High Court of KeralaSingle JudgeDisposed of; stop memo set aside; directions is...

M/S Velakode Rubber and Reclaims Private Limited v Kaipparamabu Grama Panchayath and Environmental Engineer, Kerala State Pollution Control Board

Case / Petition Number:WP(C).No. 31372 of 2011 (V)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K. Vinod Chandran
Judgment Date
2017-07-05
Court Decision / Holding
Writ petition disposed of: stop memo set aside; directed to approach PCB and Environmental Engineer for immediate inspection and, if pollution is detected, to provide mitigating measures and conditions for continuation of operation; costs awarded to parties.
Final Disposition
Disposed of; stop memo set aside; directions issued to PCB and Environmental Engineer for inspection and mitigation; costs (petitioner and respondents)

Parties to the Case

Appellants / Petitioners

  • M/S Velakode Rubber and Reclaims Private Limited

Respondents

  • Kaipparamabu Grama Panchayath, MUNDOOR P.O., Thrissur
  • Environmental Engineer, Kerala State Pollution Control Board, Thrissur (suo motu impleaded)

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. P. Viswanathan

Counsels for Respondents

  • • Sri. P.C. Sasidharan, SC (for R1)
  • • Sri. Naveen, SC (for R2)

Case Synopsis & Summary

Velakode Rubber and Reclaims Private Limited, a rubber recycling unit operating in an industrial development plot at Avanoor, Thrissur, challenged a stop memo issued by Kaipparamabu Grama Panchayath under the Kerala Panchayat Raj Act for alleged licensing and nuisance violations. The petitioner asserted that its industrial activity falls within exempted categories under Section 1(2) read with Section 233B, since the area is an industrial development plot and part of a Government-declared industrial zone; amendments in 2010 tied to the Industrial Single Window Clearance Act, but the unit’s activity remains within sub-clause (i) of Section 233B. Exhibits showed allotment of land (EXT.P1), an agreement with the District Industries Centre (EXT.P2), a government notification declaring the plot (EXT.P3), and evidence of exemption from further construction by the Town Planner (EXT.P4). The petitioner held a valid Consent to Operate (EXT.P5) and argued that STOP memo (EXT.P6) cannot stand. Reliance was placed on PepsiCo India Holding Pvt. Ltd. (EXT.P8) to argue lack of Panchayat authority to penalize for violations of Sections 232, 233, 233A; and on Chettikulangara Grama Panchayat v. State of Kerala (2014 (3) KLT 105) to contend the Panchayat’s post-establishment scrutiny has limits. The court, while acknowledging post-operational scrutiny, held that the Panchayat cannot override the established exemptions and that the PCB is the expert body for mitigating measures. The petition was disposed of setting aside the stop memo, with directions that the PCB/Environmental Engineer inspect and impose mitigating measures if pollution is detected, and require continuation of consent under PCB oversight. Costs borne by the parties.

Provisions of Law Cited

Kerala Panchayat Raj Act, 1994 - Sections 232, 233, 233A, 233B, 1(2)Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (Single Window Act)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that the industrial unit falls within exemptions from initial permissions under Section 1(2) and Section 233B; the area is an industrial development plot declared by government action (EXT.P3) and land allotment/ agreements (EXT.P1–EXT.P2). Exhibit P5 shows Consent to Operate; P6 stop memo is argued to be unsustainable as the unit already operates under PCB oversight and prior exemptions. The 2010 amendment to Section 1(2) and the Single Window Clearance Act are cited to argue that the petitioner’s industry remains within exempted categories; reliance is placed on PepsiCo (EXT.P8) to show the Panchayat cannot proceed for violations of 232/233/233A; Chettikulangara Grama Panchayat v. State of Kerala (2014) is cited to support that post-operational scrutiny is permissible, but must be with PCB involvement for mitigation under 233A. The petitioner contends that any pollution concerns should be addressed by the PCB rather than by continuing Panchayat action.

Contentions of Respondents

The residents’ complaints prompted the Panchayat to issue the stop memo based on alleged nuisance and pollution, supported by Medical Officer’s report (R1(a)) and other documents. The Panchayat asserts that while establishment/licensing may be exempt, post-operational nuisance can still be investigated under Section 233A, with expertise of the PCB to determine nuisance and mitigation. It emphasizes that the PCB’s Consent to Operate and ongoing monitoring are essential; if pollution is detected, the PCB should issue mitigating measures and enforce conditions for continuation of operation. The case involves balancing environmental health concerns with statutory exemptions and the need for coordinated action between local authorities and the PCB.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Chettikulangara Grama Panchayat v. State of Kerala2014 (3) KLT 105PositiveCourt relies on this decision to affirm that Panchayats retain authority to examine post-operational nuisances even in exempted industries.
PepsiCo India Holding Private Ltd.WP(C).No. 27736/2004Mentioned OnlyCited to reflect arguments about Panchayat powers; court does not adopt its reasoning as controlling.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT:** ## **THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN** **WEDNESDAY, THE 5TH DAY OF JULY 2017/14TH ASHADHA, 1939** ## **WP(C).No. 31372 of 2011 (V)** **----------------------------** ## **PETITIONER(S):** ## **-----------------------** **M/S.VELAKODE RUBBER AND RECLAIMS PRIVATE LIMITED, A COMPANY REGISTERED UNDER THE COMPANIES ACT, VELAKODE INDUSTRIAL DEVELOPMENT PLOT, MUNDOOR P.O., THRISSUR, PIN-680 541, REP. BY ITS MANAGING DIRECTOR K.I. AFSAL, AGED 28, S/O.K.K. IBRAHIM, KAROTHUKUDY HOUSE, VP-111-3, PALLIPURAM, MUDICKAL P.O., ERNAKULAM DISTRICT, PIN-683 547.** ## **BY ADV. SRI.P.VISWANATHAN.** ## **RESPONDENT(S):** **--------------------------** **1. KAIPARAMABU GRAMA PANCHAYATH, MUNDOOR P.O., TRICHUR, PIN-680 541, REPRESENTED BY ITS SECRETARY, OFFICE OF THE KAIPARAMABU GRAMA PANCHAYATH, MUNDOOR P.O., PIN-680 541.** - **ADDL. R2 IMPLEADED** **2. THE ENVIRONMENTAL ENGINEER, KERALA STATE POLLUTION CONTROL BOARD, THRISSUR.** - **IS SUO MOTU IMPLEADED, VIDE JUDGMENT DATED 05/07/2017 IN WP(C).** **R1 BY SRI.P.C.SASIDHARAN, SC. ADDL. R2 BY ADV. SRI. T.NAVEEN SC.** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 05-07-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** rs. ## **WP(C).No. 31372 of 2011 (V)** ## **APPENDIX** ## **PETITIONER'S EXHIBITS:-** **EXT.P1 COPY OF THE PROCEEDINGS DATED 12/08/2009, BY THE GENERAL MANAGER, DISTRICT INDUSTRIAL CENTRE. EXT.P2 COPY OF THE AGREEMENT DATED 20/08/2009 EXECUTED IN FAVOUR OF THE PETITIONER.** - **EXT.P3 COPY OF THE GOVERNMENT ORDER (MS) NO.74/2001/1D DATED 30/03/2001.** - **EXT.P4 COPY OF THE COMMUNICATION DATED 24/06/2010 FROM THE TOWN PLANNER.** **EXT.P5 COPY OF THE CONSENT ISSUED BY THE POLLUTION CONTROL BOARD. EXT.P6 COPY OF THE ORDER DATED 10/11/2011, ISSUED BY THE RESPONDENT.** **EXT.P7 COPY OF THE EXPLANATION DATED 11/11/2011, GIVEN BY THE PETITIONER.** **EXT.P8 COPY OF THE JUDGMENT IN WP(C).NO.27736/2004 PEPSICO INDIA HOLDING PRIVATE LTD.** **EXT.P9 COPY OF THE NO OBJECTION CERTIFICATE ISSUED BY THE FIRE AND RESCUE DEPARTMENT.** - **EXT.P10 COPY OF THE LICENSE ISSUED BY THE DEPARTMENT OF FACTORIES AND BOILERS.** - **EXT.P11 COPY OF THE FITNESS AND SANITARY CERTIFICATE ISSUED BY THE DISTRICT MEDICAL OFFICER.** ## **RESPONDENT'S EXHIBITS:-** **EXT.R1A COPY OF THE REPORT DATED 10/01/2011.** **EXT.R1B COPY OF THE COVERING LETTER DATED 10/11/2011.** **EXT.R1C COPY OF THE REPRESENTATION ADDRESSED TO THE SUB INSPECTOR OF POLICE, PERAMANGALAM.** **....2/-** ## **WP(C).No. 31372 of 2011 (V)** **EXT.R1D COPY OF THE FIR IN CRIME NO.1117/2011 REGISTERED ON 10/11/2011.** **EXT.R1E COPY OF THE RESOLUTION DATED 21/01/2012. EXT.R1F COPY OF THE REPRESENTATION DATED 21/01/2012.** **//TRUE COPY//** **P.S. TO JUDGE** rs. ## K. Vinod Chandran, J ---------------------------------------- ## W.P.(C) No.31372 of 2011-V ---------------------------------------- Dated this the 05[th] day of July, 2017 ## **JUDGMENT** The petitioner is aggrieved with Exhibit P6 order issued by the Panchayat. 2. The petitioner is carrying on a rubber recycling unit within an industrial area as notified by the State Government. By Exhibit P6, the petitioner was issued with a stop memo finding violation of Sections 232, 233 and 233A of the Kerala Panchayat Raj Act, 1994 [for brevity “Panchayat Raj Act”]. The grounds raised in the stop memo are that the petitioner had not obtained any permission for establishment of the industry under Sections 232 and 233 and that under Section 233A there is found nuisance caused from the emissions from the factory operated by the petitioner. 3. The learned Counsel appearing for the petitioner would contend that the petitioner's industry is exempted from taking any permission under the Panchayat Raj Act as per Section 1(2) and also Section 233B. Section 1 (2) as it exists now, exempted the areas _inter alia_ categorised as industrial areas of the State. Though an WP(C) No.31372 of 2011 - 2 - amendment was brought about with effect from 2010 specifying the industrial areas to be those declared under the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 [for brevity “Single Window Clearance Act”], the petitioner's industry will still be covered under sub-clause (i) of Section 233B, which takes in industrial development areas declared as such by a Government controlled agency. 4. The petitioner obtained allotment of 1 acre of property as per Exhibit P1 and an agreement was entered into with the District Industries Centre as per Exhibit P2. Exhibit P3 is the notification which declared 25 acres of land in Avanoor Village in Thrissur District to be an industrial development plot for allotment to entrepreneurs. The Town Planner's communication at Exhibit P4 also evidences exemption to the petitioner's construction to be made in the property. The petitioner also has obtained Consent to Operate as per Exhibit P5, the validity of which has later been extended. Exhibit P6, hence, cannot be sustained, is the contention. Reliance is also placed on Exhibit P8 judgment to contend that the Panchayat cannot proceed against the petitioner for violation of Sections 232, 233 and 233A of WP(C) No.31372 of 2011 - 3 - the Panchayat Raj Act. 5. The learned Counsel appearing for the Panchayat specifically point out that the stop memo was issued on the basis of complaints received by the Panchayat from the residents of the locality. Reference is made to Exhibit R1(a), the communication of the Medical Officer, which has been issued after inspection of the premises of the petitioner as also the properties in the vicinity. The Medical Officer has reported that there is acute nuisance caused to the residents of 8 houses in the locality by reason of the emissions from the industry. It is also reported that polluted water is released into the public drainage system and is also seen in the nearby property. The Medical Officer apprehends the possibility of seepage of such effluent water into the drinking water sources of the locality. The complaint at Exhibit R1(c) received from the residents of the locality is specifically referred to along with the First Information Report registered by the respondent-Panchayat. It is contended that going by the decision of this Court in _**Chettikulangara Grama Panchayat v. State of Kerala**_ **[2014 (3) KLT 105]** it cannot be said that the Panchayat does not have any power to look into the post operational WP(C) No.31372 of 2011 - 4 - violations of an industry even if they are exempted from the initial requirement of establishment and licence. 6. Admittedly the proceedings were initiated by the Panchayat for reason of the complaint of the neighbouring residents pointing out the pollution caused by the operation of the industry and detrimental effects to the residents of the locality. The contention of the petitioner has to be accepted that the provisions for installation or establishment of machinery as provided under Section 232 of the Panchayat Raj Act would not be applicable to the petitioner's industry for reason of it being an industry within a notified industrial development area. However, as has been found in _**Chettikulangara Grama Panchayat**_ , the Panchayat cannot be said to have been divested of all authority to look into the post operational defects caused by the industries so exempted and the deleterious effect it has on the health of the residents of the locality. 7. Section 233A of the Panchayat Raj Act in fact confers ample power on the Panchayat to proceed for abatement of nuisance caused by a factory, workshop, etc. The instant proceedings are also initiated under Section 233A. However, in providing for mitigating WP(C) No.31372 of 2011 - 5 - measures, the Panchayat would not be the competent authority especially in view of lack of technical know-how in such matters. Sub-section (2) of Section 233A also provides for the Village Panchayat to obtain expert opinion with regard to the determination of the nuisance or its abatement. The Panchayat Raj Act also recognises the expertise of the Kerala State Pollution Control Board [for brevity “PCB”] insofar as providing for a Consent to Establish and Consent to Operate being essential for starting and running of an industry. The PCB is an expert body, which is competent to look into any issues of pollution. Hence, though the Panchayat could very well examine the post operational defects pointed out by the residents of the locality, even of an exempted industry, the mitigating measures has to be laid down by the PCB. 8. In the present case, the consent of the PCB produced has a validity till 2013. The petitioner is said to have obtained extension of the validity period. The Panchayat also is said to have approached the PCB with a complaint. The petitioner had been continuing all these years, since there was a stay of the stop memo issued by the Panchayat. - 6 - WP(C) No.31372 of 2011 9. As of now if there is any pollution caused, it is for the Panchayat to move the PCB and the Environmental Engineer of the area; shall look into the same, if necessary after conducting inspection of the premises and also ensure that proper waste disposal measures are brought in by the petitioner. There is also a complaint raised by the Panchayat that the petitioner is carrying on the operations in the night also; which could also be looked into by the PCB. The PCB would, hence, look into the operational defects pointed out by the Panchayat and provide for mitigating measures and also conditions for continuation of Consent to Operate. Only considering the long passage of time, the Panchayat would have to approach the PCB with a fresh complaint, if the same is warranted at this stage. “The Environmental Engineer, Kerala State Pollution Control Board, Thrissur” is _suo motu_ impleaded as additional 2[nd] respondent in the writ petition. On a complaint filed by the Panchayat, it shall be immediately enquired into and after inspection of the premises, with notice to the petitioner and the Panchayat, if any pollution is detected, provide for mitigating measures and shall also issue urgent orders on that count. WP(C) No.31372 of 2011 - 7 - The writ petition is disposed of as indicated above; but, however, setting aside the stop memo issued by the Panchayat, impugned herein; subject to further proceedings taken by the Panchayat as directed hereinabove. Parties are left to suffer their respective costs. **Sd/-** K.Vinod Chandran Judge vku/- [ true copy ]