The Supreme Court turned down the plea by the oil companies for a stay on interim directive issued by the Kerala high court to not withdraw subsidy to bulk diesel consumers holding that the corporation will be on the verge of closure, if diesel was not supplied at subsidized rate. The loss of the KSRTC will directly affect the common man using the public transport system, pointed out the court citing reasons for disagreeing to stay the high court directive.
The court also criticised that operational negligence from the part of authorities as the reason for the heavy financial loss of the KSRTC and pointed out the authorities should rethink about the free journey offered to MPs, MLAs and press persons who belong to financially safe section of the society.
Court at the same time accepted the fact that supply of subsidised diesel to bulk costumers becomes a huge financial burden for the oil companies.
Talking to TOI, State Standing Council Adv. Jojy Skaria, who appeared for KSRTC, said SC suggested both the parties to attempt to come to a consensus in two weeks so as to mitigate loss to all persons involved and directed the oil companies to supply subsidised diesel till the case would be heard after two weeks.
The main argument of KSRTC before Supreme Court bench headed by Justice Lodha was that the heavy financial burden borne by the KSRTC or oil companies should not be placed on shoulders of passengers. The State Standing Council also argued that KSRTC is already suffering severe financial burden and cannot take more.
The oil companies sought a stay of the Kerala high court order on the grounds that a directive by the Tamil Nadu high court asking oil companies to supply subsidised diesel was subsequently stayed by a division bench of the Tamil Nadu court. At the same time, the interim directive by the Gujarat, Andhra Pradesh and Uttarakhand High Courts apart from kerala high court has not been stayed by any division bench.
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