Supreme Court Allows Appeals Against NGT Orders in Sterlite Copper Plant Closure Case — Upholds Maintainability of Composite Appeal Under NGT Act. The Court held that a composite appeal under Section 16 of the NGT Act is maintainable and that closure orders without natural justice are invalid.

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Case Note & Summary

The Supreme Court disposed of a batch of appeals arising from orders of the National Green Tribunal (NGT) concerning the closure of a copper smelter plant operated by Sterlite Industries (India) Ltd. (now Vedanta Ltd.) at Thoothukudi, Tamil Nadu. The Tamil Nadu Pollution Control Board (TNPCB) had issued closure orders under the Air Act and Water Act, and the State Government issued a direction under Section 18(1)(b) of the Water Act for permanent closure. The NGT set aside these orders, leading to appeals by the TNPCB and others. The Supreme Court examined the maintainability of a composite appeal before the NGT and held that the NGT has jurisdiction to entertain a single appeal challenging multiple orders under different environmental statutes. On merits, the Court found that the closure orders were passed without complying with principles of natural justice, as no notice or opportunity of hearing was given to the company. The Court also noted that the grounds cited were not sufficiently grave to justify permanent closure. The Court allowed the appeals in part, setting aside the NGT's order on maintainability but upholding its decision on merits, and directed that the matter be remanded to the appellate authority under the Water Act for fresh consideration after giving the company a hearing.

Headnote

A) Environmental Law - Maintainability of Composite Appeal - Section 16 of National Green Tribunal Act, 2010 - A composite appeal challenging multiple orders under different environmental statutes is maintainable before the NGT as the Tribunal has jurisdiction over all environmental matters - Held that the NGT correctly rejected the preliminary objection regarding maintainability (Paras 10-15).

B) Environmental Law - Permanent Closure of Industrial Unit - Section 18(1)(b) of Water (Prevention and Control of Pollution) Act, 1974 - Government order directing permanent closure must comply with principles of natural justice and cannot be based on vague allegations - Held that the impugned orders were unsustainable as they were passed without notice or opportunity of hearing (Paras 16-20).

C) Environmental Law - Validity of Closure Orders - Sections 31A of Air Act, 1981 and 33A of Water Act, 1974 - Closure orders must be proportionate and based on specific findings of violation - Held that the grounds mentioned in the orders were not grievous enough to justify permanent closure (Paras 21-25).

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Issue of Consideration

Whether a composite appeal challenging multiple orders under different enactments is maintainable before the National Green Tribunal under Section 16 of the NGT Act, 2010, and whether the impugned closure orders were valid.

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Final Decision

The Supreme Court allowed the appeals in part, holding that the composite appeal was maintainable before the NGT, but upheld the NGT's decision on merits that the closure orders were invalid for violating natural justice. The matter was remanded to the appellate authority under the Water Act for fresh consideration after hearing the company.

Law Points

  • Maintainability of composite appeal under Section 16 of NGT Act
  • 2010
  • Principles of natural justice
  • Scope of Section 18(1)(b) of Water Act
  • 1974
  • Validity of permanent closure orders
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Case Details

2019 LawText (SC) (2) 77

Civil Appeal Nos.4763-4764 of 2013

2019-02-18

R.F. Nariman, J.

Tamil Nadu Pollution Control Board

Sterlite Industries (I) Ltd. & Ors.

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Nature of Litigation

Civil appeals against orders of the National Green Tribunal regarding closure of a copper smelter plant.

Remedy Sought

The appellant (TNPCB) sought to set aside the NGT orders that stayed and set aside closure orders, and the respondent sought to uphold the NGT orders.

Filing Reason

The TNPCB and State Government issued closure orders against Sterlite Industries for alleged pollution violations; the company challenged these before the NGT.

Previous Decisions

The NGT on 31.05.2013 stayed the closure order, on 08.08.2013 set aside the closure order, and on 15.12.2018 set aside the subsequent closure orders including the Government's permanent closure direction.

Issues

Whether a composite appeal under Section 16 of the NGT Act is maintainable when challenging orders under different enactments. Whether the closure orders were valid and complied with principles of natural justice.

Submissions/Arguments

The appellant argued that the appeal before the NGT was not maintainable as the proper remedy was to file separate appeals under the respective Acts. The respondent argued that the NGT has jurisdiction over all environmental matters and a composite appeal is maintainable.

Ratio Decidendi

A composite appeal under Section 16 of the NGT Act is maintainable as the Tribunal has jurisdiction over all environmental matters. Closure orders must comply with principles of natural justice and be proportionate to the violations alleged.

Judgment Excerpts

The impugned orders cannot be sustained as it is against the principles of natural justice. No notice or opportunity of hearing was given to the appellant. The grounds mentioned in the impugned orders are not that grievous to justify permanent closure of the factory.

Procedural History

The TNPCB issued closure orders on 29.03.2013, stayed by NGT on 31.05.2013. NGT set aside closure on 08.08.2013. TNPCB filed appeals. Further closure orders in 2018 led to composite appeal before NGT, which set them aside on 15.12.2018. Appeals filed in Supreme Court.

Acts & Sections

  • Air (Prevention and Control of Pollution) Act, 1981: 31A
  • Water (Prevention and Control of Pollution) Act, 1974: 18(1)(b), 28, 33A
  • National Green Tribunal Act, 2010: 16
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