Govt directs PSUs to challenge only those cases in which policies, larger legal issues involved

New Delhi: To avoid unnecessary litigation, the government on Monday directed central public sector undertaking (PSUs) to challenge only those cases where policies and larger legal issues are involved, instead of routinely filing writ petitions in various high courts against the disputes referred to industrial tribunals for adjudication.Chief Labour Commissioner Jitendra Kumar Sagar in the Ministry of Labour had brought the matter to the notice of the Secretary in the Ministry of Heavy Industries and Public Enterprises A R Sihag in April this year.

"The Ministry of Labour and Employment is of the opinion that the public sector undertakings should not challenge all such issues in a routine manner rather they should challenge only those matters when the company's policy or legal issues warrant so."

"In addition to this, the Ministry of Labour and Employment requests that such litigation can be avoided by effective compliance of the provisions of labour laws at right time," Sagar said in the letter to Sihag.[caption id="attachment_4486059" align="alignleft" width="380"] File image of Supreme Court of India. Reuters.[/caption]He also cited a reference to the "number of writ petitions filed in various High Courts of states especially by oil companies and Coal India Limited against the reference of service matter disputes to the Industrial Tribunals for adjudication by the Ministry of Labour and Employment".Taking cognisance of the matter, the Department of Public Enterprises today issued an office memorandum highlighting the "consistent position of the government to reduce litigation between government agencies".It further directed all administrative ministries and departments to bring the observations of the Chief Labour Commissioner to the notice of CPSEs under their administrative control for necessary action.