High Courts Should Show Judicial Restraint In Interfering With Tender Process Of Foreign Funded Mega Projects: Supreme Court

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High Courts Should Show Judicial Restraint In Interfering With Tender Process Of Foreign Funded Mega Projects

Case: National High Speed Rail Corporation Limited v. Montecarlo Limited And Anr.

Corum: Justice M.R. Shah and A.S. Bopanna

Case No.: Civil Appeal No. 6466 of 2021

Court Observation: “Before entertaining the writ petition with respect to such Mega projects funded by the foreign countries, one has to appreciate that funds of such Mega projects by the foreign country is followed by a detailed discussion between the Prime Ministers of both the countries and to strengthen bilateral cooperation in the rail sector. The foreign country is ready to invest/fund such a huge amount on non- negotiated terms and the Bid Documents are prepared by the foreign financial agency/country in accordance with the latest version of the Standard Bidding Documents. These investments from developed nations are made on the basis of non-negotiated terms and conditions, where the sole discretion as to what would be the conditions of the investments and on what terms the contractors would be chosen to implement the project, vests with the investor foreign developed nation. Considering the special peculiarities of such foreign sovereign funded development contracts, which can be envisaged and exist only due to the availability of the investment and willingness of the foreign sovereign country to finance such infrastructure project, the said contracts assume the different characteristics. Therefore, there shall be different considerations so far as the judicial interference is concerned between the foreign funded contracts and the ordinary public works contracts funded from public exchequer.”

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Keywords

Judicial Restraint, Tender Process, Foreign Funded Mega Projects