(a) whether the Calcutta High Court has cleared the disinvestment of Jessop Company limited; and
(b) if so, the details thereof?
(a) whether the Calcutta High Court has cleared the disinvestment of Jessop Company limited; and
(b) if so, the details thereof?
MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY AND MINISTER OF DISINVESTMENT (SHRI ARUN SHOURIE)
(a) Yes, Sir.
(b) Jessop & Co. Ltd. Staff Association filed a writ petition in the Kolkata High Court against the decision
of the Government to disinvest 72% equity in Jessop & Co. Ltd. The Single Judge Bench of Kolkata High Court,
in March 2003, upheld that Jessop & Co. Ltd. does not fall within the category of `strategic sector` and hence, that
the Government of India can disinvest majority stake in Jessop & Co. Ltd. The Hon`ble Single Judge Bench however, set
aside the decision of the Government to sell 72% equity to M/s. Ruia Cotex Ltd. (consortium) on certain procedural
issues. Against the above judgement of the Kolkata High Court, Government of India filed an appeal before the Division
Bench of the Kolkata High Court in May 2003. This appeal was disposed off by the Division Bench of Kolkata High Court
vide their judgement dated 8.7.2003. The Division Bench in its judgement has upheld that Jessop & Co. Ltd. does not fall
within the category of `strategic sector` and hence, that the Government of India can divest 72% equity in
Jessop & Co. Ltd. The Division Bench also approved the sale of 72% equity in favour of M/s. Ruia Cotex Ltd. (consortium)
and concluded that the process and the procedures followed by Government of India were transparent. The Division Bench
of Kolkata High Court rejected the prayer for stay of the judgement sought by the Jessop & Co. Ltd. Staff Association.
Jessop & Co. Ltd. Staff Association has filed a Special Leave Petition (SLP) before the Hon`ble Supreme Court. No stay
has been granted by the Supreme Court.