Breach Of Natural Justice Principles: Karnataka HC Sets Aside NGT Order Imposing ₹2.9 Cr On Army’s Madras Engineering Group

The Karnataka High Court set aside the Order passed by the National Green Tribunal (NGT) imposing environment compensation of Rs. 2,94,60,000/- on the Madras Engineering Group of the Indian Army.

The Court was deciding a Writ Petition seeking quashing of the NGT’s Order by holding it to be illegal, arbitrary, and contrary to the Principle of Natural Justice.

A Division Bench comprising Chief Justice N.V. Anjaria and Justice K.V. Aravind observed, “The setting aside of the order and the finding imposing the environment compensation on the appellant are on the sole ground that they are passed without affording of opportunity of hearing to the appellant and thus in breach of principles of natural justice.”

Additional Solicitor General (ASG) K. Arvind Kamath and Central Government Standing Counsel (CGSC) B. Pramod represented the Petitioners while AGA Niloufer Akbar and Advocate A. Mahesh Chowdary represented the Respondents.

Brief Facts -

The Union of India along with its two limbs namely M/s. Madras Engineering Group and Centre and M/s. Garrison Engineers (North) Bangalore which are under the Ministry of Defence, filed the Petition. The Madras Engineering Group was a category-B Training establishment, having designed capacity to train 2,700 Agniveers and 1,500 Soldiers. The Centre had authorized 51 Officers, 267 Junior Commissioned Officers, and 1,093 other Ranks. They along with the soldier-trainees underwent regular training. About 5,000 employees and trainees stayed within the campus with their family. Garrison Engineers provided accommodation complexes.

Invoking the jurisdiction of the High Court under Article 226 of the Constitution, the Petitioners challenged the Order of National Green Tribunal, Southern Zone, Chennai passed in Original Application which was a suo motu proceedings, based on the news item published in ‘The Hindu’ daily in 2016 titled as “Lake in the heart of Bengaluru City turns graveyard for fish”. An Interim Order was passed by NGT whereby it imposed environment compensation of Rs. 2,94,60,000/- on Madras Engineering Group on the ground of non-compliance of the discharge standards in 100 KLD STP.

The High Court in view of the above facts, noted, “… this Court is inclined to exercise powers under Article 226 of the Constitution in limited context and in respect of specific area which is non compliance of principles of natural justice, in as much as the order against the petitioners came to be passed by the NGT imposing the liability of payment of environment compensation without affording hearing to the petitioners.”

The Court added that the NGT passed Interim Order and then confirmed the finding against the Petitioners to confirm the liability even when the NGT had no version available from the Petitioners, which could have been raised in defence.

“Order dated 20th May 2022 passed by the National Green Tribunal Special Bench in Original Application No.64 of 2015 is set aside in so far as and to the extent that it records a finding that the M/s. Madras Engineering Group and Centre-the appellant herein has contributed to pollution”, it ordered.

The Court, however, clarified that the Petitioners shall be obliged to deposit amount of Rs. 1 Crore with the Karnataka State Pollution Control Board.

Accordingly, the High Court partly allowed the Petition and remitted matter back to the NGT to reconsider and decide afresh the question of imposition or otherwise of the environment compensation.

Cause Title- The Union of India & Ors. v. Government of Karnataka & Ors. (Neutral Citation: 2024:KHC:48449-DB)

Appearance:

Petitioners: ASGI K. Aravind Kamath and CGSC B. Pramod.

Respondents: AGA Niloufer Akbar, Advocates Krishika Vaishnav, A. Mahesh Chowdary, and Kiran B.S.

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