M/S INDIAN OIL CORPORATION LIMITED versus V. B. R. MENON & OTHERS

Citation: [2023] 5 S.C.R. 215 · Decided: 14-03-2023 · Supreme Court of India · Bench: SUDHANSHU DHULIA · Disposal: Disposed off
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Judgment (excerpt)

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M/S INDIAN OIL CORPORATION LIMITED
v.
V. B. R. MENON & OTHERS
(Civil Appeal No. 421 of 2022)
MARCH 14, 2023
[SUDHANSHU DHULIA AND J. B. PARDIWALA, JJ.]
National Green Tribunal Act, 2010 – ss. 14, 15, 25, 26, 27,
28, 29, 30(1)(b), 36 – Environment (Protection) Act, 1986 – s. 2(a),
3(3), 5, 5A – National Green Tribunal (Practices and Procedures)
Rules, 2011 – Rule 24 – Water (Prevention and Control of Pollution)
Act, 1974 – s.25 – Air (Prevention and Control of Pollution) Act,
1981 – s. 21 – The Principle Bench of the NGT in the O.A.No.147
of 2016 issued directions to install Stage-I and Stage-II vapour
recovery devices (VRD) at all fuel stations, distribution centers,
terminals, railway loading/unloading facilities and airports in the
National Capital Territory of Delhi – Thereafter, respondent no.2-a
resident of Chennai, filed O.A.No.138 of 2020(SZ) raising issue in
regard to the non-installation of Vapour Recovery Systems (VRS) in
the petroleum outlets by the oil marketing companies (OMCs) – The
NGT, Chennai, inter-alia, directed the Central Pollution Control
Board (CPCB) as well as the State Pollution Control Boards to issue
directions to make it mandatory to obtain Consent to Establish (CTE)
and the Consent to Operate(CTO) for new retail petroleum outlets
as well as the existing retail outlets – Issue before the Supreme Court;
whether the NGT has the jurisdiction to direct the CPCB that it
should in exercise of its powers u/s. 5 of the Act 1986 make obtaining
of the CTE and CTO resply mandatory for all the petroleum retail
outlets across the country – Held: All the appellants have installed
VRS and VRD at their sites and retail outlets – Respondent no.2
had not prayed before the NGT, Chennai to make CTE and CTO
mandatory – The fact that CPCB in consultation with Ministry of
Petroleum and Natural Gas has issued circulars/guidelines from
time to time for installation of VRS – Directions issued by the NGT,
Chennai in regard to installation of the VRS in the impugned
judgment are not inclined to be disturbed – CPCB directed to ensure
that these directions are scrupulously followed – NGT in its impugned
order had noted that the oil industry is characterized as “green
[2023] 5 S.C.R. 215
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SUPREME COURT REPORTS
[2023] 5 S.C.R.
category” and the CTE and CTO was not required – Apprehension
on the part of the NGT that the installation of VRS may not be strictly
monitored by the State Pollution Control Boards, led the NGT to
issue directions making obtaining the CTE and CTO mandatory –
However, it is not necessary to make obtaining of CTE and CTO
mandatory, accordingly directions in this regard are set aside –
Instead, CPCB directed to instruct all the State Pollution Control
Boards to ensure that the guidelines issued by the office memorandum
dated 07.01.2020 are strictly adhered to – NGT has the power to
direct the CPCB that it should exercise its power u/s. 5 of the Act
1986 for the purpose of protecting environment and it was well
within its jurisdiction
Disposing of the appeals, the Court
HELD: 1. It is noticed that all the appellants have installed
VRS and VRD at their sites and retail outlets. It is also noticed
that the respondent No. 2 (original applicant) had not prayed before
the NGT, Chennai to make CTE and CTO mandatory. The prayers
in O.A. No. 138 of 2020 (SZ) were limited to the State of Tamil
Nadu only. However, the NGT, Chennai by its impugned order
has directed all the petroleum ROs in cities having more than 10
lakh population to install VRS mechanism which are having
turnover of more than 300 KL/Month. This Court also takes
notice of the fact that the CPCB in consultation with the Ministry
of Petroleum and Natural Gas has issued circulars/guidelines from
time to time for installation of VRS (also known as Vapour
Recovery Device circular). This Court is not inclined to disturb
the impugned directions issued by the NGT, Chennai in regard
to installation of the VRS. The CPCB shall ensure that these
directions are scrupulously followed and complied with. [Para
45][240-F-H; 241-A]
2. What is important to note is that in the directions/
guidelines issued by the CPCB dated 30.04.2020 and 07.03.2016
resply the automobile fuel outlets have been classified as “green”
which may be exempted from consent management. The Solicitor
General submitted that it is only after due consideration and
deliberations that the CPCB issued the said directions. The NGT
itself in para 66 of i
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