MHC quashes NGT order directing industries at Manali to contribute restoring environment

CHENNAI: Holding that the order of the National Green Tribunal (NGT) south zone, directing the companies at Manali complex to contribute one percent from their annual turnover to restore the pollution-affected area, is in violation of principles of natural justice, the Madras High Court (MHC) quashed the NGT's order.

A green bench comprising Justice SS Sundar and Justice N Senthilkumar heard a batch of petitions preferred by various industrial establishments in North Chennai including Chennai Petroleum Corporation Limited, Tamil Nadu Petro Products Limited, and North Chennai Thermal Power Station challenging the NGT's order.

The petitioners contended that the NGT issued the order without any scientific studies, it violates principles of natural justice as none of the industries were given an opportunity before making them shoulder such a huge liability.

The petitioners have claimed that they have installed equipment and devices and infrastructures, to control pollution, to meet the statutory requirements, and in adherence to the directions of the Tamil Nadu Pollution Control Board (TNPCB).

The petitioners also placed the particulars of the devices to control the pollution and satisfy the norms both under the Water and Air Acts by spending a substantial percentage of their project cost. Hence the petitioners sought to quash the order issued by the NGT.

After the perusal of the materials and submissions, the bench quashed the NGT's order and wrote that there cannot be a uniform levy based on turnover, such

a mode of assessment or collection of damages is violative of Article 14.

The individual industry was not given a fair opportunity while fixing their liability, especially in the absence of any material against the individuals for the damage caused by them or about the possible expenditure, read the judgment.

However, the court does not stand in the way of the Tribunal or the law enforcement agencies to fix the liability on petitioners for causing environmental damages if it is permissible in law.

In 2020 NGT South Zone suo motu took up the case alleging uncontrolled pollution at the Manali complex based on a report of the Chennai Climate Action Group.

After hearing all the submissions, in July 2023, the NGT pronounced the final order by directing the industries to create a corpus fund consisting of deposits of minimum percent of annual turnover from all the companies located in the Manali Complex for restoration of the environment.