Supreme Court Sets Aside NGT Order in Environmental Clearance Appeal Due to Failure to Independently Appraise Substantive Grounds. NGT's Delegation of Adjudicatory Function to Expert Committee Held Impermissible Under National Green Tribunal Act, 2010, Requiring Fresh Disposal.

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Case Note & Summary

The appeal arose from a judgment of the National Green Tribunal dated 8 June 2021 concerning environmental clearance granted on 5 January 2021 for expanding a refinery capacity in Gujarat. The appellant challenged the clearance before the NGT, arguing that the expansion would adversely impact the marine environment, including mangroves and marine biology. The NGT noted submissions from the project proponent about compliance with conditions and mitigation measures, and without independently appraising the substantive grounds, it declined to interfere but directed safeguards and constituted a three-member committee. The Supreme Court, in its civil appellate jurisdiction, considered whether the NGT properly exercised its appellate power under Section 16 of the National Green Tribunal Act, 2010. The appellant contended that the NGT failed to address the environmental hazards, while the respondent argued about procedural issues with the EIA document. The Court analyzed that the NGT's appellate duty requires independent appraisal of challenges, not mere reliance on statements. It held that the NGT did not conduct such appraisal and improperly delegated its adjudicatory function to a committee, which is impermissible as the NGT, as an expert adjudicatory authority, must itself decide. Accordingly, the Court allowed the appeal, set aside the NGT order, and restored the matter to the NGT for fresh disposal, keeping all rights and contentions open.

Headnote

A) Environmental Law - National Green Tribunal Jurisdiction - Appellate Power Under Section 16 National Green Tribunal Act, 2010 - The Supreme Court examined the NGT's appellate jurisdiction under Section 16(h) regarding environmental clearance challenges - Held that the NGT failed to apply its mind to substantive grounds about marine environment impact and merely relied on project proponent's statement, thus not discharging its adjudicatory duty (Paras 5-7).

B) Environmental Law - Tribunal Procedure - Delegation of Adjudicatory Function - Constitution of Expert Committee - The Court addressed whether NGT can delegate its adjudicatory function to expert committees - Held that constitution of expert committee does not absolve NGT of its duty to adjudicate, as the adjudicatory function cannot be assigned to committees even if expert, and the decision must be that of the NGT itself (Para 8).

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Issue of Consideration

Whether the National Green Tribunal erred in not independently appraising the substantive grounds of challenge to the environmental clearance for refinery expansion and delegating its adjudicatory function to an expert committee

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Final Decision

Appeal allowed, impugned order dated 8 June 2021 set aside, Appeal No 5/2021(WZ) restored to NGT for disposal afresh, all rights and contentions kept open

Law Points

  • Appellate jurisdiction of National Green Tribunal under Section 16 of National Green Tribunal Act
  • 2010
  • Adjudicatory function of NGT cannot be delegated to expert committees
  • NGT must independently appraise substantive grounds of challenge in environmental clearance matters
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Case Details

2021 LawText (SC) (8) 34

Civil Appeal No 4543 of 2021

2021-08-31

Dr Dhananjaya Y Chandrachud, M R Shah, Hima Kohli

Mr. Purvish Jitendra Malkan, Ms. Dharita P Malkan, Ms. Deepa Gorasia, Mr. Alok Kumar, Ms. Nandini Chhabra, Ms. Bhavna Sarkar, Ms. Khushboo Vinodray Malkan, AOR for Appellant(s); Mr. Dhruv Mehta, Sr. Adv., Mr. Somiran Sharma, AOR for Respondent(s)

Sanghar Zuber Ismail

Ministry of Environment, Forests and Climate Change and Another

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Nature of Litigation

Civil appeal against NGT judgment regarding environmental clearance for refinery expansion

Remedy Sought

Appellant sought setting aside of NGT order and fresh disposal by NGT

Filing Reason

Challenge to environmental clearance granted for expansion of refinery capacity due to alleged adverse impact on marine environment

Previous Decisions

NGT judgment dated 8 June 2021 dismissed appeal, directed safeguards and constituted committee; environmental clearance granted on 5 January 2021

Issues

Whether the NGT erred in not independently appraising the substantive grounds of challenge to the environmental clearance Whether the NGT can delegate its adjudicatory function to an expert committee

Submissions/Arguments

Appellant challenged expansion as likely to cause adverse impact on marine environment Respondent submitted that EC conditions would be complied with and mitigation measures taken Respondent argued appellant did not produce correct EIA before NGT

Ratio Decidendi

NGT must independently appraise substantive grounds of challenge in environmental clearance matters under its appellate jurisdiction; adjudicatory function of NGT cannot be delegated to expert committees as the decision must be that of the NGT itself

Judgment Excerpts

The NGT has merely based its conclusion on the statement which has been made by the project proponent and has not conducted an independent appraisal of the grounds of challenge Constitution of an expert committee does not absolve the NGT of its duty to adjudicate The adjudicatory function of the NGT cannot be assigned to committees, even expert committees

Procedural History

Environmental clearance granted on 5 January 2021; NGT appeal dismissed on 8 June 2021; Supreme Court appeal filed and heard on 31 August 2021; appeal allowed and matter remanded to NGT

Acts & Sections

  • National Green Tribunal Act, 2010: Section 16, Section 16(h)
  • Environment (Protection) Act, 1986:
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