Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Policy of disinvestment |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 |
Case Type | Writ Petition |
Court | Supreme Court of India |
Disposal Nature | Petition Allowed |
Headnote | Disinvestment: Policy of disinvestment – Union Government’s divestment of its residual shareholding of 29.54 % in HZL company – Public interest litigation u/Art. 32, seeking mandamus directing the Union Government to refrain from disinvestment without amending the Nationalisation Act, 1976 – Held: Decision in Centre for Public Interest Litigation’s case, does not apply to the present facts because HZL had ceased to be a government company, at the stage of the disinvestment – Thus, the Union Government’s decision to disinvest 29.54 per cent of its residual shareholding in HZL is not interdicted by the principles laid down by this Court in Centre for Public Interest Litigation’s case that when the acquisition takes place under an Act of Parliament, any disinvestment by the Union Government can be undertaken only with the approval of Parliament or through its intervention –There is no challenge to the disinvestment which took place in 1991-92 or in 2002, the latter having resulted in HZL ceasing to retain its status as a government company within the meaning of s. 617 of the Companies Act 1956 – It would be inconsistent to read an implied limitation on the transfer by the Union Government of its residual shareholding in HZL representing 29.54 per cent of the equity capital – Thus, when a decision is taken by the government as shareholder of a company to sell its shares, it acts as any other shareholder in a company who makes the decision on the basis of the financial and economic exigencies – Furthermore, SOVL company does not seek to exercise the second call option, in terms of the Share Purchase Agreement, as such the Union Government took decision to sell its residuary shareholding in the open market – Union Government being amenable to Part III of the Constitution, would not impose a restraint on its capacity to decide, as a shareholder, to disinvest its shareholding, the process of disinvestment being transparent and which comports with law and results in the best price being a shareholding – Metal Corporation (Nationalisation and Miscellaneous) Provisions Act 1976 – Constitution of India – Art. 32. Constitution of India: Art. 32 – Writ petition under – Disinvestment of the residual 29.54 per cent shareholding of the Union Government challenged on the ground that the residual disinvestment can occur only after the amendment of the Nationalisation Act 1976 – Said prayer substantially similar to the reliefs sought in Maton Mines Mazdoor Sangh’s case, wherein they challenged the disinvestment of 2002 and 2014, on the basis of the decision in Centre for Public Interest Litigation – Petition, if barred by the principles of res judicata, following the dismissal of the earlier writ petition on the same issue – Held: The summary dismissal of an earlier petition u/Art. 32 does not bar the instant writ petition on grounds of res judicata as there has been no substantive decision on the merits of the issues, thus, the instant writ petition not barred by res judicata – Metal Corporation (Nationalisation and Miscellaneous) Provisions Act 1976. Code of Civil Procedure 1908: s. 11 – Principle of res judicata – Determination of its applicability - Held: While determining the applicability of the principle of res judicata u/s. 11, the grave issues of public interest are not to be ignored merely because a petition was initially filed and dismissed, without a substantial adjudication on merits – There is a trend of poorly pleaded public interest litigations being filed instantly following a disclosure in the media, with a conscious intention to obtain a dismissal from the Court and preclude genuine litigants from approaching the Court in public interest – Court to be aware of the contemporary reality and interpret the principles of res judicata or constructive res judicata in a manner which does not debar access to justice – Jurisdiction u/Art. 32 is a fundamental right in and of itself. H Investigation: CBI Crime Manual – Process of conducting CBI’s preliminary enquiries – Preliminary enquiry by CBI into the suspected irregularities in the course of disinvestment of 26% equity holding of the Union Government to SOVL company in 2002 – Submission of status report by CBI – Held: There is no bar on the constitutional power of this Court to direct the CBI to register a regular case, in spite of its decision to close a preliminary enquiry – On facts, a prima facie case for a cognizable offence, as mandated in para 9.1 of the CBI Manual, made out – Sufficient material for registration of a regular case in relation to the 26 per cent disinvestment of HZL by the Union Government in 2002 – Thus, registration of a regular case, followed by a full-fledged investigation must be conducted – Issuance of direction to CBI to register a regular case and periodically submit status reports of its investigation to this Court – Constitution of India – Art. 32. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2021 INSC 758 |
Petitioner | National Confederation Of Officers Association Of Central Public Sector Enterprises And Ors. |
Respondent | Union Of India And Ors. |
SCR | [2021] 10 S.C.R. 954 |
Judgement Date | 2021-11-18 |
Case Number | 229 |
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