2024 Supreme(Online)(NGT) 3984

NATIONAL GREEN TRIBUNAL NEW DELHI (PRINCIPAL BENCH)
SUDHIR AGARWAL, Judicial Member, AFROZ AHMAD, Expert Member
BALWINDER KAUR – Appellant
Versus
STATE OF PUNJAB – Respondent
ORIGINAL APPLICATION NO. 40/2024 (I.A. NO. 384/2024)

Highway authority held jointly and severally liable with sub-contractors for environmental violations in construction, including excess mining and lack of consents; principal cannot evade responsibility via outsourcing under contract law.

Headnote:(A) National Green Tribunal Act, 2010 - Sections 14, 15 - Environment (Protection) Act, 1986 - EIA Notification, 2006 - Water (Prevention & Control of Pollution) Act, 1974 - Sections 25, 33A - Air (Prevention & Control of Pollution) Act, 1981 - Sections 21, 31A - National Highways Act, 1956 - Sections 2, 4, 5, 8A - Indian Contract Act, 1872 - Sections 182, 191, 192 - Highway construction project - Excess extraction of minor minerals beyond permitted quantity, construction without requisite consents to establish/operate, and mining without environmental clearance - Principal authority responsible for highway development held jointly and severally liable with concessionaires/sub-contractors for environmental violations - Environmental compensation imposed at 1% of project cost (Rs.11 crores) plus compensation computed by Pollution Control Board (Rs.85,87,500/-) for illegal activities - Obligation to obtain statutory clearances within two months, failing which construction to stop - Remediation plan to be prepared by joint committee. (Paras 24-66)

(B) Contract Law - Principal-Agent Relationship - Outsourcing of highway construction through multi-level concession agreements does not absolve principal (highway authority) of liability for environmental violations by sub-contractors - Principal bound by acts of sub-agents under Sections 182, 191, 192; ratification implied by acceptance of work - Joint and several liability applies. (Paras 52-58)

Facts of the case:
Letter petition alleging risk to trees from illegal mining up to 15-20 feet in agricultural land adjacent to forest area for highway construction led to suo motu proceedings - Joint Committee found excess extraction of 10,63,562 cu ft beyond permitted quantity, mining without environmental clearance, and construction without consents under pollution control acts - Penalty of Rs.62,75,016/- paid to mining department; Pollution Control Board revoked consents for ready-mix plant and computed environmental compensation.

Findings of Court:
Violations of environmental laws confirmed; highway authority (principal) and project executors (sub-contractors) held jointly and severally liable - Environmental compensation of Rs.11 crores (1% of project cost) plus Rs.85,87,500/- (existing) and further amount for post-July 2024 violations to be determined - Statutory consents to be obtained within two months; remediation plan by joint committee.

Issues: (I) Whether violations of environmental laws occurred in project execution? (II) Who are liable for penal action and environmental compensation?

Ratio Decidendi: Highway authority bears prime responsibility for project compliance; cannot evade liability by outsourcing - Multi-level sub-contracting creates joint and several liability under contract principles; environmental compensation calculated based on project cost and violation period; strict enforcement of clearances mandatory.

Result: Original Application disposed of with directions for payment of environmental compensation, obtaining clearances, and environmental remediation.

Table of Content
1. suo-moto registration on tree felling risk complaint. (Para 1 , 2 , 3)
2. joint committee confirms excess mining violations. (Para 4 , 5 , 6 , 7 , 8 , 9)
3. pspcb revokes ctos, imposes compensation. (Para 10 , 11 , 12)
4. respondents deny forest damage, shift liability. (Para 13 , 14 , 15 , 16 , 17)
5. framing issues on environmental violations. (Para 18 , 19 , 20 , 21 , 22 , 23)
6. confirmed violations of ec, cte, cto requirements. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33)
7. nhai's prime responsibility for nh development. (Para 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44)
8. nhai empowered to contract, oversee functions. (Para 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52)
9. principal liable for sub-agents' environmental violations. (Para 53 , 54 , 55 , 56 , 57 , 58 , 59)
10. impose ec on nhai, mandate compliances. (Para 60 , 61 , 62 , 63 , 64 , 65 , 66 , 67)

JUDGMENT

BY HON’BLE MR. JUSTICE SUDHIR AGARWAL, JUDICIAL MEMBER

1. On a letter petition dated 06.08.2023 received from Balwinder Kaur, this Original Application (hereinafter referred to as ‘OA’) was registered under Sections 14 and 15 of National Green Tribunal Act, 2010 (hereinafter referred to as ‘NGT Act, 2010’) in exercise of suo-moto jurisdiction in view of law laid down by Supreme Court in Municipal Corporation of Greater Mumbai vs. Ankita Sinha, (2022) 13 SCC 401

2. The complainant raised a grievance of risk of thousands of trees felling due to likelihood of land sliding. It is said that illegal mining is being carried out upto 15 to 20 feet in agricultural land adjacent to Forest Department land where thousands of trees are standing which are facing risk of land sliding on account of illegal mining which may result in tremendous loss to environment. The complaint was supported by the photographs showing deep mining near the land where large number of trees are standing.

3. Tribunal’s Order dated 09.04.2024: Tribunal taking cognizance of complaint, found it appropriate to call for a factual Report by constituting Joint Committee comprising representatives of Punjab State Pollution Control Board (hereinafter referred to as ‘PSPCB’), and District Magistrate, Ropar vide order dated 09.04.2024.

Report dated 20.05.2024 filed by PSPCB:

4. Pursuant to above order, Report dated 20.05.2024 has been filed by Joint Committee through Environmental Engineer, PSPCB. Joint Committee visited the site on 23.04.2024 and found that several violations in respect of mining conducted at site which included mining of much more material than permitted by M/s. Ceigall India Limited, a company employed by National Highway Authority of India (hereinafter referred to as ‘NHAI’) for construction of Jammu-Katra Expressway on part coming in district Rupnagar. Observations of Joint Committee are as under:

“It was observed that the site falls in the revenue estate of Village Pathreri Ranghran with coordinates (Latitude 30.912763 Longitude 76.520868). During visit, the complainant Smt. Balwinder kaur w/o Sh. Gurveer Singh and other farmers/ land owners Sh. Satwant Singh S/o Sh. Dharam Singh and Sh. Jaswant Singh S/o Sh. Dharam Singh village Pathreri Jattan were present. They raised the issue regarding adverse impact of mining onto their land holdings and informed that earth mining upto 15-20ft has been carried out in their adjoining land by M/s Ceigall India i.e. company hired by NHAI for extraction of minor minerals for construction of highway (Copy of the statement of Sh. Satwant Singh, Sh. Jaswant Singh, Sh. Najar Singh, sons of Sh. Dharam Singh, Village Pathreri Jattan has been enclosed as (Annexure-2).The site was jointly inspected by the team and it was observed that the site is surrounded by Forest area (adjoining bhakra canal) on one side, Panchayati Land (Shamlat) on other side and land of private owners/farmers on other two sides. Further, the google image of site is given below:

Google Image omitted On North and West side of the site under complaint, there is private la

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