Supreme Court Issues Directions For Installation Of Vapour Recovery System In Retail Petroleum Outlets

The Supreme Court has directed that all the retail petroleum outlets located in cities having population of more than 10 lakh and having turn over of more than 300 KL/Month shall install the Vapour Recovery System(VRS) mechanism. This should be done within the fresh time line prescribed in the circular issued by the Central Pollution Control Board on June 4, 2021.

A bench comprising Justices Sudhanshu Dhulia and JB Pardiwala affirmed the directions issued by the National Green Tribunal, Chennai Bench regarding installation of VRS in retail petroleum outlets across the country.

"The CPCB shall ensure that the directions issued by the NGT as contained in para 69(i) and (ii) of the impugned order is fully complied with. It shall be the legal obligation of all the State Pollution Control Boards to ensure that the directions issued by the NGT in regard to the installation of the VRS mechanism is complied with within the fresh timeline as prescribed by the CPCB", the bench observed.

The bench however set aside the directions issued by the NGT which made Consent to Establish(CTE) and Consent to Operate(CTO) mandatory for new petroleum outlets. The NGT direction that existing petroleum outlets should obtain Consent to Establish within 6 month was also set aside.

The Supreme Court's judgment came in the appeals filed by Oil Marketing Companies against the NGT's order passed in December 2021.

The judgment authored by Justice Pardiwala also examined the scheme of the NGT Act 2010 to examine the question whether the NGT has the jurisdiction to direct the CPCB that it should in exercise of its powers under Section 5 of the Environment Protection Act 1986 make obtaining of the CTE and CTO mandatory for all the petroleum retail outlets across the country.

The bench concluded that  NGT was well within its powers and jurisdiction to issue the directions. However, the bench held that the directions to make CTE and CTO mandatory for petroleum outlets were unnecessary in view of the existing guidelines of the CPCB. The bench impressed upon the CPCB to ensure that its guidelines referred to above are scrupulously followed and once the guidelines are scrupulously adhered to, no direction to obtain CTE and CTO for starting/operating a RO is warranted. 

Setting aside the directions relating to CTE and CTO, the bench ordered :

"We set aside the directions issued by the NGT in the impugned order as contained in para 69(iii) and (iv). Instead, we direct the CPCB to instruct all the State Pollution Control Boards to ensure that the guidelines issued by it vide the Office Memorandum dated 07.01.2020 are strictly adhered to. If there is breach of any of the guidelines issued by the CPCB vide Office Memorandum dated 07.01.2020, then the concerned State Pollution Control Board shall proceed against the erring outlet in accordance with law at the earliest"

Case Title : M/s Indian Oil Corporation Ltd vs VBR Menon and others

Citation : 2023 LiveLaw (SC) 185

Headnotes

Environment Protection Act 1986 - Supreme Court upholds the directions of NGT Chennai that all petroleum outlets in cities having population of more than 10 lakh and having turn over of more than 300 KL/Month shall install the Vapour Recovery System(VRS) mechanism- SC however sets aside NGT directions that new petroleum outlets should mandatorily obtain Consent to Establish and existing outlets should have Consent to Operate.

National Green Tribunal Act 2010 -NGT has the jurisdiction to direct the CPCB that it should in exercise of its powers under Section 5 of the Environment Protection Act 1986 - Para 44, 47

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