Container Corporation Of India Limited vs. Ajay Khera

Case Type: Civil Appeal

Date of Judgment: 11-01-2024

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2024 INSC 31 Non­Reportable IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION  CIVIL APPEAL NO. 3798 OF 2019 Container Corporation of India Ltd.       … Appellant Versus Ajay Khera & Ors.          … Respondents J U D G M E N T ABHAY S. OKA, J. FACTUAL ASPECTS 1. The first respondent, a former Executive Director of the Central Warehousing Corporation, approached the National Green   Tribunal   (for   short,   ‘the   NGT’)   by   filing   an   original application.  The first respondent filed the original application under Section 14, read with Section 15 and Section 18(1) of the   National   Green   Tribunal   Act,   2010   and   raised   an important   issue   of   the   pollution   created   by   the   Inland Signature Not Verified Container Depot (for short, ‘the said ICD’) at Tughlakabad. It Digitally signed by Anita Malhotra Date: 2024.01.11 16:44:14 IST Reason: is alleged in the application that the said ICD is used by the              Civil Appeal no.3798 of 2019  Page 1 of 13 trucks/trailers   not   destined   for   Delhi   and   is   used   for delivery/pick up to  and from locations outside  Delhi.   He pointed   out   that   due   to   the   inflow   of   a   large   number   of trucks/trailers to the said ICD, the air pollution in Delhi NCR has   substantially   increased   due   to   the   emission   from trucks/trailers.     He   contended   that   there   are   other   ICDs around Delhi, and therefore, it is quite possible to divert the inflow of trucks/trailers to the other ICDs around Delhi NCR. The   first   respondent,   thus,   prayed   for   a   direction   to   the appellant the Container Corporation of India Ltd. (for short, ‘the Container Corporation’) and the Railway Board to shift the operations of the said ICD at Tughlakabad which are not bound for Delhi to other locations outside Delhi. The second direction was to prohibit entry of containers/trailers at the said ICD, Tughlakabad, which are not bound for Delhi and only to utilise CNG run/battery operated Fork Lifts/empty Handlers and small vehicles, as also run electric trains rather than diesel locomotives in and out of the said ICD.  2. The appellant (The Container Corporation) contested the said application.   It was pointed out that the movement of cargo destined for consumption in Delhi is made by railway lines which terminate inside the premises of the said ICD.  If the use of the said ICD is diverted, it would mean that there would  be more  movement  of  cargo  on  roads  from  various ports   in   India   to   Delhi,   which   will   increase   the   distance covered by the cargo trucks.  This movement of cargo on the roads will lead to more pollution.   A contention was raised              Civil Appeal no.3798 of 2019  Page 2 of 13 that the said ICD is ideally located to cater for the needs of the   population   of   Delhi   without   disturbing   the   residential areas of Delhi.  3. The NGT passed interim orders on the application filed by the first respondent from time to time.  By the impugned th order   dated   8   March   2019,   the   NGT   passed   an   order directing the appellant to ensure that, in a phased manner, diesel   vehicles   stop   visiting   the   ICD   and   shift   to   electric, hybrid   and   CNG   vehicles.   The   Tribunal   observed   that   the other alternative was to limit the entry of diesel vehicles only to the satellite terminals (ICDs) at Dadri, Rewari, Ballabhgarh, Khatuawas   or   any   other   ICD   around   Delhi.   The   Tribunal observed that this will ensure that diesel vehicles do not enter Delhi NCR. An outer limit of six months was fixed under the impugned order by the NGT to comply with the directions above.   An   action   plan   was   ordered   to   be  filed   within   one month.   nd 4.            On 22   April 2019, this Court issued notice on the present appeal and directed that no coercive action shall be taken against the appellant based on the impugned order.  On th 10  February 2020, when this Court noticed that no solution was forthcoming, a direction was issued to the Environment Pollution (Prevention and Control) Authority (‘EPCA’) to look into   the   issues   raised   in   the   appeal   and   to   file   a   report containing   its   recommendations.     We   may   note   here   that EPCA  has   been   set  up  under   the   orders   of   this   Court   to              Civil Appeal no.3798 of 2019  Page 3 of 13 protect and improve the quality of the environment in Delhi NCR. Under   the   aforesaid   direction   of   this   Court,   EPCA 5. th submitted a report way back on 30  June 2020.  A response is   filed   by   the   first   respondent   to   the   recommendations contained in the said report.   An affidavit has been filed by the   Ministry   of   Railways,   putting   on   record   its   stand concerning   the   recommendations   contained   in   the   report. Written   submissions   have   been   filed   by   the   appellant containing its response to the recommendations of EPCA and setting out the steps taken by the appellant pursuant to the recommendations.     The   hearing   before   this   Court   was confined to the recommendations made by the EPCA.   We have heard the learned counsel appearing for the parties on the said report. The   issue   of   pollution,   particularly   air   pollution,   has 6. been   a   cause   of   concern   for   the   last   few   decades.     Air pollution directly affects the fundamental rights of the citizens guaranteed under Article 21 of the Constitution of India.  The right to life guaranteed under Article 21 includes the right to live in a pollution­free environment.  The issue of air pollution is of a great deal of importance to every citizen. Air pollution affects citizens' quality of life. It adversely affects health. This issue   is   more   significant   in   the   context   of   the   severe   air pollution faced by Delhi NCT and Delhi NCR areas during the last few years.  For the last few months, the air quality index              Civil Appeal no.3798 of 2019  Page 4 of 13 in the said areas has been in the category of very unhealthy or hazardous.  Now, we turn to the report submitted by EPCA.  By way 7. of   illustration,   the   report   contains   the   figures   of   vehicles entering the said ICD in January 2020.   The report records that 22,082 vehicles entered the said ICD, out of which 75% of the vehicles (16,562) were bigger vehicles using diesel, with an average capacity of 19 metric tons.  Only 25% were CNG vehicles,   having   an   average   capacity   of   6   metric   tons.   It records that the number of diesel vehicles entering the said ICD daily was 534.  These figures must be appreciated in light of the pollution inventory done by the IIT, Kanpur, in 2016. The   inventory   revealed   that   the   trucks   entering   Delhi contribute roughly half of the total pollution caused by the vehicles in the city.   That is why this Court has repeatedly issued directions for preventing air pollution in Delhi NCR. 8. A positive feature recorded in the EPCA report is that the total quantity of goods transiting through the said ICD from 2014­15 has gradually decreased. In the financial year 2014­15,   the   total   quantity   of   goods   entering   ICD   was 4,26,144   TEUs,   which   was   reduced   to   3,10,399   in   the financial   year   2019­2020.     One   TEU   is   equivalent   to   the carrying capacity of a 20­foot­long container.  The submission made across the Bar is that the downward trend continues. Broadly, the EPCA considered three issues: 9.              Civil Appeal no.3798 of 2019  Page 5 of 13 a. The   feasibility   of   shifting   to   CNG/electric/hybrid vehicles as directed by the NGT by the impugned order; b. The issue of restricting and reducing the entry of non­destined diesel vehicles at the said ICD and the issue   of   diverting   non­destined   diesel   vehicles   to nearby ICDs; and  The   problem   created   by   congestion   and   lack   of c. adequate parking facilities at ICDs. Before we deal with the recommendations and the stand 10. taken   by   the   parties,   it   is   necessary   to   understand   the significance of an ICD or a dry port in the transportation and logistics chain.  An ICD is a facility created in an inland part which   serves   as   a   containerised   cargo   handling   hub   for imports and exports of the region. It is an intermodal terminal that provides direct connectivity to a seaport. The customs department recognises it as an extended part of the seaports. It serves as a facility that offers services for handling and temporarily   storing   import/export­laden   containers.   It   is connected to ports via railway transport. All facilities, such as obtaining custom clearances, cargo aggregation, cargo storage and other storage identical to a marine port, are available at these   dry   ports.     In   short,   ICDs   enable   access   to   cargo handling facilities of a port at the doorstep of the importers and exporters. It also allows the consolidation of the cargo closer to its origin or destination to reduce the fragmented              Civil Appeal no.3798 of 2019  Page 6 of 13 movement and multiple handling of the cargo.  As is brought on   record,   there   are   two   establishments   of   the   Customs Department in the said ICD, and there is a connection of railway lines available in the ICD itself.   11. Now,   coming   to   the   recommendations   of   the   EPCA, while accepting the need to shift vehicles to cleaner fuels like CNG/Hybrid/Electric,   the   EPCA   observed   that   there   are limitations in the technology.  It is noted that no alternative fuel   technology   is   available   for   the   category   of   heavy­duty vehicles used for transporting containers.  It is observed that the   availability   of   alternative   fuel   in   long­distance   travel across   India   is   often   a   constraint.     Therefore,   the   EPCA recommended using BS­VI heavy­duty diesel vehicles as they are   substantially   cleaner   than   BS­IV   heavy­duty   vehicles. Therefore,   a   suggestion   was   made   that   the   Ministry   of Transport and Highways should come out with an effective and   robust   policy   for   the   scrappage   of   heavy­duty   diesel vehicles and their replacement with BS­VI vehicles.   In his response,   the   first   respondent   stated   that   the   above recommendation must be accepted with a rider that exploring other   fuel   sources,   including   CNG/Hybrid/Electric,   should continue.   Indeed, technology is ever­improving.   Therefore, while adopting the aforesaid recommendation, we must clarify that a constant endeavour  needs to be made to  ascertain whether better fuel sources can be successfully utilised for the heavy­duty vehicles which enter the said ICD.              Civil Appeal no.3798 of 2019  Page 7 of 13 12. On the second issue, the EPCA noted in the report that seven such facilities, including the said ICD, are near Delhi. Based on the figures incorporated in the report, it is noted that   only   the   said   ICD   and   the   ICD   at   Rewari   are   being utilised to the extent of 60% or more of their capacity, while the   others   remain   underutilised.     Therefore,   EPCA recommended that the appellant should formulate a plan for optimal utilisation of ICDs around Delhi, which will eventually reduce the use of said ICD. 13. We   may   note   another   reason   why   the   said   ICD   is preferred.   It is brought on record that some of the central laboratories, drug controller offices, etc., are located in Delhi, where the lab testing of the imported goods is done before clearance from customs. Therefore, a recommendation was made to direct the appellant to work with certified agencies and laboratories to extend their services to the ICDs outside Delhi so that the infrastructure in other ICDs around Delhi does not remain underutilised by exporters/importers.  Regarding parking for the trucks and trailers, the report 14. records   that   the   facility   for   parking   940   trucks/trailers   is available, but parking is still haphazardly made, leading to congestion and pollution. 15. In   the   first   respondent's   response   to   the recommendations, it is pointed out that the initial capacity of the said ICD was only 1,26,000 TEUs.  However, the said ICD has operated with 4,50,000 TEUs.   Reliance was placed on              Civil Appeal no.3798 of 2019  Page 8 of 13 the provisions of the Handling of Cargo in Areas Regulation, 2009, which provide that safe, secure and spacious premises for loading, unloading, handling and storing of the cargo for the projected capacity has to be set up by the user agency to the satisfaction of the Commissioner of Customs.  A grievance has been made that data showing the implementation of the said Regulations has not been placed on record. 16. The   recommendations   made   by   EPCA   have   been summarised on pages 14 and 15 of the report, which reads thus:  “On   the   issue   of   shift   to CNG/Hybrid/Electric 3.1   May   consider   that   shift   to CNG/Hybrid/Electric,   however   desirable, is not feasible in this segment of vehicles. May instead direct the Ministry of Road Transport   and   Highways   (MoRTH)   to present an effective and robust policy for scrappage   of   heavy­duty   diesel   vehicles and   replacement   with   BS   VI   vehicles, which are substantially cleaner and will greatly   reduce   pollution   in   the   entire airshed. On   the   issue   of   restricting   growth   of heavy­duty vehicles at ICD/TKD 3.2   May   consider   directing   CONCOR   to give a plan for the optimal utilisation of the   inland   container   depots   garlanding Delhi and what will be proposed increase in   throughput   in   these   depots   in   the coming years and consequently how the reduction in throughput in ICD/TKD will be operationalised.               Civil Appeal no.3798 of 2019  Page 9 of 13 3.3   May   direct   CONCOR   to   work   with certifying   agencies   and   laboratories   to work out the necessary extension of their services   to   the   inland   container   depots outside Delhi so that business can utilise this infrastructure with convenience.  On the issue of parking 3.4   May   consider   directing   CONCOR   to provide a time­bound plan for upgrading the parking/holding area by optimizing on the space it has inside the depot and to work   with   agencies   to   provide   adequate holding space outside the depot.” 17. We   may   mention   here   that   the   appellant,   the   first respondent   and   Ministry   of   Railways   have,   in   principle, agreed that the recommendations of EPCA need acceptance. After perusing the pleadings, affidavits, and documents on record, we are of the view that the recommendations must be accepted and implemented in terms of the directions that we propose to issue. However,   timelines   will   have   to   be   fixed.   As   regards 18. recommendation   3.1,   we   propose   to   grant   the   Ministry   of Road Transport and Highways six months to come out with a policy on the replacement of heavy­duty diesel vehicles with BS­VI vehicles.   While we do so, we make it clear that with ever­advancing technology, constant endeavour to explore the availability   of   other   fuel   resources   that   could   be   used   for heavy­duty vehicles should always continue.              Civil Appeal no.3798 of 2019  Page 10 of 13 19. Regarding recommendation 3.2, we propose to direct the appellant   to   formulate   a   comprehensive   plan   within   six months   from   today.   Regarding   recommendation   3.3,   the appellant   will   have   to   approach   various   authorities   which have provided laboratories in Delhi to set up similar facilities near the other ICDs around Delhi NCR. 20.   Regarding   recommendation   3.4,   in   the   written submissions, the appellant has brought on record that the appellant had appointed an expert agency, KPMG, to make recommendations on the problem of congestion and parking inside the said ICD.   A copy of KPMG's report is placed on record with an assurance that the appellant is undertaking measures   to   implement   the   recommendations   made   by KPMG. Before   we   part   with   the   judgment,   we   must   say 21. something   about   an   option   mentioned   by   the   NGT   in paragraph 7 of the impugned order. The NGT has   inter alia observed that there is an option to restrict the entry of diesel vehicles in the said ICDs at Tughlakabad by diverting these vehicles   to   the   ICDs   at   Dadri,   Rewari,   Ballabhgarh, Khatuawas or any other ICD around Delhi so as to control the pollution in Delhi NCR, as if only the people living in Delhi NCR alone are entitled to pollution free atmosphere and not those living in other parts of the country. Such an observation by the NGT is in complete ignorance of the fact that citizens living in other parts of the country other than Delhi NCR also              Civil Appeal no.3798 of 2019  Page 11 of 13 have a fundamental right to a pollution free environment as guaranteed by Article 21 of the Constitution of India. Such a fundamental right is equally enforceable by all and is not confined   to   the   people   of   Delhi   NCR.   The   NGT   while protecting/safeguarding the above fundamental right of the people of Delhi NCR cannot allow infringement of the same fundamental right of the citizens living outside Delhi NCR. The   observation   of   the   NGT   is   totally   unjustified   and unwarranted.  Hence, we dispose of the appeal by passing the following 22. directions in substitution of the directions in the impugned order: After examining recommendation 3.1, the Union of India a. shall formulate a policy of phasing out heavy­duty diesel vehicles and replacing them with BS­VI vehicles. The Union of India shall formulate appropriate policy on this behalf within six months from today; b. Though   the   Union   of   India   is   a   party   through   the Ministry of Environment, Forest and Climate Change, the Ministry   of  Road  Transport  and Highways is not formally made a party. We, therefore, direct the Registry to forward a copy of this order to the Secretary of the Ministry of Road Transport and Highways.   c. The process of exploring the possibility of finding better sources, including CNG/Hybrid/Electric, for the use of heavy­duty vehicles shall continue;              Civil Appeal no.3798 of 2019  Page 12 of 13 d. The plan for optimal utilisation of ICDs around Delhi, in terms of recommendation no. 3.2 shall be formulated by the  appellant  within  six  months  from  today.    In   the meanwhile,  the  appellant  will   coordinate  with   all  the official   agencies   to   enable   the   setting   up   of   central laboratories near ICDs around Delhi NCR; e. We   direct   the   appellant   to   implement   the recommendations made by KPMG in February 2021 for improving the parking management of vehicles in the said ICD.  We grant time of six months to the appellant to implement the recommendations of the KPMG; The appeal is disposed of on the above terms. 23. 24.     Though we are disposing of the appeal with the above directions, we make it clear that this Court will monitor the implementation of the above directions.  Therefore, we direct that this appeal be listed on 31st July 2024 for reporting compliance by the appellant and the Ministry of Transport and Highways. ….…………………….J.     (Abhay S. Oka) …..…………………...J.      (Pankaj Mithal) New Delhi; January 11, 2024.              Civil Appeal no.3798 of 2019  Page 13 of 13