Supreme Court Refuses to Stay NGT Order Quashing Licenses for New Wood-Based Industries in Uttar Pradesh — Precautionary Principle Requires Data on Timber Availability Before Granting Permissions. The Court held that prima facie the State must collect credible data on timber availability before permitting new wood-based industries, and the NGT's order quashing the notice dated 01.03.2019 and provisional licenses was not stayed.

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Case Note & Summary

The State of Uttar Pradesh proposed to grant licenses to 1350 new wood-based industries via a notice dated 01.03.2019. This was challenged before the National Green Tribunal (NGT) by Samvit Foundation, Uday Education and Welfare Trust, and U.P. Timber Association. The NGT initially directed status quo on 01.10.2019 and later, on 18.02.2020, quashed the notice and all provisional licenses, holding that the State lacked credible data on timber availability and that establishing new industries would lead to illegal timber procurement. The NGT applied the precautionary principle and directed the State to conduct a district-wise, species-wise inventory before any decision. The State of Uttar Pradesh and provisional license holders appealed to the Supreme Court. During interim hearing, the State argued that timber was available in excess and that the decision was based on expert opinions and would generate employment and revenue. However, upon perusal of the State Level Committee minutes, the Supreme Court noted that the Committee initially decided to obtain a report from IPIRTI, Bengaluru on timber consumption, but later reversed that decision without any fresh study. The Supreme Court refused to stay the NGT's order, holding that prima facie data collection is necessary before permitting new wood-based industries. The Court directed that the appeals be listed for final hearing and that the interim order would continue until then.

Headnote

A) Environmental Law - Precautionary Principle - Timber Availability Assessment - National Green Tribunal Act, 2010, Section 20 - The Tribunal quashed the State's notice for new wood-based industries due to lack of credible data on timber availability, applying the precautionary principle. The Supreme Court, while not finally deciding the appeal, refused to stay the Tribunal's order, holding that prima facie data collection is necessary before permitting new industries (Paras 1-12).

B) Administrative Law - State Level Committee - Inconsistent Decisions - Wood Based Industries (Establishment and Regulation) Guidelines, 2016 - The State Level Committee initially decided to obtain a report from IPIRTI, Bengaluru on timber consumption, but later reversed its decision without any fresh study. The Supreme Court noted this inconsistency and expressed prima facie agreement with the Tribunal that proper assessment is required (Paras 8-12).

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Issue of Consideration

Whether the National Green Tribunal was correct in quashing the State of Uttar Pradesh's notice dated 01.03.2019 for granting licenses to 1350 new wood-based industries on the ground of insufficient data on timber availability, and whether interim relief should be granted pending final hearing.

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Final Decision

The Supreme Court refused to stay the NGT's judgment and orders, holding that prima facie data collection is necessary before permitting new wood-based industries. The Court directed that the appeals be listed for final hearing and that the interim order would continue until then.

Law Points

  • Precautionary principle
  • Environmental law
  • Timber availability assessment
  • Wood-based industries regulation
  • State Level Committee decisions
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Case Details

2022 LawText (SC) (4) 35

Civil Appeal No(s). 2407-2412 of 2021 and connected matters

2022-04-22

The State of Uttar Pradesh & Ors.

Uday Education and Welfare Trust & Anr.

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Nature of Litigation

Civil appeals against the judgment of the National Green Tribunal quashing the State of Uttar Pradesh's notice for granting licenses to new wood-based industries.

Remedy Sought

The appellants (State of Uttar Pradesh and provisional license holders) sought stay of the NGT's judgment and permission for the new wood-based industries to operate pending final hearing.

Filing Reason

The NGT quashed the notice dated 01.03.2019 for establishing new wood-based industries and all provisional licenses, citing lack of data on timber availability and applying the precautionary principle.

Previous Decisions

The NGT on 18.02.2020 quashed the notice and provisional licenses; review applications were dismissed on 02.12.2020 and 21.12.2020.

Issues

Whether the NGT was correct in quashing the notice for new wood-based industries due to insufficient data on timber availability. Whether interim relief should be granted to allow the new industries to operate pending final hearing.

Submissions/Arguments

Appellants argued that timber is available in excess in Uttar Pradesh, the decision was based on expert opinions, and the new industries would generate revenue and employment. Respondents argued that the State lacked credible data and that new industries would lead to illegal timber procurement.

Ratio Decidendi

The precautionary principle requires the State to collect credible data on timber availability before permitting new wood-based industries; the NGT's order quashing the notice and provisional licenses was not stayed as prima facie the State's decision was not based on adequate assessment.

Judgment Excerpts

Prima facie, we are in agreement with the Tribunal that data has to be collected by the State before permitting new wood-based industries. The decision taken by the State Level Committee on 04.05.2018 to grant permission for new wood-based industries only after getting a report from IPIRTI, Bengaluru... was given a go bye in the resolution dated 07.09.2018.

Procedural History

The State of Uttar Pradesh issued a notice on 01.03.2019 for granting licenses to 1350 new wood-based industries. This was challenged before the NGT, which on 28.03.2019 directed a joint committee to submit a report. On 01.10.2019, the NGT directed status quo. On 18.02.2020, the NGT quashed the notice and provisional licenses. Review applications were dismissed on 02.12.2020 and 21.12.2020. The State and provisional license holders appealed to the Supreme Court, which heard interim relief arguments and refused to stay the NGT's order.

Acts & Sections

  • National Green Tribunal Act, 2010: Section 20
  • Wood Based Industries (Establishment and Regulation) Guidelines, 2016:
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