PUNJAB AND HARYANA HIGH COURT, CHANDIGARH. *** CWP NO. 8592 OF 2006. (O&M) Date of Decision: Feb. 10, 2009 *** Sarabjit Singh Versus State of Punjab and others. *** CORAM: Hon'ble Mr. Justice T.S.Thakur, CJ and Hon'ble Mr. Justice Hemant Gupta. *** Present: Shri R.S.Bains, Advocate, for the petitioner. Shri Amol Rattan Singh, Addl: A.G. with Ms. Sonu Chahal, DAG, Punjab. Shri Ashok Aggarwal, Sr. Advocate, with Shri Nilesh Bhardwaj, Advocate for R-No.3. Shri Vikas Suri, Advocate, for respondent No.4. Shri B.S. Walia, Advocate, for non-applicant No.2. *** T.S.Thakur, CJ (Oral) This petition has been filed in public interest. It prays for a mandamus directing the respondents to recover the amount of debt recoverable from profit making companies. A declaration that One Time Settlement granted in favour of such profit making companies/corporations is illegal bad and a fraud on the public has also been prayed for, apart from mandamus directing handing over of the investigation of the case to an independent investigating agency to go into the circumstances in which the benefit of One Time Settlement was granted to such companies/corporations. Mr. Amol Rattan Singh, counsel appearing for the State of Punjab has today filed an affidavit sworn by Shri S.S.Khara, Additional Secretary, Department of Industries and Commerce to Government of Punjab, Chandigarh. A reading of the said affidavit shows that the Government have reconsidered the matter regarding the grant of one time settlement to the profit making companies/corporations. The Council of Ministers has, in its meeting held on 2.12.2008, decided that there was no justification to grant OTS to profit making CWP NO. 8592 OF 2006. (O&M) -2- companies and accordingly, it has been decided to withdraw the OTS offer given to the Collaborators / Promoters of such companies. A notification regarding amendment of the existing policy under clause 9.3 of the Industrial Policy 2003 has also been issued, a copy whereof has been enclosed as Annexure “A” to the affidavit. The affidavit goes on to state that the Punjab Industrial Development Corporation Limited has been directed to take follow up action based upon the decision taken by the Council of Ministers in its meeting on 2.12.2008. Mr. Singh submits that in the light of the said decision, nothing further survives for consideration of this Court. Mr. Bains, learned counsel appearing for the petitioner however submits that the grant of One Time Settlement (OTS) to profit making companies was itself a fraud on the public and violative of the Constitution. He submits that this Court can direct an investigation into the circumstances that led to the grant of One Time Settlement to profit making companies/corporations. Mr. Aggarwal, learned Senior Counsel appearing for respondents No. 3 and 4, on the other hand submits that there is no basis even prima facie to assume that a fraud had been committed on the public by the One Time Settlement originally conceived under the said scheme. He further submits that respondents No. 3 and 4 are in any case non-profit making companies. He urged that the One Time Settlement was granted not to the companies but to the promoters or the collaborators of the companies. He urged that the withdrawal of the One Time Settlement may be open to challenge and that the disposal of this petition should not prevent any party to the said withdrawal challenging the same in an appropriate proceedings. We have given our careful consideration to the submissions made by the learned counsel for the parties. The primary issue that arises for consideration of the Court in these proceedings is whether or not the One Time Settlement Scheme offering equity disinvestment in the Joint Sector/assisted Sector companies promoted by the Punjab State Industrial Development Corporation Limited and Punjab Agro Industries Corporation under Clause 9.3 of the Industrial CWP NO. 8592 OF 2006. (O&M) -3- Policy 2003 was justified and in public interest. That issue is rendered academic on account of the decision of the Government of Punjab taken by the Council of Ministers in its meeting on 2.12.2008 culminating in notification dated 6.02.2009 withdrawing the concession of One Time Settlement to the profit making companies/corporations. In the circumstances, we need not go into the question whether the grant of One Time Settlement was at all violative or against the public interest, as was sought to be urged by Mr. Bains. We are also of the opinion that there is no reason for directing any independent investigating agency to investigate the circumstances leading to the formation of the One Time Settlement Scheme for the grant of benefits to the profit making companies/corporations. For the present we see no reason to assume that there was any fraud involved in the grant of such benefits. We however refrain from expressing any opinion on the subject. The issue can be raised in appropriate proceedings separately if any one is interested in doing so. The present writ petition, along with all other pending applications, is accordingly disposed of as infructuous, reserving liberty to those aggrieved by notification dated 6.02.2009 to question the validity of the same in appropriate proceedings, if so advised. No costs. (T.S.Thakur) Chief Justice (Hemant Gupta) Judge February 10, 2009 Malik