SC tears into NGT for ordering ED probe in violation of law & beyond jurisdiction

NEW DELHI: Quashing a National Green Tribunal order that had directed ED to examine a matter against a polluting company, which was also slapped a fine of Rs 50 crore, the Supreme Court has observed that the tribunal devoted 145 pages to writing a ruling which was in violation of law and beyond its jurisdiction, and said that "application of mind is not proportionate to the number of pages".

A bench of Chief Justice B R Gavai and Justice K Vinod Chandran also appealed to courts and tribunals to refrain from engaging in mere rhetoric by stating the law in general without reference to the facts of the case.

Finding fault with NGT's order to involve ED in a pollution case where no scheduled offence was in question, the bench said SC had earlier too questioned the jurisdiction of NGT to direct prosecution of individuals under the PMLA.

"NGT should act within the contours of the powers conferred on it which is Section 15 of the NGT Act. Though such power would be available to a court constituted under PMLA or to constitutional courts, it would not be available for exercise by NGT, constituted to ensure effective and expeditious consideration of cases relating to environmental protection and conservation of forests and other natural resources, including enforcement of any legal right and giving relief and compensation for damages to persons and properties. We hence set aside the direction issued to ED; but say nothing on whether there is an offence made out or not, which at this stage is not within our ken," the bench said.

It also said that there was no basis for NGT to impose a penalty of Rs 50 crore on the company and held that imposition of penalties cannot be done on the basis of the annual turnover of a firm.

"The methodology adopted by NGT for imposition of penalty was held to be totally unknown to any principle of law. We fully agree with the observation and add that the rule of law does not permit the state or its agencies to extract a 'pound of flesh', even in environmental matters. Though in the present case there is an observation made that there was admitted turnover of Rs 550 crore; we still notice the absence of nexus between the turnover and the pollution alleged," it said.

"Before we leave the matter, with some anguish, we cannot but indicate that application of mind is not proportionate to the number of pages. The impugned judgment deals elaborately with environmental law, numerous pollution prevention measures, guidelines and publications issued by various states as also decisions in that regard. It also extracts various reports filed by the Joint Committee, interim orders of NGT and objections raised by industry; which would anyway be available in the records of the case. In the context of the last of the reports having found complete compliance, we cannot but observe that unfortunately this was an exercise in futility. Judicious consideration is the sum and substance of adjudication and the courts/tribunals should restrain themselves from engaging in mere rhetoric by stating the law in general without particular reference to the facts," it said.

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