Legal Development in Nepal

Case in Supreme Court on Upper Karnali Hydroelectric Project

I read a news here published by kantipur and for me, this news is deeply annoying and frustrating. I feel that the court must have outrightly rejected the petition citing without merit on the petition. The matter relates to a contract awarded to an Indian Company by the government of Nepal after a competitive bidding process.
As per the news report, the petitioners have claimed in their petition that the contract awarded to the Indian Company is violative of constitution as water, as a natural resources, have been passed to foreign alien without any ratification by the parliament.
The claim of the petitioners is as follows:
B.C. and Rawal moved the court with a Public Interest litigation (PIL), accusing the government of violating Article 156 (1) (2) (D) and (3) of the Interim Constitution while awarding the project to GMR early this year.

They argued that the constitutional provisions require an approval from a two-third majority of the lawmakers in the parliament prior to inking any agreement on natural resources, but the Upper Karnali agreement was signed without meeting the constitutional requirements.

For me, it is simply the abuse of process of law by the petitioners or lack of knowledge of globalised commercial law. What we should understand here is that this is just a commercial contract between government and another party. And, there will be enough safeguards in the contractual agreements between the parties. There are obviously terminating clause in the contract that take care of any such situation when our natural resources are affected. There is no need of making hue and cry and to show nationalistic feelings. We should understand that government has not sold our territory, nor handed over any land/water to the foreigners. It is in plian legal language a lease-in word as well as in substance. There, what is the need of creating obstacles. If we start taking narrow approach, then, it really hampers our development.

“One simple question to petitioners: Are they going to file Public Interest Litigation (PIL) against government for not making dam and not obstructing the flow of rivers which eventually goes to mix in Bay of Bengal? My learned brothers, please look at there, water-our natural resources- is flowing down to south to foreign land and Our Parliament has not passed any such resolution.”

I feel the petion is plainly vague.

The Supreme Court on Friday issued a show cause notice to the government regarding the latter’s agreement with India’s GMR Energy Ltd on the 300 MW Upper Karnali Hydroelectric Project.
Besides, the Supreme Court said that it would hold a discussion on March 7 on whether the implementation of the agreement should be stayed, as demanded by writ petitioners Gorakh Bahadur B.C of Kalikot and Ram Singh Rawal of Surkhet, while summoning the defendants to be present before it on that day.

B.C. and Rawal moved the court with a Public Interest litigation (PIL), accusing the government of violating Article 156 (1) (2) (D) and (3) of the Interim Constitution while awarding the project to GMR early this year.

They argued that the constitutional provisions require an approval from a two-third majority of the lawmakers in the parliament prior to inking any agreement on natural resources, but the Upper Karnali agreement was signed without meeting the constitutional requirements.

Justice Balram KC passed the order after an initial hearing on Friday.

Office of the Prime Minister, Ministry of Water Resources, Ministry of Environment, Science and Technology, Ministry of Finance, Parliamentary Committee on Natural Resources and Means, Parliamentary Finance Committee and Department of Electricity Development have been made defendants in the case.

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  1. […] You remember, in this blog post, I had expressed my annoyance in a way PIL was filed as in my opinion, the petitioners are not able […]


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