Necessity of observing procedural fairness before imposing environmental compensation

Environmental tribunals cannot impose heavy financial penalties, interim environmental compensation, or punitive damages upon commercial establishments without affording them an adequate and fair opportunity to examine and file objections against expert committee reports. Principles of natural justice mandate that an affected party must be supplied with assessment reports and permitted to present a defense before being saddled with substantial monetary liabilities. Rushing through penalty orders based on preliminary assessments without completing structured hearings vitiates the decision-making process. Review applications seeking rectification of such procedural omissions must be considered objectively rather than being dismissed summarily as mere afterthoughts. (Raj Singh Gehlot & Ors. v. Amitabha Sen & Ors. | 2026 INSC 77)