Pre-NGT proceedings valid: Gujarat HC refuses to quash notice directing compensation to farmers

The Gujarat High Court has dismissed a petition by eight directors of M/s Nova Petrochemicals Ltd (NPL), refusing to quash notices requiring them to pay ₹1.03 crore in compensation to farmers of Moraiya village for environmental damage caused to agricultural land.

A division bench of Gujarat High Court ruled that the proceedings, initiated under a 2009 High Court order, remain valid despite the enactment of the National Green Tribunal (NGT) Act, 2010.

The court noted that Section 29 of the NGT Act transfers pending cases from the abolished National Environment Appellate Tribunal to the NGT, but this provision does not apply here as the compensation assessment was conducted under pre-NGT High Court directions.

The bench emphasised that the writ petition challenging the notices was filed seven years after the NGT's establishment, and the petitioners raised no objections during the proceedings. Additionally, the bar on civil court jurisdiction under Section 29 does not extend to this case, as the process predates the NGT Act.

The case stems from complaints of environmental pollution by NPL's manufacturing unit, which produced polyester partially oriented yarn. Farmers alleged damage to agricultural land and bore-well water. In response, the Gujarat Pollution Control Board (GPCB) ordered the unit's closure and electricity disconnection. A 2009 GPCB inspection revealed that water from three of six bore-wells was non-potable, prompting further action.

The GPCB maintained it acted promptly upon learning of the pollution, confirming the unit's non-operation.

Under the High Court's September 17, 2009, order, a committee involving the Deputy Collector/Sub-Divisional Magistrate assessed and determined the compensation.

The directors argued that the committee's formation was a temporary measure invalidated by the NGT Act, rendering the notices jurisdictionally flawed. They also contended personal liability could not be imposed, as proceedings were against the company—a separate legal entity—and they were not parties till 2007. 

The company later de-merged into M/s GSL Nova Petrochemicals Ltd and M/s CIS Nova Petrochemicals Ltd with court approval.