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Report No. 145

1.4. Earlier Report.-

It may be mentioned that in 1988, the Law Commission of India forwarded to the Government a Report concerned with litigation policies and strategies pertaining to-(i) the Government, and (ii) public sector undertakings.1 In that Report, the commission examined the reasons for the spurt in litigation in which Public Sector Undertakings are involved and it also stressed the need for evolution of a sound litigation policy. The Report recommended, inter alia, the establishment of an effective Grievance Cell for the settlement of disputes between the employer and the employees in the Public Sector.

It further recommended that disputes relating to commercial and business transactions should also be settled through the medium of arbitration. The present Report deals with a different matter, namely, the substantive question relating to the constitutional status of Public Sector Undertakings. The present Report is not confined to procedural aspects, but deals with the basic question whether the rights and remedies available to a person against the Government by virtue of Part III of the Constitution should continue to be available against Public Sector.

Undertakings also, and further, whether it is desirable and constitutionally permissible to amend Article 12, so as to exclude the Public Sector Undertakings from the judicial review of the Supreme Court and the High Courts under Article 32 and 226 of the Constitution. Thus, the scope of the present Report is different from that of the earlier 126th Report. However, some data examined in that Report are relevant and valid for dealing with the question under consideration in the present Report also; and reference thereto would be made at the appropriate stage.

1. Law Commission of India, Government and Public Sector Undertakings-Litigation Policy and Strategies (126th Report).

Article 12 of the Constitution and Public Sector Undertakings Back

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