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

Supreme Court Of India
Apr 30, 2010
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Factual and Procedural Background

The order consolidates and disposes of a series of Interlocutory Applications (IAs) filed in an ongoing matter before the Court. The principal factual contexts are:

  • IA No. 2805 and IA No. 2846: Power Grid Corporation of India Ltd. (PGCIL) seeks permission to lay high-voltage transmission lines through designated wildlife sanctuaries in Odisha (Chandaka Wildlife Sanctuary, 0.552 ha) and Gujarat (Wild Ass Sanctuary, 241.597 ha).
  • IA No. 1137: Concerns the assignment of erstwhile private forest land in Kerala to landless tribal people pursuant to earlier land-reform legislation.
  • IAs relating to Sawmills and Plywood/Veneer Units (multiple numbered applications): Address licensing of Category IV sawmills and plywood/veneer units in Uttar Pradesh following earlier directions of the Court.
  • Other IAs: Several applications are merely listed for replies, referral to the Central Empowered Committee (CEC), or adjournment.

All matters were examined with the aid of reports submitted by the CEC, after which the Court issued the present composite order.

Legal Issues Presented

  1. Whether PGCIL should be permitted to use forest land within notified wildlife sanctuaries for transmission-line projects, and under what conditions.
  2. Whether erstwhile private forest land in Kerala can be reassigned to landless tribal inhabitants and the manner of assessing compensatory obligations such as Net Present Value (NPV).
  3. Whether Category IV sawmills and plywood/veneer units in Uttar Pradesh are entitled to fresh licences and the terms on which such licences may be granted.
  4. Procedural directions concerning outstanding IAs, including referrals to the CEC, time-bound filing of replies, and adjournments.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Order dated 18-5-2007 reported at (2010) 13 SCC 325 Earlier direction permitting reopening/licensing of sawmills in Categories I–III. Used as the benchmark for extending consideration to Category IV sawmills and plywood/veneer units, ensuring consistency with the prior licensing framework.

Court's Reasoning and Analysis

The Court principally relied on the recommendations of the Central Empowered Committee and adopted a conditional-approval model across the various applications:

  • Transmission-line projects (IAs 2805 & 2846): Permission granted because CEC found the ecological impact manageable, provided that (i) statutory clearance under the Forest (Conservation) Act is obtained; (ii) NPV at sanctuary rates is deposited; (iii) all conditions imposed by the Standing Committee of the National Board for Wildlife and the Chief Wildlife Warden are strictly followed; and (iv) an additional 5 % of project cost for the Gujarat segment is paid into the Compensatory Afforestation Fund.
  • Land for tribals (IA 1137): The Court accepted the State of Kerala’s proposal “in principle” owing to the unique historical context of statutory vesting and prior commitments under land-reform laws. A three-month period is allowed for verification of forest-law applicability and precise land identification. Felling of timber trees by assignees is expressly prohibited, and the question of NPV is deferred. The Court specifies that this is a one-time, non-precedential exercise.
  • Category IV sawmills and plywood/veneer units: CEC-recommended licensing criteria—including proof of establishment prior to July 1989, prior fee payments, absence of pending forest-offence cases, and significant one-time payments (Rs 50,000 per sawmill; Rs 9 lakh per press for veneer units)—are accepted. Funds are to be kept in interest-bearing accounts pending further Court approval. The State of Uttar Pradesh retains liberty to raise objections in future if difficulties arise.
  • Remaining IAs: The Court sets procedural timelines (e.g., four weeks for State replies), refers certain matters back to the CEC, or simply lists them for future hearing, demonstrating a case-management approach.

Holding and Implications

Key Holdings:

  • IAs 2805 & 2846: PERMISSION GRANTED for PGCIL to use sanctuary land, subject to strict compliance with CEC-specified conditions.
  • IA 1137: PROPOSAL ACCEPTED IN PRINCIPLE; State given three months for compliance steps; matter to be listed thereafter.
  • Sawmill & Plywood/Veneer IAs: CEC RECOMMENDATIONS ACCEPTED; licensing to proceed under stated conditions; State of U.P. may approach Court if issues persist.
  • IA Nos. 2800-802: REJECTED.
  • Other applications were either referred to the CEC, given timelines for replies, or adjourned.

Implications: PGCIL may lawfully proceed with transmission-line construction upon meeting environmental safeguards and monetary obligations. Landless tribals in Kerala move closer to receiving agricultural land, although the final extent and compensatory payments remain pending. The wood-based industry in Uttar Pradesh gains a pathway to regularisation under rigorous financial and administrative controls. The Court emphasises that the Kerala land-assignment decision is sui generis and not a precedent, signalling caution against blanket extensions of this relief.

Show all summary ...

Order

IA No. 2805

1. This application is filed by Power Grid Corporation of India Ltd. (Pgcil) seeking permission for the use of 0.552 ha of land falling within Chandaka Wildlife Sanctuary in Orissa for the laying of the 400 kV Baripda-Mendhasal transmission line. CEC has examined the matter and recommended for the approval of the project on fulfilment of the following conditions:

(a) for the use of the forest land, approval under the Forest (Conservation) Act will be obtained;
(b) the NPV as per the rates applicable for the forest land falling in the national parks/sanctuaries will be deposited by the user agency; and
(c) the conditions on which the project has been cleared by the Standing Committee of the National Board for Wildlife will be strictly complied with.

Subject to fulfilment of the above conditions by Pgcil the project is cleared.

2. IA is disposed of accordingly.

IA No. 2846

3. This application is filed by Power Grid Corporation of India Ltd. (Pgcil) seeking permission for the use of 241.597 ha of land falling in Wild Ass Sanctuary in Kutch District in Gujarat for the construction of the three double circuit transmission lines to extract power from the 4000 MW Mundra Ultra Mega Power Project. CEC has examined the matter and recommended the approval of the project on fulfilment of the following conditions:

(i) for the use of the forest land, approval under the Forest (Conservation) Act will be obtained and the NPV will be deposited as per the rates applicable for the use of the forest/non-forest land falling within the sanctuary;
(ii) the conditions on which the project has been recommended by the Chief Wildlife Warden, Gujarat and the Standing Committee of the National Board for Wildlife will be strictly complied with; and
(iii) 5% of the project cost of Rs. 85.87 crores for the portion of the transmission lines falling in the sanctuary i.e Rs. 4.294 crores will be deposited by the user agency in the Compensatory Afforestation Fund for undertaking conservation and protection work in the wildlife sanctuary;

Subject to fulfilment of the above conditions by Pgcil the project is cleared.

4. IA is disposed of accordingly.

IA No. 1137

5. Heard both sides.

6. CEC has filed a fresh report regarding the land to be allotted to tribals. In principle, the proposal put forward by the Kerala Government is accepted. These lands were originally private forests and these were statutorily vested with the Government pursuant to the Kerala Private Forests (Vesting and Assignment) Rules, 1974 as part of the implementation of the Land Reforms Act. It was also agreed that these would be given to the people for assignment for agricultural purposes as per the provisions of the Land Reforms Act.

7. In view of the peculiar circumstances of this case, we accept the proposal but the Department concerned of the State is given three months time to examine the individual forest lands and assess the extent of land covered by the Forest Act and reassess the extent of land to be included in the proposal for rehabilitation of the landless tribals. It is also brought to the notice by the learned counsel appearing for the State that in the land to be assigned to the tribals no occupants would be allowed to cut timber trees. The question of payment of NPV is left open to be decided after the assignment is made. This is a one-time exercise and not to be treated as a precedent in Kerala or any other State.

8. List the IA after three months.

IAs Nos. 2453-57 in 1399 with 2462-64 with 2244 along with 2512-21 with 2544-45, 2572-73, 2548-49, 2065, 2114-15, 2481-82, 2489, 2551-54, 2711, 2559-66, 2592-93, 2753-56, 2683-85, 2779-80, 2738-39 with WPs (C) Nos. 117, 547 of 2008, 43, 55, 284, 414, 567-68, 574-76, 578 of 2009 and 4 of 2010

In re: Sawmills

9. Heard learned amicus curiae, learned counsel for the State of U.P and other parties.

10. CEC has filed a report in this Court. On 18-5-2007 (2010) 13 SCC 325, this Court had directed to grant licences for reopening of the sawmills falling under Categories I to III. The present report relates to Category IV.

11. CEC in its report has opined that fresh licences may be granted subject to the following conditions: the sawmill was established prior to July 1989 and the licence fee was deposited with the U.P Forest Department prior to 4-3-1997 and the licence fee up to the year 1995 has also been deposited with the U.P Forest Department in respect of 90 sawmills, and no offence case pursuant to the illegal use of transportation is pending against the holder of licence; further, in addition to the normal sawmill, licence fee/renewal fee, they will deposit a sum of Rs. 50,000 each as one-time measure to be refunded. This amount will be kept in an interest bearing deposit in a nationalised bank and will be released after getting approval by this Court.

In re: Plywood and veneer

12. The following conditions have been imposed by CEC:

(i) the seniority list of plywood/veneer units established after 4-3-1997 (Category IV units) should be finalised by the State-Level Committee for Uttar Pradesh Wood-Based Industries in consultation with CEC. The said list should be finalised after giving wide publicity to the provisional seniority list, inviting objections from the affected parties, giving personal hearing to them and after considering the objections/submission made by them;
(ii) after meeting the requirement of the licensed wood-based industry, the units permitted by this Hon'ble Court and the units whose category is yet to be finalised, the plywood/veneer units falling in Category IV may be considered for grant of licence to the extent of timber availability and strictly in the order of seniority, subject to the one-time payment of Rs. 9 lakhs per press in respect of the veneer units and compliance with the other conditions that have been stipulated. The one-time payment of penalty will be in addition to the normal licence fee and the other charges, if any, payable to the U.P Forest Department. As decided earlier, the abovesaid amount should be kept in a designated interest bearing bank account and should be utilised only after the scheme in this regard is approved by this Hon'ble Court; and
(iii) in case the timber availability is found to be inadequate for all the plywood/veneer units falling in Category IV, the permission granted to the plywood unit should be restricted to one press whereas for the veneer unit it should be restricted to one peeler only. In addition, the plywood units may be permitted one peeler each, if it had one or more peeler functional in the unit before it was closed.

13. The learned counsel for the State of U.P has got certain objections regarding these recommendations. In case the State has any problem, it would be at liberty to approach this Court again. Subject to these, the recommendations of CEC are accepted and appropriate action would be taken accordingly.

IAs Nos. 2750-52

14. The State of U.P shall file its reply within four weeks, as a last opportunity.

IAs Nos. 2258-63, 2440-41, 2443-44, 2450-52

15. In these applications, CEC has filed its report. Applicants would be at liberty to file objections, if any, within four weeks.

IAs Nos. 2800-802

16. Applications are rejected.

IAs Nos. 2822-30, 2858, 2770, 2774, 2777-78

17. Referred to CEC. Four weeks' time is granted for filing its report.

IA No. 2782

18. List along with the report of CEC.

IA No. 2783

19. List the IA after summer vacation.

SLP (C) No. 13015 of 2006

20. List after summer vacation.

Court Masters