The Delhi High Court has held that the World Bank is not a 'Government agency' for the purposes of Article 12 of the Constitution, which defines "State” and "other authorities".
Brief Facts
The NDMC rejected the petitioner’s bid while disqualifying it from participating in any re-tendering process owing to the fact that the petitioner stood debarred by the World Bank and this fact was not disclosed by the petitioner in the undertaking submitted in terms of clause 20(r) of Chapter II of the Request for Proposal (RFP) Document. This clause obligated the petitioner to submit an undertaking that it was not blacklisted/debarred by any Government agency.
Reasoning and Decision fo the Court
The World Bank or any of the other international bodies, which have proceeded to debar the petitioner, cannot be considered as a “Government Agency”. This is for the reason that none of the international bodies are bound by any directions issued by the Government of India.
The Government of India does not exercise control, actual or pervasive, over their affairs and that is why they have been held as not amenable to the writ jurisdiction of the High Court, as they are not considered State or other authority within the meaning of the said expressions under Articles 12 and 226 of the Constitution of India. The court observed that the Clauses 20(r) read with 55 in the tender were penal in nature as they purported to debar the bidder who does not make a disclosure about its debarment by a Government Agency. Therefore, they had to be strictly constructed.
The World Bank cannot be construed as a government agency when generally understood, it is not a government agency. “Government agency”– in the present context, certainly cannot be construed as encompassing within its scope, bodies like the World Bank.
Held
The Bench held that the petitioner cannot be barred from participating in the re-tendering process, unless the respondent amends the terms and conditions of the tender so as to specifically bar all such bidders who have been barred by international bodies, like the World Bank.
Case Details
Case Name: A2Z INFRASERVICES LIMITED & ANR. V. NORTH DELHI MUNICIPAL CORPORATION
Date of Decision: OCTOBER 12, 2021
Bench: VIPIN SANGHI, JASMEET SINGH, JJ.
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