Case Note & Summary
The petitioner, Hikal Ltd., a chemical manufacturing company, challenged the orders of the National Green Tribunal (NGT) dated 18th January 2022 and 23rd September 2022. The NGT had taken suo motu cognizance of a newspaper report dated 7th January 2022 about a gas leak in Surat that caused six deaths and twenty illnesses. Without issuing any notice to the petitioner, the NGT constituted a Joint Committee to investigate and later, based on the committee's report, directed the closure of the petitioner's unit and recovery of environmental compensation. The petitioner contended that it was not the source of the gas leak and that the NGT had violated principles of natural justice by not hearing it before passing adverse orders. The Bombay High Court examined the NGT's jurisdiction under the National Green Tribunal Act, 2010, and held that the NGT cannot act solely on a newspaper report without verifying facts and must follow the procedure of issuing notice and hearing the affected party. The Court found that the NGT's orders were in gross violation of natural justice and that the application of the precautionary principle and polluter pays principle required a proper inquiry establishing the causal link. Consequently, the High Court quashed the NGT's orders and remanded the matter back to the NGT for fresh consideration after giving the petitioner an opportunity of hearing.
Headnote
A) Environmental Law - Jurisdiction of NGT - Suo Motu Cognizance - National Green Tribunal Act, 2010, Sections 14, 15, 18, 19 - The NGT took suo motu cognizance of a newspaper report regarding a gas leak incident and constituted a Joint Committee without issuing notice to the alleged polluter. The Court held that the NGT cannot act on a newspaper report without verifying facts and must follow the procedure under the Act, including issuing notice and hearing the affected party before passing any adverse orders (Paras 10-15). B) Natural Justice - Right to Hearing - Principles of Natural Justice - The NGT passed orders directing closure of the petitioner's unit and recovery of compensation without any notice or opportunity of hearing to the petitioner. The Court held that such orders are in gross violation of principles of natural justice and are liable to be set aside (Paras 16-20). C) Environmental Law - Precautionary Principle and Polluter Pays Principle - Application - The NGT applied the precautionary principle and polluter pays principle to direct compensation. The Court held that while these principles are applicable, they cannot be invoked without establishing the causal link between the alleged polluter and the environmental damage through a proper inquiry and after hearing the concerned party (Paras 21-25).
Issue of Consideration
Whether the National Green Tribunal acted within its jurisdiction in taking suo motu cognizance of a newspaper report and issuing directions for closure and compensation without affording the petitioner an opportunity of hearing, and whether such orders are sustainable in law.
Final Decision
The High Court allowed the writ petition, quashed the NGT orders dated 18th January 2022 and 23rd September 2022, and remanded the matter back to the NGT for fresh consideration after giving the petitioner an opportunity of hearing.
Law Points
- Natural justice
- Jurisdiction of NGT
- Suo motu cognizance
- Principles of natural justice
- Procedural fairness
- Environmental compensation
- Precautionary principle
- Polluter pays principle
