Supreme Court Clarifies: Writ Petitions Not Applicable to Formerly Public Companies After Privatization.
Imagine you used to work for a government-run airline. After years of service, you face an employment issue and decide to fight it in court. But what happens if, during your legal battle, the airline gets privatized? This is the question a recent Supreme Court case explored.
The court ruled that a writ petition, a powerful legal tool in India, cannot be used against a private company that was previously a government undertaking. This applies even if the legal dispute arose when the company was still public.
Why Can't You Sue a Private Company?
Generally, writ petitions target the government or entities acting on its behalf. Private companies typically operate outside this scope. There are exceptions, though. For instance, a private company might be subject to a writ petition if it performs a public function like managing essential utilities.
The Airline Case: Public to Private and Out of Reach
In this case, employees of a former government airline challenged their termination through a writ petition. However, by the time the court reached a decision, the airline had been privatized. The court held that since the company was no longer a government entity or performing a public function, the writ petition wasn't maintainable.
Delay Doesn't Change the Game:
The court also clarified that delays in resolving the case wouldn't alter the situation. Even if the company remained public during the entire legal process, it wouldn't be subject to a writ petition after privatization. The court acknowledged the employees' predicament and highlighted that their legal rights weren't extinguished. They could still pursue remedies through alternative forums like civil courts, considering the limitation period for such cases.
Key Takeaways:
- Private companies are generally immune to writ petitions.
- Even a company's past as a government entity doesn't make it subject to writs after privatization.
- Delays in court proceedings won't change the maintainability of a writ petition.
- Alternative legal options might still be available in such situations.