New Delhi April 26:
The Supreme Court sent for mediation Punjab Government’s suit seeking quashing of the Centre’s orders granting duty and tax exemptions/concessions and other incentives to the industrial units in Jammu and Kashmir, Himachal Pradesh and Uttarakhand.
Punjab filed the original suit in 2009 contending that its existing industrial units were moving out to the three neighbouring states, as the Centre was not offering any such benefits to the units within the state. The discrimination, which was in violation of Articles 14, 19 and 303 of the Constitution, had crippled Punjab’s industrial growth and resulted in a “huge flight of capital from Punjab to the neighbouring tax exempted states,” it has been contended in the suit.
The state has sought the quashing of the Centre’s relevant Office Memoranda dated June 14, 2002, and January 7, 2003, declaring them to unconstitutional and ultra vires. A Bench, comprising Justices Markandey Katju and Gyan Sudha Misra, passed an order sending the matter for mediation. “We are of the opinion that an effort should be made to resolve the dispute between the parties through mediation.
Hence, we refer the dispute to the joint mediation by two mediators, namely, JP Singh and Sadhna Ramachandran, learned Senior Advocates of the Delhi High Court, who are two of the foremost experts in mediation in the country,” said the Bench in the order. The two senior advocates would “mediate jointly. Each of them may appoint one co-mediator of their choice to assist them. The mediators may fix the terms of emoluments of their own and of the co-mediators after consultation” with the Centre and the four state governments, said the SC.
The mediators would fix the time, places and dates on which the parties would appear before them. The mediation proceedings would be “entirely confidential” and the suit would come up before the Bench after the mediators’ report was available, the apex court ruled. However, the Bench has not fixed any deadline for the mediators to submit their report. The SC noted that the Punjab Chief Minister had made representations to the Prime Minister and the Union Ministers for Finance and Commerce and Industry, drawing their attention to the fact that the incentives granted to the adjacent states were having an adverse impact on Punjab.
The Punjab Vidhan Sabha also passed a resolution on April 1, 2003, urging the Centre to provide similar incentives to the industrial units in Punjab. However, the Union Commerce and Industry Minister wrote to the state government subsequently stating that “it is not possible” to extend such benefits to Punjab.
The Supreme Court sent for mediation Punjab Government’s suit seeking quashing of the Centre’s orders granting duty and tax exemptions/concessions and other incentives to the industrial units in Jammu and Kashmir, Himachal Pradesh and Uttarakhand.
Punjab filed the original suit in 2009 contending that its existing industrial units were moving out to the three neighbouring states, as the Centre was not offering any such benefits to the units within the state. The discrimination, which was in violation of Articles 14, 19 and 303 of the Constitution, had crippled Punjab’s industrial growth and resulted in a “huge flight of capital from Punjab to the neighbouring tax exempted states,” it has been contended in the suit.
The state has sought the quashing of the Centre’s relevant Office Memoranda dated June 14, 2002, and January 7, 2003, declaring them to unconstitutional and ultra vires. A Bench, comprising Justices Markandey Katju and Gyan Sudha Misra, passed an order sending the matter for mediation. “We are of the opinion that an effort should be made to resolve the dispute between the parties through mediation.
Hence, we refer the dispute to the joint mediation by two mediators, namely, JP Singh and Sadhna Ramachandran, learned Senior Advocates of the Delhi High Court, who are two of the foremost experts in mediation in the country,” said the Bench in the order. The two senior advocates would “mediate jointly. Each of them may appoint one co-mediator of their choice to assist them. The mediators may fix the terms of emoluments of their own and of the co-mediators after consultation” with the Centre and the four state governments, said the SC.
The mediators would fix the time, places and dates on which the parties would appear before them. The mediation proceedings would be “entirely confidential” and the suit would come up before the Bench after the mediators’ report was available, the apex court ruled. However, the Bench has not fixed any deadline for the mediators to submit their report. The SC noted that the Punjab Chief Minister had made representations to the Prime Minister and the Union Ministers for Finance and Commerce and Industry, drawing their attention to the fact that the incentives granted to the adjacent states were having an adverse impact on Punjab.
The Punjab Vidhan Sabha also passed a resolution on April 1, 2003, urging the Centre to provide similar incentives to the industrial units in Punjab. However, the Union Commerce and Industry Minister wrote to the state government subsequently stating that “it is not possible” to extend such benefits to Punjab.
