10 Dec 2024
The civil appeal was preferred challenging an order of the National Green Tribunal (“Tribunal“) imposing substantial penalties on the Chemicals and Staple Fibre Divisions of Grasim Industries (“Grasim”/ the “client”), in Nagda, Madhya Pradesh, based on the report of a joint committee. The proceedings against Grasim were initiated by a resident of Nagda through a letter petition, alleging pollution in the area due to effluents generated by the client’s industrial plants. The Tribunal initially directed that the two divisions be examined by the State Pollution Control Board (“Board“), and after the receipt of the Board’s report, appointed a joint committee to give its report. Based on the recommendations made by the joint committee, the Tribunal passed an order imposing hefty penalties on the client as environmental compensation, without making the client a party to the proceedings.
The key issue before the Supreme Court was whether the Tribunal’s approach in the matter could be upheld.
The Supreme Court quashed the orders passed by the Tribunal in the matter and remanded the matter back to the Tribunal for fresh consideration, holding that the Tribunal could not outsource its decision to the committee, and could not proceed in the matter without impleading the client as a party to the proceedings. Such approach is violative of the principles of natural justice.
The matter is important as it involves the Tribunal outsourcing its adjudicatory functions to the joint committee to impose environmental compensation. The Supreme Court criticised the approach of the Tribunal and reiterated its recent judgments on this issue.
The Disputes Team advising on the matter was led by our Partner, Rajat Jariwal and supported by Prerna Singh and Dev Chand, Associates.
About Trilegal
Trilegal is one of India’s leading law firms, with expertise across the full spectrum of corporate legal services. Trilegal has offices in four key cities of India.
Trilegal has been recognised as the India Deal Firm of the Year by Asian Legal Business (ALB) India Law Awards 2023; one of the ‘Best Overall Law Firms’ at the India Business Law Journal Indian Law Firm Awards 2022; ‘Firm of the year’ for Client Service Excellence by Asia Law Awards 2021; “M&A Law firm of the Year” by VCCircle Awards 2020 one of the most innovative law firms in Asia in the inaugural edition of ALB Trailblazers 2020; and ‘highly commended’ in the FT RSG Innovative Lawyers Awards 2020.
For more information, please get in touch with
Anoop Siddak Singh Tuli
Mob: +91-9535377422 | BD@trilegal.com
If you do not wish to receive such information in future, please write to us at BD@trilegal.com, and we will unsubscribe you from our mailing list.
Under the rules of the Bar Council of India, Trilegal is prohibited from soliciting work or advertising in any form or manner. By accessing this website, www.trilegal.com, you acknowledge that:
We prioritize your privacy. Before proceeding, we encourage you to read our privacy policy, which outlines the below, and terms of use to understand how we handle your data:
For more information, please read our terms of use and our privacy policy.
