High Power Committee required for Union-SOE disputes; appeals filed without clearance must be referred and are stayed pending resolution

SC held that a High Power Committee was instituted to resolve disputes between the Union and state-owned enterprises to avoid costly litigation. Appeals or petitions filed without Committee clearance must be referred to it within one month, by lodging notice with the nodal Under Secretary (Coordination) in the Cabinet Secretariat; a reference is effective only after such notice. Valid references may be made by the Union's Secretary (Finance/Revenue) and by the chairman/MD/CEO of state-owned enterprises. Once referred, the challenged proceedings are stayed until the Committee resolves the dispute or grants litigation clearance. The Committee must submit half-yearly reports to the SC.

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Issues:
Clarifications required regarding the functioning of the High Power Committee for resolving disputes between Union of India and its Public Sector Undertakings.

Analysis:
The Supreme Court addressed the need for clarifications regarding the functioning of the High Power Committee established to resolve disputes between the Union of India and its Public Sector Undertakings. The purpose of the Committee was to facilitate the amicable resolution of controversies to avoid costly and time-consuming litigation. It was clarified that the Committee's role was not to eliminate statutory remedies available to the Union of India and its corporations but to ensure that disputes are first examined by the Committee before proceeding to court or tribunal. The Committee consisted of representatives from various ministries to monitor and resolve disputes effectively.

The Court emphasized that all disputes, including pending matters before any court or tribunal, should be referred to the High Power Committee within a month for expeditious resolution. While parties were not barred from filing appeals or petitions before courts or tribunals to save limitation, clearance from the High Power Committee was mandatory before proceeding. Any court or tribunal where a dispute was raised had the obligation to demand clearance from the Committee; otherwise, proceedings would not continue.

In cases where appeals or petitions were filed without the Committee's clearance, the matter must be referred to the Committee within a month of filing. The Government proposed the nomination of a nodal authority in the Cabinet Secretariat to coordinate these references. The operation of any order or proceedings under challenge would be suspended until the High Power Committee resolved the dispute or provided clearance for litigation. The Committee was required to submit a half-yearly report to the Court detailing the matters referred and their resolutions.

Overall, the judgment aimed to streamline the resolution process for disputes between the Union of India and its Public Sector Undertakings by ensuring the mandatory involvement of the High Power Committee before resorting to litigation, thus promoting efficient and effective dispute resolution mechanisms.

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