INTRODUCTION
The appeals are canvassed before this court against orders passed on 29th August and 22nd November 2022, respectively, by the National Green Tribunal, or NGT. The first order imposed a penalty of rupees twenty-five crores based on open insensitivity to environmental laws, whereas the second order dismissed review by the appellant. The appeals give rise to issues of fundamental significance to be judged upon whether the NGT was reasonable while doing so, as well as being questioned on the way it appreciated the evidence and the violation of the core tenets of natural justice involved.
BACKGROUND
The Appellant involved is Benzo Chem Industrial Private Limited, a unit engaged in chemical manufacturing. This Appeal is rooted in the order of the NGT which cited perennial non-compliance with the environmental laws from 2010 to 2020 based on reports from NEERI and MPCB certifying full compliance for this period. According to public documents released by NEGT, it was stated that the organization generates an annual income between ₹100 crores and ₹500 crores from its operational Indian unit. NGT imposed a fine of ₹25 crores on the range of calculated incomes. The procedure for the imposition of penalties was claimed by the appellant to be arbitrary and without any statutory basis.
KEY ASPECTS
Issue raised
Whether the appellant in contravention of environmental regulations, as alleged by the NGT?
Whether the penalty of ₹25 crores under NGT lawful and justified?
Whether the appellant denied a right to be heard, thereby violating the principles of natural justice, prior to the imposition of the penalty?
Petitioners’ Arguments:
Senior counsel, Shri A.N.S. Nadkarni, pleaded for the appellant, contending that the NGT conclusions of non-compliance in the first instance were factually erroneous and based on scant proof. The appellant gave the NGT inspection papers from the National Environmental Engineering Research Institute (NEERI) and from the Maharashtra Pollution Control Board (MPCB), both of which confirmed the fulfillment of environmental laws in the relevant time.
That said, the appellant challenged the manner and method of imposition of the ₹25 crore penalty, claiming that it was arbitrary and based on income predictions valued between ₹100 and ₹500 crores. Since, according to the appellant, revenue has no causative nexus with the alleged environmental harm, this penalty may not be commensurate and, therefore, lacks a valid legal basis.
It was further highlighted by the appellant that the awarding of the penalty was in violation of the principles of natural justice on account of it being applied without pre-notice or the opportunity of reply. That procedural flaw had rendered the levy of the penalty illegal, the appellant insisted.
Supreme Court Decisions:
NGT orders were set aside by the Supreme Court because, in its opinion, they were unfounded and breached the principle of natural justice. It contended that the penalty of 25 crore was arbitrary and capricious, without any legitimate basis, supported by inspection records that showed a clean chit at least to the appellant. The court accepted the appeals and resolved all pending petitions, reiterating the principles of fairness, proportionality, and due process in environmental matters.
CONCLUSION
This case shows that there is a need for regulatory frameworks for keeping in mind basic principles of natural justice, evidence-based decision-making, and proportionality in environmental hearings. Other than that, this is a case with far-reaching implications regarding environmental accountability-viz-stakeholder rights-and sets a precedent for fair and lawful governance with respect to environmental matters.
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WRITTEN BY MADHAV SAXENA
