Committee of Secretaries reference restrains coercive recovery in PSU-Government dispute pending clearance.

Disputes between a public sector undertaking and a Government department were treated as falling within the Supreme Court's mechanism for resolution through the Committee of Secretaries. Pending consideration by that Committee, coercive recovery was not to be pursued and any detention for recovery was to be lifted. The dispute was directed to be referred through the concerned Secretaries to the Committee of Secretaries, and recovery measures were restrained until the Committee cleared the matter. No merits-based order on the stay applications was made.

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Issues: Whether the stay applications arising out of a dispute between a public sector undertaking and the Government department required adjudication on merits, and whether recovery of dues by coercive measures should be permitted pending consideration by the Committee of Secretaries.

Analysis: The dispute was treated as one falling within the Supreme Court's directions for settlement of disputes between public sector undertakings and Government departments through negotiation by the Committee of Secretaries. Pending clearance from that Committee, coercive recovery was not to be pursued and any detention for recovery was to be lifted. No order on the stay applications on merits was made.

Outcome: Directions were issued for reference of the dispute through the concerned Secretaries to the Committee of Secretaries, and recovery by coercive measures was restrained until the dispute was cleared by that Committee.

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