TMI Blog2005 (11) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... record. The Tribunal misdirected itself in applying the decisions of the Supreme Court in ONGC cases. The Tribunal committed a grave error in passing the impugned order instead of disposing of the appeals on the merits. The impugned order is unsustainable in law and the same is accordingly quashed - - - - - Dated:- 3-11-2005 - Judge(s) : B. SUDERSHAN REDDY., S. ANANDA REDDY. JUDGMENT The judgment of the court was delivered by B. Sudershan Reddy J. - W.P. No. 3900 of 2005: In Oil and Natural Gas Commission v. Collector of Central Excise [1992] Supp 2 SCC 432, the Supreme Court expressed its reservation for the manner in which the Central Government and its public sector undertakings were fighting their litigation in the courts by spending money and wasting public time. The Supreme Court accordingly directed the Cabinet Secretary to handle the matter and report to the court as to why the litigation is being conducted "when the two sides are a public sector undertaking and the Union of India". It was a dispute between Oil and Natural Gas Commission and the Collector of Central Excise. The dispute was regarding excise duty on lean gas supplied to consumers ex-Uran. Respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be issued so that some misconceptions arising out of the memo of the Cabinet Secretary referred to hereinabove are removed. In the course of issuing such clarification, the court observed: "The purpose of setting up this High-Powered 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-Powered Committee and that time-consuming and expensive litigation is avoided." It is not necessary for the purpose of disposal of this writ petition to refer in detail to the clarifications issued. Suffice it to note, the orders of the Supreme Court referred to hereinabove were in the matter of setting up and functioning of the "High-Powered Committee" for resolving disputes between the Union of India on the one hand and its public sector undertakings on the other, by recourse to the "High-Powered Committee". The context in which the orders came to be passed, was the dispute raised by the Oil and Natural Gas Commission against the Collector of Central Excise in the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994-95. The matter was referred to the "High-Powered Committee" from which clearance has to be obtained for litigation by public sector bodies or Government Departments of the Central Government. The Committee resolved that since MTNL was contemplating a writ petition against a show-cause notice, it was advised to await the appealable order and accordingly did not permit filing of a writ petition in the High Court. The MTNL, however, filed a writ petition challenging the notice and the High Court dismissed the same on the merits. On appeal, by special leave, the Supreme Court held that as the "High-Powered Committee" had not given clearance to the MTNL, the proceedings could not be proceeded with. It is required to notice that the dispute was again between one of the public sector undertakings of the Government of India and the Revenue Department of the Government of India. In Chief Conservator of Forests v. Collector [2003] 3 SCC 472; AIR 2003 SC 1805, the Supreme Court, in the context of litigation between the Forest Department and the Revenue Department of the Government of Andhra Pradesh, observed that it was not contemplated by the framers of the Constitution that two depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment and the State Governments, for which purpose, the Constitution itself provides a mechanism as well as the forum for resolution of such disputes. It is not possible-nor is it necessary-for our present purposes to make any detailed analysis as regards the nature of the Indian Federation with reference to its historical background, the distribution of legislative powers, financial and administrative relations, etc. It is enough to note that notwithstanding the fact that there are many provisions in the Constitution whereunder the Centre has been given powers to override the States, "our Constitution is a federal Constitution. It means that the States are sovereign in the field which is left to them ... They are neither satellites nor agents of the Centre." (See S.R. Bommai v. Union of India [1994] 3 SCC 1, 22) Disputes between the Centre and the State are required to be resolved in accordance with the provisions of the Constitution, which provides the mechanism as well as the forum for resolution of all such disputes. There is no forum, as such, created or constituted by the Central Government to resolve disputes between State Government public sector undertakings on the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay petitions in limine with the further observation that the appeals preferred by the petitioner cannot be admitted. The view taken by the Appellate Tribunal is vitiated by errors apparent on the face of the record. The Tribunal misdirected itself in applying the decisions of the Supreme Court in Oil and Natural Gas Commission cases. The Tribunal committed a grave error in passing the impugned order instead of disposing of the appeals on the merits. The impugned order is unsustainable in law and the same is accordingly quashed. The Tribunal is accordingly directed to dispose of the appeals on the merits as expeditiously as possible preferably within a period of three months from the date of receipt of a copy of this order. The petitioner shall continue to have the benefit of the interim arrangement until final disposal of the appeals by the Tribunal. With the observations as above, the writ petition is allowed. There shall be no order as to costs. I.T.T.A. Nos. 215 and 216 of 2005: For the very same reasons, we hold the principle of clearance from the Committee of Disputes enunciated by the Supreme Court in Oil and Natural Gas Commission cases is not applicable to the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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