The government could not initiate the disinvestment process without amending or repealing the Indian Copper Corporation (Acquisition of Undertaking) Act, 1972, because the company was a created by an Act of Parliament, the petition argued.
The executive had no power to amend the law. The Supreme Court must follow its recent decision in the petroleum companies case, it added.
The petition was moved before the same Bench that had delivered the earlier decision. It comprises Justice Rajendra Babu and Justice GP Mathur. The Bench had said parliamentary approval was mandatory in the case of an undertaking, a created by an Act.
HCL has an authorised share capital of Rs 800 crore divided into 600 million equity shares of Rs 10 each and 2 million preference shares of Rs 1,000 each. It recorded a turnover of Rs 945 crore for the 18-month period ended March 31, 2001.
The disinvestment department had on July 13, 2001, issued an office memorandum detailing guidelines for qualification of bidders seeking to acquire stakes in public sector undertakings.
The government has since issued a notification for the strategic sale of 98.95 per cent shareholdings of HCL. The transaction agreements for disinvestment have been finalised and the financial bids will be invited from qualified parties.
These steps were arbitrary and unconstitutional and against the law laid down by the Supreme Court, the petition said.
The government had earlier tried to reopen the HPCL-BPCL judgment in a petition by the Jessop Officers' Association. The Bench headed by Chief Justice VN Khare has issued two weeks' notice to the association for its response.
