Lawstreet Journal

Punjab and Haryana HC Stays the Privatisation Process of Electricity Wing of Chandigarh UT Administration

Lawstreet Journal 2 Jun 2021 10:30pm

Image courtesy: Lawstreet Journal Judiciary Punjab and Haryana HC Stays the Privatisation Process of Electricity Wing of Chandigarh UT Administration

The Punjab and Haryana High Court on Friday (28/05/2021) stayed the privatisation process of the Electricity wing of Chandigarh Union Territory Administration.

The matter (UT Powermen Union, Chandigarh (Regd.) Vs Union of India and Others) was heard by a bench comprising Justices Jitendra Chauhan and Vivek Puri through video-conferencing. 

The matter first came up for hearing before the Court on 1st December 2020. The petitioners challenged the proposed plan of the Central Government to sell off 100% stakes of the Union Territory Administration's Electricity wing. The petitioners contended that the provisions of the Electricity Act, 2003, does not allow for a 100% transfer of shares, with no control of the government, of the power utility. It was also contended that all the stakeholders like the Governments of Punjab and Haryana and the Union Territory of Chandigarh were not taken into consideration before the decision to privatise the Electricity Wing. The petitioners also submitted that the Electricity Wing is a profit-making entity with a good track record.

Recognising the need for a detailed hearing on the matter, the Court posted the matter to be taken up after the Court reopens in six months. The Court stayed the operation of a government notification seeking bids till the next hearing of the matter.

Aggrieved by this order, the Central Government has moved the Supreme Court with a Special Leave Petition, but the Court upheld the High Court order and directed the High Court to dispose of the matter expeditiously. 

This time the… Continue Reading...

Tagged: Punjab and Haryana High Court   Electricity  
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