In Brief
Pahwa Plastics and an associated company operated chemical manufacturing units (Formaldehyde production) in Haryana based on valid Consent to Establish and Operate, though without prior Environmental Clearance. The NGT ordered closure pending EC. The Supreme Court held that while EC compliance is non-negotiable, ex post facto clearances cannot be declined with rigid formality when units comply with pollution norms and contribute to the economy and employment. Applying proportionality, the Court allowed continued operation pending EC decision. It approved the 2017 government notification enabling ex post facto clearances in exceptional cases and distinguished the Alembic Pharmaceuticals precedent. The judgment balanced environmental protection with economic livelihood, directing the EC authority to decide within strict timelines.
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