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T.N Godavarman Thirumulpad (103-B) v. Union Of India And Others

Supreme Court Of India
Dec 15, 2006
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Factual and Procedural Background

The interlocutory applications (IAs) arise out of the continuing proceedings in T.N. Godavarman Thirumulpad v. Union of India, W.P. (C) No. 202 of 1995. In a 2002 judgment the Supreme Court permitted Kudremukh Iron Ore Company Ltd. (KIOCL) to continue limited mining of “weathered secondary ore” inside the Kudremukh National Park until 31 December 2005, subject to stringent environmental safeguards and under the supervision of a Monitoring Committee. After the 2005 deadline, questions were raised about the manner in which KIOCL was winding-up its operations and whether its Mine Closure Plan met the Court-mandated standard of causing “no or minimal disturbance to unbroken area.”

Because of uncertainties over which committee should supervise closure, and in view of conflicting technical studies, the Court by earlier orders (20-1-2006 and 24-2-2006) appointed the Indian Institute of Technology, Delhi (IIT-Delhi) as an independent expert body. The present opinion evaluates KIOCL’s request to continue certain mining/earth-works, the validity of its Closure Plan, and the acceptability of IIT-Delhi’s findings.

Legal Issues Presented

  1. Whether KIOCL can be permitted to continue excavation of approximately 20 million tonnes of weathered ore after the Court-fixed deadline of 31 December 2005.
  2. Whether the Mine Closure Plan prepared by KIOCL, based on studies such as the NIRM Report, satisfies the Court’s requirement of “no or minimal disturbance to unbroken area.”
  3. Whether the technical assessments and recommendations of IIT-Delhi should be accepted as the guiding framework for final mine closure, slope stability, and ecological restoration.

Arguments of the Parties

KIOCL’s Arguments

  • The company submitted an “approved” Mine Closure Plan under Rule 23-C of the Mineral Conservation and Development Rules, 1988, and obtained a favourable report from the Indian Bureau of Mines.
  • IIT-Delhi’s later study was said to be unnecessary; continued excavation of 33.81 ha for slope stabilisation would generate profits, 50 % of which (≈ ₹50-75 crore per annum) could fund eco-restoration.
  • Approximately 20 million tonnes of weathered ore remain; selling it could yield about ₹300 crore for ecological rehabilitation.

Amicus Curiae’s Arguments

  • The 2002 judgment allowed mining only as a wind-down measure and mandated complete closure by end-2005; continued extraction would violate the Court’s order.
  • KIOCL used the grace period for commercial gain rather than genuine closure; its current plea is an attempt to perpetuate mining.
  • The IIT-Delhi report confirms that alternative, less intrusive methods exist to stabilise slopes without fresh excavation in unbroken areas.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
T.N. Godavarman Thirumulpad v. Union of India, (2002) 10 SCC 606 Permitted KIOCL to mine only until 31-12-2005, subject to environmental safeguards and Monitoring Committee supervision. Formed the foundational mandate that mining must cease after 2005 and closure be executed with minimal ecological disturbance; the Court enforces this earlier ruling in the present order.
Order dated 20-1-2006, (2009) 17 SCC 178 Clarified that the constitution of the Monitoring Committee must comply with the Court’s 2002 directives. Cited to reject the Central Government’s interpretation that the Forest Advisory Committee alone could act as the “Committee” contemplated by the 2002 judgment.
Order dated 24-2-2006, (2009) 17 SCC 181 Appointed IIT-Delhi as an expert body to assess slope stability and mine closure issues. Relied upon to affirm the competence of IIT-Delhi and base the present set of directions on its recommendations.

Court's Reasoning and Analysis

The Court first noted that the Central Government’s view equating the term “Committee” with the statutory Forest Advisory Committee was contrary to paragraph 5 of the 2002 judgment; oversight must remain with the specially constituted Monitoring Committee.

After examining rival submissions, the Court gave particular weight to a series of detailed technical reports from IIT-Delhi (10-4-2006, 12-6-2006, and 13-7-2006). Those reports concluded that:

  • The mine’s slopes are presently unstable and require remedial action.
  • KIOCL’s Closure Plan inadequately addresses slope stabilisation and fails to explore solutions that avoid disturbing unbroken forest areas.
  • Viable alternatives exist that can accomplish closure with “no or minimal disturbance to unbroken area,” contradicting KIOCL’s assertion that excavation of 33.81 ha is indispensable.

By contrast, KIOCL’s proposal prioritised continued extraction for revenue generation and relied on studies (e.g., NIRM) that never considered the Court’s ecological standard. The Court therefore dismissed KIOCL’s plea to extend mining, finding it inconsistent with both the 2002 mandate and current expert advice.

Recognising the technical complexity and the absence of indigenous experience in closing large mines on short timelines, the Court accepted IIT-Delhi’s recommendation to engage a globally experienced agency through competitive bidding. It also provided interim administrative and funding mechanisms to safeguard the site and commence the tender process.

Holding and Implications

ORDER: The interlocutory applications are DISPOSED OF with the following operative directions:

  • IIT-Delhi shall, within four weeks, frame detailed terms of reference centred on “no or minimal disturbance to unbroken area.”
  • A global competitive bid shall be floated to select a specialised agency to (a) re-analyse slope stability, (b) draft a final Mine Closure Plan, and (c) implement that plan.
  • The Ministry of Mines must immediately designate an officer to take possession of the mine; IIT-Delhi will conduct an on-site survey and may issue emergent instructions.
  • Initial expenses are to be met from ₹19 crore already deposited by KIOCL with the ad hoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA); additional funds, if required, may be sought from the Court.

Implications: The decision forecloses any further commercial mining by KIOCL, shifts control of the site to the Union Government, and sets in motion a scientifically driven, globally benchmarked closure process. While it does not establish new doctrinal precedent, it reinforces judicial oversight of environmental compliance in mining operations and clarifies that economic justifications cannot override prior ecological mandates.

Show all summary ...

Dr. Arijit Pasayat, J.— These IAs are in essence offshoot of a judgment of this Court in IA No. 670 of 2001 in Writ Petition (C) No. 202 of 1995 in K.M Chinnappa [the applicant in T.N Godavarman Thirumulpad v. Union of India (2002) 10 SCC 606]. It related to the question whether the functioning of Kudremukh Iron and Ore Company Ltd. (in short “Kiocl”) was having adverse effect on the environment and ecosystem. In paras 51 and 52 of the judgment it was inter alia directed as follows:

“51. Taking note of the factual background and the legal position highlighted above, we think it proper to accept the time period fixed by the Forest Advisory Committee constituted under Section 3 of the Conservation Act. That means mining should be allowed till the end of 2005 by which time the weathered secondary ore available in the already broken area should be exhausted. This is, however, subject to fulfilment of the recommendations made by the Committee on ecological and other aspects.
52. The modalities as to how these have to be worked out shall be done in the manner recommended by the Committee. It was submitted by the learned counsel for the State of Karnataka that the recommendation made about transfer of buildings and other infrastructure to the Forest Department of the State Government at book value is not acceptable to it. This is a matter which can be considered by the Committee on an appropriate motion being made by the State before it. The modalities to be adopted to effectuate the order passed by this Court and recommendations of the Committee shall be worked out by the Ministry of Environment and Forests, the State Government and the Company under the supervision and guidance and monitoring of the Committee.”

2. Unfortunately the Central Government for reasons best known to it notwithstanding the clear position indicated in the judgment construed that the expression “Committee” meant “Forest Advisory Committee” (in short “FAC”). There was no scope for taking the stand in view of what has been stated in para 5 of the judgment. It has been stated that FAC is also a statutory committee. By order dated 20-1-2006 (2009) 17 SCC 178 it has been observed that the constitution of the Monitoring Committee is not in consonance with the directions of this Court.

3. Learned counsel appearing for Kiocl submitted that in line with direction of this Court and keeping in view Rule 23-C of the Mineral Conservation and Development Rules, 1988 (in short “the Rules”) which became operative with effect from 10-4-2003, an approved final Mine Closure Plan was submitted. Views of expert bodies were taken. It has been stated that in line with the statutory prescriptions, which even though became operative after the judgment, various steps have been taken. Indian Bureau of Mines (in short “the IBM”) has also given its report. It is, therefore, stated that though IIT, Delhi was asked to give its view but that has no relevance. If there would have been non-compliance with the statutory requirement of Rule 23-C of the Rules, it would have exposed it to penal consequences.

4. In essence the stand taken is that IIT, Delhi's Report should not be accepted and the following modalities on the other hand should be adopted:

(a) It would utilise its machinery and workmen for the purpose of achieving slope stability by excavating 33.81 ha on the basis that out of the net profit generated by the mining operation, 50% of the net profit would be paid over to a fund to be established and operated by a committee constituted by the Government of Karnataka or in any other manner directed by this Court or a high-powered statutory committee created for this purpose (in the nature of the Tennessee Valley Authority) for the purpose of utilising this 50% net profit for rehabilitation and eco-restoration of the Kudremukh Forest Area.
(b) On a rough estimate, 50% of net profit is likely to be in the range of Rs. 50 to 75 crores per annum, for the purpose of rehabilitation and eco-restoration of the Kudremukh National Park and also establishing and promoting sustainable environmental development and ecotourism in the area. Towards this end, the existing buildings and infrastructure could also prove useful.
(c) If this proposal is accepted, an amount in the range of (approximately) Rs. 150 crores to 225 crores could be available to the fund during the period of about 3 years which would be necessary for excavating 33.81 hectares.

5. It is further submitted that in the judgment at paras 49 and 51 this Court had permitted mining of the weathered secondary ore in the already broken-up area till the end of 2005, as this Court expected that the weathered ore would be exhausted. But in reality, about 20 million tons of weathered ore is still available in already broken-up area. This should be permitted to be used as it is likely to generate revenue of about Rs. 25 crores per annum. If this is permitted nearly Rs. 300 crores would be available to the Kudremukh Authority for eco-restoration fund which would be able to bring about dramatic change in the ecosystem of the Kudremukh National Park.

6. Per contra, learned amicus curiae has submitted that this Court clearly directed closure of mining operations by the end of 2005. Time was not given for running the mines for profit, but as a winding-down period at the end of which mining should have been closed. The operations during the period had to be under the supervision of the Monitoring Committee which in turn was to function under the supervision of Central Empowered Committee (in short “CEC”). What Kiocl wants now is to continue mining of 8 to 9 lakh tonnes of ore.

7. We have considered rival submissions. IIT, Delhi was appointed vide order dated 24-2-2006 (2009) 17 SCC 181. It has been found that Kiocl has used the period concerned for carrying on commercial operations without taking necessary steps for winding-down operations. On 10-5-2006 an affidavit was filed by Kiocl taking the stand that there was likelihood of serious pollution of Bhadra River if Kiocl was not allowed to do the operations for the purpose of avoiding pollution. IIT, Delhi did not consider the exercise necessary. It has been pointed out by learned amicus curiae that contrary to what Kiocl thought to be inevitable, there was no damage whatsoever despite heavy monsoon.

8. It is to be noted that IIT, Delhi in its report has observed that the solution has to be found by experts and the heartbeat of that solution is the stability of the slopes involving “no or minimal disturbance to the unbroken area”. It is noted that at various times, petitions have been filed practically with a view to undo what had been definitely held to be imperative by this Court.

9. At this juncture, it would be appropriate to take note of what IIT, Delhi stated in its various reports. In their report dated 12-4-2006 on the stability of slopes and related issues during mine closure of Kiocl, it was inter alia observed as follows:

“3.0 Observations on stability of slopes
Based on the above methodology, the following observations are made concerning the stability of the slopes:
(a) The excavated slopes of the mine exist at varying degrees of steepness with benches of variable widths.
(b) Some slopes are stable with grass growing on them; others are observed to show signs of surficial erosion/debris flow/mud flow; yet others show signs of planar slippage or slides of limited depth.
(c) The instability of slopes at specific locations is observed to be on account of
(i) excessive steepness,
(ii) inadequate strength of soil/rock mass under saturated condition, and
(iii) seepage pressure exerted by infiltrating rainwater during monsoons.
(d) Saturation of mine slopes and seepage pressure exerted on the slopes appear to be the two factors that have the greatest role in instability of slopes since these slopes are reported to be relatively stable during dry months and become unstable during monsoons. Saturation reduces the strength of the soil/rock mass and seepage pressure induces downward movement.
4.0 Observations on instability of north-west part of the mining area
One part of the mining area on the north-western side is observed to be particularly susceptible to slope instability due to collection of water in a catch pit constructed at the base of the broken area, above the unbroken area. The catch pit was constructed by excavation during mining operations and is observed to cause the following effects:
(a) The unbroken area on the downstream side of the catch pit is being destabilised as the collected water seeps into the unbroken area;
(b) when the catch pit overflows, uncontrolled flow of water cascades downhill in the form of surface water laden with silt which eventually reaches Bhadra River at the base of the unbroken area; this has also resulted in the formation of gullies and erosion channels in the unbroken area.
5.0 Observations on slope stability aspects in the Closure Plan
Slope stability aspects have been covered in the following reports in the Closure Plan:
Report of NIRM: Slope Stability Investigations at Kudremukh Iron Ore Mines.
Report of Cwprs: Desk studies on stability of hill slopes in mining area at Kudremukh Iron Ore Mine, Karnataka.
The Closure Plan proposes stabilisation of the slopes by flattening them and also by additional excavation of slopes in the broken region as well as the unbroken portion in the north-western part of the mine. This would be followed by revegetation of slopes for controlling erosion of fine material. Check dams have been proposed to prevent siltation of Bhadra river during the initial stages till vegetative growth gets established and causes reduction in silt erosion.
The following are the observations on slope stability aspects in the Closure Plan:
(a) The suggested methodology of stabilising the north-west part of the mine by deep excavation in the unbroken portion over an area of 33.81 ha can be one alternative but not necessarily the only one. Other methods which would minimise disturbance to the unbroken area could have been examined.
(b) In addition, the following aspects have not been covered in the Closure Plan:
(i) a surface water drainage plan for the entire mining area indicating location of surface water drains at the benches and along the perimeter of the base of the mining area;
(ii) methodology for periodic removal and relocation of silt collected in check dams and catch pits;
(iii) provision of biogeotechnical engineering measures for assisting vegetative growth in problematic areas where regular debris flow or mud flow is observed;
(iv) stability measures for north-west part of the mine such as elimination of collection of water and overflow of water from the existing catch pit as well as stabilisation measures for the unbroken area destabilised by the catch pit; and
(v) the measures listed at (i) to (iv) above could result in significant additional costs.
6.0 Conclusions and Recommendations
(a) The slopes are not stable in the present state and need stabilisation.
(b) If the mine is abandoned without stabilisation of the slopes, as indicated earlier, it will result in excessive silt discharge due to erosion as well as in the sliding of the slopes at some locations in future years.
(c) The north-west part of the mine needs immediate attention and remedial measures to prevent the possible occurrence of large-scale movement during the forthcoming monsoon.
(d) A closure plan is necessary for stabilising the slopes. The Closure Plan proposed at present is well conceptualised but falls short of adequacy in detailing [as indicated in 5.0(a) and (b) above]. This is perhaps so because there is inadequate experience in the country regarding closure of mines of such size in a short time. The regulations relating to closure have been notified only in recent years in the country and it will take time for the expertise to develop fully.
(e) It is suggested that the task of mine closure be given on a turnkey basis to an organisation having requisite experience in similar works (on design-and-build basis). Such an organisation can be selected through a global competitive bid. It should be the responsibility of such an organisation to reanalyse the stability of slopes and then draw up a closure plan and execute it with minimum disturbance to unbroken area of the mine. Kiocl could assist such an organisation in executing the closure. Since the execution of closure would involve a large expenditure and a time-frame of several years for vegetation to be established, such a task could be overseen by a special cell/nodal agency created for this purpose.
(f) The award of work as listed in (e) above could take several months. Till then, Kiocl need to monitor and maintain the slopes (in the entire mine area in general and the north-western portion in particular) as well as maintain/operate the silt control measures at the site.”

10. Again, on 12-6-2006 the report of the Expert Committee made certain observations on the basis of presentation made by Kiocl officers on various dates. The observations were to the following effects:

“Officers of Kiocl, headed by Mr J.N Kini, Director (Production and Projects) made a presentation at IIT, Delhi on 8-6-2006 on the measures taken for controlling silt and for stability of north-western portion. A report was also submitted containing conceptual design and detailed design of water pollution control measures. The following were present:
Mr J.N Kini, Kiocl
Mr K.S Kasinath, Kiocl
Mr G. Pai, Kiocl
Mr M.K Rajagopalan, Kiocl
Professor G.V Rao, Member, Expert Committee
Professor K.G Sharma, Member, Expert Committee
Professor Manoj Datta, Member, Expert Committee
All the three members of the Expert Committee visited the mine site on 10-6-2006 and 11-6-2006 to study the measures taken.”

11. The following are the observations of the Expert Committee members on the basis of the presentation by Kiocl officers, report submitted by them and the site visit:

“Silt control measures
1. It is observed that concerted efforts have been made by Kiocl for controlling the flow of silt from the mine site to Bhadra River in the form of drainage channels, catch pits, berms and dykes, check bunds and check dams.
2. From amongst the two main pollution control dams, one is observed to be nearly full (PCD 1) whereas significant storage capacity exists in the other (PCD 2).
3. Attempts have been made by Kiocl, to the extent feasible, to empty the reservoir behind PCD 1 and these have been abandoned with the onset of monsoons. Further attempts can be tried during periods of extended lull in the monsoon, if any.
4. Diversion of silt-laden water has been made at select locations from drainage channel of PCD 1 to the drainage channel of PCD 2.
5. It is stated by officers of Kiocl that the storage capacity of the main catch pit before PCD 2 as well as the reservoir of PCD 2 is sufficient to hold most of the silt for the present monsoon. However, measures have to be taken for handling the silt of future years.
6. The upstream slope of PCD 2 is observed to exhibit evidence of piping. Remedial measures such as provision of geotextile filter and plugging have been undertaken by Kiocl. Suitable long-term measures may be taken up after the monsoons. Careful monitoring of both PCD 2 and PCD 1 may be done during and after the monsoons.
7. It is observed that silt-laden water from the north-west portion does not reach either PCD 1 or PCD 2 but overflows from the low-lying area in the north-west portion into Bhadra River through an erosion gully. A gabion structure has been constructed to control the silt but the possibility of silt overflow during heavy rains cannot be ruled out. Additional measures are required to control the silt release from this area. Kiocl has proposed the reprofiling of the north-west portion to enable the silt-laden water to reach PCD 2. This would take around six months and can be taken up only after the monsoons. Other alternatives with conceptual and detailed plans need to be considered for this problem.
Stability of north-west portion
1. The stability of the north-west region is observed to be slightly improved on account of non-accumulation of water in the low-lying area.
2. However, the stability could still be affected due to the presence of erosion gully because of overflowing water.
3. Complete access to the periphery of the low-lying area is not available due to the absence of benches and access roads.
4. It is important that a few alternate solutions be conceptualised with the following features for the north-west region as long-term measures:
(a) Minimal accumulation of water,
(b) Drainage channel to reach PCD 2,
(c) Benches to stabilise steep slopes,
(d) Access road all around the low-lying area, and
(e) Sealing of opening(s) to the erosion gully(ies).
Final remarks
Kiocl may prepare revised conceptual designs and remedial measures on the basis of the observations made in this report.”

12. On 13-7-2006 the opinion of IIT, Delhi in the background of the affidavit filed by Kiocl on 10-5-2006 was as follows:

“The Expert Body of IIT, Delhi has studied the affidavit filed by Kiocl. The following are the views of the Expert Body in respect of Item 3 titled ‘Achieving slope stability in the entire mine area’:
1. For stability of slopes of the mine area, the scope of work defined by Kiocl to NIRM for their study did not specify the condition of ‘no or minimal disturbance to unbroken area’. As a consequence, NIRM Report presents only one solution, which disturbs the broken area. It does not give any other alternative solutions.
2. Other reports by IIT, Kharagpur; CMRI, Dhanbad; Monitoring Committee; Cwprs, Pune use the report of NIRM as the basis of analysis, hence give recommendations similar to that of NIRM.
3. As stated in the earlier report submitted by the Expert Body on 10-4-2006, it is reiterated that a solution to the stability of slopes with no or minimal disturbance to unbroken area is feasible.
4. Flattening of unstable slopes by excavation in broken area along with appropriate drainage and silt control measures can improve stability of the mined area. For this purpose the mechanism already suggested at Item 6(e) of the Expert Body Report dated 10-4-2006 submitted to the Hon'ble Supreme Court may be adopted.”

13. The significant aspects in the aforesaid report are as follows:

(a) The scope of work defined by Kiocl to NIRM for their study did not specify the condition of “no or minimal interference to unbroken area”.
(b) Other reports (i.e of IIT, Kharagpur; CMRI, Dhanbad; Monitoring Committee; Cwprs, Pune) used NIRM's Report as the foundation for analysis and therefore, their recommendations were similar to those of NIRM.
(c) Solution to the stability of slopes with no or minimal disturbances to unbroken area is feasible.
(d) By adopting certain measures, stability of the mined area can be improved.

14. In the background of what has been noted above and keeping in view the suggestions and recommendations of IIT, Delhi which we find to be founded on rational basis, we direct as follows:

“(i) On the basis of the report dated 10-4-2006 of IIT, Delhi, through a global competitive bid an agency to be selected for:
(a) reanalysing the stability of slopes,
(b) drawing up of mine closure plan, and
(c) implementation of the above plan.
(ii) IIT, Delhi shall draw up detailed terms for the work to be done, consistent with the basic paradigm of ‘no or minimal disturbance to unbroken area’ and submit to this Court within a period of four weeks for further directions.
(iii) The Ministry of Mines, Government of India, shall designate an officer to take over possession of the mines immediately. IIT, Delhi shall depute a team of experts to go and do a survey of the mines and the surrounding area and submit a report to this Court regarding any immediate step(s) that need to be taken during the interregnum till the appointment of the expert agency. IIT, Delhi can ask the designated officer to take any necessary steps on an emergent basis.
(iv) The expenditure for the purpose of inviting global competitive bid and evaluation such as on advertisement, etc. may initially be met out of Rs. 19 crores deposited by Kiocl, and which are presently lying with the Ad hoc Campa.
(v) If any funds are required in excess of the aforesaid amount, the agency, or the designated officer shall move this Court for necessary directions.”

15. IAs are accordingly disposed of.