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Supreme Court of India 2022-01-31 allowed

National High Speed Rail Corporation Limited vs Montecarlo Limited & Anr

Bench: 2 — M.R. Shah, A.S. Bopanna

In Brief

The Supreme Court upheld the rejection of a contractor's technical bid in the JICA-funded Mumbai-Ahmedabad High Speed Rail project by the National High Speed Rail Corporation Limited (NHSRCL). The contractor challenged the rejection, arguing the evaluation was discriminatory and that confidentiality clauses unfairly prevented early disclosure of reasons. The Court held that in foreign-funded sovereign projects with non-negotiated terms set by the financing country, judicial review is narrower than domestic contracts. The JICA consultant's decision to reject the bid as non-compliant was binding on NHSRCL. Confidentiality clauses are justified to prevent mid-process litigation that delays critical infrastructure. Courts must exercise restraint, as unwarranted delays harm national interest and future foreign investment.

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Government Contracts Tender and Procurement Judicial Review Administrative Law Foreign Funded Projects Infrastructure Development Public Works Contract Law Civil Procedure Article 226 Jurisdiction

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