IN THE DELHI HIGH COURT
Hon'ble Justice Arun Kumar and Hon'ble Justice A.K.
Sikri
Writ Petition No. 3238 of 2000 .16th November, 2004.
M/s.Enkay Plastics Pvt. Ltd.
v.
Union of India & Others
Judgement:
1. This batch of 14 writ petitions, all filed under Article 226 of the
Constitution of India, raises common question. All the petitioners are having
their manufacturing units within the limits of National Capital Territory of
Delhi and all these units are manufacturing Urea Formaldehyde Powder. By
impugned order dated 7th June,2000. Delhi Pollution Control Committee (for
short 'DPCC') has treated these units under 'H' category as per Master Plan
2001 and following the orders of Supreme Court passed in IA.22/94 in Writ
Petition (Civil) No.4677 of 1985 entitled M.C.Mehta Vs. Union of India and
others, JT 1996 (6) SC 129, passed directions under Section 31A of Air
(Prevention and Control of Pollution) Act,1981 read with Rule 20(6) of Air
Rules,1983 directing these petitioners to close down their units with
immediate effect. In order to effectuate this direction, other consequential
directions are given to Delhi Vidyut Board and Delhi Jal Board for
disconnection of electricity/power supply/cancel the permission of Diesel
Generator Set, if any, and disconnection of water supply respectively. It is
also directed that the concerned Sub-Divisional Magistrate shall ensure
effective closure of the units with immediate effect. Since all the
petitioners are manufacturing Urea Formaldehyde Powder which is placed in 'H'
category and since all these petitioners were served with same directions, as
mentioned above, albeit, vide separate impugned orders dated 7th June,2000,
these petitions were heard together and are being disposed of by this common
judgment. For the sake of convenience, facts of CWP.No.3238 of 2000 only are
stated as it is an admitted case of the parties that the question raised in
these writ petitions arise under similar factual background. As per the
averments made in CWP.No.3238 of 2000, petitioner is a limited company
incorporated under the Indian Companies Act. It is a small scale unit
manufacturing Urea Formaldehyde Moulding Powder (for short 'U.F.Moulding
Powder') and is operating for the last more than 10 years. Apart from dealing
with the various provisions of the Air (Prevention and Control of Pollution)
Act,1981 (for short 'the Act') the petition gives historical background
leading to the closure of about thousand manufacturing units operating in
Delhi by the orders of Supreme Court in the case of M.C.Mehta Vs. Union of
India and others CWP.No.4677/85 which were creating pollution. In the order
dated 6th September,1996 passed in I.A.22/94 in the said petition, it is
revealed that individual notices to show cause were given by DPCC to 884 units
in Delhi as to why they be not declared as category H(a) or H9BB industries
under the Master Plan. After considering the objections, DPCC categorised 532
units as 'H' category. On this basis Supreme Court directed closure of these
units which fell under 'H' category. Complete list of all the units to whom
show cause notices were given was filed before the Supreme Court. As per this
list an industry manufacturing U.F.Moulding Powder was categorised as 'F'.
Therefore, they escaped the closure orders. They, accordingly, continued to
function. However, notice dated 5th March,1999 was received by the petitioner
from DPCC stating that activity of the petitioner falls in 'H' category. It
was a notice under Section 31A of the Act and by this notice petitioner was
granted an opportunity to represent as to why its unit should not be directed
to be closed down as 'H' category industry as per Master Plan of Delhi 2001.
Petitioner submitted its reply dated 17th March,1999 refuting all the
allegations made in the notice and referring to proceedings before the Supreme
Court in M.C.Mehta case (Supra) wherein as per affidavit filed on behalf of
Central Pollution Control Board (for short 'CPCB'), U.F.Moulding Powder was
categorised as 'F'. The process by which U.F.Moulding Powder is manufactured
was stated in detail contending that it was not hazardous at all. It was also
stated that DPCC was confusing between manufacturing of U.F.Moulding Powder
and manufacturing of formaldehyde and it is the latter which may be dangerous,
fire hazardous or noxious activity but not the manufacturing of U.F.Moulding
Powder. Nothing happened for more than one year after the aforesaid reply
submitted by the petitioner. However, respondent ultimately sent order dated
7th June,2000 giving directions under Section 31A of the Act thereby directing
the petitioner to close down its unit with immediate effect. The petitioner
also states that earlier show cause notice dated 17th April,1998 was served
upon the petitioner alleging that pollution control device in the premises of
the petitioner was inadequate and, therefore, an explanation was sought. This,
according to the petitioner shows that the petitioner unit was not treated as
falling under category 'H' and it was only to provide pollution control
devices in the premises which the petitioner did and informed DPCC vide reply
dated 29th April,1998. Thereafter DPCC modified its directions dated 23rd
June,1998 which were also complied with and the compliance was informed by the
petitioner to DPCC vide letter dated 13th August,1998. Notwithstanding, DPCC
again with malafide intentions gave another show case notice dated 2nd
September,1998 and this compelled the petitioner to file appeal under Section
31(1) of the Act before the Appellate Authority. After hearing, Appellate
Authority passed orders dated 29th June,1999 whereby DPCC was directed to
carry out the inspection of the premises of the petitioner and report to the
Appellate Authority within a period of 30 days. (The exercise which was to be
undertaken by the DPCC was stipulated in the order in the following words
"Keeping in view the facts of the case and that the appellant's unit had got
the air pollution control devices installed at the unit, it would be
appropriate if a joint team consisting of the officials from Central Pollution
Control Board and Delhi Pollution Control Committee is deputed to carry out
inspection/monitoring of the appellant unit and examine whether the
activities/processes involved in manufacturing of Urea Formaldehyde Moulding
Powder falls in 'H' category of industries. The team shall also be at liberty
to collect and analyse sample, if so required, to determine the categorisation
of the industry. The team shall submit a report to the Appellate Authority
within a period of 30 days from the issue of this order".)
2. It is alleged in the petition that after passing the aforesaid order DPCC
never inspected the premises of the petitioner and instead passed impugned
order dated 7th June,2000 in violation of the orders of the Appellate
Authority. Accordingly, impugned order is challenged on the ground of mala
fide also.
3. One of the principal ground raised by the petitioner is that the
respondents are confusing between manufacturing of U.F.Moulding Powder with
the manufacturing of formaldehyde. It is stated that petitioner is not
manufacturing formaldehyde but U.F.Moulding Powder. It is the manufacturing of
formaldehyde which is prohibited in the National Capital Territory of Delhi
and is hazardous activity. While making U.F.Moulding Powder petitioner is only
using concentration of formaldehyde which is termed as formaline. This use for
making something like plastic powder is not prohibited. Formaline is 30-37%
solution of formaldehyde in water. Formaldehyde is a gas with irritating
smell, but is soluble in water. Formaldehyde is hazardous. However, formaline
is a liquid with only 30 to 37% concentration of formaldehyde gas dissolved in
water and it has not been categorized as hazardous in any classification,
rules and regulations. In common parlance, some times the term formaldehyde is
used for formaline. However, the fact is that in manufacturing of UF moulding
powder, the basic chemicals which are used are formaline and urea. Both these
chemicals are not hazardous and are not categorised as hazardous items.
Neither the names of these two chemicals find mention in the list of hazardous
and toxic chemicals. The manufacturing process of UF moulding powder involves
the process of dissolving the urea in water and formaline in an open mixture
at the room temperature to form slurry. This slurry is mixed with paper pulp
at a room temperature in a Kneader mixture for 15-30 minutes. The dough formed
in this case is transferred to dryers and dried at 40-50 degree Celsius. Later
the dried dough is pulverized using a hammer mill to get powder. The next
stage is to change this powder to a fine powder using ball mills. The fine
powder is then mixed again with water in an open pot to form homogeneous grain
with higher density suitable for moulding. Finally, the grains are grained to
fine grains using grinder and the formaldehyde moulding powder is formed. The
powder which is made is despatched to moulding manufacturing units where it is
compressed in the moulds of different sizes at a temperature of 120 to 150
degree Celsius to set the matter to different shapes mainly electrical
switches etc. This powder has no fire or toxic nature and is otherwise a very
good fire and electrical resistance, and therefore, it is most suitable for
electrical switches. Reference in this regard is also made to "A dictionary of
Science" by 'E.B.UVAROV AND D.R. CHAMPMAN', and published by The English
Language Book Society and Penguin Books which defines Formaldehyde and
Formaline as under "FORMALDEHYDE. HCHO. A gas with an irritating smell, very
soluble in water. 40% solution is known as formalin. Made by the oxidation of
methanol. Used in the manufacture of plastics and dyes, in the textile
industry, in medicine, and as a disinfectant. FORMALIN. A 40% solution of
formaldehyde, used as a disinfectant."
4. It is also submitted that as per the manufacture, storage and import of
hazardous chemical rules, 1989, Schedule-III, Part-1, the concentration of
formaldehyde uptil 90% is permitted. Therefore, even the raw material which is
used by the petitioner is not hazardous.
It is also stated that formaldehyde is commonly used in several activities
like
i) it is used in hospital for preserving the dead bodies, cleanliness,
plastering etc.
ii) Milk industry to preserve milk.
iii) Agricultural industry.
(iv) In sweets as a preservative.
(v) In plastic industry as raw material.
(vi) In Fire proofing.
(vii) In textile mills.
(viii) In cosmetics.
5. On the basis of aforesaid averments in the writ petition petitioner is
challenging the impugned closure order dated 7th June,2000 rasing various
grounds. Similar contentions are raised in all other petitions. It may be
stated at this stage itself that although in the writ petitions, the
petitioners are challenging the vires of Section 31A of the Act and
Notification No.S.O.198 (E) dated 15th March,1991 whereby powers have been
delegated by CPCB to DPCC, but these reliefs were not pressed at the time of
arguments. During arguments petitioners mainly confined their arguments to the
validity of closure order dated 7th June,2000 on the following grounds:
1. The impugned closure order dated 7th June,2000 is violative of the
principles of natural justice and also of the fundamental rights of the
petitioner.
2. The impugned closure order is arbitrary, malafide, and is a colourable
exercise of the powers vested with the authorities and is also a glaring
example of abuse of powers.
3. The industry which was categorised as 'F' throughout, has all of a sudden,
been categorized as 'H' in spite of reports of the experts to the contrary.
There cannot be more glaring examples of mala fide, abuse of power and
ulterior motives. Petitioner has relied upon the reports of Delhi College of
Engineering as well as IIT as per which the manufacturing of activity of U.F.
Moulding Powder should fall in category 'F' and not 'H'.
DPCC (Respondent No.2) and CPCB (Respondent No.3) have filed their separate
counter-affidavits denying and refuting various allegations made by the
petitioner in the writ petition. Insofar as affidavit of DPCC is concerned, it
mentions that the unit of petitioner is categorised under 'H' category as per
the categorisation done by CPCB. Communication dated 28th April,2000 was
received from CPCB in this respect. However, the maintainability of the writ
petition is also challenged on the ground that there is alternate remedy of
appeal provided to the petitioner which petitioner should exhaust before
approaching the High Court under Article 226 of the Constitution of India and
that petitioner should have approached Supreme Court and could not file this
writ petition in view of observations made by Supreme Court in M.C.Mehta case
(supra) reported in JT 1996 (6) SC 129 and in particular paragraph-12 thereof.
While stating the background under which categorisation of the petitioner unit
was done, it is mentioned in the counter-affidavit that Sh.R.K.Goyal, Member
Secretary, DPCC had written vide communication dated 16th November, 1998 to
the Member Secretary, CPCB pointing out that a large number of Units had been
found to be operating in various parts of Delhi engaged in the manufacturing
of Urea Formaldehyde Powder and that a complaint was also received against
these Units that these Units should be treated as hazardous and noxious as per
Master Plan of Delhi 2001. It was also pointed out that while undertaking the
categorisation of more than 1 lakh industries by the respondent No.2, one such
Unit was categorised under Group 'F' but it seemed that the manufacturing
process of the said Unit is similar to resins which have been put in group 'H'
of the Master Plan. In view of the same, it was requested vide the said
communication that the matter may be examined and the respondent No.2 should
be guided as to whether the said Units should be categorised under Group H(a)
so that necessary action may be initiated as per Law. The said communication
was replied vide reply dated 14th December, 1998 by the Director(ESS) of the
CPCB that since raw materials used in such industries were hazardous
chemicals, it was advised that all such Units should be categorised under
H-Category. It was also stated in the said communication that one such Unit
i.e. M/s Bindal Plastics was closed down in November 1996 under the orders of
Hon'ble Supreme Court as H-Category Unit. Thereafter the respondent No.2
received a communication dated 10th May, 1999 from the CPCB wherein the CPCB
intimated the respondent No.2 that the contents and representations of the UF
Moulding Powder Manufacturers Association had been considered and the Central
Board is of the opinion that phenol formaldehyde resin manufacturing and urea
formaldehyde resin manufacturing( using phenol and/or formaldehyde as starting
raw materials which are hazardous) should continue to remain under 'H(a)-
Category' as per the provisions of MPD-2001. Thereafter the respondent No.3
again reiterated that the categorisation of Urea Formaldehyde Powder
manufacturing Units was to be categorised under H-Category.
6. It is also explained that the list filed before the Supreme Court wherein
units manufacturing U.F.Moulding Powder was categorised as 'F' was not final.
In fact it was on going process and even the Supreme Court had observed that
process of identification of 'H' category industry for relocation was to
continue. After indepth study of manufacturing process, CPCB had given 'H'
categorisation and proper opportunity was given to the petitioner before this
categorisation and before passing directions under Section 31A of the Act for
closure of petitioner unit.
7. CPCB filed counter-affidavit dated 7th August,2000 in which it is, inter
alia, mentioned that the unit of the petitioner falls under H(a) category
since resin formation takes place. It is mentioned that Formaldehyde is listed
at Sr.No.285 under Schedule 1,Part II of the Manufacture Storage and Import of
Hazardous Chemicals Rules,1989 (as amended to date) vide notification No.SO
57-E, dated 19th January,2000. The manufacturing of resin falls under broad
category of 'Organic Chemical Industry under group H(a) of the Master Plan for
Delhi (MPD-2001). The operation of the industries falling under H group is
prohibited within Union Territory of Delhi since January,1994.
8. Since the classification of the petitioner unit under category 'H' has been
done by CPCB and it was not stated in the counter-affidavit as to what was the
basis for said categorisation and whether there was any material before the
CPCB on the basis of which, CPCB enumerated the petitioners' units as 'H',
CPCB was directed to file additional affidavit. Another affidavit dated 10th
September,2000, was, accordingly, filed by CPCB giving the background material
and other details. A reading of this affidavit would reveal the following
averments
1. DPCC had originally categorised some of the petitioners as 'H' category
industries as per Master Plan 2001. However, M/s.Kohinoor Polymers Pvt.Ltd.,
one of the petitioners herein made representation against the same mentioning
that wood pulp, marble, mica, asbestos powder, white wood floor, Zinc striated
and steam (for which they have a baby boiler), are used in the manufacturing
process. On this representation the category of this industry was changed from
'H' to 'F'. However, when later it was found that petitioner was in fact a U.F.
Powder manufacturing unit and is using urea and formaldehyde as starting raw
materials, CPCB changed the category from 'F' to 'H'.
2. That the category was changed keeping in view of: i) chemical nature of raw
material used, intermediate products and final product manufactured and
whether these pose hazard at any stage; ii)input and output of chemicals,
their material balance and state (i.e. solid, liquid or gas); iii)
manufacturing process used and sequence of use of ingredient chemicals, their
concentration, toxicity; and iv) emissions during manufacturing process, their
nature, concentration and characteristics etc.
3. World Health Organisation (WHO) has come out with publications 'Health and
Safety Guide' for the chemicals which are hazardous to safeguard the public
health. The title page of WHO booklet :Formaldehyde Health and Safety Guide,
(No.57, 1991). As brought out in the WHO booklet Formaldehyde, a highly water
soluble gaseous substance, is commercially available in form of about 37%
aqueous solution (W/v) for use in various purposes. The raw material,
formalin/formal (aqueous solution of Formaldehyde) is colourless hazardous
liquid with pungent odour. Its vapours are irritant to eyes causing tear
formation and irritating to respiratory tract causing coughing and difficulty
in breathing, even if present in concentration much below the threshold limit.
Exposure to formaldehyde may cause asthmatic bronchitis, cough, dryness of
mouth and throat, upper respiratory complaint, headache and eye irritation.
Formaldehyde vapours pose occupational hazard as formaldehyde vapours irritate
the mucous membrane, cause allergies and have potentially carcinogenic
properties. The workers working in the manufacturing unit should not be
exposed to formaldehyde vapours at more than 1.2 mg/m3 (1ppm) for 30 min. UF
powder manufacture generates formaldehyde vapours at work place and
surrounding air from mixing section, drying section and pulverizing section,
which are liable to release continuously in ambientenvironment. Formaldehyde
vapours above 0.1 ppm in ambient air are considered hazardous. Inspite of
efficient emission collection and scrubbing system available at the UF
manufacturing units, the formaldehyde vapours find their way into the ambient
environment and pose hazard to surrounding environment. Formalin is highly
combustible. Formaldehyde decomposes into methanol and carbondioxide at 150
degree Celsius which further aggravate the hazard in the event of fire.
4. It is submitted that in simple term what is being done by the petitioner is
that aqueous Formaldehyde (commercially known as formalin or formal) is mixed
with urea resulting in formation of monomethylolurea as a first step through
methylolation or hydroxymethylolation process then in subsequent steps the
condensation of monomer units takes place in form of dimer, Dimethylolurea, a
polymer chain (amino resin), along with liberation of water. The subsequent
steps of the reaction are usually referred to as methylene bridge formation,
partial polymerization, resinification or simple cure. The polymer in form of
viscous substance is formed when the reaction is nearly 60% complete. After
partial polymerization (upto 60% completion of reaction), the leftover
unstabilized Formaldehyde is passed as vapour emissions or in the kneaded
product, thus the chances of generation of Formaldehyde vapours in the work
environment of manufacturing units are quite high and pose grave risk.
Further, the mixing of formaldehyde with urea in open vessel is highly
hazardous facilitating high concentration of hazardous Formaldehyde vapour
formation, which is not taken into consideration in both the per pro reports.
It is mentioned that scrubbers are installed at UF Manufacturing unit to deal
with the emissions from driers, but in case of low efficiency of scrubbers or
their non-functioning due to some reasons like electric failure, mechanical
fault etc, the emissions of Formaldehyde vapours will be highly hazardous for
surrounding environment.
Respondent No.2, however, referred the matter to Delhi College of Engineering
which recommended the categorisation under 'F' category. This report was duly
considered by CPCB and after critically reviewing the same it was rejected.
Reasons for the same are filed by CPCB as Annexures R-5 and R-6 to the
affidavit.
5. Petitioners had approached on their own the Indian Institute of Technology.
The report submitted by I.I.T. was also critically reviewed but rejected as
per the detailed comments given in Annexures R-5 and R-7 to the additional
affidavit.
It may be mentioned at this stage that petitioner has filed reply to this
additional affidavit and attempt is made to controvert the averments made in
the additional affidavit of CPCB. It is also sought to allege that there are
contradictions in the documents filed by CPCB. It is again sought to be
highlighted that the classification of the unit of the petitioner which is
manufacturing UF Moulding Powder should be in category 'F' and not 'H'.
The aforesaid detailed discussion of the respective cases as putforth by the
parties brings forth the following questions which need determination in these
writ petitions
1. Whether the writ petition is not maintainable in view of alternate remedy
available to the petitioners?
2. Whether the petitioners should approach Supreme Court directly in view of
observations made in the case of M.C.Mehta Vs. Union of India and others JT
1996 (6) SC 129?
3. Whether impugned order dated 7th June,2000 is violative of principles of
Natural Justice?
4. Whether impugned order dated 7th June,2000 is arbitrary, result of
colourable exercise of power and malafide?
5. Whether the categorisation of UF Moulding Powder manufacturing units as 'H'
is proper and valid or they should have been classified in 'F' category?
We now proceed to deal with these questions in the order they are formulated
above Point No.1. - Alternate remedy Admittedly impugned order dated 7th
June,2000 is passed by the DPCC under Section 31A of the Act. By this order
direction is given to the petitioner to close down its unit forthwith as it
falls under category 'H' and such unit is not to be operated within National
Capital Territory of Delhi as per orders of the Supreme Court in M.C.Mehta
case (Supra). Section 31 of the Act provides for remedy of appeal and
sub-Section(1) thereof reads as under; Section 31.Appeals.-(1) Any person
aggrieved by an order made by the State Board under this Act may, within
thirty days from the date on which the order is communicated to him, prefer an
appeal to such authority (hereinafter referred to as the Appellate Authority)
as the State Government may think fit to constitute Provided that the
Appellate Authority may entertain the appeal after the expiry of the said
period of thirty days if such authority is satisfied that the appellant was
prevented by sufficient cause from filing the appeal in time.
6. The forum of appeal is provided against an order made by the said Board (DPCC)
in this case. Appeal lies to Appellate Authority constituted under the Act. It
was not disputed by Shri Ravinder Sethi, learned senior counsel appearing for
the petitioners that the appeal is maintainable against the order passed under
Section 31A of the Act. However, it was contended that notwithstanding
alternate remedy of appeal provided under the statute, there was no absolute
bar in entertaining writ petition under Article 226 of the Constitution of
India particularly when the argument of the petitioner was that the action of
the State Authority was malafide, violative of principles of Natural Justice
and also where vires of the Act has been challenged. In support of this
submission, reliance was placed on the following judgments
1. Whirlpool Corporation Vs. Registrar of Trade Marks, Mumbai and others
(1998) 8 SCC 1.
2. Ram and Shyam Company Vs. State of Haryana and others AIR 1985 SC 1147.
3. M/s.Baburam Prakash Chandra Maheshwari Vs. Antarim Zila Parishad now Zila
Parishad, Muzaffarnagar AIR 1969 SC 556.
4. Dr.Smt.Kuntesh Gupta Vs. Management of Hindu Kanya Mahavidyalaya Sitapur (U.P.)
and others AIR 1987 SC 2186.
5. State of U.P. and others Vs. M/s.Indian Hume Pipe Co.Ltd. AIR 1977 SC 1132.
6. State of West Bengal Vs. North Adjai Coal Co.Ltd. 1971 (1) SCC 309.
7. Om Prakash Vs. The State of Haryana & Ors. Unreported Judgments (S.C.) 1970
Vol.2 481.
7. Attempt was also made to argue that the petitioners had earlier approached
Appellate Authority which had, by order dated 29th June,1999, directed fresh
investigation in the matter with further direction that report of such
investigation be submitted to the Appellate Authority. However, without
undertaking this exercise, the respondents had in a contemptuous manner
ordered closure of petitioners units and, therefore, no useful purpose would
have been served in relegating the petitioners to the remedy of appeal.
8. We may state that the Act provides complete machinery including the forum
of appeal against the order passed by the said Board. Therefore, normally, it
would have been appropriate for the petitioners to approach Appellate
Authority and exhaust the remedy of appeal before approaching this Court under
Article 226 of the Constitution of India. No doubt vires of some of the
provisions of Section 31A of the Act have been challenged in the writ
petition, as noticed above. This was not pressed at the time of the arguments.
Of course, strenuous plea was made by learned senior counsel appearing for the
petitioners that the impugned order was mala fide, violative of principles of
Natural Justice and also in violation of order dated 29th June,1999 of the
Appellate Authority. Although we shall deal with this contention on merits at
the appropriate stage and no doubt as per the judgments referred to by the
counsel for the petitioner writ petition can be entertained if violation of
the Principles of Natural Justice is alleged, still in normal course the
remedy of appeal should be exhausted. Such averments can be taken even before
the Appellate Authority which can deal with such arguments while deciding the
appeal. However, as in some of these writ petitions Rule D.B. had been issued,
as also that the matter was argued at length on number of dates covering the
entire gamut of controversy, we have thought it proper to decide the matter on
merits rather than relegating the petitioner to remedy of appeal at this
stage. However, it is being done in view of the aforesaid peculiar
circumstances and it is clarified that by adopting this course, this Court by
no means is laying down the rule that the writ petition under Article 226 of
the Constitution of India would be entertained in all such cases without
exhausting the remedy of appeal.
Point No.2.
9. In submitting that the petitioner should approach Supreme Court instead of
filing the present writ petition, learned counsel for DPCC referred to the
following observations made in the case of M.C.Mehta Vs. Union of India and
others JT 1996(6)) SC 129 (Paragraph-12) "We make it clear that the
categorisation made by the Board shall be final subject to modification by
this Court".
However, on the other hand it was submitted by learned Sr.counsel for the
petitioner that the aforesaid observations cannot be read in isolation but
should be read along with preceding passages which would unfold real context
in which the observations in paragraph-12 were made. For this purpose he took
us to paras 8 to 11 of the judgment. We find force in the submission of the
petitioners on this aspect. While dealing with the categorisation of
industries, the Court mentioned in para-8 of the order that it was monitoring
the said matter since January,1995 and order passed on 24th March,1995 is
quoted in para-8 to show that even in March-April,1995 polluting industries
were approached through individual notices, public notices in newspapers
through Doordarshan and All India Radio and were asked to relocate themselves.
In para-10, the Court has referred to the order dated May 8,1995 whereby
further opportunity was given to those industries who had not filed objections
pursuant to earlier individual and public notices. Thereafter reference is
made to subsequent orders in that para and subsequent paras in order to
demonstrate that proper opportunities were given to those industries, which
were proposed to be categorised 'H', for raising their objections to said
categorisation. The discussion in these paras further shows that those
industries which were finally categorised as 'H' were told in clear terms that
they could not operate in Delhi and must relocate to NCR. It is in this
context in para-12, order dated November 15,1995 is quoted and it is mentioned
that the categorisation which had been made by the Board would be final and
could be modified only by Supreme Court. Therefore, the observations on which
reliance is placed by learned counsel for DPCC related to categorisation which
was made by the Board at that time and the report submitted before the Supreme
Court. The units of the petitioners in fact, as per the said report, fell in
category 'F'. Therefore, it is not the petitioners who are seeking
modification of the said categorisation. Rather the categorisation is changed
by the Board. In fact if this argument of the DPCC is to be accepted it is the
Board which should have approached the Supreme Court as the Board has changed
the categorisation.
10. However, suffice it to state here that by making the aforesaid
observations Supreme Court never meant that in case Board changes the
categorisation of any industry and the industry is aggrieved against the same,
it has to approach the Apex Court only and cannot file writ petition under
Article 226 of the Constitution of India. It hardly needs to be emphasised
that Article 226 of the Constitution gives substantive right to the
petitioners to seek appropriate Writ or Order if it is aggrieved against the
said action and unless there was a categorical, unambiguous and explicit
direction of the Supreme Court stipulating that such matters would be
entertained only by Supreme Court, the petitioners cannot be denied their
right to have access to the remedy provided under Article 226 of the
Constitution of India. In fact in a recent judgment of the Apex Court itself
dealing with the matter of air pollution in the case of A.P.Pollution Control
Board Vs. Prof.M.V.Nayudu (Retd.) And others reported in 1999(2)SCC 718, the
Supreme Court has held that powers of High Court and Supreme Court are similar
(see paras 56-57 of the judgment). Therefore, we do not agree with the
submission of the DPCC that the petitioners remedy is before Supreme Court
only. In fact this argument of the DPCC runs counter to its first argument
wherein it is conceded that the petitioner could approach Appellate Authority
by filing appeal under Section 31 of the Act. If the observations in para-12
of M.C.Mehta case (supra) are no bar to the remedy of appeal, it is not
understood as to how these observations can be a bar for the petitioner to
approach this Court in Article 226 of the Constitution of India. Consequently
this objection of the DPCC is hereby rejected.
Point No.3 - Natural Justice.
11. While advancing the contention that impugned order dated 7th June,2000 is
passed in violation of Principles of Natural Justice and without giving due
opportunity to the petitioners, the principle submissions of Shri Ravinder
Sethi, learned Sr.Counsel were to the following effect
a) No show cause notice was issued to the petitioners and all of a sudden, the
closure order was made.
b) The petitioner is running its industry and is earning his livelihood;
therefore, it is submitted that the closure order in this fashion is violative
of Article 19 of the Constitution of India.
c) The order of closure is a non-speaking order. It does not show any basis
for coming to the conclusion that the industry is Schedule 'H' industry. It
does not show any process of reasoning by which the said conclusion has been
reached.
12. As far as submission regarding passing of the closure order without show
cause notice is concerned, it is based on the allegations that the
petitioner's unit was earlier categorised as 'F' as per the list filed before
the Hon'ble Supreme Court in M.C.Mehta case (supra) wherein it is specifically
stated that unit manufacturing U.F. Moulding Powder would fall in category
'H'. Further treating the petitioner's unit under category 'F' the petitioner
was asked to comply with certain directions by order dated 26th March,1998
which were complied with. Another show cause notice dated 25th January,1999
was issued directing the petitioner to comply with certain more directions
which were also complied with. Thereafter, show cause notice dated 24th
February,1999 was issued on the presumption that the raw material used by the
petitioner industry was hazardous chemical and, therefore, the unit fell under
'Ha' category and opportunity to represent was given as to why it should not
be directed to be closed down as 'H' category as per MPD-2001. The petitioner
submitted detailed reply dated 17th March,1999 but nothing happened thereafter
and all of a sudden impugned order dated 7th June,2000 was passed and,
therefore, the said order, according to the petitioner, is without show cause
notice and issued all of a sudden.
13. This contention of the petitioner does not appear to be valid once facts
are placed in a proper perspective. As per the petitioner's own showing,
notice dated 5th March,1999 under Section 31A of the Act had been issued. This
notice, inter alia, stipulates as under "And whereas the Competent Authority
after consideration of all factual and circumstances has come to the
conclusion that your unit falls under Ha category and in pursuance of the
provisions of the Master Plan of Delhi-2001 and the order dated 8.7.96 passed
by the Hon'ble Supreme Court of India you cannot be permitted to function in
Delhi and are to be re-located/shifted outside N.C.T. of Delhi. Now,
therefore, the Competent Authority under the exercise of powers conferred on
it, grants you as an opportunity to represent as to why your unit should not
be directed to be closed down as 'H' category industry as per M.P.D.2001. Your
reply should reach this office within 15 days of service of this notice
failing which it shall be presumed that you have nothing to say in this
regard".
14. Thus before directing closure by impugned order, show cause notice in fact
was given granting opportunity to the petitioner to represent against the
proposed closure. In reply the petitioner could state and in fact it was
stated that their unit did not fall under 'H' category industry. Detailed
reply dated 17th March,1999 was submitted and in that reply petitioner
explained the process of manufacturing of U.F. Moulding Powder and tried to
distinguish it from manufacturing of formaldehyde on the basis of which case
set up by the petitioner was that the unit of the petitioner was not hazardous
and, therefore, should not be classified as 'H' category industry. In the
counter-affidavit filed on behalf of DPCC it has given the background under
which these units were categorised as 'H' category units. This background is
already noted above while discussing the counter-affidavit of DPCC. It is also
mentioned therein that DPCC had received communication dated 10th May,1999
from CPCB wherein CPCB intimated DPCC that contents and representations of
U.F.Moulding Powder Manufacturers' Association had been considered and Central
Board was of the opinion that phenol formaldehyde resin manufacturing and urea
formaldehyde resin manufacturing (using phenol and/or formaldehyde as starting
raw materials which are hazardous) should continue to remain under 'H(a)-
Category' as per the provisions of MPD-2001. Thereafter the respondent No.3
again reiterated that the categorisation of Urea Formaldehyde Powder
manufacturing Units was to be categorised under H-Category. It is only
thereafter that impugned order dated 7th June,2000 came to be passed. The
aforesaid factual details clearly point out that not only show cause notice
was given to the petitioners, their reply was solicited, which was also
considered by the CPCB. Thus substantial compliance of the Principle of
Natural Justice has been made while passing impugned order dated 7th
June,2000. The petitioners cannot claim any prejudice being caused to them
inasmuch as their view point was duly considered by the respondents before
passing the impugned order.
15. There is no force in the argument of the petitioners that the closure
order is violative of Article 19 of the Constitution of India. The right to
carry on trade or profession guaranteed under Article 19 of the Constitution
of India is subject to reasonable restrictions which can be statutorily
imposed by the Parliament. The direction to close down the industry which is
creating air pollution cannot be treated as violative of Article 19 of the
Constitution as it is in larger public interest that such industries do not
continue to function in thickly populated places which cause air pollution and
thereby endanger the health and life of the public at large.
16. We are also not inclined to accept the submission of the petitioners that
the order of closure is a non-speaking order. The impugned order records that
the petitioners are engaged in manufacturing of UF Powder and causing air
pollution. It also mentions that categorisation of its activity was referred
to various institutions for expert comments and as per the expert comments
received from institution, which were forwarded to CPCB for review, CPCB has
categorised UF Powder Manufacturing activity under 'H' activity. It further
states that in view of this categorisation and the directions contained in
orders dated 8th July,1996, 6th September,1996 and 19th December,1996 passed
by Hon'ble Supreme Court of India in IA.22/94 in Writ Petition (Civil) No.4677
of 1985 entitled M.C.Mehta Vs. Union of India and others (Supra) such 'H'
group industries are to be relocated / shifted to any other industrial estate
out of NCT of Delhi and shall close down and stop functioning in NCT of Delhi.
On the basis of this reasoning that directions to close down the units are
contained in the impugned order. As would be noticed later, while discussing
Points 4 and 5, the respondents have been able to demonstrate that there was
sufficient material available with them on record to support the aforesaid
reasoning and conclusions. (Refer:(1) Systopic Laboratories (Pvt.)Ltd. Vs.
Dr.Prem Gupta and others 1994 Supp (1) Supreme Court Cases 160 (2) State of
Madras Vs. V.G.Row AIR 1952 SC 196 (3) Narender Kumar Vs. Union of India AIR
1960 SC 430). Point Nos.4 & 5 - Re: Categorisation
17. The main basis on which the argument regarding mala fides and colourable
exercise of power is built is that the closure orders were made on the basis
of the reports obtained from experts. Admittedly, even the copies of the
report obtained from the experts were not supplied to the petitioner. It was
only during the course of the hearing when repeated demands were made by the
petitioner, this Hon'ble Court directed the respondents to supply the copies
of the reports. Accordingly, the reports were supplied and it was revealed
that the experts have very clearly categorized the unit of the petitioner as
'F'. DPCC and CPCB, in abuse of the powers vested in them, sat over the
reports of the experts and have formed their own opinion, which is neither
supported by the opinion of the experts, nor by the literature on the subject.
18. As far as point No.5 relating to categorisation is concerned, the main
submission of learned senior counsel for the petitioner was that earlier on
all other occasions, the industry of the petitioner was considered under 'F'
and it was not the case of the respondents that it falls under 'H' category.
Reference was made to the earlier notice dated 17th April,1998 wherein the
petitioner was asked to take necessary precautions. Necessary precautions were
taken and the DPCC was informed vide reply dated 29th April,1998 and 13th
August,1998. Accordingly, modified directions were issued by the DPCC on 23rd
June,1998, and this aspect is not in dispute. However, DPCC again issued a
show cause notice dated 2nd September,1998. This notice of 2nd September,1998
culminated into passing of an order by the appellate authority on June 29,
1999. In the said order, the Appellate Authority clearly directed the
respondent DPCC and CPCB to inspect the premises and give its report. The
petitioner's unit was not inspected and with mala fide intentions, the above
closure orders were made. It was also sought to be argued that during the
pendency of the appeal, another notice dated 5th March,1999 was issued. The
said notice was duly replied vide reply dated 17th March,1999. Respondent was
satisfied with the said reply. It was never countered, or rebutted.
19. Since both these points numbers 4 and 5 are inter-connected, they are
taken up for discussion together. It would be seen that while alleging
malafides or abuse of powers on the part of respondents, the gravamen of the
charge/allegation is that the respondents have ignored the expert opinion of
Delhi College of Engineering and I.I.T. Naturally, these reports are also
relied upon to advance the argument that the units of the petitioners should
fall under 'F' category and decision of the respondents in treating these
units in 'H' category is improper. It is for this reason, we say that both
these points are inter-connected.
20. Before dealing with these contentions on merits, let us first scan through
the relevant provisions. The purpose because of which this Act was passed,
hardly needs any emphasis. It may be, however, stressed that the
Air(Prevention and Control of Pollution) Act, 1981, has important
constitutional implications, with an international background. The Act drew
its inspiration from the proclamation adopted by the United Nations Conference
on the Human Environment held at Stockholm, from 5th to 16th June, 1972, in
which our country was also represented. The preamble to the Air(Prevention and
Control of Pollution) Act, 1981, contains a formal presentation of the fact
and includes that the decisions so taken were " to take appropriate steps for
the preservation of the natural resources of the earth which, among other
things, include the preservation of the quality of air and control of air
pollution". The preamble also records that "it is considered necessary to
implement the decisions aforesaid in so far as they relate to the preservation
of the quality of air and control of air pollution".
21. The Air(Prevention and Control of Pollution) Act, 1981 (14 of 1981), is a
specialised legislative measure, meant to take one facet of environmental
pollution. It was enacted with following main objectives
(a) to provide for the prevention, control and abatement of air pollution;
(b) to provide for the establishment of Central and State Boards, with a view
to implement the aforesaid purpose;
(c) to provide for conferring on such Boards powers and assigning to such
Boards functions relating thereto; and
(d) for matters connected therewith. We may also reproduce here the statement
of objects and reasons appended to the Bill, when introduced in the
Parliament, before it was passed by both Houses of Parliament and received the
assent of President of India on 29th March,1981 and came into force on 16th
May,1981 and become the Act of Parliament. This is how Statement of Objects
and Reasons reads as under
STATEMENT OF OBJECTS AND REASONS
1. With the increasing industrialisation and the tendency of the majority of
industries to congregate in areas which are already heavily industrialised,
the problem of air pollution has begun to be felt in the country. The problem
is more acute in those heavily industrialised areas which are also densely
populated. Short-term studies conducted by the National Environmental
Engineering Research Institute, Nagpur, have confirmed that the cities of
Calcutta, Bombay, Delhi, etc., are facing the impact of air pollution on a
steadily increasing level.
2. The presence in air, beyond certain limits, of various pollutants
discharged through industrial emissions and from certain human activities
connected with traffic, heating, use of domestic fuel, refuse incinerations,
etc., has a detrimental effect on the health of the people as also on animal
life, vegetation and property.
3. In the United Nations Conference on the Human Environment held in Stockholm
in June 1972, in which India participated, decisions were taken to take
appropriate steps for the preservation of the natural resources of the earth
which, among other things, include the preservation of the quality of air and
control of air pollution. The Government has decided to implement these
decisions of the said conference in so far as they relate to the preservation
of the quality of air and control of air pollution.
4. It is felt that there should be an integrated approach for tackling
environmental problems relating to pollution. It is, therefore, proposed that
the Central Board for the Prevention and Control of Water Pollution
constituted under the Water(Prevention and Control of Pollution) Act, 1974,
will also perform the functions of the Central Board for the Prevention and
Control of Air Pollution and of a State Board for the Prevention and Control
of Air Pollution in the Union Territories. It is also proposed that the State
Boards constituted under the said Act will also perform the functions of State
Boards in respect of prevention, control and abatement of air pollution.
However, in those States in which State Boards for the Prevention and Control
of Water Pollution have not been constituted under that Act, separate State
Boards for the Prevention and Control of Air Pollution are proposed to be
constituted.
22. It is clear from the above background under which the Act was passed that
the main objective was to provide for prevention, control and abatement of air
pollution. It was felt that with the increasing industrialisation and the
tendency of majority of the industries to congregate in areas which are
already heavily industrialised and densely populated, the problem of air
pollution had begun to be felt in the country. It was more in cities like
Calcutta, Bombay and Delhi which are facing the impact of air pollution on a
steadily increasing level. It is common knowledge that notwithstanding the
enactment of such type of legislation, the level of air pollution increased
tremendously in city like Delhi. Various petitions in the nature of 'Public
Interest Litigation' were filed in the Apex Court, notably among them by
environmentalist Advocate Mr.M.C.Mehta, Supreme Court had to intervene and
pass directions from time to time for relocation of such industries, which
were creating air pollution, out of Delhi and in other parts of NCR.
23. Be that as it may, in order to achieve the objective of prevention,
control and abatement of air pollution, the Act provides for establishment of
Central and State Boards and assigns them specific functions. As per Section-3
of the Act, CPCB constituted under the Water (Prevention and Control of
Pollution) Act,1974 is to exercise the powers and perform the function of the
CPCB for prevention and control of air pollution under the Act. Section-16 of
the Act enumerates the functions of the CPCB. Sub-Section-1 of Section-16
which is general in nature incorporates that the main function of CPCB would
be to improve the quality of air and to prevent control or abate air pollution
in the country. Sub-Section-2 of Section-16 lays down particular function in
Clauses (a) to (j) thereof for the purposes of performing its function.
Sub-Section-3 of Section-16 enjoins upon CPCB to establish or recognise a
laboratory or laboratories. Chapter-IV which is comprised of Sections 19 to
31A deals with prevention and control of air pollution. Various powers are
given to the Central and State Boards for this purpose. Section 31A which was
introduced by Act 47 of 1987 w.e.f. 1st April,1988 CPCB gives power to the
Board to issue any directions in writing to any person, officer or authority,
and such person, officer or authority is bound to comply with such direction.
Explanation to Section 31A specifically mentions that this power includes
direction to close down any industry, operation or process.
24. In view of the aforesaid scheme of the Act, it is not disputed that it is
the power of the respondents to declare that particular industrial units are
causing air pollution or hazardous, if it is so found. It was also not
disputed that under Section 31A of the Act direction could be given to close
down the petitioner's unit if the respondents are satisfied that their units
are causing air pollution. However, the contention of the petitioner is that
the power is exercised mala fide and it was the case of abuse of the power,
inasmuch as according to the petitioner its unit is not creating any air
pollution and should have been categorised as 'F' and further that there was
no basis for categorisation its unit as 'H'.
25. In order to appreciate the aforesaid arguments, what is to be examined is
as to whether there was any material before the respondents on the basis of
which industry of the petitioner is put in 'H' category and the decision is
based on relevant material. As already observed above, it is CPCB which has
categorised the industry of the petitioner as 'H'. In the counter-affidavit of
DPCC it has been stated that Sh.R.K.Goyal, Member Secretary, DPCC had written
vide communication dated 16th November, 1998 to the Member Secretary, CPCB
pointing out that a large number of Units had been found to be operating in
various parts of Delhi engaged in the manufacturing of Urea Formaldehyde
Powder and that a complaint was also received against these Units that these
Units should be treated as hazardous and noxious as per Master Plan of Delhi
2001. It was also pointed out that while categorisation of more than 1 lakh
industries by the respondent No.2, one such Unit was categorised under Group
'F' but it seemed that the manufacturing process of the said Unit seemed that
the UF Powder is similar to resins which have been put in group 'H' of the
Master Plan. In view of the same, it was requested vide the said communication
that the matter may be examined and the respondent No.2 should be guided as to
whether the said Units should be categorised under Group H(a) so that
necessary action may be initiated as per Law. The said communication was
replied vide reply dated 14th December, 1998 by the Director(ESS) of the CPCB
that since raw materials used in such industries were hazardous chemicals, it
was advised that all such Units should be categorised under H-Category. It was
also stated in the said communication that one such Unit i.e. M/s Bindal
Plastics was closed down in November 1996 under the orders of Hon'ble Supreme
Court as H-Category Unit. Thereafter the respondent No.2 received a
communication dated 10th May, 1999 from the CPCB wherein the CPCB intimated
the respondent No.2 that the contents and representations of the UF Moulding
Powder Manufacturers Association had been considered and the Central Board is
of the opinion that phenol formaldehyde resin manufacturing and urea
formaldehyde resin manufacturing( using phenol and/or formaldehyde as starting
raw materials which are hazardous) should continue to remain under 'H(a)-
Category' as per the provisions of MPD-2001. Thereafter the respondent No.3
again reiterated that the categorisation of Urea Formaldehyde Powder
manufacturing Units was to be categorised under H-Category. Insofar as CPCB is
concerned, it has placed material on the basis of which CPCB categorised the
petitioner unit as 'H'. The gist of the additional affidavit is already
highlighted above. It is stated by CPCB that the category was changed keeping
in view of:
i) chemical nature of raw material used, intermediate products and final
product manufactured and whether these pose hazard at any stage;
ii)input and output of chemicals, their material balance and state (i.e.
solid, liquid or gas);
iii) manufacturing process used and sequence of use of ingredient chemicals,
their concentration, toxicity; and iv) emissions during manufacturing process,
their nature, concentration and characteristics etc.
26. Reference is also made to the publications of World Health Organisation
entitled "Health and Safety Guide" which includes its booklet on "Formaldehyde
Health and Safety Guide (No.57, 1991) as per which even manufacturing of UF
Moulding Powder is highly hazardous for surrounding environment. CPCB consists
of officials who are experts in their filed. As per the provisions of the Act,
it is the respondents and in particular CPCB which is to decide such issues as
to which industry is causing air pollution. It is the duty of the respondents
to control the air pollution and for that purpose respondents are empowered to
issue necessary direction under Section 31A of the Act. Once it is found that
the action of the respondents is based on relevant material on record and it
is not the case of non-application of mind or where irrelevant considerations
have crept in decision making process, the Court would not interfere with such
a decision. Along with the additional affidavit dated 10th September,2000,
CPCB has filed Annexure-R-4 which is brief note on Resin, Types of Resin,
Environment and Health Implications from Urea Formaldehyde Powder
Manufacturing Units. After dealing with the aspect of manufacturing of
U.F.Moulding Powder in detail, last paragraph states in the following words as
to how categorisation of U.F.Powder Manufacturing Unit under 'H' category was
done. It would be apposite to quote this para at this stage Categorization of
UF Powder Manufacturing units The categorisation of industries is generally
based on following aspects Chemical nature of raw material used, intermediate
products and final product manufactured and whether these pose hazard at any
stage. Input and output of chemicals, their material balance and state , i.e.
solid, liquid or gas. Manufacturing process used and sequence of use of
ingredient chemicals; their concentration; toxicity etc. Emissions generated
their nature, concentration and characteristics. Based on the hazardous nature
of raw material (Formalin) used at the UF manufacturing units; the process
undertaken in which amino resin formation takes place due to low degree of
polymerization; the environmental implication and health hazards leading to
the risk of cancer from continuous generation and release of formaldehyde
vapours inspite of air pollution control system; the potential risk of high
formaldehyde emissions from the units, which are vented out in work place air
as well as atmosphere and potential risk of fire hazards from the units, all
the formaldehyde powder manufacturing units are categorized under 'H'
category.
27. CPCB has also filed Annexures R-8 to R-10, the noting of relevant file(s)
which led to the categorisation of petitioner industry under 'Ha' category as
per MPD-2001. These documents show that the matter was examined at the highest
level by the Committee of as many as six officers who are experts in their
filed. Power of Judicial Review
28. The legislature, under the Act in question has conferred power on the
respondents to issue directions for closure of a particular industry which
according to the respondents is causing air pollution. Admittedly, while
conferring such a power on the Boards, the Courts have not been given power to
hear appeal against the decision of the Board. It can, therefore, be safely
said that legislature has placed its trust in the judgment and wisdom of the
respondents. Therefore, while exercising the power of judicial review over
such a decision, this Court is not sitting in appeal against the decision of
the respondents. Judicial review of such a decision is available on limited
grounds. While on the one hand Court is not sitting on appeal over the
decision making authority, it has to preserve democratic values of rule of
law. From this angle Court is to ensure that the authority who has taken the
decision acts within the bounds of law and its power. Over a period of time
grounds have been evolved on which judicial review of administrative action is
permissible. The administrative decision can be interfered with if it lacks in
fairness or is mala fide, it is ultravires, or abuse of power or colourable
exercise of power and passed for improper purpose or it is based on irrelevant
considerations or relevant material is not taken into consideration. Once the
court is satisfied that a particular decision taken was within the power of
the authority and it is not an abuse of such power and has not been taken with
improper motive and is based on relevant material, it is not within the
purview of a Court to substitute its own decision over the decision of the
appropriate authority as if sitting in appeal. Way back in the year 1964 this
is what the Supreme Court had observed on this point in the case of Partap
Singh Vs. State of Punjab AIR 1964 SC 72 (at page-83) in the following words "The
Court is not an appellate forum where the correctness of the order of the
Government can be canvassed and, indeed, it has no jurisdiction to substitute
its own view...for the entirety of the power, jurisdiction and discretion...is
vested by law in the Government".
29. Similarly, in Asif Hameed vs.Jammu & Kashmir AIR 1989 SC 1899, the Supreme
Court enumerated the power of judicial review of administrative action in the
following words (at page 1906) "While exercising power of judicial review of
administrative action, the Court is not an appellate authority. The
Constitution does not permit the Court to direct or advise the executive in
matters of policy or to sermonize qua any matter which under the Constitution
lies within the sphere of legislature or executive, provided these authorities
do not transgress their constitutional limits or statutory powers".
30. Thus judicial review is not an appeal from a decision but a review of the
manner in which decision was made. The purpose of judicial review is to ensure
that an individual receives fair treatment and not to ensure that the
authority after according fair treatment, reaches on a matter which it is
authorised or enjoined by law to decide for itself a conclusion which is
correct in the eyes of the Court. We may emphasise here that the statute
provides statutory appeal against the impugned order but not only petitioners
did not invoke the same and chose to file these writ petitions but emphasised
that the writ petitions should be entertained on merits without relegating the
petitioners to the Appellate Authority. This aspect has been discussed in
detail while discussing Point No.1 above. The petitioners have, therefore,
chosen this forum knowing fully well the limitations attached to it.
31. In these cases we do not find any procedural infirmity or impropriety on
the part of respondents in taking the impugned decision. At this stage, we
would also like to reject the contention of the petitioners that the impugned
order passed is in violation of order dated 29th June,1999 passed by the
Appellate Authority. Appellate Authority had directed the respondents to
inspect the premises and submit its report. The argument was that without
doing this exercise, with mala fide intentions, closure orders are passed. It
may be mentioned that in that case appeal was filed against order dated 25th
January,1999 wherein DPCC had stated that the petitioner had not submitted
compliance report of the measures which respondents had directed the
petitioner to take. Therefore, subject matter of that appeal did not relate to
categorisation of the industry as 'H'. Show cause notice for this purpose was
issued on 24th February,1999 after passing the order dated 25th January,1999
which was impugned in the aforesaid appeal. Order dated 25th January,1999
impugned in the aforesaid appeal, therefore, related to the installation of
air pollution devices, compliance of which was sought by the respondents at
that time. As far as categorisation is concerned, this is a different aspect
altogether not at all related to the case in appeal originated on the basis of
order dated 25th January,1999. The exercise of categorisation or
recategorisation was initiated much after order dated 25th January,1999
impugned in the aforesaid appeal i.e. by show cause notice dated 24th
February,1999 and culminated in passing impugned order dated 7th June,2000.
When the order dated 29th June,1999 was passed in the earlier appeal, matter
was still at a show cause stage and it was not a subject matter of the appeal.
Therefore, any direction given in that case regarding categorisation was
beyond the scope of the appeal and without jurisdiction.
32. Mr.Ravinder Sethi, learned senior counsel appearing for the petitioner had
heavily relied upon the reports said to be of the Delhi College of Engineering
and the Indian Institute of Technology in support of his contention that the
categorisation of petitioner industry has to be under 'F' category. Suffice it
to state that CPCB is not bound by these reports. It is the case of CPCB that
these reports were duly considered by CPCB and after critically reviewing the
same, these reports were rejected. Table-1 of Annexure R-5 to the additional
affidavit contains perspicacious & subtle review of report of Delhi College of
Engineering where CPCB has given its comments to the various statements
contained in different paragraphs of the report, controverting and challenging
the correctness of such statements. One may also underscore the fact that it
is 'one man' report. Similar exercise is done in Table-2 of Annexure R-5
insofar as report of Indian Institute of Technology is concerned. Annexure R-7
also contains the comments on the report submitted by Indian Institute of
Technology. As already pointed out above, this Court has neither the expertise
nor any machinery to adjudge the veracity of the claim of the petitioner that
their industry should fall under category 'F' or that of the respondents stand
categorising the unit in 'H' category. Even the power of judicial review is
limited and circumscribed by the principles enumerated above. It is
discernible that there was due application of mind on the part of respondents
and their decision is based on relevant material on record which is manifest
of the foundation on which the decision rests. This translucent and vitreous
material coupled with the fact that under the Act it is the statutory function
and power of the respondents to do such categorisation and issue appropriate
direction leaves no scope for further scrutiny or analysis of the matter. This
Court is not supposed to adjudicate upon the correctness of the reports or the
respective claims. At the cost of repetition, it may be observed that not only
the petitioner's view point was duly considered by the CPCB, even the reports
of IIT and Delhi College of Engineering were duly considered. Critical review
did not find favour with CPCB and CPCB has given its detailed reasons for
doing so.
33. By now it is also well settled that the matters which are to be decided by
experts, are to be left for them to decide and once such expert bodies take
decisions in technical and scientific matters, it is not for the Court to
interfere with the evaluation made by these expert bodies. In fact the
argument which is advanced by the petitioners on the basis of the reports of
Delhi College of Engineering and IIT was precisely the argument raised before
Supreme Court and was considered by the Supreme Court in the case of Systopic
Laboratories (Pvt.)Ltd. Vs. Dr.Prem Gupta and others 1994 Supp (1) Supreme
Court Cases 160 and other connected petitions reported in the said judgment.
That was a case where validity of the notification issued by the Government of
India prohibiting completely the manufacture and sale of fixed dose
combination of corticosteroids with any other drug for internal use was
challenged. In the said notification it was stated that Central Government was
satisfied that long term use of steroids in fixed dose combinations for
treatment of asthma is likely to involve risk to human beings and such
formulations do not have therapeutic justification and further that it was
necessary and expedient in public interest to prohibit the manufacture and
sale of the said drugs. On behalf of the petitioners, scientific data in the
form of published papers in the various medical journals had been filed to
show that fixed dose combination of a corticosteroid and an antihistamine is
highly beneficial for the treatment of asthma. Relying upon such studies, it
was sought to be argued that the decision of the Central Government in
prohibiting the manufacture and sale of the drug in question was not proper.
While rejecting the contention of the petitioners, the Court observed as under
"Having considered the submissions made by the learned counsel for the
petitioners and the learned Additional Solicitor General in this regard, we
must express our inability to make an assessment about the relative merits of
the various studies and reports which have been placed before us. Such an
evaluation is required to be done by the Central Government while exercising
its powers under Section 26-A of the Act on the basis of expert advice and the
Act makes provision for obtaining such advice through the Board and the Drugs
Consultative Committee (DCC)".
34. The Court also brushed aside the argument of the petitioners that the
material sought to be produced by the petitioners although submitted before
the sub-Committee of the Drugs Consultative Committee (DCC) as well as Expert
Committee set up by it, there was no proper consideration of the same by the
experts as well as the DCC and the Board. The Court, in the process, perused
the minutes of the meeting of the Board, the sub-Committee of the DCC as well
as Expert Committee which revealed that the material that was submitted on
behalf of the manufacturers of the Drugs in question was examined by the
members and, therefore, it could not be held that there had been no proper
consideration for the said material by the Expert Committee or the
sub-Committee of the DCC. As already mentioned above, this exercise has been
undertaken by the respondents in the instant case as well.
35. We started discussion on this aspect by referring to the objective with
which the Act in question was enacted and noticed that the main objective of
legislation was to provide for the prevention, control and abatement of air
pollution. Therefore, one has to give purposive interpretation to such
statutes so as to foster and subserve the objectives with which such
legislations are passed and, therefore, once the Court is satisfied that the
respondents have undertaken a bona fide exercise and formed an opinion based
on some studies that the units of the petitioners are causing air pollution,
this Court should not interfere with such a decision taken by the respondents.
In A.P.Pollution Control Board Vs. Prof.M.V.Nayudu (Retd.) And others (supra)
the Supreme Court has emphasised that environmental concerns are of equal
importance as human rights concerns as both are to be traced to Article 21
which deals with the fundamental right to life and liberty. While
environmental aspects concerns "life", human rights aspects concerns
"liberty".
36. The end result of this discussion is that these petitions are without any
merit and, therefore, warrant dismissal. All these petitions are, accordingly,
dismissed with costs of Rs.5000/- each. 50% of this cost shall be deposited by
the petitioners with DPCC and 50% with CPCB. Rule D.B. issued in these
petitions is hereby discharged.