Legal Case Summary

Case Details
Case ID 108cc2fd-dbd6-420c-8764-4ded0619c55b
Body View case body.
Case Number Civil Petition No. 2222 of 2016
Decision Date Oct 25, 2016
Hearing Date Oct 25, 2016
Decision The Supreme Court dismissed the petitioner's request for leave to appeal against the Lahore High Court's decision. The court held that the petitioner company was disqualified from pre-qualification for the Hydropower Project on the River Indus due to the International Development Association's (IDA) directive. The ruling emphasized the importance of adhering to the World Bank Guidelines and the necessity of compliance with the Public Procurement Rules, 2004. The court found that the decision-making process by WAPDA was not arbitrary and reflected a pragmatic commercial decision to avoid jeopardizing the project's funding. The court upheld the principle of judicial restraint in matters of public policy, affirming that the courts typically do not interfere in such decisions.
Summary In the case of Civil Petition No. 2222 of 2016, the Supreme Court of Pakistan addressed a significant dispute involving the pre-qualification of contractors for a Hydropower Project on the River Indus. The petitioner, Power Construction Corporation of China Ltd., sought to challenge the decision of the Pakistan Water and Power Development Authority (WAPDA) to disqualify it from the bidding process based on a request from the International Development Association (IDA). The court examined the implications of the Public Procurement Rules, 2004, and the Constitution of Pakistan, particularly Articles 184(3) and 199, which govern judicial review and public policy. The court underscored the necessity for compliance with international guidelines, particularly those related to funding from the World Bank, which included conditionalities for the project. The decision by WAPDA not to contest the IDA's directive was deemed a reasonable commercial judgment aimed at safeguarding the project's funding amidst critical power shortages in Pakistan. This case highlights the intricate balance between public policy, international financial guidelines, and the rights of contractors in public procurement processes.
Court Supreme Court of Pakistan
Entities Involved World Bank, International Development Association
Judges ANWAR ZAHEER JAMALI, CHIEF JUSTICE, AMIR HANI MUSLIM, JUSTICE, SH. AZMAT SAEED, JUSTICE
Lawyers Salman Aslam Butt, Senior Advocate Supreme Court, Mehr Khan Malik, Advocate-on-Record (absent), Shahzada Mazhar, Advocate Supreme Court, Ch. Akhtar Ali, Advocate-on-Record, Muhammad Waqar Rana, Addl. Attorney General
Petitioners MESSRS POWER CONSTRUCTION CORPORATION OF CHINA LTD. THROUGH AUTHORISED REPRESENTATIVE
Respondents PAKISTAN WATER AND POWER DEVELOPMENT AUTHORITY THROUGH CHAIRMAN WAPDA AND 2 OTHERS
Citations 2017 SLD 432, 2017 PLD 83
Other Citations Asia Foundation and Construction Ltd. v. Trafalgar House Construction (I) Ltd. and others [(1997) 1 SCC 738], Dr. Akhtar Hassan Khan and others v. Federation of Pakistan and others 2012 SCMR 455, Dossani Travels Pvt. Ltd. and others v. Messrs Travels Shop (Pvt) Ltd. and others PLD 2014 SC 1, Suo Motu Case No.25 of 2009 (2011 SCMR 1743)
Laws Involved Public Procurement Rules, 2004, Constitution of Pakistan, 1973
Sections 5, 184(3), 199