The Karnataka High Court recently overturned a ₹2.9 crore fine imposed by the National Green Tribunal (NGT) on the Madras Engineering Group (MEG), an Indian Army engineering unit based in Bengaluru. The fine was levied for alleged non-compliance with Sewage Treatment Plant (STP) discharge standards.

A bench consisting of Chief Justice NV Anjaria and Justice KV Aravind set aside the NGT's ex parte order, observing that it was passed without affording MEG an opportunity for a hearing, thereby violating the principles of natural justice. The High Court remitted the case to the NGT, instructing the tribunal to reconsider and decide the matter afresh.

"The setting aside of the order and the finding imposing the environmental compensation on the appellant (MEG) are on the sole ground that they are passed without affording an opportunity of hearing to the appellant and thus, in breach of principles of natural justice," the Court said in its order of November 26.

The NGT had imposed a compensation of ₹2.9 crore on the Madras Engineering Group (MEG) after finding it responsible for polluting a city lake. The NGT's proceedings were initiated suo motu following a 2016 news report.

MEG challenged the order before the Karnataka High Court, arguing that it was not made a party to the suo motu proceedings and only became aware of the case when an NGT-appointed committee arrived for an inspection. The group also contested the allegations of pollution and the claim that its Sewage Treatment Plant lacked mandatory permissions.

The High Court refrained from delving into the merits of the pollution allegations and the STP's validity. However, it ruled that the NGT's order had to be set aside, as MEG had not been given a chance to be heard in the proceedings.

"Not only that the appellants were not party to the proceedings before the NGT, they had never an opportunity to put forward their rebuttal or the case in defence to the finding and conclusion by the NGT about their liability to pay the compensation. Even if the appellants could be attributed with the knowledge of the proceedings before the Tribunal, when they were not given opportunity to put forward their case and that they were not heard, their right to challenge the finding and the decision could be said to be remaining alive to be exercised in court of law," the High Court said.

However, the High Court directed MEG to deposit ₹1 crore with the Karnataka State Pollution Control Board, pending the outcome of the fresh proceedings before the NGT.