Case Note & Summary
The Supreme Court considered appeals against a Delhi High Court judgment that set aside the Central Government's allocation of imported raw pet-coke (RPC). The background involved environmental concerns over the harmful effects of pet-coke, which contains sulphur and particulate matter. The Director General of Foreign Trade (DGFT) had determined criteria for allocation, and the Ministry of Environment, Forest and Climate Change (MoEF) decided to restrict import of pet-coke to industries using it as feedstock or in manufacturing, not as fuel. This was pursuant to orders in the M.C. Mehta case. The Environment Pollution (Prevention and Control) Authority (EPCA) filed a report recommending total import requirement of 1.4 million tonnes per annum. Sanvira Industries, a calciner, wrote to EPCA about its production capacity of 2,00,000 MT. The High Court interfered with the allocation, leading to the appeals. The Supreme Court held that the High Court erred in setting aside the allocation as the policy was based on expert recommendations and was not arbitrary. The court restored the allocation, emphasizing that policy decisions on environmental matters should be left to experts unless patently unreasonable. The appeals were allowed, and the High Court's order was set aside.
Headnote
A) Environmental Law - Allocation of Imported Raw Pet-Coke - Judicial Review of Policy Decisions - The court considered whether the High Court could interfere with the Central Government's allocation of RPC based on EPCA recommendations and production capacity - Held that the High Court erred in setting aside the allocation as the policy was based on expert recommendations and was not arbitrary or irrational (Paras 1-10). B) Administrative Law - Delegated Legislation - Allocation Criteria - The DGFT and Central Government determined criteria for allocation of imported RPC, restricting use to feedstock or manufacturing process, not as fuel - Held that such criteria were valid and within the government's policy-making discretion (Paras 3-5). C) Environmental Law - Role of EPCA - Recommendations for Import Restriction - EPCA recommended total import requirement of 1.4 million tonnes per annum based on industry needs - Held that the court should defer to such expert recommendations unless they are patently unreasonable (Paras 5-7).
Issue of Consideration
Whether the Delhi High Court was justified in setting aside the Central Government's allocation of imported raw pet-coke (RPC) among various entities, and whether the allocation criteria based on production capacity and EPCA recommendations were valid.
Final Decision
The Supreme Court allowed the appeals, set aside the Delhi High Court's judgment, and restored the allocation of raw pet-coke as per the Central Government's decision.
Law Points
- Allocation of imported raw pet-coke
- Environmental regulation
- Policy decision
- Judicial review
- EPCA recommendations
- Production capacity
- Feedstock vs fuel use
