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TMI Blog2007 (7) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that there was no reason whatsoever for which a Government of India undertaking shall bypass the alternative remedy of a civil suit. 3. Background facts in a nutshell are as follows: A writ petition was filed by the appellant alleging inaction on the part of the City & Industrial Development Corporation of Maharashtra Limited (hereinafter referred to as 'CIDCO') in not executing the agreement of lease with the appellant- company. Prayer in the writ petition was for a direction by issuance of an appropriate writ requiring the CIDCO to execute the agreement in respect of the possession of plots covered by the agreements. Prayer essentially was (i) to hand over the possession of plot of land admeasuring 24 hectares demarcat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntend that in all contractual matters a writ application can be entertained. The three circumstances wherein relating to contractual matters writ applications can be entertained were set out in Whirlpool Corporation v. Registrar of Trade Marks, Mumbai and Ors. (1998 (8) SCC 1). 6. Mr. Altaf Ahmad, learned senior counsel on the other hand submitted that in a dispute of this nature, the course indicated by this Court in Oil and Natural Gas Commission and Anr. V. Collector of Central Excise (1992 Supp (2) SCC 432) can be applied. 7. In the instant case, CIDCO is a State entity and the appellant is a central entity. The desirability of having a committee to sort out differences between pubic sector undertakings, State Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried 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 Supp(2) SCC 432) called upon the Cabinet Secretary to handle such matters. In Oil and Natural Gas Commission v. CCE (1992 Supp (4) SCC 541) this Court directed the Central Government to 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 the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India or between one or more States and the Union of India. It was not contemplated by the framers of the Constitution or the C.P.C. that two departments of a State or the Union of India will fight a litigation in a court of law. It is neither appropriate nor permissible for two departments of a State or the Union of India to fight litigation in a court of law. Indeed, such a course cannot but be detrimental to the public interest as it also entails avoidable wastage of public money and time. Various departments of the Government are its limbs and, therefore, they must act in co- ordination and not in confrontation. Filing of a writ petition by one department against the other by invoking the extraordinary jurisdiction of the High Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ominated so that the Committee would function with status, control and discipline. The facts of this appeal, noticed above, make out a strong case that there is felt need of setting up of similar committees by the State Government also to resolve the controversy arising between various departments of the State or the State and any of its undertakings. It would be appropriate for the State Governments to set up a Committee consisting of the Chief Secretary of the State, the Secretaries of the concerned departments, the Secretary of Law and where financial commitments are involved, the Secretary of Finance. The decision taken by such a committee shall be binding on all the departments concerned and shall be the stand of the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government or a public sector undertaking. This could be prevented by the High Powered Committee. In such cases there is no question of resolving the dispute. The Committee only has to refuse permission to litigate. No right of the Department/public sector undertaking is affected in such a case. The litigation being of a frivolous nature must not be brought to court. To be remembered that in almost all cases one or the other party will not be happy with the decision of the High Powered Committee. The dissatisfied party will always claim that its rights are affected, when in fact, no right is affected. The Committee is constituted of highly placed officers of the Government, who do not have an interest in the dispute, it is thus expected th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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