New Delhi: In a case pertaining to Mumbai-Ahemdabad High-Speed Rail, known as the Bullet Train project, the Supreme Court has held that no entity, even if its Republic of India can deviate from the terms and conditions set in foreign-funded investments as the foreign investor has agreed to fund a huge amount in the project. "The ultimate decision rests on the concerned parties, who finance/invested in the project," said the court.
The bench comprising of Justice MR Shah and Justice AS Bopanna gave the observations while setting aside a Delhi High Court judgment wherein National High-Speed Rail Corporation(NHSRCL) was directed to consider the bid of Montecarlo Limited for construction and development in a depot of Bullet train. The company's bid was rejected by the Japan International Cooperation Agency(JICA), Japan's investment agency, on the ground that the bid was nonresponsive.
The court was dealing with the question of whether the interference of the High Court was justified in respect to such foreign-funded investment in absence of any allegations of mala fide or favoritism.
The court held that "when a conscious decision has been taken by the JICC/JICA the same was not required to be interfered by the High Court lightly and when such a decision of the high court would have a cascading effect on such a funded Megaproject".
The court observed that the scope of judicial review in such foreign projects is far less than the ordinary government-funded project which is funded from the Consolidated Fund of India. It said that the only ground for judicial review in such cases should be allegations of mala fide or favoritism which if disclosed would lead to cancellation of the contract.
"Any deviation by the appellant or Government of India may not be acceptable by JICA, who has agreed to fund a huge sum of approximately Rs 1 lakh crores for the Bullet Train Project, which was founded on the terms and conditions agreed between the JICA and the Republic of India/Hon'ble the President of India. It is ultimately for the JICC/JICA to take a decision whether the bid submitted by a particular bidder is responsive or not and/or complaint or not to the technical requirements of the Bidding Documents," read the order.
The court said that the High Court should have appreciated the Bullet Train Project which is a result of long-drawn deliberations between India and Japan.
Citing an earlier judgment of the court, the court said that it has to be kept in mind how difficult it is for a developing nation to go ahead with such a high-cost project without a developed country's loan or subsidy especially at a minimal concessional rate of interest and on suitable terms and conditions of repayment.
"It is also to be noted that any delay in execution of such Megaproject which is very important for the developing country like India may not be in the larger public interest and in the nation's interest. Such interference by the courts midway and delay in the projects like these which are funded by the foreign countries on bilateral mutual understanding agreement by the developed country to a developing country may affect the future investments funding. Many a time, such a delay in the execution of the project due to intervention by the courts may have a cascading effect on the project cost and ultimately may increase the project cost and may impose a heavy financial burden and lead to increased and on budget expenditure," held the top court.
