The External Affairs Ministry while expressing its great disappointment over the Court verdict also said India`s demand that Davy be handed over by Denmark stands and he must stand trial in this country for his actions.
"In our view, the judgement has grave and far-reaching implications and can only serve as an encouragement to terrorists and criminals," spokesperson in the External Affairs Ministry Vishnu Prakash said in response to a query.
"We have been greatly disappointed on being informed that the Danish authorities cannot comply with India`s request for the extradition of Neils Holck aka Kim Davy to India to stand trial," he said.
Noting that Danish government had decided on April 9, 2010, to extradite Kim Davy to India, he said "but the Danish authorities failed to successfully defend their decision in the Danish courts and it is regrettable that they have decided not to appeal the High Court judgement in the Supreme Court."
"Completely rejecting" the grounds cited by the Danish court as the basis for its decision, he said "Our demand for the extradition of Kim Davy to India stands. He must face the law in India for his actions."
Government sources meanwhile emphasised that Danish authorities must ensure that "terrorists and gunrunners do not find easy safe haven" in their country and made it clear that the relations and interactions between the two countries will always be based on the strict principle of reciprocity.
"Conditionalities insisted upon by the Danes will apply in respect of any request received by us from them in the similar manner," they said.
India has already lodged a strong protest with Denmark over the remarks made by Danish High Court when it cited human rights conditions in this country while rejecting plea to extradite Davy.
External Affairs Minister S M Krishna also made a reference to the verdict when he said there was no reason for Danish government or court to feel that the human rights record is being relegated to the background in India.
"I think it`s necessary to convey to everyone who is concerned that we are an open and transparent society and believe in rule of law. There is no reason for Danish government or court to feel that human rights is being relegated to the background in India," Krishna told accompanying journalists on return from Dhaka to New Delhi.
He was asked about the crticism of India`s human rights record by a Danish court which rejected a plea for extradition of Kim Davy to stand trial in India in Purulia arms drop case.
However, Krishna said "perception of India from the point of view others also becomes equally important, apart from ourown assessment of the situation".