CENTRE FOR PUBLIC INTEREST LITIGATION versus UNION OF INDIA AND ANR.

CENTRE FOR PUBLIC INTEREST LITIGATION versus UNION OF INDIA AND ANR.

Disinvestment of Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited to private parties, resulting in loss of Government company status, cannot be effected by executive action without suitable amendment or repeal of the relevant acquisition statutes. The statutes expressly require continued government ownership and control; executive action is insufficient to override these statutory mandates.

Parties
Petitioner: Centre for Public Interest Litigation; Respondents: Union of India and Anr.; Intervenor: Ravi Prakash Gupta
Jurisdiction
India
Judgment Date
16 September 2003
Procedural Posture
Writ Petition (civil) / Civil Original Jurisdiction; Final Judgment
Outcome
Petitions allowed
Legal Topics
Disinvestment of Government Companies, Interpretation of Statutes, Article 32 Petitions, Government Control Over Oil Companies
Constitutional Law Administrative Law Corporate Law Disinvestment of Government Companies Interpretation of Statutes Article 32 Petitions Government Control Over Oil Companies

Case Brief

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Parties

Centre for Public Interest Litigation

Petitioner

Union of India and Anr.

Respondents

Ravi Prakash Gupta

Intervenor

Procedural Posture

Writ Petition (civil) / Civil Original Jurisdiction; Final Judgment

Legal Issues

  1. 1 Whether disinvestment of government oil companies can be carried out by executive decision without repealing or amending the statutes by which the companies were acquired
  2. 2 Whether Parliamentary approval is required for disinvestment resulting in Government companies ceasing to be government companies

Ratio Decidendi

Disinvestment of Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited to private parties, resulting in loss of Government company status, cannot be effected by executive action without suitable amendment or repeal of the relevant acquisition statutes. The statutes expressly require continued government ownership and control; executive action is insufficient to override these statutory mandates.

Court Disposition

Petitions allowed

Orders

  • The Central Government is restrained from proceeding with disinvestment resulting in HPCL and BPCL ceasing to be Government companies without suitably amending the statutes concerned.