Karnataka High Court
A K Steel Industry vs The Karnataka State Pollution Control ... on 5 November, 2024
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WP No. 5865 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 5TH DAY OF NOVEMBER, 2024
PRESENT
THE HON'BLE MR. N. V. ANJARIA, CHIEF JUSTICE
AND
THE HON'BLE MR. JUSTICE K. V. ARAVIND
WRIT PETITION No. 5865 OF 2024 (GM-POL)
BETWEEN:
1. A. K. STEEL INDUSTRY,
SY No.136/2,
JIGANI INDUSTRIAL AREA,
NEAR INDIAN OVERSEAS BANK,
MADAPATNA, JIGANI HOBLI,
ANEKAL TALUK,
BENGALURU-560015.
REPRESENTED BY ITS
AUTHORISED PERSON,
MR. AMULYA CHANDRA ROUT,
...PETITIONER
Digitally signed (BY SRI SHIVARAJ N ARALI, ADVOCATE)
by VALLI
MARIMUTHU AND:
Location: High
Court of 1. THE KARNATAKA STATE POLLUTION
Karnataka
CONTROL BOARD,
PARISARA BHAVANA,
1ST TO 5TH FLOOR,
No.49, CHURCH STREET,
BENGALURU-560001
REPRESENTED BY ITS
MEMBER SECRETARY.
2. THE ENVIRONMENTAL OFFICER,
KSPCB REGIONAL OFFICE-ANEKAL,
NISARGA BHAVAN,
THIMMAIAH ROAD, 7TH D MAIN,
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WP No. 5865 of 2024
SHIVANAGAR,
BENGALURU-560058.
...RESPONDENTS
(BY SRI A. MAHESH CHOWDHARY, ADVOCATE)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARING
ANNEXURE-A, ORDER/DEMAND NOTICE BEARING No. PCB/RO-
ANEKAL/2023-24/509, DATED 12.07.2023 PASSED BY THE 2ND
RESPONDENT, IMPOSING AND DIRECTING THE PETITIONER TO
PAY ENVIRONMENT COMPENSATION OF Rs. 14,40,000/- (RUPEES
FOURTEEN LAKHS FOURTY THOUSAND ONLY) AS WITHOUT
AUTHORITY OF LAW, AS SUCH ILLEGAL AND ULTRA VIRES TO
THE PROVISIONS OF WATER (PREVENTION OF POLLUTION) ACT,
1974 AND OTHER ENVIRONMENTAL LAWS.
THIS WRIT PETITION COMING ON FOR PRELIMINARY
HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE THE CHIEF JUSTICE MR. JUSTICE
N. V. ANJARIA
and
HON'BLE MR JUSTICE K. V. ARAVIND
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE K. V. ARAVIND) Heard learned advocate Mr. Shivaraj N. Arali for the petitioner and learned advocate Mahesh A. Chowdhary for the respondents.
2. The instant petition challenging the order/demand notice dated 12.07.2023 issued by respondent No.2 imposing environment compensation.
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3. The case of the petitioner is that, it is carrying on business in production of CHQ wires. It is pleaded that the manufacturing unit has complied with the requirement of Water (Prevention and Control of Pollution) Act, 1974 (for short 'the Water Act') and other statutory requirements. It is stated that the petitioner was visited with notice dated 08.08.2022 by the respondent-authorities directing not to discharge trade effluent outside the industry. The notice was suitably replied on 26.09.2022. Respondent No.2 issued directions to close the industry by order dated 07.10.2022. The petitioner submitted letter dated 19.10.2022 with proofs indicating that the industry has not discharged any waste water/effluent in to the storm water drain as alleged in the notice. The respondents by order dated 31.12.2022 withdrew the closure order after satisfying that the industry has stopped discharging effluents outside the industrial premises.
4. It is further stated that the petitioner has regularly applied for consent under different enactments in connection with the Water Act and the (Prevention and Control of Pollution) Act, 1981. The consent for operation was issued after the spot inspection. -4-
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5. It is further case of the petitioner that the impugned demand towards environment compensation is merely based on the order passed by the National Green Tribunal in O.A. No.1038 of 2018. The petitioner was not provided with any notice or opportunity to explain its case.
6. Learned advocate Mr. Shivaraj N.Arali for the petitioner submits that the impugned demand is without application of mind. The levy towards environment compensation is based on the observations by the National Green Tribunal. The respondent- authorities have not applied themselves on case-to-case before the levy. It is further submitted that no opportunity was provided to the petitioner before the demand.
7. Learned advocate would further rely on the judgment of this Court in M/s. Paragon Polymers Products Private Limited vs. The Karnataka State Pollution Control Board in Writ Petition No.5847 of 2020 to contend that the impugned demand is without authority of law and not sustainable.
8. Per contra, learned advocate Mr. A. Mahesh Chowdhary for the respondents would justify the demand by submitting that the -5- NC: 2024:KHC:48198-DB WP No. 5865 of 2024 petitioner-industry was inspected and it was found that the industry was discharging untreated trade effluent outside the industry. The levy of environment compensation is on due application of mind.
9. Having considered the submissions of learned advocates for the parties, it is evident that the impugned order of levy is based on an inspection conducted by the respondents on 04.07.2022. However, the record shows that a subsequent inspection took place on 02.11.2022, and the closure order was revoked by order dated 31.12.2022. This fact on record undermines the foundation of the notice issued.
10. Further, noticeably the impugned order does not indicate whether the petitioner was given an opportunity to submit a response or to be heard prior to the imposition of the levy. This failure to provide an opportunity for hearing violates the principles of natural justice.
11. The notices issued identical to the impugned in this writ petition were brought before this Court in M/s. Sansera Engineering Limited vs. The Karnataka State Pollution Control Board in Writ Petition No.5389 of 2020 and connected matters. -6-
NC: 2024:KHC:48198-DB WP No. 5865 of 2024 This Court in the above referred matter has issued the following directions, "(i) The respective cases are remitted back to the respondent-Karnataka State Pollution Control Board.
(ii) In each petition, the Demand Notice which are detailed in the tabular form in paragraph 7 shall be treated as show-cause-notice issued by the State Pollution Control Board.
(iii) The petitioner concerned shall be permitted to file its reply which may be filed within two weeks from the date of receipt of the present order.
(iv) The respondent-State Pollution Control Board shall consider the reply and the defence of the respective petitioners.
(v) The Board shall give them opportunity of hearing.
(vi) The Board shall intimate the date to the petitioner concerned in this regard.
(vii) The petitioners shall be entitled to raise all the contentions, both on facts and in law, against the impugned Demand Notices asking for payment of Interim Environmental Compensation.
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(viii) The respondent-State Pollution Control Board after affording opportunity to the petitioners, as above, shall pass appropriate orders in accordance with law.
(ix) The entire exercise shall be completed within a total period of ten weeks from the date of receipt of the order.
(x) In order to enable the State Pollution Control Board to undertake the aforesaid exercise of treating the Demand Notices, to be show-cause- notices and giving opportunity to the petitioners of having heard and pass fresh orders, the Demand Notices impugned in each of the respective petitions are hereby set aside."
12. The grievance raised in this petition is identical to that considered by this Court in M/s. Sansera Engineering Ltd. (supra). The directions issued in the aforementioned case, if applied to the present matter, would serve to redress the grievance raised.
13. In light of the above, this petition is hereby disposed of in accordance with the directions issued in the case of M/s. Sansera Engineering Ltd. (supra).
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14. It is clarified that the Court has not gone into the merits of the case of the petitioner nor has expressed any opinion on the merits.
15. All the contentions raised by the petitioner before the State Pollution Control Board shall be considered by the Board in accordance with law and on their own merits.
Sd/-
(N. V. ANJARIA) CHIEF JUSTICE Sd/-
(K. V. ARAVIND) JUDGE MV List No.: 1 Sl No.: 61