{"id":229177,"date":"2020-05-07T12:16:40","date_gmt":"2020-05-07T06:46:40","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=229177"},"modified":"2020-05-15T10:18:56","modified_gmt":"2020-05-15T04:48:56","slug":"del-hc-goods-and-services-of-psus-are-all-to-one-extent-or-other-essential-mha-order-doesnt-contemplate-complete-closure-of-psus-in-view-of-lockdown","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/05\/07\/del-hc-goods-and-services-of-psus-are-all-to-one-extent-or-other-essential-mha-order-doesnt-contemplate-complete-closure-of-psus-in-view-of-lockdown\/","title":{"rendered":"Del HC | Goods &#038; Services of PSUs are all, to one extent or other, \u201cessential\u201d; MHA order doesn&#8217;t contemplate complete closure of PSUs in view of lockdown"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Delhi High Court:\u00a0<\/strong>A Division Bench of D.N. Patel, CJ and C. Harishankar, J., addressed a petition wherein mandamus has been sought to shut the <span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">Public Sector Undertakings\/Public Enterprises in view of the COVID-19 lockdown.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\">Petitioner states that by allowing their offices to function, public sector enterprises engaged in &#8220;non-essential goods and services&#8221; such as Steel Authority of India (SAIL), <span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">National Buildings Construction Corporation (India) Ltd (NBCC), Engineers India Ltd (EIL), Indian Railways Construction International Ltd (IRCON) and the Rail India Technical and Economic Service (RITES), have breached\u00a0 the Ministry of Home Affairs Order dated 15-04-2020.<\/span><\/p>\n<p style=\"text-align: justify;\">Thus, in view of the breach, petitioner sought criminal proceedings to be initiated for the heads of such <span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">Public Enterprises\/Government Companies.<\/span><\/p>\n<p style=\"text-align: justify;\">Petitioner states that such disobedience by PSUs of lockdown directives issued by Centre could not be tolerated for an instant.<\/p>\n<p style=\"text-align: justify;\">Adding to his submissions he stated that PSUs which operate with a motive to profit and are purely commercial enterprises could not be treated as &#8220;offices under the control of&#8221; the Government so as to be entitled to the benefit of Clause 18 (ii) of the MHA Order dated 15-04-2020.<\/p>\n<div class=\"page\" title=\"Page 9\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\">The \u201ccontrol\u201d exercised, by the Government, over such undertakings, was merely owing to the majority Governmental shareholding therein.<\/p>\n<p style=\"text-align: justify;\">Bench on perusal of the submissions stated that,<\/p>\n<div class=\"page\" title=\"Page 10\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<blockquote>\n<p style=\"text-align: justify;\">It is a matter of public knowledge that the decision, regarding the establishments, offices and enterprises, which ought to be extended some relaxation, from the <span style=\"font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">rigour of the lockdown, is a decision taken after days of deliberation, involving pan-India consultations at the highest levels of the Central government as well as the governments of the States and UTs, aimed at safeguarding and promoting national interest, irrespective of considerations of caste, creed or political affiliations.<\/span><\/p>\n<\/blockquote>\n<div class=\"page\" title=\"Page 11\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">&#8220;&#8230;continuing to exercise judicial vigil over the acts of the executive, Courts have, in times such as these, necessarily to take care that, in doing so, they do not rock the boat, ending up doing more harm than good.<\/span><\/p>\n<p style=\"text-align: justify;\">Bench on referring to the Office Memorandum dated 16th April, 2020 issued by DPE wherein it was requested that PSUs be instructed to comply with MHA Order dated 15th April, 2020, stated that in <span style=\"color: #0000ff;\">Court&#8217;s opinion the MHA order did not contemplate complete closure of all PSUs.<\/span><\/p>\n<p style=\"text-align: justify;\">further the Bench added to its opinion with regard to interpretation of the &#8220;offices under control&#8221; of government stated that,<\/p>\n<div class=\"page\" title=\"Page 15\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\"><span style=\"color: #0000ff;\">&#8220;&#8230;while interpreting Clause 18 ii) of the guidelines dated 15th April, 2020. Governmental control, over their affairs, unquestionably exists and that, in our view, is enough, for PSUs to regard themselves as officers under the control of the Government.&#8221;<\/span><\/p>\n<p style=\"text-align: justify;\">The fact that PSUs named in the present petition are engaged in production of goods &amp; services that impact the lives of citizens cannot be ignored.<\/p>\n<div class=\"page\" title=\"Page 17\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\">In the exercise of the power of judicial review vested with the Court, it is not permissible for the Court to rewrite the MHA issued guidelines by introducing any consideration of the &#8220;essential&#8221; or non-essential&#8221; nature of services.<\/p>\n<div class=\"page\" title=\"Page 17\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<blockquote>\n<p style=\"text-align: justify;\">&#8220;&#8230;goods produced, and services rendered, by public Sector undertakings are all, to one extent or the other, \u201cessential.\u201d<\/p>\n<\/blockquote>\n<div class=\"page\" title=\"Page 18\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\">It is also to be noted that allowing of \u201cselect additional activities\u201d is intended \u201cto mitigate the hardship to the &#8220;public\u201d.<\/p>\n<div class=\"page\" title=\"Page 20\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\">Bench also observed that<\/p>\n<p style=\"text-align: justify;\">&#8220;It is entirely within the realm of the executive, seized with the crisis and the necessity of tiding over it in the best possible manner, to take a decision regarding the establishments which may be permitted to function, and to the extent thereof.&#8221;<\/p>\n<div class=\"page\" title=\"Page 21\">\n<div class=\"layoutArea\">\n<div class=\"column\">\n<p style=\"text-align: justify;\">Thus, any hyper-legalistic interpretation of the various Clauses in the Guidelines issued by the Central Government to tide over the COVID-19 crisis, would be fundamentally misconceived.<\/p>\n<p style=\"text-align: justify;\">Hence, in the above-view petition stands dismissed. [Anil K. Aggarwal v. Union of India, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/wQc4rni7\"><b>2020 SCC OnLine Del 576<\/b><\/a>, decided on 01-05-2020]<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court:\u00a0A Division Bench of D.N. Patel, CJ and C. Harishankar, J., addressed a petition wherein mandamus has been sought to <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[41176,39924,40154,41177,41175],"class_list":["post-229177","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-closure-of-psus","tag-covid-19","tag-lockdown","tag-mha-order","tag-public-sector-undertakings"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Del HC | Goods &amp; Services of PSUs are all, to one extent or other, \u201cessential\u201d; MHA order doesn&#039;t contemplate complete closure of PSUs in view of lockdown | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2020\/05\/07\/del-hc-goods-and-services-of-psus-are-all-to-one-extent-or-other-essential-mha-order-doesnt-contemplate-complete-closure-of-psus-in-view-of-lockdown\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Del HC | Goods &amp; Services of PSUs are all, to one extent or other, \u201cessential\u201d; MHA order doesn&#039;t contemplate complete closure of PSUs in view of lockdown\" \/>\n<meta property=\"og:description\" content=\"Delhi High Court:\u00a0A Division Bench of D.N. 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SC asks telecos to prove bonafides by paying reasonable amount","author":"Prachi Bhardwaj","date":"June 18, 2020","format":false,"excerpt":"Supreme Court: In a major turnaround in the AGR case, with respect to Public Sector Undertakings, the Department of Telecommunication has decided to withdraw the demands which constitute 96% of the of the ?4 lakh crore demand. 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These measures include fixing of\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":227575,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/03\/27\/21-day-nationwide-lockdown-to-fight-covid-19-mha-issues-sops-for-maintaining-supply-of-essential-goods\/","url_meta":{"origin":229177,"position":5},"title":"21-day Nationwide Lockdown to fight COVID-19 | MHA issues SOPs for maintaining supply of Essential Goods\u00a0\u00a0","author":"Bhumika Indulia","date":"March 27, 2020","format":false,"excerpt":"Union Ministry for Home Affairs (MHA) issued Standard Operating Procedure (SOPs) for maintaining supply of essential goods today, in order to relieve hardships faced by people during 21-day nationwide lockdown to fight the Coronavirus outbreak. 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