Alka Verma-
Published On: October 23, 2021 at 12:30 IST
The Delhi High Court has observed that the World Bank cannot be defined as a ‘Government Agency’ within the ambit of Article 12 of the Constitution of India.
A Division Bench comprising Justices Vipin Sanghi and Jasmeet Singh observed that to be called a Government agency, it is mandatory for a body to be in the actual control of the Government of India.
The Bench also observed that in such Cases the principle of Principal and Agent would be Implied.
“We are of view that World Bank or any other international bodies cannot be considered as a Government agency. This is for the reason that none of these International bodies are bound by Directions issued by the Government of India,” stated the Bench.
Adding to this, the Bench stated, “The Government of India does not exercise control over, actual or pervasive, their affairs and that is why they have been held as not amenable to writ jurisdiction of the High Court, as they are not considered State or other authority within meaning of the said expressions under Articles 12, and 226, of the Constitution of India.”
The Bench observed this while it was Hearing a Writ Petition filed a person challenging an Order of North Delhi Municipal Corporation.
The North Delhi Municipal Corporation in its decision denied the bid of the Petitioner and also Disqualified from taking part in any Re-Tendering Process.
The NDMC made the Decision just because the Petitioner’s stand was banned by the World Bank.
Senior Counsel Rajiv Nayar who was appearing for the Petitioner Argued that such ban the World Bank Group does not mean that the same ban has to be issued by Government of India.
Nayar also gave reference of Delhi High Court’s decision in M/S Gvr Infra Projects Limited v. Union of India & Anr. where it was held that the World Bank can’t be treated as State or Central Government controlled agency.
On the other side Counsel Mini Pushkarna contented that the World Bank has representatives of India which includes the Union Finance Minister as well as the Government of India has voting Rights in the World Bank.
However, the Bench told the Respondents, “When you say Government agency, it means an agent of the Government. It is an extended limb of the Government. By any stretch of imagination, you can can’t say that World Bank is an extended arm of India.”
At the end the Court held that the Petitioner cannot be banned just because he is already banned by any International body.
Click here to read/download the Order
Also Read: Article 12 – What does the Indian Constitution mean by ‘State’?