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Report No. 145

1.3. Points raised by Bureau of Public Enterprises.-

The Bureau of Public Enterprises has projected the following few difficulties and problems, confronted by the public enterprises which have led them to this reference:-

"First, as regards service matters, it is experienced that by reason of application of the provision of Article 14 of the Constitution, to Public Sector Corporations, employees of these Corporations have practically come to acquire a permanent employment status and their services cannot be terminated even if the rules allow such termination on three months' notice.

Secondly, in the sphere of award of contracts, it has been noticed that even where the management of a Public Sector Corporation knows of the bad credentials of a firm, it cannot stop dealing with that firm or refuse to deal with that firm, without following the formalities insisted upon in the judicial decisions on the subject. Further, if a person having dealings with a Public Sector Corporation does not get the required material from the corporation, he files a writ petition and often brings an application to seek an ex parte injunction against the Public Sector Corporation to deliver the material.

Thirdly, instances have come to the notice that the courts have granted interim orders, even for not calling the ordinary meetings of the general body of the corporate bodies. Finally, a point that has been raised regarding a matter of procedure in the context of documents is, that if a document issued by another agency in the public sector is produced in evidence in court, it is not possible to dispute the same, even if it be incomplete or defective, as the other party takes the plea that the same was issued by another agency of the Government, and as per the doctrine of "instrumentality", the document is supposed to be accepted by all agencies."

Article 12 of the Constitution and Public Sector Undertakings Back

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