Supreme Court Allows Appeals Against NGT Order Directing Closure of Garbage Processing Plant in Pune. The Court Held That the NGT Erred in Not Considering the Limitation Issue and That the Plant Was Established With All Necessary Approvals.

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Case Note & Summary

The Supreme Court heard appeals against the National Green Tribunal's order directing the closure of a Garbage Processing Plant (GPP) operated by Noble Exchange Environment Solution Pune LLP at Baner, Pune, and the recovery of environmental compensation. The appellant, Pune Municipal Corporation, and the concessionaire challenged the order. The Court noted that the land for the GPP was reserved in the Development Plan of 2002, sanctioned in 2008, and the Concession Agreement was entered into in 2015. The plant obtained Environmental Clearance in 2016 and authorization from the Maharashtra Pollution Control Board. The respondent, Sus Road Baner Vikas Manch, filed an Original Application in 2019 seeking closure, which was allowed by the NGT. The Supreme Court found that the NGT failed to consider the limitation issue under Section 16 of the NGT Act, as the OA was filed almost three years after the grant of EC. The Court also held that the NGT's direction to recover environmental compensation was without any finding of violation. The Court set aside the NGT's orders and allowed the appeals, restoring the status quo ante.

Headnote

A) Environmental Law - Limitation - Section 16 of National Green Tribunal Act, 2010 - The NGT failed to consider that the Original Application was filed almost three years after the grant of Environmental Clearance, which is beyond the prescribed limitation period of six months. Held that the OA ought to have been dismissed on the ground of limitation alone (Paras 6, 10).

B) Environmental Law - Doctrine of 'Polluter Pays' - The NGT directed recovery of environmental compensation based on 'polluter pays' principle without establishing any violation of environmental norms by the GPP. Held that the direction was unsustainable as the plant had all necessary approvals and no violation was proved (Paras 10, 11).

C) Town Planning - Reservation of Land - Maharashtra Regional and Town Planning Act, 1966 - The land in question was reserved for a Garbage Processing Plant in the Development Plan since 2002, which was sanctioned in 2008. Residential buildings came up later. Held that the NGT erred in directing the site to be used for a bio-diversity park, as the reservation was for a GPP (Paras 7, 8).

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Issue of Consideration

Whether the National Green Tribunal was justified in directing closure of the Garbage Processing Plant and recovery of environmental compensation without considering the limitation period and the fact that the plant had all necessary approvals.

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Final Decision

The Supreme Court allowed the appeals, set aside the impugned orders of the NGT dated 27th October 2020 and 22nd December 2020, and restored the status quo ante. The Court held that the NGT failed to consider the limitation issue and that the direction for closure and recovery of environmental compensation was unsustainable.

Law Points

  • Limitation under Section 16 of NGT Act
  • 2010
  • Doctrine of 'Polluter Pays'
  • Environmental Clearance
  • Solid Waste Management Rules
  • 2016
  • Maharashtra Regional and Town Planning Act
  • 1966
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Case Details

2024 LawText (SC) (9) 122

Civil Appeal Nos. 258-259 of 2021 and Civil Appeal Nos. 265-266 of 2021

2024-09-20

B.R. Gavai, J.

2024 INSC 682

Shri A.N.S. Nadkarni, Shri K. Parameshwar, Shri Ninad Laud, Shri Rahul Kaushik

Pune Municipal Corporation and Noble Exchange Environment Solution Pune LLP

Sus Road Baner Vikas Manch and Others

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Nature of Litigation

Civil appeals against orders of the National Green Tribunal directing closure of a Garbage Processing Plant and recovery of environmental compensation.

Remedy Sought

The appellants sought setting aside of the NGT orders and permission to continue operation of the GPP.

Filing Reason

The NGT directed closure of the GPP and recovery of environmental compensation, which the appellants challenged as being without jurisdiction and contrary to law.

Previous Decisions

The NGT, by order dated 27th October 2020, directed closure of the GPP and recovery of environmental compensation. The review application was dismissed on 22nd December 2020.

Issues

Whether the Original Application before the NGT was barred by limitation under Section 16 of the NGT Act? Whether the NGT was justified in directing closure of the GPP and recovery of environmental compensation?

Submissions/Arguments

The appellant-Corporation argued that the OA was filed almost three years after the grant of EC, beyond the limitation period of six months under Section 16 of the NGT Act. The appellant-Corporation submitted that the NGT mixed up facts regarding the plot reserved for GPP and the bio-diversity park. The appellant-Corporation contended that the residential buildings came up after the Development Plan was sanctioned, and the plant had all necessary approvals.

Ratio Decidendi

The NGT must consider the limitation period under Section 16 of the NGT Act before entertaining an application. The 'polluter pays' principle cannot be invoked without establishing violation of environmental norms. A plant established with all necessary approvals cannot be directed to be closed without proper justification.

Judgment Excerpts

The OA was filed belatedly almost after a period of three years from the date of grant of EC. As such, the OA ought to be dismissed on the ground of limitation alone. The learned Tribunal had mixed up the facts. Whereas the GPP reservation is in Plot No. 48/2/1 under the Development Plan, the Bio-diversity Park is in Plot No. 49 which is an adjoining plot.

Procedural History

The respondent filed OA No. 34 of 2019 before the NGT, Western Zone, which was transferred to the Principal Bench and numbered as OA No. 210 of 2020. The NGT disposed of the OA on 27th October 2020 directing closure of the GPP. The review application was dismissed on 22nd December 2020. The appellants then filed the present civil appeals under Section 22 of the NGT Act.

Acts & Sections

  • National Green Tribunal Act, 2010: Section 16, Section 22
  • Maharashtra Regional and Town Planning Act, 1966: Section 28
  • Municipal Solid Waste (Management and Handling) Rules, 2000:
  • Solid Waste Management Rules, 2016:
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