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Charidesa Krusak Surakhya Sangh ... vs State Of Orissa And Others
2014 Latest Caselaw 2475 Del

Citation : 2014 Latest Caselaw 2475 Del
Judgement Date : 16 May, 2014

Delhi High Court
Charidesa Krusak Surakhya Sangh ... vs State Of Orissa And Others on 16 May, 2014
Author: I.Mahanty
        THE HIGH COURT OF ORISSA : CUTTACK
W.P.(C) Nos. 9384 of 2012, 30369 of 2011, 3926 of 2010 &
W.A. No.321 of 2011
_______________________________________________________________________

  In the matter of an applications under Articles 226 & 227 of the
  Constitution of India & Article-4 of the Orissa High Court Order,
  1948.
                          --------------

(In W.P.(C) No.9384 of 2012) Charidesa Krusak Surakhya Sangha and another ...... Petitioners

-Versus-

State of Orissa and others ...... Opp. Parties

For Petitioners : M/s. Jayant Das, Sr. Advocate S.N.Sarkar, B.K.Jena

For Opp. Parties : Mr. Ashok Mohanty, Advocate General (For O.P.Nos.1, 3, 4 and 5)

Mr. S.D.Das, Asst. Solicitor General (For O.P. No.2)

M/s.Pinaki Mishra, Sr. Advocate Milan Kanungo, Sr. Advocate and Mr.S.Das (For O.P. No.6)

(In W.P.(C) No.30369 of 2011) M/s. K.V.K. Nilachal Power Pvt. Ltd. ...... Petitioner

-Versus-

State of Orissa and others ...... Opp. Parties

For Petitioner : Mr.Pinaki Mishra, Sr. Advocate M/s. Milan Kanungo, Sr. Advocate and Mr.S.Das

For Opp. Parties : Mr. Ashok Mohanty, Advocate General

(For O.P.Nos.1 to 5) Mr. J.Pattnaik, Sr. Advocate M/s. B.Mohanty, P.K.Pattnaik, A.Pattnaik, S.Pattnaik, R.P.Ray & V.S.

Rayaguru (For O.P. No.6)

Mr.T.Barik (For O.P. No.7)

M/s. Sachidanda Sahoo & P.R.Bhuyan (For O.P. No.8)

(In W.P.(C) No.3926 of 2010) M/s. K.V.K. Nilachal Power Pvt. Ltd. ...... Petitioner

-Versus-

State of Orissa and others ...... Opp. Parties

For Petitioner : Mr.Pinaki Mishra, Sr. Advocate M/s. S.K.Padhi (Sr. Advocate), M.Padhi, A.Das & B.Panigrahi

For Opp. Parties : Mr. Ashok Mohanty, Advocate General (For O.P.Nos.1 to 5)

(In W.A. No.321 of 2011) Basudev Behera and others ...... Petitioners

-Versus-

Joint Commissioner, Consolidation &
Settlement, Orissa & others              ......          Opp. Parties

   For Petitioners           : Mr. Trilochan Barik

   For Opp. Parties          : Mr. Ashok Mohanty, Advocate General
                              (For O.P.Nos.1 & 2)

                                Mr.Pinaki Mishra, Sr. Advocate
                               M/s. S.K.Padhi (Sr. Advocate), M.Padhi,
                                A.Das & B.Panigrahi
                                (For O.P. No.3)
                             ---------------



         P R E S E N T:

                THE HON'BLE MR. JUSTICE INDRAJIT MAHANTY.
                                     &

THE HON'BLE MR. JUSTICE BISWANATH MAHAPATRA.

Date of hearing: 02.04.2014 Date of judgment: 16.05.2014

I. Mahanty, J. The present batch of writ applications has come to be filed by

the petitioner Charidesa Krusak Surakhya Sangha and several land

losers seeking to challenge the validity of the acquisition of land made

by the Industrial Development Corporation of Odisha (hereinafter

referred to as the 'IDCO') for the purpose of setting up a thermal

power plant by M/s. KVK Nilachal Pvt. Ltd. (hereinafter referred to as

the 'KVK').

2. At the commencement of hearing, we requested the learned

counsel for the respective parties in this batch of cases to make out

categories on the issues raised and to bunch the various cases in each

such category. Accordingly, on the consent of the learned counsel

representing the various parties, four categories were made. This

judgment relates to the cases under Category-IV as noted

hereinbelow:

Category-IV Challenge to lack of permissions and clearances for construction of the project, lack of forest clearance, lack of wildlife clearance.

14. W.P.(C) No.9384 of 2012

15. W.A. No.321 of 2011

16. W.P.(C) No.30369 of 2011

17. W.P.(C) No.3926 of 2010

3. For the convenience of adjudication, we have proceeded to

deal with the aforesaid cases category-wise and, accordingly, the

present judgment is confined to the issues raised in Category-IV i.e.

challenge to lack of permissions and clearances for construction of the

project, lack of forest clearance, lack of wildlife clearance.

4. Since in the connected judgment delivered today in W.P.(C)

Nos.6715 of 2011 along with batch of writ applications, the factual

background of challenge has been noted in detail therein, for the sake

of brevity, the same is not being repeated herein.

5. We will now record the submissions of the parties and their

respective objections.

Category-IV - Challenge to lack of permissions and clearances for construction of the project, lack of forest clearance, lack of wildlife clearance.

6. Mr. Jayant Das, learned Senior Advocate on behalf of the

petitioners submitted that, part of the land over which the thermal

power plant of KVK is to be come up is, classified as "forest land" and

such land is covered under Section 2 of the Forest Conservation Act,

1980 as determined by the Hon'ble Supreme Court in the case of

T.N.Godavarman Thirumulkpad v. Union of India (1997) 2 SCC 267

and such forest land cannot be put to in a "non-forest activity",

without a clearance in terms of Section 2 of the Forest Conservation

Act, 1980 and any non forest use of the land, would require prior

approval of the Central Government in terms of Section 2 of the Forest

Conservation Act 1980 and since KVK do not possess any such prior

approval, they should be injuncted from carrying out any non-forest

activity thereon. In this respect, it is further alleged that KVK have

already commenced construction activity without the necessary

approval under the Forest Conservation Act, 1980 and once there is a

mixture of forest land and non-forest land, any activity on non-forest

land also requires a prior clearance from the Government of India

under Section 2 of the Forest Conservation Act. For this purpose,

reliance is also placed on a guideline issued by the Ministry of

Environment and Forest (in short 'MOEF') dated 21 March, 2011

relevant portion of which is quoted hereinbelow.

"4.4. Project involving Forest as well as Non-forest Lands.

Some project involve use of forest land as well as non-forest land. State Governments/project authorities sometimes start work on non-forest lands in anticipation of the approval of the Central Government for release of the forest lands required for the projects. Though the provisions of the Act may not have technically been violated by starting of work on non-forest lands, expenditure incurred on works of non-forest lands may prove to be infructuous if diversion of forest land involved is not approved. It has, therefore, been decided that if a project involves forest as well as non-forest land, work should not be started on non-forest land till approval of the Central Government for release of forest land under the Act has been given."

7. On behalf of the petitioner, it is further contended that the

Kapilash Wild Life Sanctuary which was notified on 02.04.2011 is very

close to the site of the thermal power plant being constructed by the

KVK. Placing reliance on the judgment dated 04.12.2006 of the

Hon'ble Supreme Court in the case of Goa Foundation V. Union of

India, passed in W.P.(C) No.460 of 2004 to the following effect:

"Even in cases where environmental clearance was obtained before declaration of sanctuary and the activities fall within 10Kms of the sanctuary boundary, clearance of the National Wildlife Board (NWB) had to be mandatorily obtained"

8. It is therefore contended that even though KVK admittedly

had obtained an environment clearance under the environment

Protection Act on 18.02.2009, in terms of the direction of the Hon'ble

Apex Court, since the site of the KVK thermal plant is within 10 Kms.

of the sanctuary boundary, without obtaining the clearance of the

National Wild Life Board, the KVK ought not to be allowed to proceed

with the construction. In this respect reliance is placed on the

following judgments in the cases of

1. T.N.Godavarman v. Union of India, (1997) 2 SCC 267;

2. Goa Foundation v. Union of India dated 04.12.2006 passed in W.P.(C) No.460 of 2004;

3. Vellore Citisen Welfare Forum v. Union of India, (1996) 5 SCC 647;

4. AP Pollution Control Board v. M.V.Naidu, (1992) 2 SCC 718;

5. M.C.Mehta v. Union of India (2002) 4 SCC 356;

6. M.C.Mehta v. Union of India (1998) 9 SCC 589;

7. Centre for PIL v. Union of India (2012) 3 SCC 1.

It is to be noted that other learned counsel appearing for various

parties adopted similar arguments as advanced by Mr. J. Das, learned

Senior Advocate appearing for the petitioner-Charidesa Krusak

Surakhya Sangha.

9. Insofar as Forest and Environmental issues are concerned,

the learned Advocate General submitted that no construction over the

forest lands will be allowed till forest clearance is received from the

MOEF under Section 2 of the FC Act, 1980. Insofar as the boundary of

the Kapilash Wildlife Sanctuary is concerned, a memo is filed by the

learned Additional Standing Counsel on behalf of the State enclosing a

copy of the minutes of the 3rd meeting of the State Board for Wildlife

held on 11.02.2014. While in the said meeting various issues relating

to several other projects were considered, insofar the project of KVK

and Wildlife clearance are concerned, the same have been noted at

para-8 of the minutes, which is quoted hereunder:

"8. Wildlife clearance proposal for establishment of Thermal Power Plant by M/s. KVK Nilachal Power Pvt. Ltd. in Kandarei GP, Athagarh tahsil, at Cuttack district:

• Chief Wildlife Warden appraised that M/s KVK Nilachal Power Pvt. Ltd. intends to set up a 1050 MW Thermal Power Project in Kandarei, Tahsil-Athagarh, Dist. Cuttack. The Environmental Clearance to the project has been granted vide Letter No.J-13011/51/2008- IA.II (T) dated 18.02.2009 by the Ministry of Environment and Forest, Government of India. Upon grant of EC and other necessary

clearances and approvals from authorities as are required for the project, construction activities were undertaken by the Company. Subsequently, Kapilash Wildlife Sanctuary was notified vide Government of Odisha, Forest and Environment Department Notification No.5937/ F & E dated 02.04.2011. Consequent upon notification of Kapilash Wildlife Sanctuary, the project site located within jurisdiction of Athagarh Forest Division comes at a distance of 3.5 km from Sanctuary Boundary. The Project Proponent has applied for obtaining clearance from the National Board for Wildlife as per Government of India, Ministry of Environment and Forest, letter F. No.6-10/11WL dt.19.12.12 and submitted the Wildlife Conservation Plan vide letter dt.30.12.11 through the DFO, Athagarh. Acting on a PIL WP© No.9384/2012, the Hon'ble High Court of Odisha has ordered status-quo. The construction activities of the Company has come to a halt as per the order dated 18.05.2012 of Hon'ble High Court, Odisha. Further, vide order dated 25.6.2012, Hon'ble High Court Odisha have given direction to Standing Committee of National Board for Wildlife for the purpose of disposing of the application of the company, to secure the relevant/ necessary records from the concerned Deptt. Of the State Govt. as well as Central Govt. and take a decision on the application of the applicant company & dispose of the same as expeditiously as possible, preferably within a period of 3 weeks and submit a report.

Principal CCF (Wildlife) & Chief Wildlife Warden, Odisha has inspected the site and recommended the proposal with following conditions:

• The Laterite quarries lying in the project area and in area surrounding the project area shall be developed and maintained by the project proponent in form of water bodies. At least 15 such water bodies shall be developed and ma

Barajora Nala in its natural form should be maintained as far as possible. If diverted with due permission from Water Resources Deptt., the diverted nala inside project area shall follow proper gradients and soil conservation measures. Further, on both side of the diverted nala green belt shall be maintained.

• Enrichment Plantation of elephant-friendly fodder species in Baniabandha R.F. and Gobra R.F. (at least over 50 ha) in north-west of proposed Darpani Right Canal of Rengali shall be taken up where elephant movement is noticed at present. Further, in south-east of the said Canal, Canal Bank Plantation shall be taken up.

• 3 Nos. of underpasses for smooth movement of elephants at suitable locations as per suggestion of the DFO be constructed in collaboration with the Railways observing all the technical formalities.

Government of Odisha have approved the proposal of Chief Wildlife Warden, Odisha for placing before State Board for Wildlife.

Chief Wildlife Warden has observed after field visit on 25.12.2013 that the project would not cause any damage, destruction, exploitation of removal of any wildlife or forest produce or degradation of habitat in the sanctuary. The project also does not involve any elephant corridor or established path which would adversely affect the movement of wild animals and has suggested some additional conditions. Sri S.K. Pattnaik opined that it is estimated that Coal based thermal power plant shall produce 7,416 tons of fly ash and 2160 tons of bottom ash per day which is very huge quantity. The industry is in close proximity to a sanctuary will be detrimental to wildlife and the flow of effluents through Barajore nala to Mahanadi shall also affect aquatic flora and fauna of river system. Similar view was also expressed by Sri S.N. Patra

Member State Board for Wildlife. Hon'ble Forest Minister desired that the issue of disposal of fly-ash in the State has to be given serious thought to prevent health hazard due to pollution caused by fly-ash. Principal Secretary, Forest and Environment Department informed and assured that necessary action has already been taken for utilization of fly ash and more steps utilizing the same in different uses would also be taken to reduce the pollution caused by fly-ash. He further informed that a High Level Committee under the Chairmanship of Chief Secretary, Odisha is monitoring the utilization of fly-ash in the State. Industries are required to make arrangements for utilization of fly ash as per the guidelines of the MoEF. Dr. LAK Singh opined that in the Badajhor nala flows adjoining to the plant site, the flow of water should be maintained and necessary measures to be taken to keep water of the nala pollution free.

After detailed discussion the Board approved and recommended for forwarding the proposal of Thermal Power Plant by M/s KVK Nilachal Power Pvt. Ltd. in Kandarei GP, Athagarh Tahsil, at Cuttack District to Standing Committee of National Board for Wildlife with the conditions suggested by Chief Wildlife Warden, Odisha."

10. The conclusion of the State Board for Wildlife based on their

field visit on 25.12.2013 clearly stipulates that the project would not

cause any damage, destruction, exploitation or removal of any wildlife

or forest produce or degradation of habitat in the sanctuary. Further

the project also does not involve any elephant corridor or established

path which would adversely affect the movement of wild animals and

has also suggested some additional conditions and after detailed

discussion, the Board approved and recommended for forwarding the

proposal of KVK to the Standing Committee of National Board for

Wildlife with the conditions as suggested by the Chief Wildlife Warden.

11. Learned Advocate General submitted that insofar as the

buffer zone to the Kapilash Wildlife Sanctuary is concerned, the State

have made its recommendation to the Union Government and in

terms of its recommendation, the location of the petitioners factory

does not fall within the "buffer zone" as recommended by the State

Government, which obviously awaits the approval thereof by the

Union Government.

Submissions of Union of India

12. Mr. S.D.Das, learned Assistant Solicitor General on behalf of

the Union of India confined his argument to the issues raised under

Category-IV alone and he submits that while it is a fact that

"environment clearance" has been granted to the KVK, he also submits

that the proposal for the buffer zone of Kapilash Wildlife Sanctuary has

been sent to the MOEF for its consideration but no final decision has

been taken thereon and insofar as the recommendation made by the

State Board for Wildlife is concerned, the same having been made only

on 11.02.2014. Such proposal will be duly considered by the National

Board of Wildlife in due course but till date, no such clearance has

been granted.

He further submits that as far as the question of forest land

is concerned, the MOEF has filed an affidavit stating that no forest

diversion proposal has been received either in the Regional Office in

the Ministry of MoEF or by the Ministry itself. He further placed

emphasis on the direction issued by the Ministry in its letter dated

21.03.2011 with regard to the revision of Para 4.4 of the guidelines on

Forest (Conservation) Act, 1980 regarding projects involving Forest as

well as Non-forest Lands to the following effects:

"4.4 Project involving Forest as well as Non-Forest Lands xxx xxx xxx It has, therefore, been decided that if a project involves forest as well as non-forest land, work should not be started on non-forest land till approval of the Central Government for release of forest land under the Act has been given."

Submissions of KVK

13. Mr. Pinaki Mishra, learned Senior Advocate appearing for

the KVK submitted that:

(a) The Environmental Clearance ("EC") to the project was granted by the MoEF on 18.02.2009. The EC clearly states that "no ecologically sensitive area is reported within 10 Km area of the project; however there are 5 reserve forests within 5 KM radius".

(b) Prior thereto, the letter from the DFO, Athagarh dated 21.07.2008 also states that "The project area does not form part of any National Park, Wildlife Sanctuary or Biosphere Reserve, Bird Sanctuary, Elephant/Tiger Reserve and none of them are present within 10 Km radius of the proposed site."

(c) Upon grant of EC and other necessary clearances/approvals from authorities as are required for the project, construction activities were undertaken by the KVK. Undisputedly, till the date of status quo order dated 18.05.2012, an investment of Rs.975 crores had been made by the KVK on the project. Thus the KVK had substantially acted on the EC.

(d) On 02.04.2011, Kapilash Wildlife Sanctuary was designated as such by a notification published by the State Govt. on 29.04.2011. The notification does not have a retrospective effect as it states ".... the State government do hereby declare that the aforesaid area to be a Sanctuary called the KAPILASH WILDLIFE SANCTUARY with effect from the date of publication of this notification in the Orissa Gazettee." The project is admittedly at 3.5 km distance from the boundary of the sanctuary as ascertained by the DFO.

(e) W.P.(C) No.9384/2012 was filed in May, 2012 by CKS Sangha claiming that the KVK should be stopped from constructing the project as the project of the KVK was within 10 km distance from the boundary of Kapilash Wildlife Sanctuary and mandatory wildlife clearance was not obtained.

He submitted that the Petition is based on the followings:-

(i) Order dated 04.12.2006 passed by the Supreme Court in Goa foundation Case wherein the Court, inter alia, directed MoEF to refer those cases to National Board for Wildlife (for Wildlife Clearance) where ECs had been granted and the project activities were within 10 KM radius of a wildlife Sanctuary/National Parks; and

(ii) An Office Memo dated 02.12.2009 of MoEF wherein it was clarified that the projects falling within 10 km radius of a National Park/Wildlife Sanctuary were required to obtain Wildlife Clearance.

He submitted that the High Court by an interim order dated

18.05.2012 directed that status quo shall be maintained with respect

to 10 Km radius of Kapilash. Hence, the issues raised in the petition

are devoid of any merit for the following reasons:-

(i) Order dated 04.12.2006 passed by the Hon'ble Supreme Court

in Goa foundation Case

The Hon'ble Supreme Court in the said order had observed

that if State Governments failed to give any proposal then the Court

may have to consider passing orders for implementation of the

MoEF's decision namely notification of the area within 10 km of the

boundaries of sanctuaries and national parks, as eco-sensitive areas.

It further directed that all those cases which were falling within 10

km. radius of the existing National Park/Wildlife Sanctuary and

where ECs were issued would also have to obtain clearance from the

Standing Committee of the National Board for Wildlife.

Pursuant to the order dated 04.12.2006 of the Hon'ble

Supreme Court wherein it was indicated that the Court "may have to

consider passing orders of implementation of the MoEF's decision

namely notification of the areas within 10 km of the boundaries of

sanctuaries and national parks, as eco-sensitive areas", admittedly

no orders were passed by the Hon'ble Supreme Court.

The above direction namely "all those cases which were

falling within 10 km. radius of the existing National Park/wildlife

Sanctuary and where ECs were issued would also have to obtain

clearance from the Standing Committee of the National Board for

Wildlife" was applicable to cases where a declared National

Park/Wildlife Sanctuary was existing on the date of issuance of EC

Clearance by the MoEF. In the present case, at the time of grant of

EC on 18.02.2009, there was no sanctuary within 10 km radius of

the project as Kapilash was notified w.e.f. 29.04.2011. Therefore, the

KVK was not required to obtain any Wildlife Clearance from NBWL.

It is submitted that the order passed by the Hon'ble Supreme

Court in the case of Goa Foundation (supra) is not applicable to the

KVK and the KVK was therefore, not required to obtain any wildlife

clearance. Nonetheless, the KVK applied for Wildlife Clearance as a

matter of abundant caution on 30.12.2011. The said Application is

being vigorously pursued by the KVK and is pending at the level of

the State Government.

It is further submitted that the Order dated 04.12.2006

passed by the Hon'ble Apex Court and relied on by the petitioner does

not prohibit or even indicate that there is a prohibition on carrying on

construction pending wildlife clearance, which had already started

after grant of EC. The Supreme Court was fully aware of the fact that

there are several projects which have been granted EC and are within

10 Km radius of a Wildlife Sanctuary/National Park, yet no orders

were passed directing suspension of their activities.

It is submitted that 10 km is not a thumb rule as sought to

be argued by the Petitioners. In this regard, the present status of

notification of "Eco-sensitive zones" is around various National Parks

and Wildlife Sanctuaries. It is clear that the MoEF has been made

notifications fixing 2.5 kms, 5 Kms Eco-sensitive zones and in some

of the cases, it has fixed 10 km as Eco Sensitive Zone.

14. Insofar as the Office Memo dated 02.12.2009 is concerned,

ex-facie applies prospectively only to those cases where EC is to be

granted after the issuance of Office Memo.

The said Office Memo only provides for a condition to be

stipulated in the Environmental clearance. A condition can be

stipulated only in a clearance which has to be granted after

02.12.2009 and therefore, it does not apply to cases where

Environmental Clearance has been granted prior to 02.12.2009.

It is further made clear in the said Office Memo that the

grant of EC does not necessarily imply that the investment made in

the project, if any, based on "environmental clearance" so granted, in

anticipation of the clearance from forestry and wildlife angle shall be

entirely at the cost and risk of the project proponent and Ministry of

Environment & Forests shall not be responsible in this regard in any

manner.

15. There is no injunction of any sort whatsoever either by the

Hon'ble Supreme Court or by MoEF directing suspension of activities

by the projects which are within 10 km of a Wildlife

Sanctuary/National Park and who have not yet obtained Wildlife

Clearance from the National Board. The only direction given by the

Hon'ble Supreme Court was to refer the matter to the National

Board. The Hon'ble Supreme Court was conscious of the fact that

there are projects that are carrying on activities but do not have

Wildlife Clearance, still the Hon'ble Supreme Court did not pass any

Order for suspension of the activities till the time Wildlife Clearance

from NBWL is obtained.

16. Reliance is placed on Order dated 21.12.2012 passed by this

Court in the case of Indian Metal & Ferro Alloys Vs. Union of India

and Ors. passed in W.P.(C) No.17693/2012. In the said case, this

Court has held that in the Order dated 04.12.2006 passed by the

Hon'ble Supreme Court in Goa Foundation case, nowhere did the

Hon'ble Supreme Court state that the activities of companies who

have obtained clearance earlier, shall be stopped, till the decision is

taken by NBWL. It is also pertinent to note that the State Govt. has

filed an Affidavit dated 26.3.2013 before the Hon'ble Justice MB

Shah Commission, Ahmedabad in the case of M/s. BC Dagara,

Sulaipat Iron Ore Mine stating its position in Para-9 of the affidavit

which is as follows:-

"9. That though prior clearance from the Standing Committee of the National Board for Wildlife (NBWL) was mandated for the new projects at the time of obtaining environmental clearance, there is no specific stipulation in any of the above instructions that the ongoing projects which have already obtained environmental clearance would be directed to stop their operations until they receive the clearance from the National Board for Wildlife."

17. Learned counsel for the KVK submitted that the KVK had

submitted its application for Wildlife Clearance with the DFO,

Athagarh on 30.12.2011 and the same is still pending at the State

Govt. level and is yet to be forwarded to the NBWL.

18. It is further submitted that the Centrally Empowered

Committee ("CEC") appointed by the Hon'ble Supreme Court has on

20.09.2012, filed a Report/Note in WP(C) No.460/2004 in the case of

Goa Foundation Vs. Union of India, regarding Safety Zones (Eco-

Sensitive Zones) around National Parks and Wildlife Sanctuaries. As

per the said report the buffer zone for Kapilash would be 500 meters.

The present project is at a distance of 2.5 km which is well outside

the proposed Buffer Zone.

The Hon'ble Supreme Court has prima facie accepted the

CEC recommendations and modifications as suggested by the

Amicus Curiae.

The Govt. of Orissa vide their letter dated 17.11.2012 has

conveyed its stand to the MoEF that the CEC report is accepted by

the Government in its entirety. In view of the above, project site falls

comfortably outside the proposed "eco-sensitive zone" area

recommended by the CEC/State Government for the Kapilash

Wildlife Sanctuary.

In view of the above submissions, it is submitted that

neither the Order of the Hon'ble Supreme Court in the case of Goa

Foundation (supra) nor the Office Memorandum of MoEF, dated

02.12.2009 even indicate that the projects cannot carry out activities

pending Wildlife Clearance. Thus, the prayer sought for in WP(C)

No.9384/2012 to direct stoppage of construction activities till the

KVK obtains Wildlife Clearance is devoid of any merit and ought not

be granted.

19. Forest Land Mr. Mishra, learned Senior Advocate on behalf of the KVK

submitted as follows:

(a) The Governor of Orissa in exercise of powers under Section

27(1) of Indian Forest Act, 1927 issued a notification dated

27.10.1953, deserving an area of 2088 acres inter alia, in Mouza

Rahangol and declaring that the entire area is de-reserved and dis-

forested as there was no valuable forest growth in the area.

(b) A PIL (WP No.9384/2012) was filed claiming that the KVK

should be stopped from constructing the project, inter alia, on the

ground that the project involves forest land. It is alleged that the KVK

had filed proposal for diversion of 74.25 ha of forest land to Principal

Chief Conservator of Forest bearing Sl. No.423/2010 dated

04.09.2010. The said diversion proposal was returned for compliance

of certain objections. No revised diversion proposal has been

submitted.

(c) The KVK had earlier filed a Writ Petition WP(C)

No.3926/2010 (part of the present batch of writ petitions)

challenging the notice 17.02.2010 issued by the Tahasildar wherein

the Tahasildar had alleged that the KVK was using the Private Forest

Kissam land in violation of Section 2 of the Forest Conservation Act,

1980. The said Notice was challenged by the KVK by filing the writ

petition on the ground that by virtue of notification dated 27.10.1953

the entire land in Mouza Rahangol was de-reserved and de-forested.

The High Court vide Order dated 5.3.2010 stayed the operation of

the said notice.

(d) Realizing that the entire forest land in Mouza Rahangol

including the land forming part of the KVK's project was dereserved

and dis-forested, the KVK obviously was not required to file any

diversion proposal u/s 2 of the Forest Conservation Act, 1980. As the

classification of the land had not been corrected in line with the

27.10.1953 notification, the KVK filed petitions u/s.15(b) of the

Orissa Survey & Settlement Act, 1958 before the Court of Additional

Commissioner, Settlement & Consolidation, Cuttack, inter alia, for

changing the classification of land privately purchased by it from

'Jungle' to 'sarad' or 'gharbari' in the Hal ROR, on the strength of

notification dated 27.10.1953 (RP Case Nos. 22/2011 to 43/2011).

The said Petitions were allowed by the Additional Commissioner vide

Orders dated 17.3.2011 and the Tahasildar, Athagarh was directed

to record the classification of the land as changed from 'jungle' to

'cultivation/homestead' in the Hal ROR. No Appeal has been filed

against the said Orders and it had attained finality.

(e) That in spite of the Orders dated 17.3.2011 passed by the

Additional Commissioner, the Tahasildar, Athagarh was not

disposing of the matter by carrying out the necessary

corrections/recording in the Hal ROR, the petitioner was constrained

to file a Writ Petition being WP(c) No.16201/2011 seeking

appropriate directions to the Tahasildar. This Hon'ble Court disposed

of the said Petition vide Order dated 08.06.2011 directing the

Tahasildar to dispose of the matter as per the directions contained in

the orders dated 17.03.2011 passed by the Additional Commissioner

in RP Case Nos.22/2011 to 43/2011. The Tahasildar finally complied

with the legal directions and has carried out the necessary

corrections/recording in the Hal ROR and the land stands recorded

as 'sarad'/'gharabadi'.

(f) It is also important to note that the Tahasildar, Athagarh

(State Government) has also filed a Revision Petition u/s 15(a) of the

Orissa Survey & Settlement Act, 1958 before the Court of Additional

Commissioner, Settlement & Consolidation, Cuttack for change of

classification of suit plots under Khata No.82 in village Rahangol

from kissam 'jungle', 'chotta jungle', 'laika jungle' to 'sarad' or

'gharbari' in the Hal ROR, on the strength of notification dated

27.10.1953. The said petition is pending. Thus, the stand of the

State Government is consistent with the factual position.

(g) The DFO, Athagarh thereafter issued a notice dated

02.11.2011 that the KVK was constructing on forest land. The DFO

directed the KVK to stop the leveling and construction work. The said

notice has been challenged in WP(c) No.30369/2011. In the said

petition, the High Court passed an interim order dated 22.11.2011

that the KVK may carry on leveling work, but no construction work

shall be carried out without leave of the Court.

(h) Pursuant to the direction issued by the Court to conduct a

joint survey of the land, the same was done by the revenue and

forest authorities namely Tahasildar, Forest Range Officer, Revenue

Inspector along with Amin. The joint verification report was filed

along with affidavit dated 16.07.2012 by the State Government. As

per the affidavit filed by the Govt., the following classification of the

land (alleged to be forest land) is given:-

(i) Private Forest Kissam land purchased by the KVK -

50.33 Acres

(ii) Forest Kissam land under acquisition WP(C) No.17476/09-13.38 Acres

Total Forest Kissam Land - 63.71 Acres

It is recorded in the said verification report that no tree growth exists

on the above land and no construction has been carried out on the

said land.

(i) As stated in Paras(d) & (e) above, the classification of the

above Private Forest Kissam land admeasuring 50.33 acres

purchased by the KVK has been changed from private forest to Patit

(Homestead) on the basis of notification dated 27.10.1953 by orders

dated 17.03.2011 passed in RP Case No.22/2011 to 43/2011 filed by

the KVK in the Court of Additional Commissioner, Settlement and

Consolidation. It is to be noted that no Appeal has been filed against

the said orders.

In respect of 13.38 Acres of forest kissam land acquired by

the State, the Court has passed an order of status quo in WP(C)

No.17476/2009 with respect to possession of this land, therefore,

the said land is not in possession of the petitioner.

20. Revenue Forest Land

It appears that the land included in the list of District Level

Committee is Ac.28.100 dec. and the land shown in the Joint

Verification Report is Ac.30.45 dec (including the above DLC land). It

is noted that no forest growth is found on this land no construction

had been undertaken on this land. As stated in Para(f) above, the

application for changing the classification of this land from forest to

non-forest u/s 15(a) of Orissa Survey & Settlement Act, 1958 filed by

Tahasildar, Athagarh Divison is pending in the Court of Additional

Commissioner, Settlement and Consolidation, Cuttack RP Case

No.3/2012 dated 06.01.2012. The said land is not in possession of

the petitioner.

It is submitted that insofar as the private forest land

purchased by the KVK is concerned, the classification of the same

has been corrected from 'forest' to 'cultivation/homestead'. In so far

as the Government land is concerned, which is recorded as forest,

the Government has admittedly applied for correction of ROR,

however, has now filed an affidavit before this Hon'ble Court that

28.100 acres of land is included in the District Level Committee list.

Although the State relied upon the notification dated

27.10.1953 and have filed RP Case No.6/2012, where no order has

yet been passed, if this Hon'ble Court deems fit, the KVK is ready to

apply for clearance in respect of the said 30 acres approx. land. The

KVK also undertakes not to carry out any construction on the said

30 acres land till the time forest clearance is given.

21. The petitioner has relied upon the judgment of the Hon'ble

Supreme Court in the case of TN Godavarman Thirumulkpad Vs

Union of India (1997) 2 SCC 267. Specific reliance is placed on the

observation of the Hon'ble Supreme Court in Para-4 that the word

"forest" as occurring in Section 2 of the Forest Conservation Act,

1980 will not only include "forest" as understood in the dictionary

sense, but also any area recorded as forest in the Government record

irrespective of ownership.

It is to be noted that in the case of TN Godavarman (supra),

the Hon'ble Supreme Court considering the meaning of the word

"forest" occurring in the Forest Conservation Act, 1980. It is clearly

stated in Para 4 of the judgment that "The word 'forest' must be

understood according to its dictionary meaning. This description

covers all statutorily recognized forests, whether designated as

reserved, protected or otherwise for the purpose of /section 2(i) of the

Forest Conservation Act." In the present case, entire Mouza Rahangol

not only ceased to be reserved forest but was also disforested

(physically as is confirmed by the Triennial Inspection Report of 1960

and Joint Verification Report of 2012) pursuant to the notification

dated 27.10.1953 i.e. much before the enactment and coming into

operation of the Forest Conservation Act, 1980. The classification of

such land was not corrected in the ROR, which has been

subsequently done.

It is also important to note that in the case of Nature Lovers

Movement Vs. State of Kerala and Ors. (2009) 5 SCC 373, the

Hon'ble Supreme Court held that the regularization of land which

was once forest by the State Govt., prior to the coming into force of

FC Act, 1980, did not require any approval from the Central Govt.

under Section of the Forest Conservation Act, 1980.

22. The petitioner has placed reliance on Para 4.4 of the

guidelines dated 21.04.2011 on Forest (Conservation) Act, 1980

regarding project involving Forest as well as Non-forest Lands, issued

by MoEF. The said Para 4.4 is reproduced hereunder:-

"4.4 Project involving Forest as well as Non-forest Lands Some projects involve use of forest land as well as non-forest land State Governments/project authorities sometimes start work on non-forest lands in anticipation of the approval of the Central Government for release of forest lands required for the projects. Though the provisions of the Act may not have been technically violated by starting work on non-forest lands, expenditure incurred on works on non-forest lands may prove to be infructuous if diversion of forest land involved is not approved. It has, therefore, been decided that if a project involves forest as well as non-forest land, work should not be started on non-forest land till approval of the Central Government for release of forest land under the Act has been given."

It is submitted on behalf of KVK:

a. Firstly the said guidelines do not have any force of law

and, therefore, are not binding on the KVK. There is

no provision in either the Forest Conservation Act,

1980 or the Forest Conservation Rules or the Indian

Forest Act, 1927 regarding use of non-forest land. To

the extent, the guidelines seek to regulate use of non-

forest land, a subject which is not even covered under

the Act or the Rules, they cannot be unenforceable

under law. In this regard, reliance is placed on the

judgment of the Hon'ble Supreme Court in the case of

Bhim Singhji Vs. Union of India-AIR 1981 SC 324-

(Paras-75 and 76) and AIR 1988 SC 1681-J R

Raghupathy Vs. State of AP (Para 18-S. No.20 and

21) of the List of judgments given by the KVK.

b. Secondly, on a bare perusal of the guidelines would

reveal that the same does not apply to project being

set up by the private parties and its application is only

limited to the project set up by state authorities.

Further, the language of Guidelines conclusively show

that they are not mandatory but are advisory in

nature. The underlying idea of not starting the project,

if it involves use of forest as well as non-forest land till

approval of Central Govt. is obtained for release of

forest land is given, is contained in the guidelines

itself namely "expenditure incurred on works on non-

forest lands may prove to be infructuous if diversion

of forest land involved is not approved." Further the

guidelines also admit the position that starting of

work on non-forest land does not result in violation of

the provisions of the Act.

c. Also important to note is the Order dated 10.01.2012

passed by the National Green Tribunal in Application

No.32/2011-Hussain Saleh Mahmad Usmain Bhai

Kara Vs. Union of India and Ors. by which the NGT

while taking note of the Para 4.4 of the guidelines

permitted the project proponent to go ahead with

construction on non-forest land pending clearance u/

s.2 of the Forest Conservation Act, 1980 in respect of

Forest Land.

Thus, it is submitted that no reliance can be placed on the

said Guidelines.

23. The KVK also brought the following facts to the notice of the

Court:

(i) The cost of the project is Rs.4,990 Crores and the project

was scheduled to be commissioned on or before March,

2013. The KVK has already made a huge investment of

Rs.975.27 crores in the project as on the date of status quo

Order dated 18.5.2012.

(ii) The major portion of the project cost i.e. approx. Rs.3,810

crores is being met through loans taken by the KVK from a

consortium of Banks and other Public Financial

Institutions. In terms of the Loan Agreement executed with

these Banks/Fls, the KVK is required to pay an amount of

Rs.22.50 lacs per day as interest. Each day of delay in

constructing the project is therefore causing a loss of

Rs.22.50 lacs to the KVK on account of interest alone.

(iii) In the event, the project is not commissioned; the KVK is

bound to fail in its time bound obligations to repay the loan

amount. In that eventuality, the Banks/Fls will recall the

loan of the KVK and take action against the project of the

petitioner by declaring the loan account of the KVK as Non-

Performing Asset and by taking consequent action under the

provisions of SARFAESI Act, 2002.

(iv) The KVK is regularly paying wages and salaries to its

employees everyday without any progress in the work of the

project. That the total expenditure being incurred per day by

the KVK on the project including interest on loan is Rs.34

lacs. Thus each day of delay in construction is causing

colossal and irreparable loss to the KVK, which it will not be

able to sustain any further.

(v) A part of power to be generated from the project of the KVK

is contracted to be sold to third parties with whom the KVK

has executed binding contract. The delay in commissioning

the project and supply of power under the agreement with

these third parties attracts huge penalties in the form of

Liquidated Damages. Each day of delay in supplying the

power makes the KVK liable to pay a penalty of Rs.16 lacs.

(vi) That the coal linkage and water linkage to the Project also

requires the KVK to commission the project in a time bound

manner, failing which the linkage will be cancelled. In the

absence of supply of linkage coal, the KVK will not be able to

commission and operate the plant.

(vii) Further the EPC contractors engaged by the KVK for the

subject project, is already threatening to impose huge

additional cost for delay being caused in construction of the

project.

(viii) The MoU with the Govt. of Orissa for commissioning the

power project by the KVK is a time bound one i.e. on or

before March, 2013.

That Port Authorities have issued notices to the KVK for lifting

imported equipment/materials for the project, failing which they will

auction the same.

24. In a supplementary note submitted on behalf of KVK, it is

submitted that the Govt. of Odisha has forwarded the proposal for

declaration of Eco-Sensitive Zone around Kapilash Sanctuary to the

MoEF on 12.11.2013. As per the proposal, the width of Eco-

Sensitive Zone around Kapilash ranges between 500 mtrs. To 13.5

Kms. Project of OP No.6 is well outside the proposed zone. This is

confirmed in PCCF's report at pg 78. The MoEF in its affidavit filed

on 14.2.2014 has confirmed the receipt of the said proposal and has

also confirmed that the same is under consideration.

Apart from the above, the Application for Wildlife Clearance

of OP No.6 was forwarded by PCCF (Wildlife) vide its report dated

31.12.2013 to Forest & Wildlife Dept., Govt. of Odisha. The PCCF in

his report has clearly found that project will not cause any damage,

destruction, exploitation or removal of any Wildlife or forest produce

or degradation of habitat in the sanctuary. He has further confirmed

that since the project does not involve any Elephant Corridor or

established path of wild animals, project activities may not affect

movements of wild animals. The proposal of PCCF was approved by

Forest and Environment Dept., Govt. of Odisha on 10.01.2014 with

direction to place the proposal before the State Wildlife Board.

Subsequently, the State Wildlife Board in the meeting held

on 21.02.2014 has recommended for forwarding the Wildlife

clearance proposal of OP No.6 to the Standing Committee of National

Board of Wildlife. (Minutes of Meeting of State Wildlife Board filed by

State Govt. vide Memo dated 14.03.2014.

25. The petitioners in response to the supplementary note on

behalf of KVK submitted as follows:

1(a) The Govt. of Odisha has no doubt forwarded the "proposal".

This confirms that the process of decision making is not completed

and no final decision in the matter has been taken by the competent

authority under law. The justification of variation of 500 mtrs. To

13.5 Kms. and all other alike matters will be evaluated by the

appropriate authority. These facts/matters are not liable to be

adjudicated upon in the present proceedings, as the same are

beyond the scope of this Writ Application. All that can be noticed is

the fact that no final decision as per law has been taken regarding

Eco-sensitive Zone around Kapilas ranges and in view of the Govt. of

India letter (MoEF) dated 31.7.2013, 10 Kms. will be taken as the

Eco-sensitive Zone till the matter is determined otherwise in

accordance with law (which process is yet to be completed).

Admittedly, the statutory process to arrive at a final decision inter

alia as prescribed u/s.5(3) of the Environment Protection Rules,

1986 is yet to be complied with. No final view can be taken at the

moment and the time period to elapse for a declaration has also to be

complied with.

1(b) The facts stated in paragraph 1(b) of the Supplementary

Note submitted on behalf of KVK Nilachal Power Pvt. Ltd. This being

a proposal at the recommendation/proposal stage and the competent

authority having not been taken a final decision in accordance with

law, there are inherent contradictions, inter alia, relating to elephant

movements, whereas the reports says the project does not involve

any elephant corridor or established path which would adversely

affect the movement of wild animals and has suggested some

additional conditions. The records indicate the conditions imposed

relating to elephant movements and three nos. of railway

underpasses were at least to be built for smooth movement of

elephants. The Barajora Nala (perennial natural water channel) is

also liable for appropriate protection.

1(c) The matters being in the process of final decision making, it

would be not appropriate to make any comments as the same do not

fall for adjudication in the present writ application. It is, however,

humbly pointed out that the environment clearance has by now

elapsed in February, 2014 and the so-called constructions were not

being granted and other necessary clearances and approval from

authorities as required. Admittedly, forest clearance and wildlife

clearance have not been obtained. The so-called construction is

limited to (as per order of this Hon'ble Court in WP(C)

No.30369/2011), leveling of some patch of land without putting up

any construction thereupon.

1(d) The submissions of the KVK Nilachal Power Pvt. Ltd. as at

1(d) are statement of facts. A careful reading of the same affirms that

till a final decision is taken up by the competent authority, the eco-

sensitive zone would continue to be 10 Kms. In the present case, 10

Kms. Restrictions have been come into existence, it can only be

modified by a final notification by a competent authority in

accordance with law after complying with notice period etc.

3.0 In response to submissions to paragraph 2 of the aforesaid

Supplementary Note, it is humbly submitted that the entire exercise

suggested in this paragraph would be transgression of law. In

matters of environmental law "precautionary" and "preventive"

principle is accepted by the Supreme Court of India in the case of

M.C.Mehta onwards. Something not permissible in law cannot be

permitted to continue on an undertaking of not claiming any

equities. The rest of the submissions are not relevant for the present

adjudication.

26. In the light of the submissions as noted hereinabove raised

by the respective counsels for the parties, the following issues arises

for consideration:

(i) If a project involves forest as well as non-forest land,

whether permission can be granted for the project

proponent to carry on construction on non-forest land

awaiting clearance on without in any manner

impacting the forest land and awaiting its clearance;

(ii) Whether the location of the KVK's thermal power plant

requires wildlife clearance before any construction on

the site can be permitted.

Insofar as first the issue is concerned relating to forest land,

the learned Assistant Solicitor General representing Union of India

has placed reliance on the letter dated 21.03.2011 issued by the

Ministry of MoEF and, in particular, Para 4.4 thereof which is

reproduced hereunder:

"Para-4.4-Some projects involve use of forest land as well as non-forest land State Governments/project authorities sometimes start work on non-forest lands in anticipation of the approval of the Central Government for release of forest lands required for the projects. Though the provisions of the Act may not have been technically violated by starting work on non-forest lands, expenditure incurred on works on non-forest lands may prove to be infructuous if diversion of forest land involved is not approved. It has, therefore, been decided that if a project involves forest as well as non-forest land, work should not be started on non-forest land till approval of the Central Government for release of forest land under the Act has been given."

27. The very self-same letter and Para-4.4 of the guidelines

issued by the MoEF was a subject matter of discussion and

determination by the National Green Tribunal, New Delhi in M.A.

No.32 of 2011-Hussain Saleh Mahmad Usmain Bhai Kara vs.

Union of India and Ors. and by order dated 10.01.2012 came to

hold as follows:

"3. xxx xxx xxx Mr. Panjwani submitted that as and when a project involves use of forest as well as non- forest land, work should not be started on non-forest land till approval of the Central Government for release of forest land is granted. In the case in hand a prayer is made to issue an interim order/ direction restraining Respondent No.3 from making any construction over the non-forest land, till necessary permission is obtained from the Central Government.

4. Respondent No.2 & 3 have entered appearance and have filed a detailed reply in the main case. So far as this MA is concerned, Mr. Ramchandran, learned advocate appearing for Respondent No.3 agreed to make oral submissions. Drawing attention to letter dated 21st March, 2011 issued by Assistant Inspection General of Forest to Chief Secretaries/Administrator of all State and Union Territories (Annexure-3), learned counsel submitted that the restrictions imposed in the said guidelines should be confined only to State Govt./ project authorities, and not to projects undertaken by private entrepreneurs.

Elaborating the said submission, Mr. Ramchandran submitted that the restrictions have been imposed to avoid loss likely to be caused to the public exchequer in the event that permission to release the forest land required for the project is refused and consequently the project is abandoned. According to Mr. Ramchandran, the said provision cannot be made applicable to private entrepreneurs who are willing to take a risk at their own cost, thus the balance of convenience tilts in their favour, and it is a fit case where the MA should be dismissed.

5. Perusal of the records releal that 3.68 ha of forest land out of 300 acres of forest lands, are involved in the aforesaid project. The forest land, it is submitted would be used only for laying pipelines without causing any damage to the existing forest.

6. Mr. Krishnan Venugopal, learned Sr. Counsel, advancing the cause of the Project Proponent submitted that Para 4.4 of the circular issued under

the Forest (Conservation) Act, 1980 is only a guideline and it has neither any statutory force nor can it be said to be binding upon Respondent No.3. Repudiating the submissions advanced by learned counsel for the Applicant it was argued that if any restraining order is issued at this stage, the same would cause irreparable loss to Respondent NO.3 inasmuch as not only the cost of construction would escalate by afflux of time but also there would be delay in completion of the project, thereby causing harassment, irreparable loss and prejudice to the Respondent No.3 which has a prima facie cause in its favour.

7. In course of hearing, however, Mr. Ramchandran, learned counsel for Respondent No.3, fairly submitted that if the said Respondent is permitted to carry on construction over the non-forest land for which EC has already been issued, it shall not claim any equity in as much as the construction undertaken would be purely at its own risk. It is also submitted that alternative steps are being taken not to use the reserve forest land and instead use other land situated in the vicinity for laying down the pipe lines, and as such, if the construction work is stalled Respondent No.3 would suffer insurmountable hardship.

In the case of Dalpat Kumar & Anr. Vs Prahlad Singh & Ors. AIR 1993 SC 276, the Supreme Court explained the scope of granting interim protection and observed as follows:

"The phrases 'prima facie case', 'balance of convenience' and 'irreparable loss' are not rhetoric phrases for incantation, but words of width and elasticity, to meet myriad situations presented by man's ingenuity in given facts and circumstances, but always is hedged with sound exercise of judicial discretion to meet the ends of justice."

And thereafter the NGT concluded that the balance of convenience

was in favour of the Project Proponent and consequently permitted

the Project Proponent to carry on construction in connection with its

thermal power plant, over non-forest land but the same was to be at

the risk of the said party and it was further made clear that the

Project Proponent shall not claim any equity with regard to the

constructions made thereon.

28. Apart from the aforesaid facts it appears that from the facts

situation that arises in the present batch of cases that the Governor

of Orissa in exercise of power under Section 27(1) of Indian Forest

Act, 1927 issued a notification dated 27.10.1953, de-reserving an

area of 2088 acres in Mouza Rahangol and declaring that the entire

area as "de-reserved" and "dis-forested". M/s KVK had earlier filed a

writ petition bearing WP(C) No.3926 of 2010 challenging the notice

dated 17.02.2010 issued by the Tahasildar, alleging that the KVK

was using private forest kissam land in violation of Section 2 of the

Forest Conservation Act, 1980. The said notice was challenged by

KVK in further writ petition on the ground that by virtue of

notification dated 27.10.1953, the entire land in Mouza Rahangol

had been "de-reserved" and "dis-forested". As classification of the

land had not been changed in the ROR in line with 1953 notification,

the KVK had filed petition under Section 15(b) of the Orissa Survey &

Settlement Act, 1958 for changing the classification of land privately

purchased by it from 'Jungle' to 'sarada' or 'gharbari' in the Hal ROR.

RP Case Nos.22 of 2011 to 43 of 2011 were allowed by the Additional

Commissioner vide order dated 17.03.2011 and the Tahasildar,

Athagarh was directed to record the classification of land as changed

from 'jungle' to 'cultivation/homestead'. It is important to take note

of the fact that no appeal has been filed against the said order.

Although directions had been issued by the Additional Commissioner

on 17.03.2011, since the Tahasildar, Athagarh had not acted in the

manner as directed by making necessary corrections of the ROR,

KVK had filed W.P.(C) No.16201 of 2011 seeking appropriate

directions to the Tahasildar and this writ petition has come to be

disposed of vide order dated 08.06.2011 directing the Tahasildar to

dispose of the matter as per the directions contained in the order

dated 17.03.2011 passed by the Additional Commissioner. Finally,

the Tahasildar complied with the said direction and necessary

corrected Hal ROR pertaining to the private purchase of the land

made by KVK was corrected and the said land now stands recorded

as 'sarada'/'gharabari'. It is further brought to our notice in course of

hearing by learned counsel for the KVK, that similar to the action

taken by the KVK for getting appropriate correction of the nature of

their land in the ROR, certain land acquired under the L.A. Act for

IDCO and to be leased to KVK, though covered by 1953 notification,

the necessary record of rights have not yet been corrected. It appears

that similar to the action as initiated by the KVK for the land

privately purchased by it for correcting the description of land

holding, the Tahasildar, Athagarh also has filed a Revision Petition

under Section 15(a) of the Orissa Survey & Settlement Act, 1958

before the Additional Commissioner, Settlement & Consolidation,

Cuttack for change of classification of suit plots under Khata No.82

of village Rahangol from kissam 'jungle', 'chotta jungle', 'laika jungle'

to 'sarada' and 'gharbari' based on the notification dated 27.10.1953.

It appears that the said application by the Tahasildar, Athagarh

remains pending for consideration.

29. Thereafter, it appears that the DFO, Athagarh issued a

further notice on 02.11.2011 to KVK directing stoppage of leveling

and construction work, inter alia, once again on the ground that

such work was being carried out on "forest land". This notice is the

subject matter of challenge by KVK in W.P.(C) No.30369 of 2011,

whereas interim orders were passed in favour of the KVK on

22.11.2011, permission was granted to KVK to carry on leveling work

but no construction work shall be carried out without leave of the

Court.

It appears that this Court issued further directions to the

State to conduct joint survey of the land and in process of the said

joint survey done by the revenue and forest authorities, namely, the

Tahasildar, Forest Range Officer, Revenue Inspector along with

Amin. A report was submitted on 16.07.2012 along with his affidavit

which indicates that private forest kissam land purchased by KVK

was acres 50.33 and private forest kissam land under acquisition

amounted to acres 13.38 and, therefore, it was stated that private

forest kissam land totally amounted to 63.71 acres.

What would be important to note from the enquiry report is

that on a factual verification of the site, the enquiry report indicates

that "no tree exists on the above land and no construction has been

carried out on the said land".

In the light of the aforesaid facts, it appears therefrom that

the entire private forest kissam land purchased by the KVK, RORs of

which have now been corrected based on the earlier notification

issued by the Governor of Orissa dated 27.10.1953 and further that

the Tahasildar, Athagarh has also made an application under

Section 15(a) of the Orissa Survey & Settlement Act, 1958 for similar

conversion of acres 13.38 recorded as forest kissam land though

"de-reserved" and "dis-forested" by notification dated 07.10.1953 still

awaits disposal. In other words, a total of acres 13.38 pertaining to

the acquired land, still remains recorded as "forest kissam". Apart

from the aforesaid private forest land, a further area of land

amounting to Ac.28.100 decimals has been recorded as revenue

forest land and has been mentioned by the State in its affidavit as

DLC (District Level Committee) land before the Hon'ble Supreme

Court in the case of TN Godavarman (supra). Yet the joint verification

report observes that "no forest growth is found on this land and no

construction has been undertaken on this land". It is further stated

on oath by M/s.KVK that neither the forest kissam land acquired

amounting to 13.38 acres nor the DLC land amounting to Ac.28.100

decimals has yet been handed over by the State to M/s. KVK.

It is stated on behalf of KVK that as the correction has been

made in the ROR of KVK pertaining to private purchase of land,

similar applications by the State i.e. Tahasildar, Athagarh remains

pending before the Additional Commissioner, Settlement and

Consolidation, Cuttack. While the stand taken by the petitioner is

that the land has been erroneously recorded as forest land yet, they

have given an undertaking before this Court that, the KVK is ready

to apply for clearance in respect of the said 30 acres approximate

forest land and also further undertake not to carry out any

construction activity on the said 30 acres of land till the time forest

clearance is obtained and/or the Revision Case filed by the

Tahasildar, Athagarh, before the Additional Commissioner,

Settlement and Consolidation, Cuttack is disposed of.

30. Mr. Pinaki Mishra, learned Senior Advocate appearing for

the KVK placed reliance in the case of Nature Lovers Movement v

State of Kerala and others, (2009) 5 S.C.C. 373.

Considering the fact of the aforesaid case taking into

account the fact that much before enactment of Forest Conservation

Act 1980, the State Government had taken a policy decision to

regularize unauthorized occupation/encroachment of forest land

made prior to 01.01.1977 and for implementing such decision, the

State Government succeeded in persuading the Central Government

to grant approval for diversion of forest land by way of assignment to

unauthorized occupants/encroachers and the approval having been

granted in accordance with the guidelines framed by the Central

Government. The grievance raised against regularization of

unauthorized occupation/encroachment was held to be premature in

the absence of any decision taken by the State Government in that

regard.

31. It is also relevant herein to take note of the judgment of the

Hon'ble Supreme Court in the case of J.R. Raghupathy and others

v State of Andhra Pradesh, AIR 1988 S.C. 1681, in which the

Hon'ble Supreme Court came to hold that while Article 162 vests

executive power of the State and enables the Government to issue

administrative instructions to its servants how to act in certain

circumstances, but that would not make such instructions statutory

rules the breach of which, is justiciable. The guidelines are merely in

the nature of instructions issued by the State Government to

regulate the manner in which to formulate proposals for formation of

a Revenue Mandal or for location of its Headquarters. It is reiterated

therein that the guidelines had no statutory force and are not

enforceable in Court of law though for breach of such instructions

the public servant may be held liable by the State.

32. Apart from the above, a Constitutional Bench of the Hon'ble

Apex Court in the case of Shri Bhim Singhji & others v Union of

India and others, A.I.R. 1981 S.C. 234 has come to hold that

guidelines issued by the Government cannot supersede or alter any

of the provisions of the acts and rules thereunder. In Conclusion in

paragraph-76 of the said judgment Their Lordships of the

Constitutional Bench came to conclude that "guidelines cannot alter

the priorities laid down in the section. The guidelines are nothing but

in the nature of executive instructions and cannot obviously control

the plain meaning of the section. Where the language of the Act is

clear and explicit, we must give effect to it, whatever may be the

consequences, for in that case the words of the statute speak the

intention of the legislature.

On a plain reading of the guideline dated 21.03.2011 of the

MoEF clearly state that if work commences on non-forest land in

anticipation of the approval of the Central Government for release of

forest land required for the project "though the provisions of the Act

may not been technically violated by starting work on non-forest

land" expenditure incurred may become infractuous if diversion is

not approved. Considering the nature of the guidelines since the

National Green Tribunal in above referred case Husain Saleh

Mahmad Usmal Bhai Kara v Union of India and others is yet to

give its final determination thereon while refraining from expressing

any opinion on the same, we record the undertaking of Mr. Pinaki

Mishra, learned Senior Advocate on behalf of KVK that they are ready

to apply for clearance in respect of 30 acres approximately of

purported Government Forest Land and further undertaking not to

carry out any construction on the said land till forest clearance is

obtained and/or the Revision Case filed by the Tahasildar, Athagarh,

before the Additional Commissioner, Settlement and Consolidation,

Cuttack is disposed of. We, therefore, dispose of the writ petitions

recording the aforesaid undertaking. Accordingly, the first issue is

answered in favour of the KVK in terms of the directions issued

herein.

33. Though the petitioners have placed a great amount

emphasis on the judgment of the Hon'ble Supreme Court in the case

of Goa Foundation v. Union of India and others and insisted that

the Hon'ble Supreme Court, had held that even in cases where

"environmental clearance" was obtained, before declaration of

sanctuary and the activities fall within 10Kms of the sanctuary

boundary, clearance of the National Wildlife Board (NWB) had to be

mandatorily obtained. Union of India also represented by the learned

Assistant Solicitor General relied on the same. Learned counsel for

KVK vehemently objected to the same and stated that the order

dated 04.12.2006 of the Hon'ble Supreme Court in the case of Goa

Foundation (supra) merely indicated that the Hon'ble Supreme Court

"may have to consider passing orders of implementation of the MoEF

decision namely notification of the areas within 10 kms of the

boundaries of sanctuaries and national parks, as eco-sensitive

zones. He submitted that admittedly, no subsequent orders have

been passed by the Hon'ble Supreme Court giving effect to the said

threat. Although various contentions have been advanced by the

learned counsel for the respective parties, it has been admitted by

the State Government that the project proponent KVK has obtained

environment clearance from the MoEF on 18.02.2009. At that time,

the Environment Clearance Certificate clearly noted that "no

ecologically sensitive area was reported within 10 Kms area of the

project; however there are 5 reserve forests within 5 KMs radius".

But more importantly, the letter of the DFO, Athagarh dated

21.07.2008 contains the following declarations "The project area

does not form part of any National Park, Wildlife Sanctuary or

Biosphere Reserve, Bird Sanctuary, Elephant/Tiger Reserve and

none of them are present within 10 Kms radius of the proposed site".

It is only on 02.04.2011 that the Kapilash Wildlife Sanctuary was

designated by way of notification published by the State Govt. on

29.04.2011. The project location is more than 3.5 kms from the

boundary of the sanctuary as determined by the DFO.

34. Now, the only issue that remains for consideration

purported to the "buffer zone". While Mr. J. Das, learned Senior

Advocate appearing for the petitioners has been vehemently arguing

that the "buffer zone" must be deemed to be 10 kms., this issue is no

longer res integra. The selfsame question as to whether any

industrial activity can be permitted within 10 kms zone of a reserved

forest/national park/ sanctuary came to be considered by the

Hon'ble Supreme Court in its judgment dated 21.04.2014. The

submission was advanced before the Court that the order dated

04.12.2006 (relied upon by the petitioners) did not finally fixed the

"buffer zone" of 10 kms from the boundary of national parks and

wildlife sanctuaries but merely granted a last opportunity to State to

submit their recommendations. It was the further argument

advanced that till date, no such notification has yet been notified till

date. The Hon'ble Supreme Court in the case of Goa Foundation

(supra) concluded as follows:

"71. In the result, we declare that:-

xxx xxx xxx

(iii) until the order dated 04.08.2006 of this Court is modified by this Court in I.A. No.1000 in T.N. Godavarman Thirumulpad v. Union of India & Ors., there can be no mining activities within one kilometer from the boundaries of National Parks and Sanctuaries in Goa;

(iv) by the order dated 04.12.2006 in Writ Petition (C) No.460 of 2004 (Goa Foundation v. Union of India), this Court has not prohibited mining activities within 10 kilometers distance from the boundaries of the National Parks or Wildlife Sanctuaries;"

Apart from the above, it would be relevant that in the

meantime, the State have also forwarded its recommendation of the

"buffer zone" for consideration by the Central Government and in

terms of the submission made by the learned Advocate General, the

location of the project proponent KVK is beyond the "buffer zone"

recommended by the State Government. Therefore, applying the

judgment of the Hon'ble Supreme Court in the case of Goa

Foundation as referred hereinabove, we are of the considered view

that the Hon'ble Supreme Court, has not prohibited any industrial

activity within 10 kms. distance from the boundary of the national

park or wildlife sanctuary, but there can be no industrial activity

within 1 km. from the boundary of the national parks and

sanctuaries in Goa until any further orders were passed by the

Hon'ble Supreme Court in this regard. Therefore, we find that

whereas the KVK has to approach the appropriate committee since

the location is within 10 kms of the boundary of the Kapilash Wildlife

Sanctuary, there appears to be no bar in carrying out construction

activity, since the distance between the wildlife sanctuary and the

location of the thermal power plant is more than 1 km beyond the

limits suggested by the State Government in its recommendation

made to the Central Government. But the KVK would have to seek

necessary approval of the Wildlife Board prior to commencing its

operations. Accordingly, the second issue is answered in favour of

the KVK in terms of the directions issued herein.

35. Therefore, we are of the considered view that there exists no

impediment to allow the petitioner-company (KVK) to proceed with

construction activities keeping in view of the fact that the huge

investment of nearly 1000 (one thousand) crores has already been

made and further 4000 (four thousand) crores is required to be

further invested, in the interest of not only the project proponent but

the State interest insofar as the preferential rights to draw power and

the urgent necessity of power as an infrastructure project for the

development of the State and the Union of India, cannot be doubted.

36. Insofar as W.A. No.321 of 2011 is concerned, after hearing

the learned counsel for the appellant as well as the State, it appears

that the appellants claiming to be encroached the Government land,

had come to challenge an order dated 6.1.2011 passed by the learned

Addl. Commissioner, Settlement and Consolidation, Cuttack in RP

Case No.597 of 2010 under Section 15(a) of Orissa Survey and

Settlement Act, 1958. This case had been initiated by the Tahasildar,

Athagarh for correction of the map and ROR in respect of Khata No.84

of Village Rahangol enhancing the area for acres 4.68 to 34.68 dec.

This land was recorded as 'Rakhit-Anabadi' under the State

Government and certain persons claiming to be encroachers on the

said land had sought to file intervention application in the petition

filed by the Tahasildar registering the correction of ROR and map on

the claim that they were in the possession of some parts of the case

land and/or government land could not be alienated in favour of any

company. In the present case, the learned Single Judge while dealing

with the issue came to a finding that, enquiry was conducted by the

Tahasildar along with the Revenue Supervisor, Revenue Inspector and

Amin and it is mentioned in the report that the land is free from

encroachment and further that the intervenors had not produced any

material to indicate their occupation or possession or any interest

over the case land and accordingly, their objections regarding

alienation of the government land in favour of the IDCO were rejected

and the order passed by the Addl. Commissioner of Settlement and

Consolidation dated 6.1.2011 came to be affirmed.

We find no justifiable ground to interfere with the said order

since the learned Single Judge has clearly and categorically came to

a conclusion that in the absence of the material in support of the

petitioner/appellants' case, assertion of any right, interest and

possession over the case land and objection thereof, is wholly

misconceived and accordingly, we affirm the order passed by the

learned Single Judge.

37. In view of the above, the W.P.(C) No.9384 of 2012 & W.A.

No.321 of 2011 stand dismissed and W.P.(C) No.30369 of 2011 with

the prayer for quashing the notice issued by the DFO, Athagarh vide

letter No.8192 dt.02.11.2011 under Annexure-1 which is consequent

upon the letter No.4954 dt.30.08.2010 under Annexure-9 and letter

No.7773 dt.28.12.2010 under Annexure-10 and further declare that

the provisions of Forest Conservation Act would have no application

to the lands purchased by the petitioner which is a part of the area

notified as de-forested and de-reserved in 1953 Notification

dt.27.10.1953 under Annexure-8 being the very basis of correction of

the R.O.Rs under Annexures-7 & 14, is allowed. Further, W.P.(C)

No.3926 of 2010 with a prayer for quashing the notice dated

17.02.2010 issued by the Tahasildar, Athagarh under Annexure-2 is

also allowed.

The aforesaid batch of writ applications stand disposed of in

terms of the directions noted hereinabove.

.................................

I.Mahanty, J.

B.N.Mahapatra, J.     I agree.


                                                ...................................
                                                  B.N.Mahapatra, J.




The Orissa High Court, Cuttack
16th May, 2014-KCP/RKS/PKP/RKM
 

 
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