Government-PSU dispute resolution through committee mechanism bars direct merits adjudication of duty drawback refund claims.

A refund claim for duty drawback raised by a Government of India public sector undertaking was not examined on merits because the dispute fell within the Supreme Court's that inter se disputes between Government departments and public sector undertakings must first pass through the prescribed committee mechanism. Applying that binding direction, the High Court declined to adjudicate the writ petition substantively and directed the parties to refer the matter to arbitration for resolution. The refund claim was therefore left to be settled in accordance with the Supreme Court's dispute-resolution procedure.

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Issues: Whether the writ petition seeking refund of duty drawback by a public sector undertaking should be decided on merits or be referred for resolution in terms of the Supreme Court's direction on disputes between Government departments and public sector undertakings.

Analysis: The claim arose from a dispute involving a Government of India public sector undertaking. The Court applied the Supreme Court's that such disputes should first be examined through the committee mechanism and should not be brought before court without such clearance. In view of that binding direction, the Court declined to adjudicate the refund claim on merits and directed the parties to refer the matter to arbitration for settlement.

Outcome: The writ petition was disposed of by directing the parties to refer the dispute to arbitration, leaving the refund claim to be settled in accordance with the Supreme Court's direction.

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