Kerala HC declines to stay further proceedings on ADB agreement

Kochi, Mar 08: The Kerala High Court on Thursday declined to stay further proceedings with regard to the Asian Development Bank loan agreement but held that the state Cabinet should have been taken into confidence before the agreement was executed. A Division Bench, comprising Acting Chief Justice K S Radhakrishnan and Justice M N Krishnan, issued the interim order while admitting two petitions filed by the anti-ADB campaign committee. The petitioner had sought a declaration that the government's decision to avail the loan for its sustainable urban development programme was 'illegal'. Though the Bench observed that it would not be proper for the court to interfere with the project at this stage as the agreement had already been executed, it felt that the state Cabinet should have been taken into confidence before inking it. In the matter of the government authorising the Resident Commissioner at Delhi to sign the agreement on its behalf also, the Bench felt that an 'error' had crept in. The court also observed that lack of proper planning and coordination was seen throughout. "The question as to whether there has been any irregularity and illegality and legal validity of terms and conditions could be examined only when the two petitions are finally heard," it said.