2022 Supreme(Kar) 661
IN THE HIGH COURT OF KARNATAKA
S.G.Pandit, J.
M/s. Crest Facility Management - Appellant
Versus
Union of India & Ors. - Respondents
Writ Petition No. 39350 of 2019 (GM-TEN)
Decided On : 30-05-2022
Smt. Anjana C.H., Advocate, -Absent, for the Appellant; Sri. Abhinay Y.T., Advocate, for the Respondent.
Prior notice indicating the reason for debarment should be communicated and the petitioner should be afforded an opportunity to respond before any debarment action is taken.
Headnote:
Debarment - Catering Contracts - Prior Notice Required for Debarment
Fact of the Case:
The petitioner was debarred from participating in any Catering contracts of the Indian Railways without prior notice, resulting in a writ petition questioning the correctness and legality of the debarment.
Finding of the Court:
The court quashed the communication debarment letter dated 05.04.2019, emphasizing that prior notice indicating the reason for debarment should be communicated and the petitioner should be afforded an opportunity to respond before any debarment action is taken.
Issues: The issue was whether the debarment of the petitioner from participating in catering contracts without prior notice was legally valid.
Ratio Decidendi: The court held that debarment or blacklisting of a contractor from participating in any contract would result in civil consequences, and therefore, a prior notice indicating the reason for debarment should be communicated and the petitioner should be afforded an opportunity to respond before any debarment action is taken.
Final Decision: The court quashed the debarment communication and granted liberty to the respondent to take appropriate action after affording an opportunity to the petitioner.
ORDER
There is no representation for the petitioner.
1. Learned counsel Sri.Abhinay Y.T. for respondents present. Perused the writ petition papers.
2. On perusal of the writ petition papers, it is seen that the petitioner is before this Court questioning the correctness and legality of communication/Annexure-G bearing No.B/C.79/CS-39/KJM & BNC/GMU/CFM/2019 dated 05.04.2019, whereby the petitioner was debarred from participating in any Catering contracts of the Indian Railways.
3. The respondent-Railways invited tenders for Housekeeping, Catering and Loading Unloading support services and the petitioner was one of the successful tenderers in pursuance of the tender notice dated 31.07.2018 in so far as catering services is concerned. Even though the petitioner's tender was accepted, on the ground that tenderer/petitioner failed to execute the work, the petitioner was debarred under the impugned letter dated 05.04.2019 vide Annexure-G. A perusal of Annexure-G impugned letter dated 05.04.2019 would not indicate issuance of any notice before debarring the petitioner from participating in any of the contracts of the Indian Railways.
4. Sri.Abhinay Y.T., learned counsel for the Railways fairly submits that no notice was issued to the petitioner prior to communication dated 05.04.2019 (Annexure-G).
5. Blacklisting or debarring of a Contractor from participating in any contract would result in civil consequence. In that, a person against whom debarment or blacklisting is passed, he would not be in a position to participate in any of the contracts and his right to life would be affected. When an action of the authorities would result in civil consequences, a prior notice indicating the reason for blacklisting or debarment shall be communicated and on receiving the reply, such blacklisting or debarment order shall be passed. In the instant case, since there was no notice before debarring or blacklisting the petitioner from participating in catering service of the respondent-Railways, I deem it appropriate to quash Annexure-G dated 05.04.2019, with liberty to the respondent to take appropriate action, after affording an opportunity to the petitioner. Hence, the following order:
6. Annexure-G/communication bearing No.B/C.79/CS-39 & 41/KJM & BNC/GMU/CFM/2019 dated 05.04.2019 is quashed.
7. The respondent-Railway authorities are at liberty to take action against the petitioner, after affording an opportunity to the petitioner, in accordance with law.
With the above, the writ petition stands disposed of.