Delhi HC Rejects PIL Challenging Ordnance Factory Board’s Conversion Into Corporations

The Delhi High Court has recently rejected a PIL challenging the conversion of the Ordnance Factory Board into 7 corporations by the Centre, asserting that the transformation was aligned with national interests.

A bench led by Chief Justice Satish Chandra Sharma, in a ruling issued on Friday, affirmed that the corporatization of OFB was executed in the nation’s interest to strengthen defence production. This was achieved by ensuring high-quality products and a consistent supply of arms and ammunition to the armed forces.

The court, dismissing the petition by Bharatiya Pratiraksha Mazdoor Sangh, contended that there was no basis for interference, highlighting that policy-making authority rested solely with the executive branch and that this action did not infringe upon citizens’ constitutional rights.

The bench of Justice Sanjeev Narula stated that, “The policy framed by Government of India is in national interest keeping in view the defence requirements, and therefore, the question of interference by this court does not arise. The policy decision in the present case, by no stretch of imagination, is violative of Article 21 nor any other constitutional provision.”

The court opined, “This court does not find any reason to interfere with the policy decision of the Government of India especially in light of the fact that the interest of the employees has already been protected. Therefore, no case for interference is made out in the present case. The petition is, accordingly, dismissed.”

In 2021, the defense ministry dissolved OFB effective from October 1, transferring its assets, personnel, and management to seven public sector units.

As part of the “Atmanirbhar Bharat” (self-reliant India) package, the central government announced that it would improve autonomy, accountability and efficiency in ordnance supplies by corporatisation of the OFB.

OFB, a defense ministry entity, supplied crucial arms and ammunition to the armed forces and paramilitary.

The court’s 26-page ruling acknowledged that the shift from a government department to a public sector entity was proposed by various committees established by past governments. This measure was intended to elevate self-reliance in defense readiness.

The court further noted that during this process, the government ensured that the service conditions of existing OFB employees were protected as central government employees following the conversion that “aimed to enhance functional autonomy, efficiency and unleash new growth potential and innovation in ordnance factories”.

The court stated, “The re-structuring is also aimed at transforming the ordnance factories into productive and profitable assets, deepen specialisation in product range, enhance competitiveness, improving quality and cost efficiency. It is a policy decision of the Government of India in national interest.”