New Delhi, Sept 05: Supreme Court today reserved its order on petitions challenging the Union Government's decision to privatise oil sector PSUs BPCL and HPCL. A bench comprising Justice S Rajendra Babu and G P Mathur reserved its verdict on the two petitions after hearing senior advocates Fali S Nariman and Shanti Bhushan for the petitioners and senior advocate Harish Salve for Union Government.

Nariman, appearing for oil sector officers association, said government cannot disinvest in HPCL and BPCL, which were nationalised by a legislation enacted in Parliament.

"Can the executive by its order reverse the two enactments of Parliament nationalising the oil sector companies," Nariman contended.
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.

He said that the Balco judgement of the supreme court does not apply to HPCL and BPCL as the aluminium company was not acquired by an act of Parliament.

Bureau Report