Govt directs PSUs to challenge only those cases which involve larger issues

New Delhi: To avoid unnecessary litigation, the government has directed central PSUs to challenge only those cases where policies and larger legal issues are involved, instead of routinely filing writ petitions in high courts against the disputes referred to industrial tribunals for adjudication.

Chief Labour Commissioner Jitendra Kumar Sagar in the labour ministry 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 public sector undertakings (PSUs) 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 requests that such litigation can be avoided by effective compliance of the provisions of labour laws at right time," Sagar had said in a letter to Sihag.

He also cited a reference to the "number of writ petitions filed in various high courts especially by oil companies and Coal India 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 has 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.