CENTRE FOR PUBLIC INTEREST LITIGATION vs UNION OF INDIA

The Supreme Court ruled that the government's decision to sell majority shares in Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) without Parliamentary approval violates the provisions of the ESSO (Acquisition of Undertaking in India) Act, 1974, the Burma Shell (Acquisition of Undertaking in India) Act, 1976, and the Caltex (Acquisition of Shares) Act, 1977. The Court emphasized that these statutes mandate that the oil distribution business must remain under state control to serve the common good, and disinvestment without amending or repealing these laws is impermissible. Consequently, the Court restrained the government from proceeding with the disinvestment of HPCL and BPCL.