The Allahabad High Court sitting at Lucknow, comprising Justice Attau Rahman Masoodi and Justice Subhash Vidyarthi, quashed the Uttar Pradesh Pollution Control Board’s (UPPCB) order canceling the Consolidated Consent to Operate (C.C.A.) of M/S Al-Haq Foods Pvt. Ltd. The court ruled that the revocation was arbitrary and legally unsustainable.
Case Background
M/S Al-Haq Foods Pvt. Ltd., an export-oriented modern slaughterhouse, obtained all requisite approvals for its establishment in Unnao. The company received a no-objection certificate (NOC) from the District Magistrate on May 21, 2015, followed by a State Level Committee NOC on October 21, 2016. A Consent to Establish (C.T.E.) was issued by the UPPCB on January 4, 2017. The company later signed a Memorandum of Understanding (MoU) with the Governor of Uttar Pradesh in 2018 as part of the U.P. Investors Summit.
Despite compliance, its Consent to Operate (C.T.O.) requests were repeatedly rejected. The final C.C.A. was issued on August 23, 2024, but was revoked merely two months later on November 14, 2024, citing non-compliance with a revalidation requirement under a Government Order dated July 7, 2017.
Important Legal Issues
1. Retrospective Application of 2017 Government Order: Could new regulatory requirements be applied retrospectively to a business that had already obtained clearances before the order’s issuance?
2. Requirement of Revalidation of NOC: Was there a legal obligation for the petitioner to obtain a revalidated NOC from the District Magistrate and State Level Committee?
3. Right to Conduct Business: Did the revocation violate Article 19(1)(g) of the Indian Constitution?
4. Principle of Lex Non Cogit ad Impossibilia: Could the company be penalized for non-compliance with conditions that could only be fulfilled post-establishment?
Court’s Observations on Legal Issues
– On retrospective application, the court stated: “Turning the clock back and taking away an accrued right by means of an executive order is impermissible.”
– On the NOC requirement, it observed: “There is no statutory provision mandating revalidation once all initial approvals are in place.”
– Addressing the right to business, the judgment stated: “Administrative actions must not arbitrarily hinder industrial operations when statutory compliance has been met.”
– Citing the principle of Lex Non Cogit ad Impossibilia, the court remarked: “The law does not compel a man to do that which he cannot possibly perform.”
Decision of the Court
The High Court ruled in favor of M/S Al-Haq Foods Pvt. Ltd., declaring the cancellation of its C.C.A. by UPPCB as legally unsustainable. It directed the UPPCB to restore the company’s operational consent, ensuring that regulatory compliance procedures remain fair and non-discriminatory. The court emphasized that the government’s regulatory framework must not deter investment or obstruct legitimate industrial operations.
Legal Representation:
– For the Petitioner: Dr. Lalta Prasad Misra and Abhinav Singh
– For the Respondents: Senior Advocate Satish Chandra Mishra, Ashok Kumar Verma (UPPCB), Vinod Kumar Shahi (Additional Advocate General), Shailendra Kumar Singh (Chief Standing Counsel), and Akash Sinha (Standing Counsel for the State)
