1994 (1) TMI 88 - SC - Central Excise

The purpose of setting up this High Power Committee was to ensure that as far as possible, the controversies between a Ministry and a Ministry of the Government of India, a Ministry and a Public Sector Undertaking of the Government of India and between Public Sector Undertakings themselves are resolved by recourse to the High Power Committee and that time consuming and expensive litigation is avoided. Wherever appeals, petitions etc. are filed without the clearance of the High Power Committee, so as to save limitation, the appellant or the petitioner as the case may be, shall within a month from such filing, refer the matter to the High Power Committee with prior notice to the Designated Authority in Cabinet Secretariat of Government of India authorised to receive notices in that behalf. The High Power Committee shall submit a half yearly report--- instead of quarterly report as earlier indicated---to this Court as to the number of matters referred to it and the manner in which they were dealt with and disposed of

Summary

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.