BANGALORE: A Division Bench of the Karnataka High Court on Tuesday stayed the order of a single judge directing issue of show-cause notice to Principal Secretary of the Department of Commerce and Industries Lakshmi Venkatachalam.

A single judge had pulled up the State Government for failing to comply with his earlier order on placing before the court Cabinet records pertaining to the closure of the New Government Electric Factory (NGEF) in Bangalore.

The single judge, who is presiding over the liquidation proceedings of the NGEF, had ordered issue of show-cause notice to Ms. Venkatachalam asking why action should not be taken against her for deliberate inaction on the court order of December 22, 2005, seeking the production of Cabinet records on the decision taken by the previous government to close down the NGEF.

The single judge had terminated the auction proceedings of NGEF assets and given time till March 16, 2006 to the State Government to submit a comprehensive revival package. It had directed the State to place before it the Cabinet note and proceedings, and the names and addresses of ministers and officials of the previous Government who were a party to the decision to wind up the NGEF. The names and addresses of those in the current government who had sought to revive the unit were also sought.

The State appealed against the single-judge order and said the issue of show-cause notice to the Principal Secretary and the direction to seek Cabinet records were beyond the jurisdiction of a company court. The directions were based on assumptions, it said.

The State said its decision to prefer an appeal before an appellate court does not mean the court order has been disobeyed. It wanted the show-cause notice to be quashed.

A Division Bench, comprising Justice P. Vishwanath Shetty and Justice N. Kumar, stayed the single-judge order.

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