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2023 Supreme(Online)(SC) 13993

J.B. Pardiwala, Sudhanshu Dhulia, JJ
M/s Indian Oil Corporation Limited – Appellant
Versus
V.B.R. Menon & Others – Respondent
CIVIL APPEAL NO. 421 OF 2022|CIVIL APPEAL NO. 494 OF 2022|CIVIL APPEAL NO. 1695 OF 2022|CIVIL APPEAL NO. 2039 OF 2022|CIVIL APPEAL NO. 1758 OF 2022|CIVIL APPEAL NO. 1912 OF 2022



Advocates:
For the Appellants/Petitioners: [Names not specified]
For the Respondents: [Names not specified]

The National Green Tribunal has jurisdiction to issue directions for environmental compliance but cannot impose legislative requirements like Consent to Establish and Consent to Operate on existing petroleum outlets.

Headnote:(A) National Green Tribunal Act, 2010 - Section 22 - Environment (Protection) Act, 1986 - Section 5 - Directions issued by NGT mandating installation of Vapour Recovery Systems at petroleum outlets - Appellant oil marketing companies challenge the necessity of obtaining Consent to Establish (CTE) and Consent to Operate (CTO) for existing and new retail outlets. (Paras 1-11 and 48)

(B) Jurisdiction of NGT - The NGT held it had jurisdiction to direct CPCB for environmental compliance measures, but not to impose legislative requirements via CTE and CTO for already established petrol retail outlets. (Paras 19-49)

Facts of the case:
The appeals arose from directions given by the NGT, Chennai, making installation of Vapour Recovery Systems mandatory at petroleum outlets and requiring CTE and CTO. Appellant companies argue the NGT exceeded its jurisdiction.

Findings of Court:
The court maintained the installation directions but set aside the requirements for CTE and CTO, emphasizing the existing guidelines by CPCB sufficed for regulation.

Issues: The core issue was whether NGT possessed the power to impose legislative-like requirements for petroleum outlets and the necessity of CTE and CTO for environmental protection.

Ratio Decidendi: NGT's power exists to direct CPCB, but it must not enact laws informally; instead, existing guidelines are deemed adequate for environmental management.

Result: Directions for CTE and CTO set aside, compliance with CPCB guidelines emphasized.

Table of Content
1. commonality of challenges in multiple appeals (Para 1 , 2 , 3)
2. details of the original application for vrs installation (Para 4 , 5 , 6)
3. arguments regarding ngt's jurisdiction (Para 9 , 10 , 11 , 12)
4. cpcb's perspective on existing guidelines (Para 14 , 15 , 16 , 17)
5. ngt's jurisdiction discussed in detail (Para 19 , 22 , 23)
6. constitutionality and purpose of cte and cto mentioned (Para 39 , 44 , 46)
7. modification of ngt's original directions and final order (Para 48 , 49)

JUDGEMENT

J.B. PARDIWALA, J. :

    Since the issues raised in all the captioned appeals are the same and the challenge is also to the self same order passed by the National Green Tribunal, Southern Zone, Chennai, (for short, “NGT, Chennai”), those were Digitally signed by Nisha Khulbey Date: 2023.03.14 18:06:58 IST Reason:
    Signature Not Verified taken up for hearing analogously and are being disposed of by this common judgment and order.

2. For the sake of convenience, the Civil Appeal No.

2039 of 2022 is treated as the lead matter.

3. This appeal is filed by an oil marketing company viz.

the Reliance BP Mobility Limited incorporated under the Companies Act, 2013 and is directed against the judgment and order dated 23.12.2021 passed by the NGT, Chennai in the Original Application No. 138 of 2020 (SZ) insofar as the impugned order directs the Central Pollution Control Board (CPCB) as well as the State Pollution Control Boards to issue directions to make it mandatory to obtain Consent to Establish (“CTE”) and the Consent to Operate (“CTO”) for new retail petroleum outlets as well as the existing retail petroleum outlets.

FACTUAL MATRIX:

4. It appears from the materials on record that the respondent No. 2 herein Mr. V.B.R. Menon, a resident of Chennai, filed the Original Application No. 138 of 2020 (SZ) before the NGT, Chennai raising the issue in regard to the non-installation of Vapour Recovery Systems (VRS) in the petroleum outlets by the oil marketing companies (OMCs).

In the Original Application No. 138 of 2020, the applicant (respondent No. 2 herein) prayed for the following reliefs:-

    “Reliefs:
    A. Injunct the respondents 5 to 9 from commissioning and operating any new petroleum retail outlets in Tamil Nadu without installing Vapour Recovery Systems, Stage 1 and 2 in good working condition, pending disposal of this application and B. Pass such further order or orders as may fit proper and necessary in the facts and circumstances of the case Prayer A. Direct the respondent oil marketing companies R- 5 to R-9 to install and operate Vapour Recovery Systems, Stage 1 and 2, in good working condition before opening and commissioning of any new petroleum retail outlets in Tamil Nadu.
    B. Direct the respondent oil marketing companies R- 5 to R-9 to install and operate Vapour Recovery Systems Stage 1 and 2, in all the existing petroleum outlets in Tamil Nadu within a time schedule to be prescribed by this Hon’ble Tribunal for each city, town and rural area situated in Tamil Nadu.
    C. Pass such further order or orders as may be fit proper and necessary in the facts and circumstances of the case and thus render justice.”

5. The basis for filing of the original application as aforesaid before the NGT, Chennai was the order passed by the Principal Bench of the NGT in the Original Application No. 147 of 2016 wherein the Principal Bench of the NGT issued directions to install Stage-I and Stage-II vapour recovery devices (VRD) at all fuel stations, distribution centers, terminals, railway loading/unloading facilities and airports in the National Capital Territory of Delhi. Vide order dated 28.09.2018 passed in the O.A. No. 147 of 2016 by the Principal Bench of the National Green Tribunal, the time line of installation of VRD was extended.

6. The NGT, Chennai adjudicated the O.A. No. 138 of 2020 (SZ) and disposed of the same vide order dated 23.12.2021 by issuing the following directions:- “69. In the result, this application is disposed of as follows:-

    i.




























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