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Karnataka High Court

Hikal Limited vs Karnataka State Pollution Control ... on 10 October, 2023

Bench: Chief Justice, Krishna S Dixit

                                              -1-
                                                      NC: 2023:KHC:36748-DB
                                                      WP No. 22120 of 2023



                        IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                          DATED THIS THE 10TH DAY OF OCTOBER, 2023

                                           PRESENT

                   THE HON'BLE MR PRASANNA B. VARALE, CHIEF JUSTICE

                                             AND

                           THE HON'BLE MR JUSTICE KRISHNA S DIXIT

                          WRIT PETITION NO. 22120 OF 2023 (GM-POL)

                   BETWEEN:

                   HIKAL LIMITED.,
                   A COMPANY INCORPORATED UNDER THE
                   COMPANIES ACT, 1956
                   HAVING ITS REGISTERED OFFICE AT
                   717, MAKER CHAMBER-5,
                   NARIMAN POINT, MUMBAI-400 021.
                   AND ITS LOCAL MANUFACTURING
                   UNIT AT: 82/A, KIADB INDL. AREA,
                   JIGANI, ANEAL TALUK,
                   BENGALURU 560 105.

Digitally signed   REPRESENTED BY ITS AUTHORIZED
by SHARADA         REPRESENTATIVE MR. VIDYANAND SHETTY.
VANI B                                                          ...PETITIONER
Location: HIGH     (BY SRI. NIKHILESH RAO M., ADVOCATE)
COURT OF
KARNATAKA
                   AND:

                   1.    KARNATAKA STATE POLLUTION
                         CONTROL BOARD (KSPCB),
                         PARISARA BHAVANA,
                         1ST TO 5TH FLOOR, NO.49,
                         CHURCH STREET,
                         BENGALURU 560 001.
                         REPRESENTED BY ITS MEMBER SECRETARY.
                              -2-
                                      NC: 2023:KHC:36748-DB
                                       WP No. 22120 of 2023



2.   THE ENVIRONMENTAL OFFICER,
     KSPCB REGIONAL OFFICE-ANEKAL,
     2ND FLOOR, NISARGA BHAVAN,
     7TH 'D' CROSS, THIMMAIAH ROAD,
     SANEGORAVANAHALLI, SHIVANAGAR,
     BENGALURU - 560 010.
                                               ...RESPONDENTS
(BY SRI.MAHESH A CHOWDHARI.,ADVOCATE)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO
ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE
WRIT, ORDER OR DIRECTION QUASHING THE IMPUGNED
ORDER BEARING Ref.No:PCB/RO-Anekal/2023-24/531 DATED
12.07.2023 AT ANNEXURE-A ISSUED BY RESPONDENT No.2
(ACTING AS AN OFFICER OF RESPONDENT No.1) AND B) ISSUE
A WRIT OF MANDAMUS OR ANY OTHER APPROPRIATE WRIT,
ORDER OR DIRECTION DIRECTING THE RESPONDENTS AND
THEIR OFFICERS TO REFRAIN FROM TAKING ANY ACTION
PURSUANT TO THE IMPUGNED ORDER AND ETC.,

     THIS PETITION COMING ON FOR PRELIMINARY HEARING,
THIS DAY, CHIEF JUSTICE MADE THE FOLLOWING:

                           ORDER

After hearing the counsel for the petitioner at length, we are of the opinion that the order impugned in the petition dated 12.7.2023 suffers from failure of following the principles of natural justice i.e., audi alteram partem. or The respondent-Karnataka State Pollution Control Board vide order dated 12.7.2023, directed the petitioner to pay a huge sum of Rs.8,31,15,000/- as environmental compensation. It may not be necessary for us to refer to -3- NC: 2023:KHC:36748-DB WP No. 22120 of 2023 certain details in the order to arrive at this amount by certain methodology or formula. It can be stated here that the 2nd respondent in his order dated 12.7.2023 makes a reference to the directions dated 10.7.2019 and 14.11.2019 of National Green Tribunal issued in O.A.No.1038/2018 as reference No.10. Now admittedly, these were the interim directions then it refers to the final order passed by the National Green Tribunal, Principal Bench, New Delhi on 29.8.2022 in the said O.A. As such, the interim directions dated 10.7.2019 and 14.11.2019 can safely be said to have merged in the final order that runs into 219 pages.

2. Very specifically para 212 of the final order directs the authority to follow the principles of natural justice. For ready reference, we quote the same:

"In our view, for assessment/determination of CEPI score with reference to a particular or any other relevant aspect, in our view the principles of natural justice are not attracted since the determination is not by itself for taking any adverse/coercive/pre-judicial action against any individual. The purpose is only to take general, preventive, remedial and precautionary steps in -4- NC: 2023:KHC:36748-DB WP No. 22120 of 2023 the concerned area for reducing damage to environment or to restore damage already caused. Therefore, the arguments raised that the opportunity ought to have been given to individual industries, in our view, is only misconceived. However, it cannot be doubted that if any action is taken against any individual industry or group of industries as a whole by issuing any direction of closure or cancellation of any permission or NOC or clearance or imposition of environmental compensation etc., in such case, the principle of natural justice would have to be complied with, notices have to be issued and after giving opportunity of hearing, appropriate orders would be passed. But this has no application for determination of CEPI score in reference to any particular area or any other specifications."

(Emphasis is ours) It can safely be stated that there is merit in the submission of learned counsel that order dated 12.7.2023 impugned in the petition suffers from the vice of not- following the principles of natural justice.

3. Accordingly, we direct respondent Nos.1 & 2 to treat the order dated 12.7.2023 as a Show Cause Notice issued to the petitioner, who may submit his reply to the same within three weeks, reckoned from 13.10.2023. On receipt of the reply, the 2nd respondent may call upon the -5- NC: 2023:KHC:36748-DB WP No. 22120 of 2023 petitioner for providing additional information/documents, if needed, by issuing necessary communication to the petitioner at least one week in advance. He shall also provide a reasonable opportunity of hearing to the petitioner, and then pass order preferably within two weeks thereafter. Till the final order is passed, no coercive proceedings shall be taken against the petitioner. Needless to state that all contentions are kept open.

With these directions and observations, petition is disposed off.

Sd/-

CHIEF JUSTICE Sd/-

JUDGE cbc List No.: 1 Sl No.: 9