Supreme Court Modifies Environmental Compensation Directions in Delhi Sewage Case — Directs Levy of Sewerage Charges. The Tribunal's earlier direction to collect environmental compensation through electricity bills was set aside in favor of implementing sewerage charges as per the Tribunal's later order.

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Case Note & Summary

The dispute arose from Original Application No.6 of 2012 filed by Respondent No.1 under the National Green Tribunal Act, 2010, concerning encroachment and pollution in the river Yamuna. The Tribunal addressed issues related to the pollution of drains and the river, leading to the issuance of several directions on 13.01.2015, including the imposition of environmental compensation on households in Delhi. The Appellant, an electricity distribution licensee, challenged the Tribunal's order dated 08.05.2015, which mandated the collection of this compensation through electricity bills. The Delhi Electricity Regulatory Commission (DERC) argued that such costs should not be passed on to consumers, citing the Electricity Act, 2003 and the Delhi Electricity Reforms Act, 2000. The Supreme Court noted that the Tribunal's directions from 11.09.2019 regarding the introduction of sewerage charges had not been implemented due to the interim order. The Court decided to uphold the Tribunal's later order, modifying the earlier direction on environmental compensation collection. The Court mandated that the Government of NCT of Delhi implement the sewerage charges within two months, thereby disposing of the appeals.

Headnote

A) Environmental Law - Environmental Compensation - Collection of Environmental Compensation - National Green Tribunal Act, 2010, Sections 14, 15, 18 - The Tribunal directed the collection of environmental compensation from households in Delhi, which was to be added to electricity bills. The Supreme Court modified this direction, stating that the levy of sewerage charges should be implemented instead, ensuring compliance with the Tribunal's order within two months. Held that the previous direction regarding environmental compensation collection through electricity bills was no longer applicable (Paras 8-9).

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Issue of Consideration

Whether the directions issued by the Tribunal regarding environmental compensation and its collection through electricity bills were valid.

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Final Decision

The Supreme Court modified the Tribunal's direction regarding environmental compensation collection through electricity bills and directed the implementation of sewerage charges within two months.

Law Points

  • Environmental compensation
  • Polluters Pay Principle
  • National Green Tribunal Act
  • 2010
  • Electricity Act
  • 2003
  • Delhi Electricity Reforms Act
  • 2000
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Case Details

2019 LawText (SC) (10) 102

Civil Appeal Nos.9276-9290 of 2015

2019-10-24

L. Nageswara Rao, Hemant Gupta

Tata Power Delhi Distribution Ltd.

Manoj Misra and Ors.

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Nature of Litigation

Environmental dispute regarding pollution and encroachment in river Yamuna.

Remedy Sought

Appellant sought to challenge the Tribunal's direction on environmental compensation collection.

Filing Reason

Respondent filed applications regarding pollution and encroachment issues.

Previous Decisions

Tribunal issued directions on 13.01.2015 and 08.05.2015 regarding environmental compensation.

Issues

Validity of Tribunal's directions on environmental compensation Implementation of sewerage charges

Submissions/Arguments

Appellant argued against the collection of environmental compensation through electricity bills. DERC stated that additional tariff burden on consumers was contrary to the Electricity Act.

Ratio Decidendi

The Court held that the collection of environmental compensation through electricity bills was not valid and directed the implementation of sewerage charges as per the Tribunal's later order.

Judgment Excerpts

The cost of the project is 3659 crores which includes establishing of new STP’s. We direct NCT of Delhi, Delhi Jal Board and all Municipal Corporations to require payment of environmental compensation.

Procedural History

Respondent filed Original Applications in 2012, Tribunal issued directions in 2015, Appellant filed appeal against the Tribunal's order in 2015, and the Supreme Court reviewed the case in 2019.

Acts & Sections

  • National Green Tribunal Act, 2010: 14, 15, 18
  • Electricity Act, 2003:
  • Delhi Electricity Reforms Act, 2000:
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