TaxTMI 
TaxTMI 
2004 (5) TMI 7
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....here a dispute is between Government Departments and/or between a Government Department and a public sector undertaking, the matter should be referred to the High Powered Committee established by the Government pursuant to an order of this court dated September 11, 1991. He pointed out that it has been held by this court that it is the duty of every court or tribunal to demand clearance from the Committee and that in the absence of clearance the proceedings must not be proceeded with. Mr. Rohatgi also relied upon the case of CCE v. Jeesop and Co. Ltd. [1999] 9 SCC 181, wherein this court has again disposed of an appeal filed by the Collector of Central Excise against two public sector companies by holding that the course indicated in Oil....
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....y jurisdiction of the High Court is not only against the propriety and polity as it smacks of indiscipline but is also contrary to the basic concept of law which requires that for suing or being sued, there must be either a natural or a juristic person. The States/Union of India must evolve a mechanism to set at rest all inter-departmental controversies at the level of the Government and such matters should not be carried to a court of law for resolution of the controversy. In the case of disputes between public sector undertakings and the Union of India, this court in Oil and Natural Gas Commission v. CCE [1992] Suppl2 SCC 432 called upon the Cabinet Secretary to handle such matters. In Oil and Natural Gas Commission vs. CCE [1995] Suppl 4....
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....d that in this case the dispute had been referred to the High Powered Committee and the Committee has decided as follows: "The Committee having regard to the fact that Mahanagar Telephone Nigam Ltd was contemplating writ petition against show cause notice advised Mahanagar Telephone Nigam Ltd to await appealable order. The Committee accordingly, did not permit to file writ petition in the High Court at this stage." He submitted that the appellants were bound to comply with the decision of the High Powered Committee and await an appealable order. Mr. Rohatgi pointed out that by an interim order dated May 8, 2002, this court has allowed the proceedings, pursuant to the show cause notice, to proceed but this court has directed that no fi....
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....n that be done-so far as Union of India and its statutory corporations are concerned, the statutory remedies are effaced. Indeed, the purpose of the constitution of the High Power Committee was not to take away those remedies. The relevant portion of the order reads: 'We direct that the Government of India shall set up a Committee consisting of representatives from the Ministry of Industry, the Bureau of Public Enterprises and the Ministry of Law, to monitor disputes between Ministry and Ministry of Government of India; Ministry and public sector undertakings of the Government of India and public sector undertakings in between themselves to ensure that no litigation comes to court or to a tribunal without the matter having been first exa....
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....ode that two departments of a State or Union of India and/or a department of the Government and a public sector undertaking fight a litigation in a court of law. Such a course is detrimental to public interest as it entails avoidable wastage of public money and time. These are all limbs of the Government and must act in co-ordination and not confrontation. The mechanism set up by this court is not, as suggested by Mr.Andhyarujina, only to conciliate between Government Departments. It is also set up for purposes of ensuring that frivolous disputes do not come before courts without clearance from the High Powered Committee. If it can, the High Powered Committee will resolve the dispute. If the dispute is not resolved the Committee would undou....
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....mittee, set out hereinabove, merely emphasizes the well settled position. It is an eminently fair and correct decision. The purpose of the decision was to prevent frivolous litigation. No right of the appellants is being affected. It has been clarified that the appellants could move a court of law against an appealable order. By not maintaining discipline and abiding by the decision the appellants have wasted public money and time of the courts. The clarificatory order, relied on upon by Mr. Andhyarujina, clarifies in paragraph 5 as to what is to happen if clearance is not given by the Committee. It is set out that in the absence of clearance the proceedings must not be proceeded with. This position is further clarified in Chief Conserva....