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PAMIDIGHANTAM SRI NARASIMHA, ALOK ARADHE
A. K. G. Construction And Developers Pvt. Ltd – Appellant
Versus
State of Jharkhand – Respondent
| Table of Content |
|---|
| 1. court emphasizes standards for administrative actions. (Para 2 , 3) |
| 2. court affirms termination order, sets aside blacklisting. (Para 4 , 5) |
| 3. factual background of the construction contract and collapse. (Para 6 , 7 , 8) |
| 4. arguments regarding legality and procedure of termination and blacklisting. (Para 10 , 11) |
| 5. independence of termination and blacklisting processes. (Para 17 , 18) |
| 6. importance of notice and principles of natural justice in blacklisting. (Para 19 , 20 , 21) |
| 7. requirement for proper reasoning and due process in blacklisting. (Para 22 , 23) |
| 8. final conclusions on legality of termination and blacklisting. (Para 24 , 25) |
JUDGMENT :
1. Leave granted.
2. While exercising judicial review over administrative actions of the State and its instrumentalities in relation to contracts provisioning clauses and rules relating to termination and/or blacklisting, Courts must apply distinct standards of legality, rationality and proportionately. Such an approach is compelling as conditions for imposing such measures, as also the consequences of such actions, have differing gravity.
3. Upon careful consideration of the impugned State action, which terminates the cont
A blacklisting order requires a specific show-cause notice to uphold principles of natural justice; its absence renders the blacklisting illegal and arbitrary.
Blacklisting is a distinct administrative action from contract termination, carrying severe stigmatic and exclusionary consequences. It requires a specific, unambiguous show-cause notice and an indep....
The impugned actions of issuing the show cause notice and blacklisting the petitioner were arbitrary, unconstitutional, and violated principles of natural justice. The court emphasized the requiremen....
The main legal point established in the judgment is the importance of following due procedure and considering the gravity of the offense in determining the period of blacklisting.
Blacklisting without notice constitutes a violation of the principles of natural justice, requiring fair opportunity for the affected party to present their case.
The Petitioner's suppression of a material fact and approach to the Court with unclean hands led to the dismissal of the Petition.
Point of Law : Blacklisting is an 'instrument of coercion' which has the effect of creating a disability. Usually, when participating in a tender, the bidder is required to furnish a statement undert....
The principles of natural justice, including the right to a fair hearing and the prohibition of arbitrary actions, are essential in administrative decisions affecting contractual rights, and any puni....
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