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MOUSHUMI BHATTACHARYA
Bgm And M-ns (JV) – Appellant
Versus
Eastern Coalfields Limited – Respondent
JUDGMENT
Moushumi Bhattacharya, J. - The petitioners are aggrieved by an impugned letter dated 17.10.2022 banning the petitioner no. 1 and its constituent partners from participating in future tenders of Eastern Coalfields Limited (ECL) for a period of three years from the date of issue of the order. The petitioner no. 1 is a joint venture company and was formed to extract, remove and transport coal in coalfields belonging to ECL.
2. The petitioners, through learned counsel, say that the urgency of the matter arises from the fact that ECL has issued other tenders in December, 2022 with last dates of submission of tender in the third week of December. Counsel submits that an order of banning requires an objective satisfaction on the part of the authority at the relevant point of time and places documents to show that the petitioners were unable to satisfactorily complete the work by reasons which cannot be attributed to the petitioners, namely, obstructions caused by local people. Counsel submits that the impugned order of banning suffers from procedural impropriety and that the replies of the petitioners were not taken into account.
3. Learned counsel appearing for ECL submits that th
The central legal point established in the judgment is the requirement of an objective assessment and satisfaction before imposing a ban based on contractual non-performance, as well as the judicial ....
Mandatory consideration of both gravity of the offense and actual loss suffered is required for imposing maximum penalties in administrative debarment.
The mandatory requirement of serving a show cause notice specifying the grounds on which the action is proposed to be taken before blacklisting a party, as established in relevant case laws.
The court emphasized the importance of adhering to contractual procedures and the validity of penalties for non-performance, reinforcing the authority's right to terminate contracts under specified c....
The court established that a blacklisting order must be based on a fair inquiry process, including the provision of relevant reports to the affected party.
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