Otis Elevator Company (India) Ltd. v. Union of India
Case brief
What is this about?
Madras High Court Division Bench (S.M. Subramaniam & K. Rajasekar JJ.), 11-03-2025, WA Nos. 2026 & 2028 of 2024 and WP No. 21995 of 2024, neutral citation 2025:MHC:1036. OTIS Elevator Company (India) Limited v. Union of India, State of Tamil Nadu, Chennai Metro Rail Limited (CMRL) and JICA. Writ appeals against dismissal of challenge to Chennai Metro Rail Project (Phase-2) tender eligibility criteria derived from the JICA Loan Agreement dated 21.12.2018 (Japanese ODA loan; Guidelines for Procurement under Japanese ODA Loans; Schedule 4 Procurement Procedure, Section 2 Eligible Nationality; minimum 75% sourcing from Japanese manufacturers; Japanese company shareholding condition) and writ petition seeking declaration that those agreement terms violate Articles 14, 19(1)(g), 21, 298, 299 of the Constitution and Section 27 of the Indian Contract Act, 1872 — all dismissed; miscellaneous petitions closed; no costs. Judicial review under Article 226 held unavailable over bi-national contract terms where JICA is not a party; scope limited to implementation; arbitrariness must be apparent and factually established. Precedents: National High Speed Rail Corporation Limited v. Montecarlo Limited, (2022) 6 SCC 401 (applied); Arun Kumar Agrawal v. Union of India, CDJ 2013 SC 417 (relied on); inner citations within quoted extracts: State of M.P. v. Nandlal Jaiswal, (1986) 4 SCC 566; Morey v. Dond, 354 US 457; Metropolis Theatre Co. v. State of Chicago, 57 L Ed 730.