CIT vs. SAHDEV JEWELLERS

H > * IN THE HIGH COURT OF DELHI AT NEW DELHI % ludament Reserved on : lanuarv 2012 ludament Pronounced on: 23'''' lanuarv. 2012 LPA 866/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dlnesh Jindal, L.O. versus ANUSH FINLEASE & CONSTRUCTION PVT LTD Respondent Through Mr.Ajay Kunnar and Mr.Naveen Tayal, Advocates CORAM: HON'BLE MR. JUSTICE PRADEEP NANDRAJOG HON'BLE MS. JUSTICE f^RATIBHA RANI PRADEEP NANDRAIOG. I. For orders see LPA No.895/2010. (PRADEEP NANDRAJOG) JUDGE (J^VW—^— (PRATIBHA RANI) JUDGE JANUARY 23, 2012 dk Digitally Signed By:AMULYA Signature Not Verified

Iv^ $~ * IM THE HIGH COURT- OF DELHI AT NEW DELHI ' %, ludament Reserved on : 16"' lanuary 2012 ludament Pronounced on: '23'''^ lanuarv, 2012 + • LPA 895/2010 - DELHI POLLUTION CONTROL COMMITTEE Appellant Through: Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dineshjindal, L.O. versus SPLENDOR LANDBASE LTD Respondent Through: Mr.B.B. Gupta, Ms.Mandeep Kaur and Mr.Harsh Hari Haran, Advocates LPA 1/2011 & CN lS!o.6781/2011 {Cross Obiections) DELHI POLLUTION CONTROL COMMITTEE /Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L,0. versus 5ACHDEVA BUILDON PVT LTD & ORS Respondents Through Mr.Sanjay Goswami, Advocate for R-1 i Mr.Neeeraj Chaudhari, CGSC with Mr.Akshay Chandra and Mr.Khalid Arshad, Advocates for UOI LPA 6/2011 & CM IMo.6779/2011 (Cross Obiections) DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. LPA 895/2010& connected matters " PageloF33

w versus VARDHMAN PROPERTIES LTD & ORS Respondents Through Mr.Sanjay Goswami, Advocate for R-1 LPA 7/2Q11 & CiVi .No.6780/2011 (Cross Objections) DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus VARDHMAN PROPERTIES LTD & ORS ..... Respondents . Through Mr.Sanjay Goswami, Advocate for R-1 LPA 8/2011 El cm Mo.6782/2011 (Cross Objections) DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, 1,0. versus VARDHMAN PROPERTIES LTD & OFIS Respondents Through Mr.Anil Sapra, Sr. Advocate with Ms.Urvi Kothiala, Ms.Praneeta Vir and Mr.Sanjay Goswami, Advocates LPA 9/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L-.O. versus MANISH BUILDWELL PVT LTD & ORS Respondents Through Mr.Sanjay Goswami, Advocate for R-1 LPA 895/2010 &connected matters Page 2 of 38

DELHI POLLUTION CONTROL COMMITTEE ..... Appellant ! , Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dlnesh Jindai, L.O. versus MANISH BUILDWELL PVT LTD & 0R5 Respondents Through Mr.Sanjay Goswanni, A^dvocate for R-1 LPA 11/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O'. versus VARDHMAN LAND DEVELOPERS PVT LTD&ANR Respondents ^ Through None LPA 22/2011 & CM No.6824/2011 (Cross Objections) DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh ShariTia, Advocates with Mr.Dinesh Jindal, L.O. versus PANKAJ BUILDWELL LTD & ORS Respondents Through Mr.Sanjay Goswanni, Advocate for R-l Mr.Neeeraj Chaudhari, CG5C with Mr.Akshay Chandra and Mr.Khalid Arshad, ^ Advocates for UOI LPA 23/2011 & CM IMo.6832/2011 (Cross OtQiectiionis) DELHI POLLUTION CONTROL COMMITTEE Appellant LPA 895/2010& connected matters Page 3' of

Through Mr.C. Mohan P\SO and Mr.Lokesh Sharma, Advocates withHVIr.Dinesh Jindal, L.O. versus RAJESK PROJECTS INDIA PVT LTD & 0R5 Respondents Through Mr.Sanjay Goswami, Advocate for R-1 Mr.Neeeraj Chaudhari, CGSC with Mr.Akshay Chandra and Mr.Khaiid Arshad, ' Advocates for UOI LPA 24/2011 & CM Mo.8168/2011 (Cross Qbiections DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus BEST REALTORS (INDIA) LTD & ORS Respondents Through Mr.Sanjay Goswami, Advocate for R-1 Mr.Neeeraj Chaudhari, CGSC with Mr.Akshay Chandra and Mr.Khaiid Arshad, Advocates for UOI LPA 25/2011 & CM No.6828/2011 (Cross Obiectioins) DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates.with Mr.Dinesh jindal, L.O. versus BEST CITY DEVELOPERS (INDIA) PVT LTD. & ORS .. Through Mr.Sanjay Goswami, Advocate for R-1 Mr.Neeeraj Chaudhari, CGSC with Mr.Akshay Chandra and Mr.Khaiid /\rshad, Advocates for UOI LPA 895/2010 &connected matters Page 4 of 38 Respondents

LPA 26/2011 & CM'Mo.6831/2011 (Cross Obiections) DELHI POLLUTION CONTROL COMMITTEE ..... Appellant Through ' Mr.C. Mohan Rao and Mr.Lokesh Sharrna, Advocates with Mr.Dlnesh Jindal, L.O. versus HOME LINKERS PVT LTD &ORS Respondents Through Mr.Sanjay Gosv\ami, Advocate for R-1 Mr.Neeeraj Chaudhari, CG5C with Mr.AI<5hay Chandra and Mr.Khalid Arshad, Advocates for UOI LPA 27/2011 & CM Mo.683.3/2011 (Cross Obiections) DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lol<esh Sharrna, Advocates with Mr.Dinesh Jindal, LX). versus RAJESH PROJECTS INDIA PVI LTD 5; ORS Respondents Through Mr.Sanjay Goswami, Advocate for R-1 Mr.Neeeraj Chaudhari, CGSC with Mr.AI<shay Chandra and Mr.Khalid Arshad, Advocates for UOI LPA 28/2011 & CM IMo.6826/2011 (Cross Obiections) DELHI POLLUTION CONTROL COMMITTEE Appellant ^ Through Mr.C. Mohan Rao^and Mr.Lokesh Sharrna, \j' Advocates with Mr.Dinesh Jindal, L,0. versus VARDHMAN PROPERTIES LTD & ORS Respondents LPA 895/2010 &connected matters Page 5of38

•>, • Through Mr.Sanjay Goswami, Advocate for R-1 Mr.lMeeera] Chaudhari, CGSC with Mr.Akshay Chandra and Mr.Khalid Arsihad, Advocates for UOI LPA 45/2011 . DELHI POLLUTION CONTPxOL COMMITTEE Appellant Through Mr.C. Mohan Pxao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus JINDAL BIOCHEM PVT LTD &ORS Respondents Through Mr.Neeeraj Chaudhari, CGSC with Mr.Akshay Chandra and Mr.K Advocates for UOI nalid Arshad, . " LPA 46/2011 .& CM Nlo.8164/2011 (Cross Qbiections) DELHI POLLUTION CONTROL COMMITTEE ./Appellant # Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates'with Mr.Dinesh Jindal, L.O. versus i AS BUILDWELL PVT LTD & ORS Respondents Through Mr.Sanjay Goswami, Advocate for R-1 Mr.Neeeraj Chaudhari, CGSC with Mr.Akshay Chahdra and Mr.Khalid Arshad, Advocates for UOI LPA 47/2011 & CM lMo.6825/2011 (Cross Qbiections) DELHI POLLUTION CONTROL COMMITTEE .....Appellant ^ Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus LPA'895/2010 &connected matters Page 3" IL-

MAITRI MUTUAL BENEFITS LTD & ORS Respondents . Through Mr.Sanjay Goswami, Advocate for R-1 Mr.Neeeraj Chaudhari, CG5C with • IMr.Akshay Chandra and Mr.Khalid Arshad, Advocates for UOI LPA 48/2011 & CM Mo„6823/2011 (Cross Obiectioria;) •DELHI POLLUTION CONTROL COMMITTEE /Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus NIRVAN HIRE PURCHASE LTD & ORS Respondents Through Mr.Sanjay Goswanni, Advocate for lR-1 Mr.Neeeraj Chaudhari, CGSC with Mr.Akshay Chandra and jVjr.Khalid AVrshad, Advocates for UOI ^ LPA 50/2011 &CM iMo.6827/2011 (Cross ObiectioTis) DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharrna, Advocates with Mr.Dinesh jindal, L.O. versus NIPUN BUILDERS & DEVELOPERS PVT LTD & ORS Respondents Through Mr.Sanjay Goswami, Advocate for R-1 Mr.Neeeraj Chaudhari, CGSC with Mr.Akshay Chandra and Mr.Khalid Arshad, Advocates for UOI LPA 51/2011& CM No.6829/2011 (Cross Objections) DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh jindal, L.O. LP/\ 895/2010 gt connected matters P!age 7of38 Is

versus VARDHMAN PROPERTIES LTD &0R5 Respondents Through Mr.Sanjay Goswami, Advocate foi R-1 Mr.Neeeraj Chaudhari, CGSC with Mr.Akshay Chandra and Ivir.Khalid Arshad, Advocates for UOl LPA 53/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharrna, Advocates with F\/lr.Dinesh Jindal, L.O. versus ESS CEE CEE &ASSOCIATES (INDIA) PVT LTD .. Respondent Through Mr.Anil Sapra, Sr. Advocate with Ms.Urvi Kothiaia, Ms.Praneeta Vir and Mr.Sanjay ^ Goswanrii, Advocates LPA 54/2011 & CM No.6004/2011 (Cross Objections) DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lol<esh Sharrna, Advocates with Mr.Dinesh Jindal, L.O. versus FARGO ESTATES PVT LTD .....Respondent Through Mr.Ankit Jain, Advocate LPA 58/2011& CM Mo.6830/2011 (Cross abjections) , ; DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C: Mohan Rao and Mr.Lokesh Sharrna, Advocates with Mr.Dinesh Jindal, L.O. versus LPA 895/2010 & connected matters ^ IH

VARDHMAN PROPERTIES LTD & ORS Respondents Through Mr.Sanjay Goswami, Advocate for R-1 Ivlr.Neeeraj Chaudhari, CG5C with Mr.Akshay Chandra and Mr.Khalid Arshad, Advocates for UOl LPA 94/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through . Mr.C. Mohan Rao and Mr.Lokesh Sharrria, Advocates with Mr.Dinesh Jindal, L.O. versus DLF RETAILER DEVELOPERS LTD Respondent Through Mr.B.B. Gupta, Ms.Mandeep Kaur and Mr.Harsh Marl Haran, Advocates DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharrna, Advocates with Mr.Dinesh Jindal, L.O. versus LAXMI BUILDTECH PVT LTD ANR Respondents Through Mr.Kailash Vasdev, Sr. Advocate with Ms.Neoma Vasdev Gupta, Ms.Ekta Mehta and Ms.Joanne Pudussery, Advocates tor respondent No.1. Mr.Neeeraj Chaudhari, CG5C with Mr.Akshay Chandra and Mr.Khalid Arshad, Advocates for UOl LPA 96/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao,and Mr.Lokesh Sharnia, LPA 89.5/2010 &connected matters ^

Advocates with IMr.Dinesh Jindal, L.O. versus MANISH BUILDW.ELL PVT LTD & ORS Respondents Through Mr.Sanjay Goswami, Advocate for R-1 Mr.Neeeraj Chaudhari, CGSC vyith Mr.Akshay Chandra and Mr.Kh'alid Arshad, Advocates for UOI LPA 97/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates, with Mr.Dinesh Jindal, L.O. versus BRIGHTWAYS HOUSING & DEVELOPMENT LTD&ANR Respondents . Through Mr.Anil Sapra, Sr. Advocate with Ms.Urvi Kothiala and Ms.Praneeta Vir, Advocates for R-1. Mr.Neeeraj Chaudhari, CGSC with Mr.Al<shay Chandra and Mr.Khalid Arshad, Advocates for UOI LPA 98/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh jliE^rnia, Advocates with Mr.Dinesh Jindal, L.O. versus DLF COMMERCIAL DEVELOPERS LTD Respondent LPA 895/2010&connected matters ®

y Through Mr.B.B. Gupta, Ms.Mandeep Kaur and Mr.Harsh Hari Haran, Advocates LPA 99/2011 DELHI POLLUTION CONTROL COMMITTEE. Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dlnesh Jindal,"L.O. versus GALLERIA PROPERTY MANAGEMENT SERVICES PVT LTD Respondent Through Mr.B.B. Gupta, Ms.Mandeep Kaur and Mr.Harsh Marl Haran, Advocates DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.C). versus PROSPEROUS ESTATES PVT LTD . Respondent Through ' None LPA 101/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus REGENCY PARK PROPERTY MANAGEMENT SERVICES PVT LTD Respondent Through Mr.B.B. Gupta, Ms.Mandeep Kaur and Mr.Harsh Hari Haran, /Advocates LPA 895/20108i connected matters H of 11-

LPA 102/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus PALIWAL DEVELOPERS LTD ' .....Respondent Through Mr.B.B. Gupta, Ms.Mandeep Kaur and Mr.Harsh Hari Haran, Advocates LPA 103/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus RIDGE VIEW CONSTRUCTION PVT LTD Respondent Through Mr.Anil Sapra, Sr. Advocate w th Ms.Urvi Kothiala and Ms.Praneeta Vir, /Advocates. LPA 104/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus . . RC SOOD & CO PVT LTD Respondent Through Mr.Shobhit Chandra, /Advocate LPA 895/2010 &connected matters Pagel.ioFjL-

V DELHI POLLUTION CONTROL COMMITTEE AppGllant Through Mr.C. Mohan Rao and Mr.Lokesh Sharn'ia, Advocates with Mr.Dinesh Jindal, L.O. versus LODHl PROPERTY CO LTD Respondent Through Mr.B.B. Gupta, Ms.Mandeep Kaur and Mr.Harsh Hari Haran, Advocates DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O. versus BHARTi REALTY LTD .....Respondent Through Mr.Dushyaht Manocha and Ms.Tarunirna Vijra, Advocates LPA 866/2011 • DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao, and Mr.Lokesh Sharma, Advocates with Nir.Dlnesh Jindal, L.O. versus ANUSH FINLEASE & CONSTRUCTION PVT ltd Respondent Through Mr.Ajay Kunnar and Mr.Naveen Tayal, Advocates LPA 895/2010& connected matters ^'-3 of30'

LPA 867/2011 DELHI POLLUTION CONTROL COMMITTEE Appellant Through Mr.C. Mohan Rao and Mr.Lokesh Sharma, Advocates with Mr.Dinesh Jindal, L.O'. versus ' TIRUPATI INFRAPR0JECT5 PVT LTD Respondent Through Mr.Ajay Kumar and Mr.Naveen Tayal, Advocates CORAM: HOIM'BLE MR. JUSTICE PRADEEP NANDRAJOG HON'BLE MS. JUSTICE PRATIBHA RANI PRADEEP MAMDRAIOG. I. 'j; 1, A batch of 38, writ petitions was decided by a learned Single Judge vide order dated September 30, 2010. The said decision. has been followed subsequently by another learned Single Judge. Instant appeals lay a challenge to the said decisions pronounced by. the learned Single Judges of this Court; and since the reasoned decision. is the .one which was pronounced on September 30, 2010, learned counsel for the parties conceded that it is said decision which needs to be reflected upon by us in the appeal(s). 2. Writ petitions were filed challenging notices issued bv the Delhi Pollution Control Committee (DPCC) to the writ petitioners or penalties levied, which were paid under protest or bank guarantees submitted by the writ petitioners, which were under threat of being invoked. The petitions have succeeded, not in full, but in part. Directions have been issued to DPCC to tak(2 LPA 89^/2010 gt connected matters Page 14. of ju.

action afresh and guided by the,.decision of the learned Single Judge. 3. The buildings with, respect whereto action was proposed to be tal<en or was taken by DPCC, are of three kinds: (i) Residential Housing Complexes, (ii) Comnnercial Shopping Complexes, and (iii) Shopping Malls. Actions were initiated or decisions were taken on the allegation -that with respect to the buildings constructed, the writ petitioners had not obtained a 'consent to establish'required, under The Water (Prevention and Control of Pollution) Act, 1974 (hereinafter referred to as 'the Water Act') and 'consent to operate' as required under The Air (Prevention and Control of Pollution) Act, 1981 (hereinafter . referred to as 'the Air Act'). 4. Issues have been debated before the learned Single Judge and even before us with reference to Sections 2(g), 2'.(gg), 2(k), Section 25 and Section 33A of the Water Act, and Sections 2(a), 2(j), 2(k), Section 21 and Section 31A of the Air /Act. Thus, we begin our chartered journey by noting the said provisions. 5. . Section 2(g), 2(gg), 2(k), relevant part of Section 25 and .Section 33A of The Water (Prevention and Control of Pollution) Act, ,1974 read as under:- -i • "2. Definitions.- In this Act, unless the conbsxt otherwise requires,- (a) (b) (c) (d) (e) (f) LPA 895/2010 &connected matters Pagel5of3;8

(g) 'sewage effluent' .nneans effluent from any sewerage system or sewage disposal works and includes sul.lage from open drains; (gg) 'sewer' means any conduit pipe or channel, open or closed, carrying sewage or trade effluent; (h) (i) (j) ....... (k) 'trade effluent' includes any liquid, gaseous or solid substance which is discharged from any premises used for carrying on any industry, operation or process, or treatment and disposal system, other than domestic sewage. 25. Restrictions on new outlets • and new discliarges.- (1) Subject to the provisions of this section, no person shall, without the previous consent of th<E! State Board,- (a) establish or take any steps to establish any industry, operation or process, or any treatment and disposal system or any extension or addition thereto, which is likely to discharge sewage or trade effluent into a stream or well or sewer or on land (such discharge being hereafter in this section referred to as discharge of sewage); or (b) (c) • Provided that a person in the process of taking any steps to establish any industry, operation or process immediately before the - . commencement of the Water (Prevention and Control of Pollution) Amendment Act, LPA 895/2010 &connected matters Pagel6of:SS ^1-

1988, for which no consent was necessary prior to such commencement, may continue to do so for a period of three months from such commencement or, if he. has made an application for such, consent, within the said period of three months, till the disposal of such application; i (2) (3) (4) ' (5) Where, without the consent of the State Board, any industry; operation or process, or any treatment and disposal system or any extension or addition thereto, is established, or any steps for such establishment have been taken or a new or altered outlet is brought into use for the discharge of sewage or a new discharge (Df •sewage is made, the State Board may serve on the person who has established or taken steps to establish any, industry, operation or process, or any treatment and disposal system or any extension or addition thereto, or using the outlet, or making the discharge, as the case may be, a notice imposing any such conditions as it might have imposed on an application for its consent in respect of such establishment, such outlet or discharge. (6) (7) The consent referred to in sub-section (1) shall, unless given or refused earlier, be deemed to have been given unconditionally on the expiry •\J • of a period of four months of the making of an application in this behalf complete in all respects to the State Board. (8) LPA 895/2010& connected matters 17 of 38

33A. Power to give directions- Notwithstanding anything contained in any other law, but subject to the provisions of this Act, and to any directions that the Central Government may give in this behalf, a Board may, in the exercise of its powers and performance of its functions under this Act, issue any directions in writing to any person, officer or authority, and such person, officer or authority shall be bound to comply with such directions. Explanation.-?OT the avoidance of doubts, it is hereby declared that the power to issue directions under this section includes the power to direct- (a) the closure, prohibition or regulation of any industry, operation or process; or (b) the stoppage or regulation of supply of electricity, water or any other service." 6. Section 2(a), 2(j), 2(l<), relevant part of Section 21 -and Section 31A of The Air (Prevention and Control of Pollution) Act, 1981 read as unden- 2. Definitions.- In this Act, unless the context otherwise requires,- (a) 'air pollutant' means any solid, liquid or gaseous substance (including noise) present in the atmosphere in such concentration as may be or tend to be injurious to human beingsjor other living creatures or plants or property or environment; 1 1 (b) ' (c) (d) (e) LPA 895/2010 gt connected matters PagelCo jo

//, (f) (g) (h) (i) (j) 'emission' means any solid or liquid or gaseous substance coming out of any chimney, duct or flue or any other outlet;. (k) 'industrial plant' means any plant used for any industrial or trade purposes and emitting any air pollutant into the atmosphere; 21. Restrictions on use of certain plants - (1) Subject to the provisions of this section, no person shall, without the previous consent of the State Board, establish or operate any industrial plant in an air pollution control area: Provided that a person operating any industrial plant in any air pollutior control area immediately before the commencement of section 9 of ' the Air (Prevention and Control of Pollution) Amendment Act, 1987 (47 of 1987), tor which no consent was necessary prior to such commencement, may continue to do so for a period of three months from such commencement or, if. he has made an application for such consent within the said period of three months, till the disposal of such application. (2) (3) (4) Within a period .;of four months after the receipt of the application for consent referred to in sub-section (1), the State Board shall, by order LPA 895/2010&connected matters Page 19 of 3& ir

f in writing, and for. reasons to be recorded in the order, grant the consent applied for subject to such conditions and 'for such period as may be specified in the order, or refuse such consent: Provided,that it shall be open to the State Board to cancel such consent before the expiry of the period for which it is granted or refuse further consent after such expiry if the conditions subject to v\i'hich such consent has been granted are not fulfilled: Provided further that before cancelling a consent or refusing a further consent under the first proviso, a reasonable opportunity of being heard shall be given to the person concerned. (5), (6) (7) \ • • 31A. Power to give directioRS - Notwithstanding anything contained in any other law, but subject to the provisions of this Act and to any directions that the Central Government may give in this behalf, a Board may, in the exercise of its powers and performance of its functions under this Act, issue any directions in writing to any person, office or authority, and such person', officer or authority shall be bound to comply with such directions. ^ Explanation.- For the avoidance of doubts, it is hereby declared that the power to issue directions under this section includes the power to direct- LPA 895/2010 & connected matters Page 20 of 38 JL

(a) the closure, prohibition or regulation of any industry, operation or process; or (b) the stoppage or regulation of supply of electricity, water or any other service. ^ 7. With reference to the Water Act as originally framed in the year 1974 and as amended in the year 1988 and with reference to the Statement of Objects and Reasons of the Amending Act, the learned Single Judge has opined that the legislative amendments carried out in the original Water Act were . intended to expand- the scope of the Water Act. The learned Single Judge has highlighted that the expression 'establish any industry, operation or process or any treatment and disposal system or any extension or addition thereto, which is iilcely to discharge sewage or trade effluent'm clause (a) of Sub-Section (1) ^ of Section 25 made it clear that the- requirement to obtain previous consent to establish any industry, operation or process was no longer restricted to trade effluent being discharged but would also encompass if 'sewage effluent' was discharged and with rerPerence to the definition of 'sewage effluent' as per Section 2(g), has held that the same would include sewage of any kind, including domestic sewage. The learned Single Judge has also noted the expanded definition of 'trade effluent' as per Section 2(k) of the Water Act. Noting the definition of the words 'operation' and 'process' in para 12 of the decision, and thereafter noting the vJ' decisions that purposive construction needs to be fojlowed where the mischief which existed before passing the [statute was 1 detected and was intended to be remedied, the learned Single Judge has concluded that collective operation or process of LPA 895/2010&connected matters Page Z1 of 315

1 bathing in the bathroom and such processes as tal<e place m the toilet and cooking and washing in the kitchen would be operations and processes contemplated by Section 25(l)(a) of the lA/ater Act for its applicability to residential complexes. This is the conclusion arrived at in para 16, but in the immediate next para i.e. para 17, the learned Single Judge has lodged a caveat by stating that he was not answering the question with reference to single storeyed constructions. 8. With reference to the commercial complexes i.e. Commercial Shopping Complexes and Shopping Malls, the learned Single Judge has held that the definition of 'trade effluent' as per Section 2(k) would encompass ail kinds of non-domestic sewage and has thus held that these buildings would be governed by clause (a) of Sub-Section 1 of Section 25 of the Water A\ct, 9. As regards the very act of constructing a building, in paras 19 and 20, the learned Single Judge has held that the very act of constructing a commercial shopping complex, shopping mall or a residential complex would make applicable clause (a) of Sub- Section 1 of Section 25 and for which the reasoning of the learned Single Judge is that construction of^ commercial shopping or residential complexes is likely to have impact on water pollution because large quantities of water are used during construction and are also discharged. 10. Since, in all the cases, DPCC rose from the slumber after buildings were completed and put to use, the learned Single Judge opined that DPCC could not levy penalties and for whicri • remedial action, as per the learned Single Judge, was as provided LPA895/2010& connected matters Page 22 of33

in Sub-Section 5 of Section 25 of the Water Act. 11. The argument of DPCC that the power to give directions under Section 33A of the Water Act has been negated by the learned Single Judge, with reference to various decisions cited which hold that the power to levy penalty has to be expressly conferred by the statute. 12. Pertaining to the Water'Act, the learned Single Judge has summarized the legal position, in para 29 as under:- "29. The discussion so far on the legal position under the Water /Act in relation to the petitioners may be summarized thus: (i) Section 25 (1) of the Water Act is intended to cover not just 'industry' which discharges 'trade effluent' but any 'process or operation' that results in a discharge of 'sewage' not limited to trade effluent. (ii) The words 'operation or process' occurring in Section 25(l)(a) have to be given the widest possible meaning and scope. This approach is consistent with the SOR of the 1988 amendments to the Water Act v\/hich make it clear that the legislative intent was to expand the scope of the regulatory powers of the state FCC. The principle of ejusdem generis is therefore inapposite in the context. (iii) Commercial shopping complexes, shopping malls and even residential complexes are covered by Section 25(l)(a) of the Water Act. (iv) The liability under the. Water Act does not get exempted only because the sewage LPA 895/2010&connected matters Page 23 of 38

discharged from sucli complexes joins the main municipal sewerage system which may or may not be treated in l<eeping vj'ith i the water pollution norms. (v) The pollution caused by discharge of domestic sewage , from a residential complex or trade effluent Ijrorn a commercial complex or industry during the construction phase as well as at any stage after the complex becomes functional would attract the various provisions of the Water Act. (vi) With the buildings in question having already been constructed without obtaining prior consent to establish, the direction of V the DPCC that those who had failed to - obtain prior consent to establish should now apply for such consent is a direction that is ^ not capable of being complied with. Instead W the DPCC,should invoke the powers under Section 25(5) of the Water Act, issue show cause notices setting out the conditionalities required to be complied with within a time franrie and upon failure to do so, invoke the powers to issue directions • under Section 33A Water Act. (vii) The. Water Act is in a separate domain and its provisions will have to be complied with notwithstanding that the MCD has the • power to lay down a separate set of regulations and bye-laws for use of water. ' Where an applicant has not been communicated any decision of the DPCC for four months after the making of an application, the deeming provision of Section 25(7) would kick in and it would be deemed that the consent to establish has been granted. In such circumstances. Section 25(1) of the Water Act cannot LPA 895/2010&connected matters Page24 of38 >

obviously tliereafter be enforced." 13. Discussing tlie applicability of the Air Act, as conceded to by learned counsel for the parties at the hearing of the appeal, the learned Single Judge has inadvertently referred to the pre- amended provisions of the Air Act, thoutlh the learned Single Judge has referred and noted the fact that the Air Act of 1981 was amended in the year 1988. 14. Pertaining to residential complexes, the learned Single Judge has noted the unamended Section 21 of the Air Act which did not have the word 'establish' and had only the word 'operate' in Sub-Section 1 thereof, and thus the learned Single Judge has held that no permission from DPCC is needed to establish residential complexes, but on the same reasoning as followed in ., p^ras 19 and 20 pertaining to the Water Act, has held that during ^ co:nstruction phase of residential complexes, permission under the Air Act has to be obtained. Qua shopping complexes and shopping malls, it has been held that under the Air Act, for these complexes, to operate them, prior permission has to be obtained as also , during construction phase. 15. The jearned Single Judge has summarized the position under the Air Act, in para 41 as under:- "41. The position under the Air Act may be summarized: 1 (i) A collective reading of Section 21(1) of the Air Act with Section 2(a), 2(b) and 2(k) thereof leads this Court to the conclusion that a commercial shopping complex or a shopping .mail would be covered within the scope of Section 21(1) of the Air Act. LPA 895/2010 & connected matters Page 25 of 38 3>i

(ii) The definition of 'air pollution' underj Section 2(a) read, with Section 21(1) of the Air /[\ct, and the fact that the commercial shopping complexes or shopping malls are going to be used for a trade activity, is sufficient to attract the provisions of Section 21(1) ofthe Air Act. (iii)As far as a purely residential complex is. concerned, on the present wording of Section 21(1) of the Air Act, there is no requirement of obtaining the prior consent of the DPCC to operate. (iv)During the construction phase and after the complex becomes functional, every building, whether it is a commercial shopping complex or a shopping mall or a residential complex, will have to comply with the norms under the Air Act and the Water Act and. for that matter the / EPA. 4 (v) Where the construction of a commercial shopping complex or shopping mall has been allowed to be completed without a prior consent to operate, the DPCC can .inspect the building, issue a show cause notice requiring time bound compliance with the conditionalities imposed by it under the Air Act failing which it can issue directions under Section 31A Air Act." 16. A perusal of Section 25 of the Water Act would reveal, on a bare reading thereof, that Without the previous consent ofthe ^ State Pollution Board, 'no person could establish or take any steps to establish any industry, operation or process, which is lil<eiy to discharge sewage or trade effluent. Thus, even if sewage effluent as defined in Section 2(g) was discharged from any LPA 895/2010& connected matters Page26of3i5 3^-

industry, operation or process intended to be established, the requirement of prior consent would be necessary and to this extent the view taken by the learned Single Judge is correct. 17. But, what would encompass 'any industry, operation or processl 18. The Water Act does not define, 'industry', 'operation' or 'process'. As held in the decisions reported as 1993 (3) 5C 2529 Commissioner of income Tax Orissa 1/5. Ivi/s.N.C.Budiiiraia & Co. and 2010 (320) ITR 420 (Delhi) Ansai Housing & Construction Ltd. vs. Commissioner of income Tax, the ordinary dictionary meaning of 'industry' or an 'industrial •undertakirig' would not include the activity of construction. The word 'operation' is defined, as noted by the learned Single Judge, in the New Shorter Oxford English Dictionary (Lesie Brown Ed.) as follows: "operation: An action, deed; exertion of force or influence; working, activity; an act of a practical or technical nature, esp one forming a step in a process." 19. The same dictionary defines 'process', as noted by the learned Single Judge, as under:- ' "process ; The action or fact of going on or being carried on; a continuous series of actions, events or changes; a systematic series of actions or operations directed at a particular end." 20'. As noted herein above, applying purposive construction, the learned Single Judge has held, in para 15, that the two words 'operation' and 'process' have to be given their widest amplitude and meaning. The purposive construction LPA 895/2010&connected matters oF 38 1.3

t applied by the learned Single Jud'ge is that widest amplitude needs to be given to Section 25(l)(a) of the Water Act. 21. The error committed by the learned Single Judge is to mechanically note the definition of 'cperaf/o/?'and 'process, and ignore the sweep of the span of the two words. VVe do so. Operation is defined as an activity or an act of a practical or technical nature, with emphasis of the acts forming 'a step in a process'. The word 'process'\s a going on action or a continuous series of actions 'directed at a particular end'. Thus, an openation •would be a working or an activity, where the core of the act constituting, the activity, is of a practical or technical nature especially one forming a step in a process, and since process is an cioinq. on action or a continuous series of action directed aL^ particular end, the conjoint reading of an operation and a process or even if the two have to be read disjunctively would mean that the expression 'establish or tal<e any. steps to establish any industry, operation or process, or any treatment and dibposa! system or any extension or addition thereto, winch is lil<^ely to discharge sewage or trade e/77t/e/?f'would mean to t^^srtejDS^. establish anv industrv. establishment br undertaking where__yie operation or process i.e. activity is of a practical or .t^^L!!]jlLC^ nature, at the core of which are ongoing acts, in a series, diR^c^. at a particular end. Thus, the act of ablution in the toilet or washing vegetables and dishes, in the kitchen of a residential complex, within the precincts of residential flats, by no stretch of imagination can be called or labeled as an operation or a piocess. 22. The view taken by the' learned Single Judge pertaining LPA 895/2010& connected matters . Page/.8oF-.8

to shopping malls and commercial shopping complexes on the applicability of the Water Act is accordingly upheld and the view taken pertaining to the applicability of the Water Act to residential housing complexes is incorrect. 23. A building where shops would be made bnd in which shops goods or services would be sold as also shopping mails would be buildings where operation and or process is carried on • - .for the reason they would be places where the activity carried on is of a practical or a technical nature and at the core of which activity would be ongoing acts, in a series, directed at a particular .end i.e. if goods are purchased and sold, the sale and purchase of, goods; and if service is rendered, the rendition of service directed towards a particular end. If from these buildings sewage is discharged, since sewage effluent as defined in Section 2(l<) of thfe Water Act means effluent from any sewage system, if these buildings are intended to be established, necessary permission would be required from the Board under the Water Act. 24. With respect to the decisions reported as 1993 (3) 5C 2529 Commissioner of Income Tax Orissa vs. M/s.N.C.Budhiraj^ Co. and 2010 (320) ITR 420 (Delhi) Ansa! Housing & Construct^.' Ltd. vs. Commissioner of Income Tax, where it has been held that constructing a building per-se is not an industrial activity the view taken by the learned Single Judge that constructing a building, whether to be used for a residential purpose or to be used for a commercial shopping complex or for shopping malls would be an industrial activity; running contrary to the aforesaid judgments is incorrect. , LPA 895/2010& connected matters Page 29 of 38

process which is likely to discharge sewage or trade effluent. It is not intended to apply to all and sundry establishments. It is resti'icted to only when a building, housing an industry is sought to be established or a building in which an operation or a process is intended to be carried on where effluent or trade effluent would be discharged. 27. To summarize the position under the Water Act the position may be summarized thus; 'Section 25(1) of the Water Act would apply where a building is proposed to be constructed to set up an industry or carry on an operation or a process as explained in para 21 above and this would mean that the Water Act would not apply to buildings housing residential apartments/units. It would apply to all other buildings where effluent or trade effluent is discharged, be they where manufacturing activity is carried on, sale or purchase of goods is carried on or services are provided. 28. Pertaining to the Air Act, there is a material difference in the language used in Section 21 of the said Act, vis-i:^vis the language used in Section 25 of the Water Act. Whereas the Water Act requires a permission to establish any industry, operation or process, the Air Act restricts its span to prior permission being necessary only where it is intended to establish or operate any industrial plant. 29. Since the learned Single Judge has referred to the ^ unramended provision and has ignored the amendments carried out to the Air Act in the year 1988, we note that as per the amended Section 21, the obligation to obtain the consent of the State Pollution Control Board is only to establish or operate any LPA895/2010&connected matters Page31of33

industrial plant in an Air Pollution Control Area. Section 2.(k) defines an 'industrial plant' to mean any plant used tor any. industrial or trade purposes and ennitting any air pollutant. 30. The learned Single Judge has read the unarnended Section 21 of the Air Act to nnean that prior consent is needed to operate an industrial plant. Since the decision of the. learned Single Judge has not noted the.language of the amended Section iwhere the words 'establish or' have been inserted |prior to the word 'operate', we need to re-look into the issue. 31. Highlighting the definition of the words 'industrial plant' as defined in Section ^(k) of the Air Act, the learned Single Judge has looted that the definition expands the meaning of the words 'induitrial plant' to include a building used for atrade purpose and with reference to Section 21 of the Air Act has held that a building whene trade is carried on the prior consent'would be required to 1 operate the building. 32. Since the learned Single Judge has noted the unarnended Section 21 and since the amended Section 21 requires prior consent even to establish an industrial plant in an Air. Pollution Control Area,, agreeing with the reasoning of the learned Single Judge that in view of the extended definition of the expression 'industrial plant', which includes a building where trade . is carried on, the inevitable conclusion has to be that prior consent under the Air Act would be needed where a building is proposed to be constructed wherefrom trade would be carried on and since from a shopping mall and from a commercial shopping complex trade is carried on, we hold that prior consent under the Air /Act LPA 895/2010& connected matters • Page 32 of38

would be required when commercial shopping complexes and shopping malls are established i.e. at the commencement ot the process of establishment i.e. before the building construction activity commences. 33. As noted herein above, the learned Single Judge has held construction per-se as requiring prior.permission, both under the Water Act and the Air Act, and thus the learned Single Judge has held that under the Air Act, consent during construction phase would have to be obtained. 34. For our reasoning herein above pertaining to the Water Act, the said reasoning of the learned Single Judge pertaining to the Air Act is overruled, but would make no difference to the final c conclusion arrived at by us pertaining to the applicability of the A\ir Act when construction activity commences in respect of shopping malls and commercial shopping complexes for the reason, prior consent-to establish the same is required on the language of Section 21 of the Air Act in view of the expanded definition of the expression 'industrial plant'. But, for residential complexes, we , hold that neither to establish nor to operate, (in fact the concept of 'to operate' is not even applicable to a residential complex), any permission is required under the Air Act. . 35. The learned Single Judge has held that neither the language of Section 33A of the Water Act nor the language of Section 31A of the Air Act contemplates the power on the State • Pollution Boards to levy any penalty: 36. The learned Single Judge has noted the decisions reported as 1975 (2) SCC 22 Khemka & Co. (Agencies) Pvt. Ltd. vs, LPA 895/20108i connected matters Page 33 of;'8 3^

\ state of Maharashtra, 1994 (4) 5CC 776 /.K.Synthetics Ltd. & Birja Cement Works i/5. Commercial Taxes Officer1997 (6) SLC 479 India Carbon Ltd. i/s. State of Assam to opine that power to levy penalty has to be conferred by a substantive provision in the enactment. 37. We concur with the reasoning of the learned Single Judge in paras 58 to 64 of the innpugned decision and thus do not elaborate any further, but would additionally highlight that the power to iss.ue directions under Section ;33A of the Water /Act and the power to issue directions under Section 31A of the Air /Act, on their plain language, does not confer the power to levy any penalty. We would further highlight that under Chapter VII of the Water Act, and under Chapter VI of the Air Act penalties and procedure to levy the same have been set out. A perusal of the provisions under the Water Act would reveal that penalties can be levied as per procedure prescribed and only Courts can take cognizance of offences under the Act and levy penalties, whether by way of imprisonment or fine. Similar is the position under the Air Act. The legislature having enacted specific provisions for levy of penalties and procedures to be followed has specifically made the offences cognizable by Courts and the power to levy penalties under both Acts has been vested in the Courts. The role of the Pollution Control Boards is to initiate proceedings before the Court of Competent Jurisdiction and no more. 38. We would be failing not to note that on the issue of a delegatee not being empowered (by law) to further sub-delegate the delegated power, learned counsel for DPCC conceded to said LPA 895/2010& connected matters Page 34 of ^8

position and thus we leave undisturbed the view taken by the learned Single Judge on the subject. 39_ Since our reasoning aforesaid results in the linding, by way of interpreting the provisions in the \A/ater Act and the Aii A\ct, as requiring prior consent to establish and operate shopping malls and commercial shopping complexes and the provisions being not applicable to residential complexes, we declare void actions initiated by DPCC pertaining to .residential complexes and we further hold that said writ petitions are allowed in ternris of the prayers, made. The impugned decision(s) by the learned Single Judge(s) qua residential complexes is set aside, (pua shopping malls and commercial shopping complexes, since we have helc that prior permission is required under both Acts to establisli shopping malls and commercial shopping complexes as also to operate them and noting that even DPCC was not too sure of the l^gal position and thus misinformed a few applicants that no permission v\/as required and qua most persons permitted them to commence and complete construction of shopping malls and commercial shopping complexes, the question which now needs tcD be answered is: Whether, pertaining to the Water Act, Sub-Section 5 of Section 25 is the answer to what needs to be done and in the absence of a similar provision in the Air Act, what action needs to be directed to be taken. 40. The language of Sub-Section 5 of Section 25 of the Water Act makes it plain clear that the only solution to a situation of a building being constructed to establish an industry, operation or process without obtaining prior consent of the State Pollution LPA 895/2010connected matters

Control Board is the power of the Board to serve upon the person concerned a notice imposing such conditions as might have been imposed on an application seeking prior consent; and we find that the learned Single Judge has correctly so opined an issued the direction that the only way out, pertaining Act, is to permit DPCC to inspect the shopping malls and the shopping commercial complexes and if it is found that pertaining to discharge of sewage from these buildings any steps are required to prevent water pollution, DPCC would be authorized to issue notices requiring the owner of the building to take steps in terms of the notice issued. Pertaining to the Air Act, notwithstanding there being no similar provision, but the concept of a post decisional hearing may be made applicable with the modification that no hearing would be required inasmuch as there is no decision, but DPCC should, be empowered to inspect the shopping malls and the shopping commercial complexes and pertaining to air pollution, if any deficiencies are found, to notify the same to the owner requiring corrective action to be taken. Needless to state, if the owners of the buildings do not take corrective action, DPCC would always have the power to file criminal complaints before the Courts of Competent Jurisdiction, which Courts would alone have the power to impose fine and additionally impose sentence of imprisonment upon the offending pe.'-sons. 41. On the issue of Air Pollution, we would like to pen a post-script pertaining to shopping complexes and shopping malls for the reason the only activity of air pollution in these buildings j has rightly to the Water LPA 895/2010 & connected matters Ps je 36 of 38 Ui

J would be through the air conditioning plants and generators installed to supply electricity to the buildings in case of powei. cuts, for the reason the trade of sale and purchase of goods in these complexes does not entail any Fictivity which causes aii pollution. We find that pertaining to DG sets, permissions in any case have to be obtained from DPCC if the capacity of the IDG set is beyond a prescribed wattage and thus DPCC may suitably reconsider all shopping complexes and shopping mails where consent of DPCC has been obtained with respect to Du sets installed as also air-conditioning plants installed in the buildings, for if for the DG sets and air-conditioning plants, sanctions have already been obtained, nothing further remains to be got sanctioned under the Air Act. 42: In a few cases, we find that since DPCC was not 4 permitting the buildings to be occupied, under protest, the owners paid,the penalty to DPCC and have immediately approached the Court seeking refund and the same has been ordered for the reason neither under the Water Act nor under the Air Act there exists any power in DPCC to levy penalty or impose conditions of furnishing bank guarantee. The decision ,of the learned Single • ' Judge is correct in directing the,bank guarantees to te discharged and penalties levied to be refunded for the reason the said act of DPCC is ultra-vires its power under the two statutes and the levy of^penalty is without any authority of law. In the decision reported as 1997 (5) SCC 536 Mafatlal Industries Ltd. &Ors. i/5. UO! &Qrs., • under writ jurisdiction refund can be directed where the levy is without jurisdiction and the same would include a penalty levied LPA 895/2010 &connected matters Page 37 of 38

without any jurisdiction. In the instant case the penalty levied is unconstitutional being not sanctioned by any power vested ir DPCC either under the Water Act or the Air Act. The impugned decisions where penalty levied has been directed to be re^fundec are upheld. 43. The appeals filed by DPCC are disnnissed and the cross objections filed are allowed in terms of paras 27, 33, 34 and 39 above. 44. We leave the parties torbear their own costs. 1 • 45. All interim orders stand vacated. JUDGE ~-r LPA 895/2010 & connected,matters Page 38 of 38 HH