Supreme Court refuses to stay NGT order disallowing new wood-based industries in Uttar Pradesh

The Supreme Court last week refused to stay an order passed by the National Green Tribunal (NGT) setting aside the Uttar Pradesh government decision to permit to 1,350 new wood-based industries to start operations in the State [State of Uttar Pradesh vs Uday Education and Welfare Trust]..A division bench of Justices L Nageswara Rao and BR Gavai was hearing an appeal filed by the Uttar Pradesh government against the order passed by the NGT on February 18, 2020 setting aside a notice issued by the State on March 1, 2019 to allow new wood-based industries.The Court noted that decision taken by the State Level Committee to grant permission for new wood-based industries only after getting a report from Indian Plywood Industries Research & Training Institute (IPIRTI), Bengaluru which was requested to conduct an assessment, was given a go bye in the a resolution by the State."We have heard the learned counsel at some length and at present, we are not convinced that the judgment of the Tribunal needs to be stayed. Prima facie, we are in agreement with the Tribunal that data has to be collected by the State before permitting new wood-based industries," the Supreme Court said..The State government had proposed to grant licences to 1,350 new wood-based industries, which was challenged in public interest by Samvit Foundation, Uday Education & Welfare Trust and UP Timber Association before the NGT's principal seat at Delhi. The NGT had asked the state to provide data on three counts: (i) District wise data of the existing saw mills or wood-based industries with their number, capacity and availability of wood species wise for the said saw mills for the period of three years; (ii) Justification for new industries in terms of availability of demand and supply of timber-species wise; (iii) Mechanism to ensure that no trees are cut from the government forests or private trees of categories which are not exempted.The State justified its notice for issuance of licences for new industries on the ground that it would lead to development of market, generate employment, encourage planting of seedlings, reduce migration of people, reduce dependence on traditional /cash crops, boost new technology, boost export, reduce import and utilisation of resources. It further claimed that there would be an investment of about ₹3,000 crores in the state with the establishment of new industries and 80,000 people, mostly in the rural areas of the State would be benefited by getting employment. Thus, the orders of the NGT would cause irreparable losses.The Supreme Court noted that the NGT set aside the notice on the ground that the available data would not support the contention of the State regarding the availability of sufficient timber for setting up new wood-based industries. "The correctness of the said judgment will have to be determined by this Court as and when these appeals are finally heard," the Supreme Court said. Regarding the plea for interim relief to allow new wood-based industries to commence their operations, the apex court noted the following:"The State submits that the decision to permit new wood-based industries was based on the recommendations made by the State Level Committee, we directed the it to provide the copies of minutes of meetings of the State Level Committee held thrice in 2018. The decision taken by the State Level Committee to grant permission for new wood-based industries only after getting a report from IPIRTI, Bengaluru which was requested to conduct an assessment, was given a go bye in the resolution."The Court, therefore, refused any interim relief. Considering importance of issue involved in the appeals, the Court ordered that the matter be listed for final hearing during the summer vacation if the parties agree to the same. Else, the appeals may be listed in August 2022, the bench ordered. .[Read Order]