Case Note & Summary
The case involved an application by the Gas Authority of India Limited (GAIL) seeking reliefs related to the supply of natural gas to industries in Agra. The Supreme Court had previously directed GAIL to commence gas supply to specified industries by June 1997, with a target for completion by December 1998. However, by the end of 1998, only 115 out of 168 consumers had contacted GAIL for gas supply, with significant non-compliance from 79 cupola based iron foundries. The court noted that these industries were awaiting technology from the National Metallurgical Laboratory (NML) for conversion to natural gas, which was still under development. The court issued notices to these industries to explain their non-compliance and considered the environmental implications of continued coal/coke usage. The court found that the delay in conversion posed a grave concern for air quality in the Taj Trapezium area. Ultimately, the court mandated the closure of non-compliant industries and set a deadline for compliance, emphasizing the urgency of addressing pollution. The court also addressed issues related to Zones II and III, directing the Union of India to examine expert reports regarding the laying of gas pipelines. The decision underscored the balance between industrial operations and environmental protection.
Headnote
A) Environmental Law - Industrial Compliance - Closure of Non-Compliant Industries - Supreme Court of India, 1999, Clause 5 of the order dated 30.12.1996 - The court directed the closure of industries that failed to convert to natural gas as per earlier orders, emphasizing the need to address environmental pollution in the Taj Trapezium area. The court held that the delay in conversion posed a significant risk to the environment and mandated compliance with the gas supply directives (Paras 1-6).
Issue of Consideration
Whether the cupola based industries should be allowed to continue operating without converting to natural gas and the implications of their non-compliance.
Final Decision
The court directed the closure of 53 non-compliant iron foundries immediately and mandated that 29 non-cupola industries must accept gas supply by 15.09.1999 or face closure. For the 78 cupola based industries, the court enforced compliance with the gas supply directive effective from 15.09.1999, allowing temporary closure until they could convert to natural gas.
Law Points
- Natural gas supply
- industrial compliance
- environmental protection
- court directives
- industrial closure


