WORLD BANK IS NOT A GOVT. AGENCY FOR THE PURPOSES OF ARTICLE 12: DELHI HIGH COURT
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".
A Division Bench of Justices Vipin Sanghi and Jasmeet Singh in the case of A2Z Infraservices Ltd & Anr. v. NDMC, observed that "to be a government agency, a body must be under "pervasive and actual control" of the Government of India. It also observed that the principle of Principal and Agent would be attracted in such a case.
So far as the World Bank is concerned, the Bench observed,
"We are of the 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. 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 the meaning of the said expressions under Articles 12, and 226, of the Constitution."
Bench orally told the Respondent, "When you say Government agency, it means an agent of the Government. It is an extended limb of the Government. By any stretch of the imagination, you can't say that World Bank is an extended arm of India."
Finally, on the merits of the case, the High Court held that so far as the decision taken by the respondent to cancel the tender and to re-tender the works is concerned, there is sufficient justification for the same.