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  • Orissa Saw Mills and Sawpits (Control) Act, 1991
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  • Orissa Saw Mills and Sawpits (Control) Act, 1991
Smart Summary

Factual and Procedural Background

The opinion consolidates several interlocutory applications concerning the regulation and rehabilitation of sawmills in the States of Orissa, West Bengal and Bihar. The litigation stems from earlier Supreme Court orders regulating the location and licensing of sawmills so as to protect forest areas. In 1995 the Court prohibited the establishment of sawmills within 10 km of any forest boundary. Subsequent orders in 2008, 2009 and 2010 required the respective State Governments to:

  • Close non-compliant sawmills and devise rehabilitation schemes (industrial estates) for eligible shut-down units in Orissa.
  • Process pending West Bengal licence applications in accordance with guidelines prepared by the Central Empowered Committee (CEC) and accommodate only 750 sawmills based on timber availability.
  • Prepare a seniority list and decide pending licence applications in Bihar following broad guidelines suggested by the CEC.

The present order reviews compliance with those earlier directions and decides the fresh interlocutory applications filed by affected sawmill owners and State Governments.

Legal Issues Presented

  1. Whether the State of Orissa has complied with, and must be further directed to implement, the Court’s earlier directions to amend the Orissa Saw Mills and Sawpits (Control) Act, 1991 and to establish industrial estates for the rehabilitation of closed sawmills.
  2. Whether any additional directions are necessary in light of the State of West Bengal’s assertion that it has already issued licences in accordance with the CEC guidelines accepted by the Court.
  3. Whether the State of Bihar should be granted additional time to prepare the mandated seniority list of applicants eligible for sawmill licences, and to implement the Court’s prior orders.

Arguments of the Parties

State of Orissa

  • Informed the Court that it has taken “appropriate decision” to comply with the earlier directions; legislative amendments, however, remain to be enacted.

State of West Bengal

  • Submitted that, having accepted the CEC guidelines, it has processed pending applications and issued licences to all eligible applicants; therefore, no further orders are required.

State of Bihar

  • The Standing Counsel requested additional time to prepare the seniority list and to take final decisions on pending licence applications.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
(1995) 5 SCC 615 Prohibition on establishment of sawmills within 10 km of forest boundaries. Forms the foundational restriction that led to closure of many sawmills and the present rehabilitation issues.
Order dated 20-10-2008 (2010) 13 SCC 320 Acceptance of CEC report limiting West Bengal licences to 750 sawmills and prescribing licensing guidelines. Referred to confirm West Bengal’s obligation; Court notes State compliance and disposes of related applications.
Order dated 10-7-2009 (2009) 16 SCC 481 Directed Orissa to identify industrial estates and to amend the 1991 Act/Rules for sawmill rehabilitation. Reiterated; State now ordered to complete amendments and estate identification within six months.
Order dated 7-5-2010 (2010) 15 SCC 177 a) Gave Orissa six weeks to finalise amendments.
b) Directed Bihar to prepare seniority list for sawmill licences.
a) Timeline extended; compliance still required.
b) Bihar given a final ten-week period to prepare the list.

Court's Reasoning and Analysis

The Court treated the matters essentially as compliance reviews rather than substantive adjudications:

  • Orissa: Acknowledged the State’s submission that decisions have been taken, but emphasised that statutory amendments are still pending. The Court therefore re-affirmed its 2009 and 2010 directions and fixed a fresh six-month deadline for completing amendments and identifying industrial estates for rehabilitation.
  • West Bengal: Observed that the State has already accepted CEC guidelines and issued licences accordingly. As the core directions of the 2008 order stand fulfilled, no further orders were deemed necessary.
  • Bihar: Granted a final ten-week extension to prepare the seniority list of eligible applicants in line with earlier orders, making it clear that no further extensions will be entertained.
  • Applications seeking modification of the 10-7-2009 order were summarily rejected, indicating the Court’s intent to maintain consistency with its prior rulings.

Holding and Implications

DISPOSED OF – All interlocutory applications concerning Orissa, West Bengal and Bihar sawmills are disposed of with specific compliance timelines:

  • Orissa must complete statutory amendments and identify industrial estates within six months.
  • Bihar must finalise the seniority list within ten weeks, with no further extensions.
  • West Bengal applications are closed, the State having complied with earlier directions.

The decision resolves the pending interlocutory matters but does not create new legal principles; it merely enforces and clarifies timelines for compliance with existing Supreme Court mandates.

    T.N Godavarman Thirumulpad v. Union Of India And Others

    Order

    Orissa sawmill matters

    IA No. 941 in IAs Nos. 754-55 with IAs Nos. 777, 1131-33, 1138-46, 1184, 1272 in IAs Nos. 754-55, 1361, 1579-80 in IA No. 941

    1. We have heard the learned counsel for the parties as well as Mr P.S Narasimha, learned amicus curiae. These applications relate to the sawmills in the State of Orissa. This Court had earlier directed (1995) 5 SCC 615 that no sawmills should be established within a radius of 10 km from the boundary of the forest area.

    2. Pursuant to the directions of this Court many of the sawmills in the State of Orissa were closed down. At the same time, this Court having realised that those sawmills which were closed down are required to be rehabilitated, passed the orders on 10-7-2009 (2009) 16 SCC 481 directing the State of Orissa to make necessary arrangements to have industrial estates and take appropriate steps in that regard, if necessary, by making amendments to the provisions of the Orissa Saw Mills and Sawpits (Control) Act, 1991 (hereinafter referred to as “the Act”) and the Rules framed thereunder. The Court vide its order dated 10-7-2009 (2009) 16 SCC 481 accordingly, directed the State of Orissa to take urgent steps in that regard and ensure appropriate amendments to the said provisions of the Act and the Rules made thereunder so that the eligible applicants amongst the closed sawmills could be appropriately rehabilitated in due course.

    3. By another order dated 7-5-2010 (2010) 15 SCC 177 based on the instructions submitted before the Court, a direction was issued requiring the State to take appropriate decision concerning amendments to the provisions of the said Act and Rules within a period of six weeks therefrom.

    4. We are now informed that the Government has already taken appropriate decision in the matter and complied with the directions of this Court. The necessary amendments to the provisions of the Act are required to be made by the legislature.

    5. In the circumstances, it would be appropriate to direct the State of Orissa to implement the directions of this Court dated 10-7-2009 (2009) 16 SCC 481 and 7-5-2010 (2010) 15 SCC 177 and accordingly, make and carry out necessary amendments to the provisions of the Act and the Rules framed thereunder in order to give effect to the rehabilitation plan. The industrial estates have to be identified so that these applicants are appropriately rehabilitated in terms of the directions issued by this Court from time to time. The exercise in this regard shall be completed within a period of six months from today.

    6. In such view of the matter, no further adjudication is required in these applications and they are accordingly, disposed of.

    IAs Nos. 2714-15

    7. We are not inclined to make any modification of our order dated 10-7-2009 (2009) 16 SCC 481. These applications are accordingly, dismissed.

    WP (C) No. 356 of 2007

    8. The cause in this writ petition does not survive requiring any further adjudication. This writ petition is accordingly dismissed as having become infructuous.

    9. No orders on the application for impleadment, direction/modification and vacation of stay.

    West Bengal sawmill matters

    IA No. 1484, IAs Nos. 2539-40 in 1429, IAs Nos. 2650-51 in 1429

    10. This Court vide its order dated 20-10-2008 (2010) 13 SCC 320 having accepted the report of CEC that there is adequate timber available only to accommodate 750 sawmills directed the State Government to consider as to whether the conditions suggested by CEC for grant of licences were acceptable to the Government and if they were so acceptable, to process the applications in accordance with the guidelines/suggestions issued by CEC. Further directions have been issued directing the State Government to issue licences based on the said guidelines/suggestions.

    11. It is now brought to our notice by the learned counsel for the State that the State Government having accepted the guidelines/suggestions and having processed the pending applications had already issued licences to the eligible applicants.

    12. In such view of the matter, no further directions as such are required to be issued in these interlocutory applications. They are accordingly disposed of.

    Bihar sawmill matters

    IAs Nos. 2423-25, 2460-61, 2522-23 and 2537-38

    13. This Court vide its order dated 7-5-2010 (2010) 15 SCC 177 passed the following order:

    “7. A large number of applications are pending with the Government for sawmill licences in the State of Bihar. The CEC has filed its report containing broad guidelines as regards the grant of sawmill licences. The State of Bihar has neither passed any final orders nor has it prepared a seniority list as directed by this Court.
    8. The State authorities are directed to prepare a seniority list of the eligible applicants who could be granted sawmill licences. The State should take action within a period of six weeks.”

    14. Shri Gopal Singh, the learned Standing Counsel for the State of Bihar prays for grant of further time to take an appropriate decision in the matter to implement the directions of this Court.

    15. Having considered the request so made by the learned Standing Counsel, we direct the State of Bihar to prepare a seniority list of the eligible applicants who could be granted sawmill licences in terms of our directions issued from time to time within a period of ten weeks from today and report compliance with this Court.

    16. It is made clear that no further time shall be granted to implement the directions of this Court dated 7-5-2010 (2010) 15 SCC 177.

    17. Since no further directions are required to be issued in these interlocutory applications, they are disposed of accordingly.

    IAs Nos. 1274-75

    18. These interlocutory applications are dismissed. No orders on the applications for impleadment and directions.

    IA No. 2899 in WP (C) No. 202 of 1995

    19. List this matter on 30-8-2010 along with IA No. 2897. We request the learned amicus curiae to inspect the site and submit his comments.

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    Comments

    T.N Godavarman Thirumulpad v. Union Of India And Others
    (Aug 16, 2010)