Government litigation clearance mechanism bars tribunal proceedings without prior approval for public sector disputes

Government and public sector litigation falling within the judicial clearance mechanism cannot be pursued before the Tribunal without prior clearance. The Tribunal noted that Supreme Court directions discouraging disputes between Government limbs and public sector undertakings apply equally to Central and State Government-owned entities, with no basis for a distinction in this context. It also followed its coordinate bench precedent and declined to refer the matter to a larger bench. As a result, the stay petitions were not entertainable and the appeals could not proceed in the absence of the required clearance.

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Issues: Whether the Tribunal could entertain the stay petitions and proceed with the appeals filed by State Government public sector undertakings in the absence of clearance from a Committee on Disputes.

Analysis: The Tribunal relied on the Supreme Court's directions discouraging litigation between Government limbs and public sector undertakings from reaching courts or tribunals without prior clearance. It noted that the statutory and corporate definitions did not support a distinction between Central and State Government-owned public sector companies for this purpose. The Tribunal also followed its own earlier coordinate bench view and rejected the request for constituting a larger bench, holding itself bound by the existing precedent and the applicable judicial directions.

Conclusion: The Tribunal held that it had no authority to admit the appeals in the absence of the required clearance, and therefore the stay petitions could not be entertained.

Ratio Decidendi: Where a dispute falls within the judicially mandated clearance mechanism for Government and public sector litigation, the Tribunal cannot proceed with the matter unless such clearance has been obtained.

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