MOHIT KUMAR SHAH
Nursing Construction – Appellant
Versus
State Of Bihar – Respondent
JUDGMENT
1. The instant case has been taken up for consideration through the mode of Video conferencing in view of the prevailing situation on account of COVID 19 Pandemic, requiring social distancing.
2. Heard the Ld. Senior counsel for the petitioner, Shri D.K. Sinha, assisted by Shri Abhinav Raj, Advocate as also the Ld. counsel for the respondent State, Shri S.D. Yadav, AAG-9.
3. The present writ petition has been filed seeking the following reliefs:-
i To quash the order contained in Memo No. 2217 dated 18.06.2020 (Annexure-7) by which agreement has been cancelled, forfeited the security amount and recommended for black listing.
ii. To quash the order no. 335 dated 31.10.2020 rejecting the explanation/ show cause (Annexure-15).
iii. To quash order no. 357 dated 26.11.2020 black listing of the petitioner (Annexure-7) which has been passed during pendency of the appeal.
4. At the outset, the learned counsel for the petitioner has submitted that as far as termination/ cancellation of the agreement in question and forfeiture of the security amount is concerned, the petitioner shall be invoking the arbitration clause i.e. Clause 25 of the General conditions of Contract in accordance with
Gorkha Security Services vs. Government of NCT of Delhi and others (2014) 9 SCC 105
M/S Kulja Industries Ltd. Vs. Chief General Manager, W.T. Project BSNL
Patel Engineering Ltd. vs. Union of India and other (2012) 11 SCC 257
Voestalpine Schienen GMBF v. Delhi Metro Rail Corporation Limited
The power to blacklist a contractor is subject to judicial review and must be exercised in accordance with the principles of natural justice, proportionality, reasonableness, and fairness, especially....
The penalty of blacklisting must be proportionate to the offense and should not be imposed arbitrarily.
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