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Issues: (i) whether the petitions styled as public interest litigation were bona fide and maintainable; (ii) whether the environmental clearance for the blast furnace could be treated as an ex post facto clearance or justify demolition of the construction; (iii) whether the proposed pipe manufacturing activity using an induction furnace was a separate foundry activity requiring independent environmental clearance; and (iv) whether rejection of the petitioners' representation without a personal hearing violated natural justice.
Issue (i): whether the petitions styled as public interest litigation were bona fide and maintainable
Analysis: The petitions were found to be burdened by indicators of sponsorship and lack of bona fides, including the belated production of authority documents and circumstances suggesting business rivalry rather than a genuine public cause. The existence of an alternative appellate remedy was also noticed, though the Court proceeded to examine the matter on merits in view of the connected petitions and the nature of the controversy.
Conclusion: The petitions were not accepted as bona fide public interest litigation.
Issue (ii): whether the environmental clearance for the blast furnace could be treated as an ex post facto clearance or justify demolition of the construction
Analysis: The Court held that the clearance was granted only for the blast furnace project after consideration of the materials placed before the authority and with safeguards attached. It accepted that construction had commenced before clearance, but held that the construction breach did not warrant demolition in the facts, particularly because the authority acted consciously, no pollution from mere construction was shown, and the clearance could not be characterised as a prohibited ex post facto approval on those facts.
Conclusion: The clearance for the blast furnace was upheld and no demolition was ordered.
Issue (iii): whether the proposed pipe manufacturing activity using an induction furnace was a separate foundry activity requiring independent environmental clearance
Analysis: The Court distinguished the blast furnace proposal from the pipe manufacturing component and held that the clearance process had been undertaken only for the blast furnace under the relevant item of the EIA notification. It further held that the word "individual" in the entry for foundries had to be given meaning, and that the composite pipe project using an induction furnace was not automatically covered as a stand-alone foundry requiring separate clearance, particularly in the absence of an application and public hearing for that activity.
Conclusion: The pipe manufacturing activity was not treated as requiring independent environmental clearance on the facts as considered.
Issue (iv): whether rejection of the petitioners' representation without a personal hearing violated natural justice
Analysis: The Court held that the only right flowing from the earlier order was to make a representation, not necessarily to obtain an oral hearing. It found from the file notings and the impugned communication that the representations had been considered, and that the absence of a personal hearing did not vitiate the decision in the circumstances.
Conclusion: No violation of natural justice was found.
Final Conclusion: The environmental clearance and the decision-making process were sustained, and the challenge to the impugned action failed.
Ratio Decidendi: Judicial review in environmental clearance matters is confined to the decision-making process, and where the authority has considered the material, attached safeguards, and acted within the statutory framework, the Court will not substitute its own view merely because the petitioners dispute the classification or seek a different outcome.
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