Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Writ petition contracts |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Constitution of India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 |
Case Type | Writ Petition |
Court | Supreme Court of India |
Disposal Nature | Petition Dismissed |
Headnote | CONSTITUTION OF INDIA, 1950: Art. 32 - Writ petition challenging approval granted by Government of India for acquisition of majority stake in CIL and for a direction to ONGC to exercise its right of preemption over sale of shares of CIL - Held: The decision taken by ONGC not to exercise its RoFR was taken after elaborate and due deliberations - ONGC and Government of India have considered various commercial and technical aspects flowing from PSC and also its advantages that ONGC would derive if the Cairn and Vedanta deal was approved - Court cannot sit in judgment over the commercial or business decision taken by parties to the agreement after evaluating and assessing its monetary and financial implications, unless the decision is in clear violation of any statutory provisions or perverse or for extraneous considerations or improper motives -On facts, as well as on law, ONGC and Government of India have taken a prudent commercial and economic decision in public interest - It cannot be said that the decision is mala fide or actuated by any extraneous or irrelevant considerations or improper motive - Public interest litigation. Arts. 298 and 299 - Power of Union or States to carry on trade and to enter into contracts - Held: State and its instrumentality can enter into various contracts which may involve complex economic factors - State or State undertaking being a party to a contract, have to make various decisions which they deem just and proper - There is always an element of risk in such decisions - But if the decision is taken bona fide and in public interest, the mere fact that decision has ultimately proved to be a wrong one, that itself is not a ground to hold that the decision was mala fide or taken with ulterior motives. Art. 151 - Reports of Comptroller and Auditor General of India - Status of - Explained - In the instant case, it is factually and legally incorrect to suggest that any exploration carried out beyond the stated date was beyond the provision of PSC- CAG·'s views on that aspect cannot be accepted - Comptroller and Auditor General's (Duties, Powers and C Conditions of Service) Act, 1971 - ss. 10, 13 and 16.PUBLIC INTEREST LITIGATION: Writ petition - Held: In the instant case, writ petition was · filed without appreciating or understanding the scope of the decision or the decision making process concerning economic and commercial matters which gives liberty to State and its instrumentality to take appropriate decision after weighing advantages and disadvantages of the same - Constitution of India, 1950 - Art.32. In the instant petition filed in public interest, the petitioner challenged the approval granted by the Government of India on 24.1.2012 for acquisition of majority st:ake in Cairn India Limited (CIL) and for a direction to Oil and Natural Gas Corporation of India (ONGC) to exercise its right of pre-emption over of shares of CIL on the same terms without causing any loss or profit to Cairn Energy as also for a direction to CBI · to investigate the reasons for ONGC in not exercising its rights unider Right of First Refusal (RoFR) and giving clearance to CAIRN-Vedanta Deal on the basis of the existing right to share the royalty and cess on pro-rata basis. It was contended for the appellant that, but for the decision, the State Exchequer would have benefited to the tune of Rs.1,00,000 crores. It was also contended that the Government has unlawfully granted extension to CIL for carrying out exploration activities beyond the period framed by Rajasthan Block Production Sharing Contract (PSC), which was commented upon by the Comptroller and Auditor General of India (CAG). |
Judge | Hon'ble Mr. Justice K.S. Panicker Radhakrishnan |
Neutral Citation | 2013 INSC 330 |
Petitioner | Arun Kumar Agrawal |
Respondent | Union Of India & Others |
SCR | [2013] 3 S.C.R. 508 |
Judgement Date | 2013-05-09 |
Case Number | 69 |
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