The Supreme Court of India delivered a significant judgement in Indian Oil Corporation Ltd. v. Deepak Sharma and Ors., revolving around the role of the National Green Tribunal (NGT) in environmental disputes. The apex court emphasized that the NGT, being a judicial authority, must adhere strictly to its adjudicatory responsibilities and not outsource these duties to committees.

The case arose when Mr. Deepak Sharma filed a petition before the NGT, challenging the legality of a petrol pump setup by Indian Oil Corporation Ltd. near a play school and residential areas. The industrial establishment was alleged to violate the guidelines of the Central Pollution Control Board (CPCB) regarding safe distances from sensitive areas.

In a contentious two orders issued by the NGT, the tribunal had delegated its responsibilities to a committee, asking it to assess compliance with environmental guidelines, effectively sidelining its own adjudicative duties. The Supreme Court, led by Justices K. Vinod Chandran and Sanjay Kumar, highlighted this as an abdication of its statutory duties, underlining the judicial obligation of the NGT to resolve disputes directly.

The apex court scrutinized the reports from the committees constituted under the CPCB guidelines and found that, although the committees' assessments were relevant, the NGT's role was irreplaceable, as its decisions strongly influence environmental litigation outcomes. Indian Oil Corporation argued that the site in question complied with all statutory requirements, and the alleged play school was non-operational.

Ultimately, the Supreme Court set aside the NGT's orders from February 1, 2021, and November 11, 2022, emphasizing that judicial powers should not be passed to non-judicial entities without direct adjudication. The ruling has notable implications for practitioners, stressing that regulatory compliance disputes require thorough judicial examination following statutory laws.