The issue before the court was whether the environmental clearance granted by the Union of India for the construction of a dam had been granted without proper study and understanding of the environmental impact of the project. Furthermore it was examined whether the environmental conditions imposed by the Ministry of Environment had been violated and if so, what was the legal effect of the violations. The evidence disclosed that the Government had been deeply concerned with the environmental aspects the project and because there was a difference of opinion between the Ministries of Water Resources and of the Environment and Forests the matter was dealt with by the Prime Minister who gave the clearance. The court ordered compensatory measures for environmental protection in compliance with the scheme framed by the Government and ordered the construction to continue while the alleviate measures were carried out.