Case Note & Summary
The petitioner, Baramati Agro Ltd., a company registered under the Companies Act, 1956, is engaged in manufacturing sugar, allied products, and ethanol production, and operates a distillery unit at Shetphalgadhe, Taluka Indapur, District Pune, with a capacity of 600 KLPD. The unit commenced operations in 2007-08 and is the largest ethanol supplier in Maharashtra. The petitioner had obtained environmental clearance (EC) under the Environmental Impact Assessment Notification, 2006, on 20 March 2017, and consent to operate from the Maharashtra Pollution Control Board (the Board), which was renewed from time to time. On 27 September 2023, the Board issued an order under Sections 33-A and 31-A of the Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and Control of Pollution) Act, 1981, directing the petitioner to close down its manufacturing activities at the distillery unit within 72 hours. The petitioner challenged this order by way of a writ petition. The main legal issues were whether the closure order was sustainable in law, particularly when the show cause notice was not served on the petitioner and the petitioner's reply was not considered. The petitioner argued that the Board had not served any show cause notice prior to the closure order and that the order was passed without affording an opportunity of hearing. The Board contended that the show cause notice was sent by email and that the petitioner had replied, but the court found that the notice was not served on the correct email address and that the Board did not consider the petitioner's reply. The court held that the Board violated principles of natural justice by not serving the show cause notice and not considering the petitioner's reply. The court quashed and set aside the closure order, granting liberty to the Board to issue a fresh show cause notice and pass a reasoned order after hearing the petitioner. The court also directed the Board to consider the petitioner's submissions regarding compliance with conditions.
Headnote
A) Environmental Law - Closure Order - Natural Justice - Show Cause Notice - Sections 33-A and 31-A of Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and Control of Pollution) Act, 1981 - The petitioner challenged the closure order of its distillery unit issued by the Maharashtra Pollution Control Board. The court held that the Board failed to serve the show cause notice on the petitioner and did not consider the petitioner's reply, violating principles of natural justice. The closure order was quashed and set aside, with liberty to the Board to issue a fresh notice and pass a reasoned order after hearing the petitioner. (Paras 1-10) B) Environmental Law - Consent to Operate - Environmental Clearance - Validity - The petitioner had obtained environmental clearance and consent to operate from the Board, which were renewed from time to time. The court noted that the Board's order did not address the petitioner's submissions regarding compliance with conditions. (Paras 4-6) C) Administrative Law - Principles of Natural Justice - Right to Hearing - The court emphasized that before passing a drastic order of closure, the Board must afford a reasonable opportunity of hearing to the affected party. Failure to serve the show cause notice and consider the reply renders the order invalid. (Paras 7-10)
Issue of Consideration
Whether the closure order dated 27 September 2023 passed by the Maharashtra Pollution Control Board under Sections 33-A and 31-A of the Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and Control of Pollution) Act, 1981, respectively, is sustainable in law, particularly when the show cause notice was not served on the petitioner and the petitioner's reply was not considered.
Final Decision
The court quashed and set aside the closure order dated 27 September 2023. The Board is at liberty to issue a fresh show cause notice and pass a reasoned order after hearing the petitioner. The petition is disposed of accordingly.
Law Points
- Principles of natural justice
- Show cause notice
- Right to hearing
- Section 33-A Water (Prevention and Control of Pollution) Act
- 1974
- Section 31-A Air (Prevention and Control of Pollution) Act
- 1981
- Closure order
- Environmental clearance
- Consent to operate
- Pollution control board
