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New Delhi , Sept 5

THE Supreme Court today reserved its judgment on petitions challenging the Union Government's decision to privatise Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL). The court, however, set no date for the final ruling.

Following arguments by the petitioners - the Oil Sector Officers' Association and the Centre for Public Interest Litigation - and the respondent, the Government, a bench comprising Mr Justice S. Rajendra Babu and Mr Justice G. P. Mathur reserved its verdict.

Senior Advocate Mr Fali S. Nariman represented the association and Mr Shanti Bhushan batted for Centre for Public Interest Litigation.

``Can the executive by its order reverse the two enactments of Parliament nationalising the oil sector companies,'' Mr Nariman said.

He argued that the Balco judgment of the Supreme Court allowing disinvestment of the then PSU did not apply to HPCL and BPCL as the aluminium company was not set up by an act of Parliament.

He said in a Parliamentary system, Government must follow norms and approach Parliament to either repeal the Nationalisation Act or amend it suitably so that it can sell its shares in HPCL and BPCL.

Appearing on behalf of the Government, Mr Harish Salve argued that the Nationalisation Act did not prohibit the Government from selling shares as the law is one for all public sector undertakings.

All the public sector undertakings enjoy the same right under the Companies Act and the Nationalisation Act did not specifically bar the Government from lowering its stake as was provided in the nationalisation statutes for banks and coal mines, he argued.

He said under the Act for nationalisation of banks and coalmines, it was specifically provided in the legislation that Central Government shall hold, at all times, 51 per cent of the paid-up share capital.

According to Mr Salve, the HPCL and BPCL were acquired from the assets of Caltex and Esso. However, the main assets came through merger and not through nationalisation.

The present shape of the two companies bore no resemblance to their predecessors and these two companies had sold refineries on their own to private parties. When the companies had sold refineries to private parties, where is the bar for the Government to sell its shares in these two companies, he argued.

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