAFFEY AHMAD, JJ.
NATIONAL CHAMBER OF INDUSTRIES AND COMMERCE U.P. AND OTHERS ….Petitioners
Versus
GAIL (INDIA) LTD. AND OTHERS ….Respondents
(Civil Misc. Writ Petition Nos. 34863, 37099 and 39367 of 2012, decided on 12th July, 2013)

Advocates Appeared:
A.K. Goyal, S.P. Gupta, Yashwant Verma, R.K. Garg, Navin Sinha and Nikhil Agarwal for the Petitioners; A.S.G.I., Madhur Prakash, Shanti Bhushan, Anil Bhushan, R.B. Singhal, Ravi Kant, H.N. Singh, M.N. Singh, Rishabh Agarwal and Sanjay Kumar Om for the Respondents; Sudhir Chandra for the Intervener.

Headnote:Natural Gas—Fixation of price—Considerations—Price hike of natural gas as supplied by GAIL to industrial units falling in Taj Trapezium Zone (TTZ)—Submission of petitoners that they had converted their existing industries running on coke/coal to gas only on directions of Supreme Court and because of the same, since they were offered APM gas, they ought to be supplied APM gas and the supply of UPM gas to the petitioners, which is at a higher price, is wholly justified—Apex Court's direction to switch over to gas as a fuel instead of previous century fuel of coke/coal, is an anti-pollution measure—Petitioners cannot claim monopoly over APM gas for all times and create a class in themselves and continue to have an edge over other similarly situated industries in pricing of its fuel—Utilization of APM allocation is not intended to be made by industries located outside the TTZ—Price of natural APM gas was to be progressively increased to reflect market price—UPM is being implemented with the approval of Government of India—Interferfence with declined with. [Paras 37 to 56]

       

JUDGMENT

Hon’ble Vineet Saran, J.—For running any industry, fuel is the most important component. In the 19th century, the main fuel was coal and coke, which in the 20th century was oil. In the 21st century the main fuel for the industry is, and is likely to continue to be, natural gas.

2. The dispute in the present petitions is primarily with regard to the fixation of price of natural gas, earlier supplied by Gail (India) Ltd. (in short GAIL) and now by Gail Gas Ltd., to the industrial units of Agra and Firozabad falling in the Taj Trapezium Zone (in short TTZ).

3. The history of this litigation stems from a Public Interest Litigation filed by one M.C.Mehta for curtailing the pollution in Agra because emission from the industries of the area was eroding and damaging the grandeur of the Taj Mahal, which is a national monument and is one of the Seven Wonders of the World. The said writ petition (PIL) was filed in the year 1984 and after hearing the parties concerned, as well as seeking reports from the expert committees, namely, Vardharajan Committee and National Environment Engineering Research Institute (NEERI), the Supreme Court, vide its order dated 30.12.1996 passed in M.C.Mehta v. Union of India, AIR 1997 SC 734, gave certain directions to the effect that the polluting industries in TTZ be either closed down, or re-located outside TTZ, or converted to be run by natural gas instead of coal/coke. The directions in this regard have been given in paragraph 29 of the judgment, which are re-produced below :

“29. We order and direct as under :

(1) The industries (292 listed above) shall approach/apply to the GAIL before February 15, 1997 for grant of industrial gas-connection.

(2) The industries which are not in a position to obtain gas connections and also the industries which do not wish to obtain gas connections may approach/apply to the Corporation (UPSIDC)/Government before February 28, 1997 for allotment of alternative plots in the industrial estates outside TTZ.

(3) The GAIL shall take final decision in respect of all the applications for grant of gas connections by March 31, 1997 and communicate the allotment letters to the individual industries.

(4) Those industries which neither apply for gas connection nor for alternative industrial plot shall stop functioning with the aid of coke/coal in the TTZ with effect from April 30, 1997. Supply of coke/coal to these industries shall be stopped forthwith. The District Magistrate and the Superintendent of Police shall have this order complied with.

(5) The GAIL shall commence supply of gas to the industries by June 30, 1997. As soon as the gas supply to an industry commences, the supply of coke/coal to the said industry shall be stopped with immediate effect.

(6) The Corporation/Government shall finally decide and allot alternative plots, before March 31, 1997, to the industries which are seeking relocation.

(7) The relocating industries shall set up their respective units in the new industrial estates out-side TTZ. The relocating industries shall not function and operate in TTZ beyond December 31, 1997. The closure by December 31, 1997 is unconditional and irrespective of the fact whether the new unit outside TTZ is completely set up or not.

(8) The Deputy Commissioner, Agra and the Superintendent (Police), Agra shall effect the closure of all the industries on December 31, 1997 which are to be relocated by the date as directed by us.

(9) The U.P. State Government/Corporation shall render all assistance to the industries in the process of relocation. The allotment of plots, construction of factory buildings, etc., and issuance of any licence/permissions, etc., shall be expedited and granted on priority basis.

(10) In order to facilitate shifting of industries from TTZ, the State Government and all other authorities shall set up unified single agency consisting of all the departments concerned to act as a nodal agency to sort out all the problems of such industries. The single wi



































































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