TM16 (P)
TM16 (P)
TM- 16
Before
v.
As submitted to the Hon’ble Chief Justice & other Companion judges of the Hon’ble
Supreme Court of Suvarnadwipa
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TABLE OF CONTENTS
STATEMENT OF JURISDICTION...................................................................................... ix
PRAYER ................................................................................................................................. 22
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LIST OF ABBREVIATIONS
ABBREVIATION WORD
¶ Paragraph
ADR Alternative Dispute Resolution
AIR All India Reporter
Art. Article
cl. clause
Consti. Constitution
Ed. Edition
Govt. Government
Hon’ble Honorable
ICESCR International Covenant on Economic, Social and Cultural Rights
JV Joint Venture
MoU Memorandum of Understanding
MP MantraTech Ports
Ors. Others
PSU Public Sector Undertaking
SACA Suvarnadwipa Arbitration and Conciliation Act
SC Supreme Court
SCC Supreme Court Cases
SCR Supreme Court Reports
Sec./§/S. Section
SPPLA Suvarnadwipa Public Procurement Litigation and Adjudication Act
SPSDR Suvarnadwipa Public Sector Dispute Resolution Act
SPT Suvarnadwipa Port Trust
UOI Union of India
UP Uttar Pradesh
v. versus
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INDEX OF AUTHORITIES
CASE LAWS
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ARTICLES
BOOKS
OTHER SOURCES
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STATEMENT OF JURISDICTION
The Petitioners, MantraTech Ports (MP) have approached this Hon’ble Supreme Court of
Suvarnadwipa under Article 32 of the Constitution of Suvarnadwipa1 challenging the
constitutional validity of the Suvarnadwipa Public Procurement Litigation and Adjudication
Act (SPPLA), 2024 asserting that it violates various fundamental rights guaranteed under the
Constitution of Suvarnadwipa. The Petitioners contend that this Act infringes upon their rights,
necessitating immediate judicial intervention to uphold the constitutional mandate.
1. If other petitions were pending in the Supreme Court: Power under Article 1422 has
been used to club the petitions; or
2. If other petitions were pending in various High courts of Suvarnadwipa: Power under
Article 139A3 has been used to club the petitions.
1
Article 32: Remedies for enforcement of rights conferred by this Part-
(1) The right to move the SC by appropriate proceedings for the enforcement of the rights conferred by this Part
is guaranteed.
(2) The SC shall have power to issue directions or orders or writs, including writs in the nature of habeas corpus,
mandamus, prohibition, quo warranto and certiorari, whichever may be appropriate, for the enforcement of any
of the rights conferred by this Part.
(3) Without prejudice to the powers conferred on the SC by clause (1) and (2), Parliament may by law empower
any other court to exercise within the local limits of its jurisdiction all or any of the powers exercisable by the SC
under clause (2).
(4) The right guaranteed by this article shall not be suspended except as otherwise provided for by this
Constitution.
2
142. Enforcement of decrees and orders of Supreme Court and orders as to discovery, etc.—
(1) The Supreme Court in the exercise of its jurisdiction may pass such decree or make such order as is necessary
for doing complete justice in any cause or matter pending before it, and any decree so passed or order so made
shall be enforceable throughout the territory of India in such manner as may be prescribed by or under any law
made by Parliament and, until provision in that behalf is so made, in such manner as the President may by order3
prescribe.
3
139A. Transfer of certain cases. —
(1) Where cases involving the same or substantially the same questions of law are pending before the Supreme
Court and one or more High Courts or before two or more High Courts and the Supreme Court is satisfied on its
own motion or on an application made by the Attorney-General of India or by a party to any such case that such
questions are substantial questions of general importance, the Supreme Court may withdraw the case or cases
pending before the High Court or the High Courts and dispose of all the cases itself.
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STATEMENT OF FACTS
THE One of the major challenges Mr. Chaudhari faced was the
OVERBURDENED overburdened court system, which caused significant delays in
COURT SYSTEM AND adjudicating commercial disputes. To address this gap and to
ADOPTION OF attract more foreign investors, Mr. Chaudhari’s government
ALTERNATIVE passed the Suvarnadwipa Arbitration and Conciliation Act, 1996
DISPUTE (SACA) on January 1, 1996. With time, ACS was heralded as one
RESOLUTION of the most significant arbitral institutions in the world with
MEASURES nearly 25% of the total disputes arbitrated around the world (by
value) being adjudicated under aegis of ACS. An Act
“Suvarnadwipa Public Sector Dispute Resolution Act, 2009
(SPSDR)” was also implemented.
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DEMISE OF MR. Tragically, Mr. Chaudhari passed away on December 25, 2010.
CHAUDHARY AND By this time, Suvarnadwipa was one of the most significant
RISE OF JP economies of the world. In the ensuing in January 2011 elections,
CHAUDHARY Mr. JP Chaudhari, son of Mr. Chaudhari was elected as the PM
of Suvarnadwipa.
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STATEMENT OF ISSUES
ISSUE 1
ISSUE 2
ISSUE 3
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SUMMARY OF ARGUMENTS
ISSUE 1: Whether the petition challenging the Suvarnadwipa Public Sector Dispute
Resolution Act, 2024 is maintainable before the Supreme Court of Suvarnadwipa?
A writ petition has been filed in this Hon’ble Supreme Court of Suvarnadwipa, by MantraTech
Ports (MP), port operator and logistics company incorporated in Suvarnadwipa and a subsidiary
of MantraTech, a Britanni conglomerate, praying that the Suvarnadwipa Public Procurement
Litigation and Adjudication Act of 2024 (SPPLA Act) be declared ultra vires the constitution
of Suvarnadwipa as it imposes an unreasonable restraint on business activities of MantraTech
Ports (MP) thus breaching its right to freedom to conduct business, fair trial, and equal
protection under the law as there does not exist a rational nexus to legitimate government
objectives. This petition is therefore, maintainable as (1.1) the petitioner has a locus standi in
the matter as their (1.2) fundamental rights have been infringed. Furthermore, the (1.3)
enactment of SPPLA Act, 2024 is violative of Suvarnadwipa’s international obligations.
It is submitted that (2.1) SPPLA, 2024 is violative of Article 19(1)(g) of the Constitution, as it
imposes unreasonable restrictions on the right to practice any profession or carry on trade,
business, or occupation. (2.2) Its enactment cannot be justified as a reasonable restriction under
Article 19(6). (2.3) The Act does not satisfy the test of proportionality, as its measures are
excessive and disproportionate to the intended objectives. (2.4) The retrospective application
of the SPPLA, 2024, is unconstitutional. (2.5) The legitimate expectation of the petitioners has
been violated, as the Act disregards their established rights. Lastly, (2.6) the SPPLA, 2024, is
against public policy, as it disrupts societal and economic stability.
ISSUE 3: Whether the Suvarnadwipa Public Procurement Litigation and Adjudication
Act, 2024 (SPPLA) is violative of Article 14 of the Constitution of Suvarnadwipa?
It is most humbly submitted before the hon’ble court that Suvarnadwipa Public Procurement
Litigation and Adjudication Act, 2024 (SPPLA) is violative of Article 14 of the constitution of
Suvarnadwipa as there is (3.1) no intelligible differentia in the classification. (3.2) There is no
rational nexus between the means and end. (3.3) The action taken is arbitrary in nature and
(3.4) the action by the government is violative of Article 21 of the constitution.
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ARGUMENTS ADVANCED
(¶ 3) Locus Standi is the basis of entitlement of judicial redress on account of personal injury
to property, body, mind, or reputation arising from violation, actual or threatened, of the legal
right or legally protected interests of the person seeking such redress It must not be forgotten
that procedure is but a hand maiden of justice and the cause of justice can never be allowed to
be thwarted by any procedural technicalities.6 In the present case as well, MantraTech Ports’
fundamental rights under the articles 147, 198 and 219 of the constitution of Suvarnadwipa have
been violated at the hands of Suvarnadwipa Port Trust (SPT), which is wholly owned by the
4
Code of Civil Procedure, Act no. 5 of 1908, O 7, R-1 & 11 (1908).
5
Adrita Dey, Relaxation on The Purview of Locus Standi and The Evolution of Public Interest Litigation, 2(4)
JCLJ 217 (2022).
6
S.P. Gupta v. Union of India, 1981 Supp SCC 87.
7
INDIA CONST. art. 14.
8
INDIA CONST. art. 19, cl. 1, sub cl. (g).
9
INDIA CONST. art. 21.
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Government of Suvarnadwipa and administers the Suvarnadwipa Port10 and is therefore a state
within the meaning of Article 12 of the constitution of Suvarnadwipa.11
(¶ 4) Even if the matter pertains to a larger public interest, any member of the public gains the
locus standi in the matter, by virtue of being such member and it is thereafter, upon the courts
to determine whether a genuine public interest persists or not. A balance has to be struck
between rigid compliance with technicality and total dispensation of technicality.12 The
principle of locus standi is thus given wider import and also substantiates the contemporary
principles of public interest litigation.13
(¶ 5) Therefore, it is contended on behalf of the petitioner that the enactment of the impugned
SPPLA Act is unconstitutional on nuances of articles 14, 19 and 21, thereby infringing the
rights of the investors, who intended to invest in the SPT through MantraTech. Though it may
be contested that MantraTech Ports is not a citizen and therefore cannot seek approach this
court for the violation of Article 19. In this regard, the Supreme Court noted that in the case of
Godhra Electricity Co. Ltd. v. State of Gujarat14, “if the State action impairs the right of the
shareholders as well as to the Company, the Court will not, concentrating merely upon the
technical operation of the action, deny itself jurisdiction to grant relief.
(¶ 6) In the case of Rustom Cavasjee Cooper v. Union of India15, the Supreme Court ruled that
if legislative measures directly affect companies of which the petitioner is a shareholder, he
may apply on behalf of the company if any impugned action has violated their rights. In this
case, the Court dealt with the application under Article 32 of the Indian Constitution. Therefore,
it should be noted that an individual's rights are not lost because he is a shareholder of the
company.
(¶ 7) In another case Bennet Coleman Co. v. Union of India (1973)16, the Supreme Court stated
that “it is now clear that the fundamental rights of shareholders as citizens will not be lost when
they associate to start a company. If their fundamental rights as shareholders are affected by
government measures, their rights as shareholders will be protected. The reason is that
10
Moot Proposition, ¶ 17.
11
Pradeep Kumar Biswas v. Indian Institute of Chemical Biology, (2002) 5 SCC 111; Ajay Hasia v. Khalid Mujib
Sehravardi, (1981) 1 SCC 722.
12
S.P. Sathe, Public Participation in Judicial Process. New Trends in Law of Locus Standi with Special Reference
to Administrative Law, 26 JILI 1 (1984).
13
Centre for Public Interest Litigation v. Union of India, (2012) 3 SCC 1.
14
Godhra Electricity Co. Ltd. v. State of Gujarat, (1975) 1 SCC 199 28.
15
Rustom Cavasjee Cooper v. Union of India, (1970) SCC 1 248.
16
Bennet Coleman Co. v. Union of India, 1973 SCR (2) 757.
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shareholder rights are equally and necessarily affected if the rights of the company are
affected.”
[1.2] PETITIONERS’ FUNDAMENTAL RIGHTS HAVE BEEN INFRINGED.
(¶ 8) The very purpose of the impugned Act was to repeal the previous act- “Suvarnadwipa
Public Sector Dispute Resolution Act, 2009 (SPSDR), and devoid every contract between PSUs
and private parties of an arbitration clause and make national courts the only fora that can
address and resolve such disputes.17 The very intent of the legislation was to empower the PSUs
as they failed to defend themselves in a number of arbitrations, which led to substantial losses
for the government. This reasoning goes beyond the scope of equality and violates under Article
14 of the constitution as the act applies only to class of companies that is, PSUs and not to other
private companies similarly placed which may also indulge with foreign investments.
(¶ 9) Mandating the discontinuation of an arbitration clause also violates the right of equality
of those particular investors, that had specifically invested in the PSUs and this act of the govt
leads to a class legislation that is aimed only to retrieve the economic edge of the PSUs in
public- private joint ventures and to also set aside the previously made arbitral awards.
(¶ 10) The Hon'ble Supreme Court, in the case of State of West Bengal v. Anwar Ali Sarkar18,
laid down two essentials or conditions that are required to be satisfied to pass the test of
reasonable classification. The two essentials are as follows:
• Classification must be founded on an intelligible differentia that distinguishes those that
are grouped together from others.
• The differentia must have a rational relation to the object sought to be achieved by the
proposed legislation or law.
(¶ 11) The Hon'ble Supreme Court in Ram Krishna Dalmia v. Justice Tendolkar19 held that
Article 14 prohibits class legislation and not reasonable classification, which is done for
legislative purposes. In the present case, no reasonable classification has been made out and
intent of the legislature is seen to decide whether or not there is a reasonable classification. In
the case of Air India v. Nargesh Meerza20 (1978), the petitioners challenged Regulations of the
Air India Employees Service Regulations as discriminatory, stipulating that an air hostess
would retire upon reaching the age of 35, marrying within four years of service, or becoming
17
Moot Proposition, ¶ 22.
18
State of West Bengal v. Anwar Ali Sarkar, 1952] 1 S.C.R. 284.
19
Ram Krishna Dalmia v. Justice Tendolkar, [1959] 1 S.C.R. 279.
20
Air India v. Nargesh Meerza, [1981 (4) SCC 335].
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pregnant. These provisions were held ultra vires as they contravened Articles 14, 15, 16, and
21 of the Indian Constitution.
(¶ 12) Apart from above-mentioned fallacies, the Act is plagued with arbitrariness that forms
the basis of any claim for the violation of Article 14. Section 9 of the SPPLA Act provides the
retrospective application of act and nullifies all arbitration proceedings or awards initiated or
issued under such contracts after January 1, 2020 but before the commencement of this Act.
Such a provision not only is manifestly arbitrary but also goes against the principle of finality
of arbitral awards contained in Section 35 of Arbitration and Conciliation Act, 1996.
(¶ 13) The unlawful attempt to meander such finality of awards already made is an arbitrary
exercise of legislative power and therefore, it vitiates Article 14 of the constitution. In the case
of E.P. Royappa v. State of Tamil Nadu21, the doctrine of manifest arbitrariness was first
established, which allows the state's actions to be struck down if they violate the rule of
law. The court held that Article 14 guarantees against arbitrary actions by the state, and that
equality is against arbitrariness.
(¶ 14) Apart from Article 14, the petitioner has suffered the violation of Article 19 (1) (g) at the
hands of the government of Suvarnadwipa. Though, MantraTech Ports merely by virtue of
being a company incorporated in Suvarnadwipa does not have the right under Article 19 (1) (g)
but its shareholders can bring a cause of action petition against the arbitrary and unreasonable
restriction imposed on such shareholders rights under article 19(1)(g). As early as 1950, Indian
courts began addressing whether companies are entitled to fundamental rights. In the landmark
case of Dwarkadas Shrinivas of Bombay v. The Sholapur Spinning & Weaving Company22, a
shareholder of the Sholapur Spinning and Weaving Company challenged the Sholapur
Spinning and Weaving Company (Emergency Provisions) Act, 1950. While delivering its
judgment, the court reaffirmed the established principle of separate legal entity, emphasizing
that a company and its shareholders are distinct entities. It ruled that a shareholder cannot claim
a violation of fundamental rights on behalf of the company unless their personal rights are also
infringed.
(¶ 15) The Supreme Court in Rustom Cavasjee Cooper v. Union of India (Bank
Nationalisation case) permitted a shareholder-cum-director of a banking company to challenge
the law nationalizing banks by way of a writ petition under Article 32. In this regard, the
Supreme Court observed that "if the State action impairs the right of the shareholders as well
21
E.P. Royappa v. State of Tamil Nadu, 1974 SCR (2) 348.
22
Dwarkadas Shrinivas of Bombay v. The Sholapur Spinning & Weaving Company, 1954 SCR 674.
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as to the Company, the Court will not, concentrating merely upon the technical operation of
the action, deny itself jurisdiction to grant relief.
(¶ 16) In D.C. & G.M. v. Union of India23, the Supreme Court while permitting shareholders
to challenge a state action against a company held that the rights of shareholders and the
company are rather co-extensive and "the denial to one of the fundamental freedoms would be
denial to the other." As a result of these judicial rulings, it has become a recognized practice
for shareholders to file writ petitions under Article 19 to protect their freedoms when state
actions against the company in which they hold shares directly affect them as well.
(¶ 17) The court in Godhra Electricity Co. Ltd. v. State of Gujarat, held that any adverse state
action against the company affects the shareholder's right to carry on the business through the
agency of the company and that any adverse state action against the company affects the
shareholder's right to a divisible share in future of the property of the company. A review of the
above factors reveals that the primary rationale for granting shareholders standing to challenge
the infringement of a company's legal rights lies in the direct link between the company's
financial interests and those of its shareholders. Therefore, when SPPLA act was passed, it
posed an unreasonable embargo on the exercise of its right to freedom of trade or business.
(¶ 18) Additionally, the petitioner also contends violation of Article 21 of the constitution as
the impugned act interferes with the petitioners’ right to fair trial. Article 21 of the Indian
Constitution guarantees the right to a fair trial, which includes the right to legal representation,
Be heard, present evidence in defence, and a speedy trial. The Supreme Court, however,
overruled the decision in A.K. Gopalan v. State of Madras24 through its judgment in Maneka
Gandhi v. Union of India25, where it established the interconnection between Articles 14, 19,
and 21 of the Indian Constitution. The Court interpreted the phrase “procedure established by
law” under Article 21 to include the requirements of reasonableness and non-arbitrariness.:
“Article 14 targets arbitrariness in State action and ensures fairness and equality in treatment.
The procedure under Article 21 must meet the standard of reasonableness to align with Article
14.”
(¶ 19) The counsel submits that it must be ‘right, just, and fair’ rather than arbitrary, fanciful,
or oppressive; otherwise, it would not qualify as a valid procedure, and the requirements of
Article 21 would remain unmet.” The Supreme Court also observed that the procedure
23
D.C. & G.M. v. Union of India, AIR 1983 SC 937.
24
A.K. Gopalan v. State of Madras, 1950 SCR 88.
25
Maneka Gandhi v. Union of India, (1978) 1 SCC 248.
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prescribed by law for depriving a person of his life and personal liberty must be ‘right, just and
fair’ and not ‘arbitrary, fanciful and oppressive’.
(¶ 20) The free and fair trial has been said to be the sine qua non of Article 21. The Supreme
Court in Zahira Habibullah Sheikh v. State of Gujarat26 reiterated the same. The Apex court
has also laid down specific guidelines for ensuring speedy trial of offences in A.R. Antulay v.
R.S. Nayak27 one of which states that fair, just and reasonable procedures are implicit in Article
21. MantraTech Ports also contend that because the Act was brought to give a judicial edge to
the PSUs where they can easily defend themselves, the act is violative as it casts a doubt of
bias of the national courts in the favour of PSUs. The Supreme Court in Krishnadatt
Awasthy v. State of Madhya Pradesh & Ors.28, held that if a process is vitiated by bias, it would
be violative of natural justice and the such processes may be set aside.
26
Zahira Habibullah Sheikh v. State of Gujarat, AIR 2006 SC 1367.
27
A.R. Antulay v. R.S. Nayak, 1988 SCC (2) 602.
28
Krishnadatt Awasthy v. State of Madhya Pradesh & Ors., [2024] 4 S.C.R. 151.
29
UNCITRAL Model Law International Commercial Arbitration, Jun. 21, 1985, Preamble.
30
International Covenant on Economic, Social and Cultural Rights, Jan. 3, 1966, art. 1.
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‘1. All peoples have the right of self-determination. By virtue of that right they freely determine
their political status and freely pursue their economic, social and cultural development.
2. All peoples may, for their own ends, freely dispose of their natural wealth and resources
without prejudice to any obligations arising out of international economic co-operation, based
upon the principle of mutual benefit, and international law. In no case may a people be
deprived of its own means of subsistence’.
(¶ 23) The incorporation of MantraTech Ports by its parent company, MantraTech was done to
fully utilise its economic rights and expand its area of investment by moving into a joint venture
with SPT. The joint venture herein entered into was based on mutual benefits wherein MP
would own 75% stake and SPT would own the balance, 25% stake.31 But later, after the
enactment of SPPLA, 2024 a restraint has been put of the arbitrability of the disputes that may
arise between the parties and therefore, it interferes with the economic liberties of the
MantraTech and violates Article 1 of the ICESCR, that is its right of self-determination of
economic development. In Githa Hariharan v. Reserve Bank of India32, the Supreme Court
observed that the Convention on the Elimination of All Forms of Discrimination Against
Women (CEDAW) and the Beijing Declaration clearly mandate that state parties take measures
to prevent all forms of discrimination against women. As a signatory to CEDAW, the Court
held that domestic courts are obligated to consider international conventions and norms when
interpreting domestic laws, provided there is no inconsistency between them.
(¶ 24) The doctrine of “pacta sunt servanda” contained in article 26 and article 27 of the –
Vienna convention, 1980 lays down that every treaty in force is binding upon the parties to it
and must be performed in good faith and a party may not invoke the provisions of its internal
law as a justification for its failure to perform a treaty. International obligations once
undertaken must be complied with. In Kubic Dariusz v. Union of India33, the Supreme Court
held that, “it is generally a well-recognized principle in national legal system that in event of
doubt the national rule is to be interpreted in accordance with the state’s international
obligations.
(¶ 25) In Mackinnon Mackenzie v. Audrey D’Cousta34, the Supreme Court noted that India was
a signatory to the International Convention on Equal Remuneration for Men and Women for
31
Moot Proposition, ¶ 18.
32
Githa Hariharan v. Reserve Bank of India, (1999) 2 SCC 228.
33
Kubic Dariusz v. Union of India, [1981] 2 SCC 426.
34
Mackinnon Mackenzie v. Audrey D’Cousta, 1987 SCC (2) 46.
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Work of Equal Value. The Court applied the principle outlined in the Convention to interpret
the Equal Remuneration Act, 1976, a law enacted by Parliament. Relying on this principle, the
Court ruled in favour of the petitioner, declaring the employer’s actions unconstitutional as
they violated the principle of equal pay for equal work.
(¶ 26) In Sheela Barse v. Secretary, Children’s Aid Society35, the Supreme Court, while
directing the State of Maharashtra, held that international conventions ratified by India, which
establish norms for the protection of children, impose an obligation on the state to implement
their principles. Departing from its earlier judgments, the Court concluded that treaties, even if
not incorporated into domestic law, carry a binding effect.
(¶ 27) Thus, in effect, when Suvarnadwipa ratified the ICESCR, the covenant ipso facto
became a part of the law of the land and therefore, it is binding upon the nation. In light of
these contentions, the arbitrability of the commercial disputes that may arise between MP and
SPT must not be denied by the enactment of SPPLA Act and the economic rights of the parties
must be given a wider import for its actualisation.
35
Sheela Barse v. Secretary, Children’s Aid Society, 1987 SCR (1) 870.
36
Moot Proposition, ¶ 29.
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Amendment to the Constitution, the word ‘socialist’ was added to the Preamble, characterizing
India as a ‘Sovereign, Socialist, Secular, Democratic Republic’.37 The Supreme Court, in Excel
Wear v. Union of India.38 clarified that while socialism may encourage nationalization and state
ownership of industries, it does not negate the constitutional recognition of private ownership
and enterprise.
(¶ 30) It is submitted that private enterprise continues to constitute a significant portion of
India’s economic framework, and the principle of socialism must be harmonized with the
legitimate interests of private stakeholders. The framers of the Constitution did not envisage
socialism as a tool to stifle trade or commerce, but rather as a means to ensure social justice
and economic equity without completely disregarding the rights and contributions of private
players in the economy. It is submitted that a private sector undertaking differs from a public
sector undertaking. When the latter closes down, it can protect the labour even at the cost of
the public exchequer. But a private undertaking is run for return to the owner not only to meet
his livelihood or expenses but also for the formation of capital for growth of the national
economy.39
(¶ 31) The counsel for the petitioner emphasizes that it has already invested substantial funds
in the container terminal project, and any unreasonable restraint on dispute resolution processes
to be adopted for any dispute that may arise in the public- private partnership would impair its
business operations.40 In the context of the fundamental right to carry on business under Article
19(1)(g) of the Constitution, the Court has posed the critical question of whether it is reasonable
to impose such rigorous restrictions that the legitimate interests of stakeholders are completely
or substantially ignored.41
(¶ 32) Lastly, it is submitted that the principle of a “level playing field” has been explicitly
acknowledged by the Court as an integral factor to be considered in the application of Article
19(1)(g)42 and forcing the petitioner to litigate through Suvarnadwipa courts, particularly
against a powerful state-owned entity like SPT, creates an unequal playing field. This fosters
potential bias, erodes investor confidence, and undermines Suvarnadwipa’s public policy
objectives.43
37
The Constitution (Forty-Second Amendment) Act, §. 2 (1976).
38
Excel Wear v. Union of India, AIR 1979 SC 25.
39
See id.
40
Moot Proposition, ¶ 27.
41
MP JAIN, INDIAN CONSTITUTIONAL LAW 1106 (8th ed. 2022).
42
Reliance Energy Ltd. v. Maharashtra State Road Development Corpn. Ltd., (2007) 8 SCC 1.
43
Moot Proposition, ¶ 25.
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44
Moot Proposition, ¶ 14.
45
Moot Proposition, ¶ 16.
46
Chintaman Rao v. State of Madhya Pradesh, MANU/SC/0008/1950 (India).
47
MP JAIN, INDIAN CONSTITUTIONAL LAW 1053 (8th ed. 2022).
48
See Id.
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serves a purpose enumerated in the clause under which it is imposed.49 In the present case,
therefore, no reasonable restriction can be discerned from the circumstances that necessitated
the enactment of the SPPLA, 2024, and it is thus not justified.
(¶ 37) Lastly, it is submitted that the enactment of the SPPLA, 2024 is unnecessary and
unjustified, as the Arbitration and Conciliation Act, 1996 already provides a robust framework
to address concerns of fraud, corruption, and violations of public policy in arbitration. Section
34 of the Act explicitly allows for the setting aside of arbitral awards if they are vitiated by
fraud, corruption, or violate public policy.50 Additionally, Section 37 provides a clear
mechanism for appeals, ensuring that any grievances regarding arbitral awards can be
addressed through judicial scrutiny.51
49
Id. at page no. 1114.
50
Arbitration and Conciliation Act, Act no. 26 of 1996, § 34 (1996).
51
Arbitration and Conciliation Act, § 37 (1996).
52
Om Kumar And Ors v. UOI, AIR 2000 SC 3689.
53
See Id.
54
Supra note 54.
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framework retrospectively without justifiable cause. The counsel for the petitioner submits that
the SPSDR Act, 2009, created inefficiencies as PSUs failed to defend themselves in multiple
arbitrations. This reflects the inadequacy of existing state policies to address complex
commercial disputes effectively thereby necessitating enactment of SPPLA, 2024 as awards
which had been passed against the PSUs and pending enforcement exceeded 20% of the total
GDP of Suvarnadwipa.55
(¶ 41) It is submitted that Black’s Law Dictionary defines retrospective law as: “A law which
looks backward or contemplates the past; one which is made to affect acts or facts occurring,
or rights accruing, before it came into force.”56 Every statute which takes away or impairs
vested rights acquired under existing laws, or creates a new obligation, imposes a new duty, or
attaches a new disability in respect of transactions or considerations already past.57
(¶ 42) It is submitted that a statute is regarded as retrospective if it operates on cases or facts
coming into existence before its commencement, in the sense that it affects, even if for the
future only, the character or consequences of transactions previously entered into or of other
past conduct.58 The idea behind the rule is that a current law should govern current activities.
Law passed today cannot apply to the events of the past.59 Our belief in the nature of the law
is founded on the bed rock that every human being is entitled to arrange his affairs by relying
on the existing law and should not find that his plans have been retrospectively upset.60 This
principle of law is known as lex prospicit non respicit- law looks forward not backward.61
(¶ 43) It is submitted that retrospectivity should be reasonable and not excessive or harsh,
otherwise it runs the risk of being struck down as unconstitutional.62 Another aspect of legal
policy is the principle that law should not operate retrospectively.63 However, because
procedural changes are assumed to be beneficial and not punitive, the principles against
retrospectivity do not apply to them. Put more broadly, the principle against retrospectivity
applies only where retrospectivity would inflict hardship.64
55
Moot Proposition, ¶ 20.
56
Retrospective, BLACK’S LAW DICTIONARY (11th ed. 2019).
57
Samuel Kamau Macharia and Ors. v. Kenya Commercial Bank Ltd. and Ors., MANU/KESC/0002/2012 (India).
58
K.S. Paripoornan v. State of Kerala (1994) 5 SCC 593.
59
EWP Ltd. v. Moore [1992] QB 460 (UK).
60
Phillips v. Eyre [1870] LR 6 QB 1 (UK).
61
Commissioner of Income Tax v. Vatika Township Private Limited, MANU/SC/0810/2014 (India).
62
Rai Ramkrishna v. State of Bihar (1963) 50 ITR 171 (SC).
63
L'Office Cherifien des Phosphates v. Yamashita-Shinnihon Steamship Co. Ltd. (1994) 1 AC 486.
64
FRANCIS BENNION, UNDERSTANDING COMMON LAW LEGISLATION: DRAFTING AND INTERPRETATION 23 (1st ed.
2004).
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(¶ 44) In the present case, S. 9 of SPPLA, 2024 provides for retrospectivity where the result
would be to create new disabilities or obligations, or to impose new duties in respect of
transactions already accomplished.65 A statute which not only changes the procedure but also
creates new rights and liabilities shall be construed to be prospective in operation.66
(¶ 45) It is respectfully submitted that the retrospective application of this Act is unjustifiable.
Applying the Act to contracts entered into after January 1, 2020, and invalidating arbitration
proceedings initiated under such contracts disrupts legal certainty and fairness. Parties entered
into agreements based on the legal framework in place at the time, and retroactively altering
dispute resolution mechanisms imposes unnecessary burdens and undermines the sanctity of
contractual obligations. Therefore, the retrospective application of this Act should be deemed
invalid.
65
Moot Proposition, Annexure-IV, Sec. 9.
66
Amit Prasad, Tax and its Retrospectivity: An Appraisal 19 ITR 452 (2023).
67
UOI v. Hindustan Development Corporation, (1993) 3 SCC 499.
68
Moot Proposition, Annexure-1, Sec. 5.
69
Army Welfare Education Society New Delhi v. Sunil Kumar Sharma and Ors., 2024 SCC OnLine SC 1683.
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as the matter involves a public authority, the plea of legitimate expectation is valid only when
the authority breaches its promise without a reasonable basis.
(¶ 48) The petitioners, being parties with direct dealings under the relevant legal framework,
are entitled to invoke this doctrine as they are directly affected by the authority’s deviation
from established practice. Furthermore, S. 7 of the SPSDR, 2009 provided that an arbitral
award can be challenged on grounds such as fraud, bias, or violation of public policy.70 In light
of this comprehensive provision, the introduction of a new Act to invalidate all previous arbitral
awards under the pretext of serving public interest is unjustifiable.
(¶ 49) It is submitted that companies, once established within a country, rely on the stability
and predictability of the domestic legal framework. Petitioner has requested an arbitration
clause, given the high-stake and complex nature of the disputes, to ensure effective resolution
and equitable treatment of parties.71 Therefore, the petitioners’ legitimate expectations must be
respected, and any deviation by the public authority without justifiable cause constitutes a
breach of their rights under this doctrine.
70
Moot Proposition, Annexure-1, Sec. 7.
71
Moot Proposition, ¶ 24.
72
OPG Power Generation (P) Ltd. v. Enexio Power Cooling Solutions India (P) Ltd., 2024 SCC OnLine SC 2600.
73
Renusagar Power Co. Ltd. v. General Electric Co., 1994 Supp (1) SCC 644.
74
Gherulal Parakh v. Mahadeodas Maiya, AIR 1959 SC 781.
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(¶ 52) Though the heads are not closed and though theoretically it may be permissible to evolve
a new head under exceptional circumstances of a changing world, it is advisable in the interest
of stability of society not to make any attempt to discover new heads in these days.75 Here, the
government’s blanket assertion that arbitration has caused unsustainable financial burdens
lacks evidentiary substantiation and does not meet the threshold of clear harm to public interest.
In Renusagar Power Co. Ltd. v. General Electric Co.,76 Court observed that the doctrine of
public policy is somewhat open- textured and flexible.
(¶ 53) Arbitration, ensures impartiality and efficiency in high-stakes, complex disputes.
Forcing entities like MantraTech Ports into an unequal playing field under the national courts,
where the other party is a powerful PSU, undermines the principles of fairness and equality
central to public policy. The assertion made by JayP that private parties exploit the arbitration
system to obtain favourable awards fails to acknowledge these statutory safeguards. 77 The
existing legal provisions strike a balance between minimal court intervention and the need for
accountability, thereby preserving the integrity of arbitration while preventing abuse.78
(¶ 54) Lastly, it is submitted that the retrospective nullification of arbitration agreements creates
harmful tendencies by eroding investor confidence, destabilizing established legal norms, and
deterring foreign investments essential for Suvarnadwipa’s economic growth. Therefore, the
claim that the SPPLA 2024, is necessitated to address systemic exploitation lacks a sound basis,
given the comprehensive mechanisms already in place under the Arbitration and Conciliation
Act, 1996.
75
See Id.
76
Supra Note 72.
77
Moot Proposition, ¶ 23.
78
Arbitration and Conciliation Act, § 5 (1996).
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79
Supra Note 18.
80
Budhan Choudhry v. State of Bihar, 1955 AIR 191.
81
Ananya Bali, Doctrine of Reasonable Classification as an Exception to the Right to Equality: Critical Analysis
in Light of the Legal Provisions and Relevant Case-Laws, 4 ISSUE 1 INT'L JL MGMT. & HUMAN. 1414 (2021).
82
Karimbil Kunhikoman v. State of Kerala, AIR 1962 SC 723.
83
VN SHUKLA, CONSTITUTION OF INDIA 60 (13th ed. 2017).
84
Ram dial v. State of Punjab, AIR 1965 SC 1518.
85
P. Rajendram v. State of Madras, AIR 1968 SC 1012.
86
John Vallamattom v. Union of India, (2003) 6 SCC 611.
87
Moot Proposition, Annexure IV.
88
Moot Proposition, ¶ 14.
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of arbitral awards were passed against them which exceeded 20 % of the total GDP of
Suvarnadwipa89.
(¶ 60) The maxim “Fiat Justitia Ruat Caelum” (Let justice be done though the heavens fall)
underscores that justice and accountability must prevail, irrespective of the consequences for
powerful state actors. The SPPLA, 2024 seeks to shift dispute resolution to national courts,
which are under the influence of the state, thereby shielding the government’s cronyism and
PSUs from fair and independent scrutiny. In State of Punjab v. Gurdial Singh90, the Court held
that legislative power cannot be used as a tool for arbitrary or fraudulent purposes. The SPPLA,
2024 is an example of such legislative fraud, designed to shield the government’s inefficiency
and cronyism from the scrutiny of independent arbitration.
(¶ 61) This abuse of legislative power violates the principles laid down in Shreya Singhal v.
Union of India91 , where the Court struck down laws that indirectly suppressed scrutiny of
government actions.
[3.2] THERE IS NO RATIONAL NEXUS BETWEEN THE MEANS AND END.
(¶ 62) In order to pass the test for permissible classification, two conditions must be fulfilled.
Firstly, the classification must be founded on an intelligible differentia which distinguishes
persons or things that are grouped together from others left out of the group and secondly, the
differentia must have a rational relation to the object sought to be achieved by the statute in
question92. In the instant case both the conditions are not fulfilled.
(¶ 63) Mandating litigation, as opposed to arbitration, burdens the judiciary, leading to delays
and inefficiencies, which contradict the Act's stated goal of timely resolution. The Objectives
of SPPLA act states that it aims to Protect public resources, address inefficiencies in arbitration,
which the government claims led to an unsustainable burden on PSUs and ensure disputes
involving public entities are resolved through judicial scrutiny in national courts93.
(¶ 64) In Subramanian Swamy v. CBI94 a constitution bench of the court unanimously held that
“if the object itself is discriminatory, then explanation that classification is reasonable having
rational relation to the object sought to be achieved is immaterial”.
89
Moot Proposition, ¶ 20.
90
State of Punjab v. Gurdial Singh, AIR 1980 SC 319.
91
Shreya Singhal v. Union of India, 2015 5 SCC 1.
92
Motor General Traders v. State of A.P., (1984) 1 SCC 222; Prabodh Verma v. State of U.P, (1984) 4 SCC 251;
Raj Pal Sharma v. State of Haryana, AIR 1985 SC 1263.
93
Moot Proposition, ¶ 23.
94
Subramanian Swamy v. CBI, (2014) 8 SCC 682.
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(¶ 65) The Act is justified on the premise that arbitration led to significant financial losses for
PSUs 95
. However, no evidence is provided to demonstrate that arbitration, rather than
mismanagement or poor decision-making, caused these losses. Arbitration provides a neutral
platform, particularly crucial in disputes involving state-owned entities and private investors.
MP’s concerns about potential bias in Suvarnadwipa's courts due to the influence of PSUs96.
[3.3] THE ACTION TAKEN IS ARBITRARY IN NATURE.
(¶ 66) The petitioner, contends that the SPPLA, 2024 is arbitrary in its enactment and
implementation, violating the constitutional guarantee of equality under Article 14 of the
Constitution. In Maneka Gandhi v. Union of India97, the Court expanded the scope of Article
14 to include non-arbitrariness in all state actions. The SPPLA’s provisions contradict this
principle. In E.P. Royappa v. State of Tamil Nadu98 ,the Supreme Court held that arbitrariness
is the antithesis of equality and that Article 14 strikes at arbitrary state action.
(¶ 67) The SPPLA, 2024 arbitrarily targets disputes involving PSUs while allowing private
contracts to retain arbitration. This selective application is not supported by any objective
reasoning, violating the standard set in State of West Bengal v. Anwar Ali Sarkar99 ,where the
Court invalidated legislation that lacked a rational basis.
(¶ 68) Retrospectively nullifying arbitration clauses100 disrupts existing legal agreements,
undermining the principle of certainty in law. This retroactive application imposes undue
hardships on private entities, violating the principles set in K.T. Plantation Pvt. Ltd. v. State of
Karnataka101 . Retrospective legislation is permissible only when it serves a compelling public
purpose.102
(¶ 69) Foreign investors like MP entered agreements expecting disputes to be resolved through
arbitration. The SPPLA’s arbitrary nullification of these agreements undermines their
legitimate expectations103. In Delhi Transport Corporation v. DTC Mazdoor Congress104 , the
Court held that fairness is a core aspect of Article 14, and actions that disrupt legitimate
expectations are arbitrary and unconstitutional. Furthermore, Arbitrary legislation that
95
Moot Proposition, ¶ 20.
96
Moot Proposition, ¶ 25.
97
Supra note 25.
98
Supra note 21.
99
Supra note 18.
100
Moot Proposition, ¶ 21.
101
K.T. Plantation Pvt. Ltd. v. State of Karnataka, AIR 2011 SC 3430.
102
Moot Proposition, ¶ 20.
103
Moot Proposition, ¶ 26.
104
Delhi Transport Corporation v. DTC Mazdoor Congress, 1991 AIR 101.
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105
Vodafone International Holdings BV v. Union of India, 2012 6 SCC 613.
106
Yash Sharan, The Doctrine of ‘Manifest Arbitrariness’: Forestalling Its Arbitrary Use in the Indian Judicial
Landscape, 13 NIRMA ULJ 121 (2023).
107
Shayara Bano v. Union of India, AIR 2017 SC 4609.
108
Supra note 25.
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(¶ 74) Article 21, as expansively interpreted in Maneka Gandhi v. Union of India, mandates
that all procedures affecting life and liberty must be fair, just, and reasonable. The SPPLA Act’s
provisions fail this standard by eliminating arbitration, a globally recognized mechanism for
resolving disputes efficiently, and replacing it with litigation, which is inherently slower and
prone to delays. This imposition is especially detrimental to private parties like MP109, where
concerns about bias in domestic courts are raised. Litigation, burdened by state influence,
deprives parties of the impartiality offered by arbitration, undermining the right to a fair trial.
(¶ 75) The Act also violates the principle of access to justice, a core aspect of Article 21
recognized in Bihar Legal Support Society v. Chief Justice of India110 . By nullifying existing
arbitration clauses, the Act disrupts ongoing proceedings, forcing parties to restart disputes in
biased courts. This creates unreasonable delays and imposes financial and procedural burdens
on private entities, depriving them of effective remedies. The Supreme Court in A.R. Antulay
v. R.S. Nayak111 held that such delays and procedural disadvantages violate the fundamental
right to justice under Article 21.
(¶ 76) Furthermore, the retrospective application of the SPPLA Act breaches the principle of
legal certainty, a vital component of the rule of law112. Parties like MP, who entered contracts
under Suvarnadwipa’s arbitration-friendly framework, had legitimate expectations of a stable
legal regime. The SPPLA’s provisions fail this test, appearing to shield PSUs from liabilities
rather than promoting public welfare.
(¶ 77) The Act’s imposition of litigation also compromises the neutrality and fairness of dispute
resolution processes. National courts, perceived to favour PSUs, do not provide the impartiality
necessary for a fair trial. In Zahira Habibullah Sheikh v. State of Gujarat113 , the Court
underscored the importance of impartiality in ensuring a fair trial114. This bias undermines the
procedural fairness required for resolving disputes, further disadvantaging private entities and
foreign investors.
(¶ 78) Hence, the SPPLA Act violates Article 21 and procedure established by law by denying
procedural fairness, access to justice, and the right to a fair trial. Its retrospective provisions
109
Moot Proposition, ¶ 25.
110
Bihar Legal Support Society v. Chief Justice of India, 1986 AIR 380.
111
Supra note 27.
112
R. K. Sabarwal v. Union of India, (1979) 3 SCC 779; D.K. Basu v. State of West Bengal, (1997) 1 SCC 416;
Kehar Singh v. Union of India, (1989) 1 SCC 404; P. N. Dass v. State of Bihar, (1996) 8 SCC 535.
113
Supra note 26.
114
Shiv Kumar Yadav v. State (NCT of Delhi), (2016) 2 SCC 402; Supreme Court Bar Association v. Union of
India, (1998) 4 SCC 409; Ramesh v. State of Maharashtra, (2008) 13 SCC 564.
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disrupt legal certainty and impose undue hardships on private parties, prioritizing state interests
over constitutional principles. The petitioner urges the Court to strike down the SPPLA Act as
unconstitutional.
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PRAYER
Wherefore, in light of the Issues raised, Authorities cited and Arguments advanced, it is
most humbly and respectfully requested that the Hon’ble Supreme Court of Suvarnadwipa be
pleased to:
1. DECLARE, that the petition challenging the Suvarnadwipa Public Sector Dispute
Resolution Act, 2024 is maintainable before the Supreme Court of Suvarnadwipa;
&
2. HOLD, that the Suvarnadwipa Public Procurement Litigation and Adjudication Act, 2024
(SPPLA) is violative of Article 19 of the Constitution of Suvarnadwipa;
&
3. HOLD, that the Suvarnadwipa Public Procurement Litigation and Adjudication Act, 2024
(SPPLA) is violative of Article 14 and 21 of the Constitution of Suvarnadwipa;
&
4. ISSUE, a Writ of Mandamus to Suvarnadwipa Ports Trust (SPT) directing it to include an
arbitration clause in the Joint Venture Agreement between MantraTech Ports (MP) and SPT.
AND/OR
PASS ANY OTHER ORDER, DIRECTION, OR RELIEF THAT IT MAY DEEM FIT IN THE
BEST INTERESTS OF JUSTICE, FAIRNESS, EQUITY AND GOOD CONSCIENCE. FOR
THIS ACT OF KINDNESS, THE PETITIONERS SHALL BE DUTY BOUND FOREVER
PRAY.
Sd/-
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