New Delhi: The Supreme Court today (Nov 7) issued notices to the Union Ministries of Finance and Disinvestment on a petition challenging the Centre's decision to initiate the process for privatisation of public sector undertaking (PSU) Hindustan Copper Ltd (HCL).

A Bench comprising Justice S Rajendra Babu and Justice G P Mathur, while issuing notices, directed the matter to be tagged along with another petition challenging privatisation of railway coach manufacturing company Jessop and Company.

The petition filed by four labour unions active in HCL alleged the PSU was created by an Act of Parliament in 1972 and hence it cannot be privatised by an executive permission.

Drawing a parallel with the case of privatisation pertaining to oil PSUs Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL), the petitioners said that to privatise PSUs created by a legislation, the Government had to first take permission from Parliament or repeal the law.

In a recent decision given by the same Bench, the apex court had halted the privatisation process initiated by the Government for the two oil PSUs, saying it cannot be done through an executive order as they were created by legislation.

The petitioners stated that HCL was created by the Indian Copper Corporation (Acquisition of Undertaking) Act, 1972 and was a profit making company till 1996.

PTI