Case Note & Summary
The dispute arose from appeals filed by M/s IL&FS Tamil Nadu Power Company Limited against judgments of the National Green Tribunal concerning the Environment Clearance for a thermal power plant in Tamil Nadu. The appellant had incorporated in 2006 to establish a 3600 MW coal-based plant, obtaining clearance under the EIA Notification, 2006 after public hearing and expert appraisal. Original petitioners, fishermen and their representatives, appealed against the clearance, leading to NGT orders in 2012 and 2014. The NGT initially upheld the clearance but directed a review based on cumulative impact assessment, later quashing a corrigendum that imposed additional conditions. The appellant commenced operations in 2015 under an interim stay from the Supreme Court. The core legal issues involved whether the plant should continue in public interest and the maintainability of appeals against the corrigendum. The appellant argued that closing the plant would harm public interest due to power supply to millions, compliance with conditions, and significant investments, including installation of pollution control systems. The Ministry of Environment emphasized compliance with all conditions. The Court analyzed the operational status since 2015, the plant's role in a power-deficient state, and compliance efforts, concluding that discontinuation was not in public interest. It kept open questions on the necessity of cumulative impact assessment and the maintainability of appeals against the corrigendum. The decision allowed the plant to continue operations subject to strict compliance with all environmental conditions, directing adherence to any outstanding requirements within stipulated timelines.
Headnote
A) Environmental Law - Environment Clearance - Compliance and Public Interest - Environment Impact Assessment Notification, 2006 - The Supreme Court considered whether to allow a thermal power plant to continue operations despite procedural challenges, focusing on public interest and compliance with environmental conditions. The plant had been operational since 2015, supplying power to a large population in an energy-deficient state, and had installed a Flue Gas De-sulfurization system at significant cost. The Court held that closing the plant would not be in public interest, given its operational status and compliance efforts, and permitted continuation subject to strict adherence to all conditions. (Paras 4-6) B) Environmental Law - Appeals and Corrigendum - Maintainability - National Green Tribunal Act, 2010 - The Court addressed the maintainability of an appeal before the National Green Tribunal against a corrigendum issued by the Ministry of Environment, Forest and Climate Change imposing additional conditions to the Environment Clearance. The original petitioners had not challenged the initial judgment upholding the clearance but directed a review, leading to questions about their locus standi. The Court kept this legal question open while disposing of the appeals, allowing the plant to operate. (Paras 7-8)
Issue of Consideration
Whether the thermal power plant should be allowed to continue operations in public interest despite procedural issues and whether the appeal against the corrigendum to the Environment Clearance was maintainable.
Final Decision
The Supreme Court allowed the appeals, permitting the appellant to continue the power plants subject to compliance with all conditions of the Environment Clearance and corrigendum, and kept open questions of law regarding cumulative impact assessment and maintainability of appeals.
Law Points
- Environmental law
- public interest
- compliance with environmental clearances
- maintainability of appeals against corrigendum
- cumulative impact assessment





