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Jaipur Development Authority vs. State of Rajasthan & Ors.

Civil Appeal · 2023 INSC 700Decided 9 Aug 2023
Civil Appeal No. 7018 of 2022
Abhay S. Oka · Sanjay Karol

Background

The National Green Tribunal had found that a Sewage Treatment Plant (STP) operated by the Jaipur Development Authority was non-compliant with environmental norms for 135 days, a finding the Authority did not dispute. What the Authority challenged was the amount of interim compensation the Tribunal ordered: Rs. 2 crore, even though a Committee of Experts appointed in the matter had itself recommended a much lower figure of about Rs. 33.75 lakh, which the Authority had already deposited.

Decision Breakdown

The Supreme Court examined the Tribunal's order and found that it gave no reasons at all for rejecting the Committee of Experts' recommended figure and instead fixing the much higher amount of Rs. 2 crore. Since an order imposing a heavy financial liability must be backed by reasoning, the Court set aside only that part of the Tribunal's order fixing the Rs. 2 crore compensation, and sent the question of the correct quantum back to the Tribunal to decide afresh after hearing both sides. The Rs. 33.75 lakh already deposited was to be treated as interim compensation in the meantime, and the Tribunal was asked to decide the issue quickly.

Lesson Learnt

Even a body meant to protect the environment (like the National Green Tribunal) must give reasons when it imposes a large financial penalty; a bare figure unsupported by reasoning, especially one exceeding an expert committee's own recommendation, cannot stand and will be sent back for a properly reasoned decision.

Official source (sci.gov.in)View Judgment (PDF)

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