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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ALOK ARADHE, BHARATI DANGRE
Harsha Infra Power Pvt. Ltd. – Appellant
Versus
Bharat Petroleum Corporation Ltd. – Respondent
| Table of Content |
|---|
| 1. challenge to blacklisting (Para 2) |
| 2. contract awarded (Para 3) |
| 3. show cause notice issued (Para 4) |
| 4. contract termination (Para 5) |
| 5. blacklisting notice (Para 6) |
| 6. violation of natural justice (Para 7 , 9) |
| 7. contrary to supreme court decision (Para 8) |
| 8. considered rival submissions (Para 10) |
| 9. legal principles on blacklisting (Para 11) |
| 10. blacklisting requires natural justice (Para 12 , 13) |
| 11. blacklisting is stigmatic (Para 14 , 15 , 16 , 17 , 18) |
| 12. impugned orders quashed (Para 19 , 20 , 21) |
JUDGMENT :
ALOK ARADHE, C.J.
1. Rule. Rule is made returnable forthwith. By consent of the parties, heard finally.
2. In this petition, the petitioner has assailed the validity of Clause 4.1.1 (g)-(h) of Policy for Holiday Listing (Policy) of Bharat Petroleum Corporation Ltd.(Corporation) as well as the validity of orders dated 29th December 2023 and 29th March 2024. In order to appreciate the challenge of the petitioner to the impugned clauses of the Policy as well as the impugned orders, the relevant facts need mention which are stated infra.
3. The petitioner is a Company incorporated under the laws of India. The petitioner deals with contracts of laying down and maintenanc
Blacklisting a contractor requires adherence to natural justice principles, including issuing a show cause notice, and cannot be arbitrary or disproportionate.
Imposing a 'Holiday Listing' without a personal hearing violates natural justice principles, affecting a party's ability to contract and thus constituting a civil consequence.
The requirement for a fair hearing and a specific show cause notice before imposing the severe civil consequence of blacklisting, and the need for the authority to determine the period of punishment ....
The main legal point established in the judgment is that before blacklisting a person/entity, adequate notice and an opportunity to be heard must be provided, in accordance with the principles of nat....
The judgment emphasizes the importance of fair play, natural justice, non-discrimination, equality, reasonableness, and proportionality in the process of blacklisting, and the need for a valid, parti....
Blacklisting in public contracts requires compelling evidence of misconduct; mere disputes over contract terms do not justify severe penalties.
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