Govt seeks review of SC verdict on oil PSUs disinvestment

Govt has submitted before SC that the verdict on HPCL, BPCL sell-off needs "serious reconsideration".

business Updated: Oct 13, 2003 23:34 IST

The Union Government on Monday submitted before the Supreme Court that the judgment on privatisation of Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) required "serious reconsideration" as it had wide implications on the disinvestment process and cast clouds on it. (Do you think SC's verdict on Oil PSUs will affect privatisation?)

This was submitted by Attorney General Soli Sorabjee before a Bench comprising Chief Justice VN Khare and Justice SB Sinha during the hearing of a petition challenging the privatisation of railway coach manufacturing firm Jessop & Co Ltd.

The Bench adjourned the matter for two weeks as the petitioner organisation sought time to file rejoinder to the Government's stand.

Sorabjee said some parts of the apex court's judgment required serious reconsideration as the judgment's potential ramification and wide repercussion "cast clouds on the entire disinvestment process."

This submission came when the Bench asked Sorajbee whether the petition in the Jessop & Co privatisation needed to be allowed in the view of the recent judgment stalling the privatisation in HPCL and BPCL till Parliament approval.

The Attorney General said in the HPCL and BPCL judgment, the court's perception "of the constitutional angle" according to which the Government would have to take prior Parliament approval for dismantling (sale) of every company even if not set up under a statute but formed by government funds from the Consolidated Fund of India, would require reconsideration.

First Published: Oct 13, 2003 13:13 IST