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MOUSHUMI BHATTACHARYA
Essal – RRE Enterprises (JV) – Appellant
Versus
Coal India Limited – Respondent
JUDGMENT :
Moushumi Bhattacharya, J.
1. The petitioner has challenged an order of banning and termination dated 2.12.2022 issued by Eastern Coalfields Limited (ECL). The reason for banning is the petitioner’s poor performance and continuous failure to improve its performance despite several letters issued by ECL. The impugned letter gives detailed particulars of the reminders sent to the petitioner and the petitioner’s failure to rectify the situation. The letter also refers to a show-cause notice issued to the petitioner and a personal hearing given on 7.9.2022. The impugned letter also refers to Chapter 6, section 12 - Guidelines for Banning of Business and clause no. 2(v)(b) in relation thereto.
2. Learned counsel appearing for the petitioner submits that the petitioner faced several allegedly insurmountable difficulties in executing the project including non-availability of land which resulted in the delay. Counsel blames the ECL for not providing sufficient land within a reasonable time frame. Counsel submits that 21.47 acres of land was given to the petitioner on 22.7.2022 after which a fresh Target was given for August, 2022. Counsel complains that ECL terminated the contract o
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 ....
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....
Termination of contract and debarment of a contractor must be in accordance with the terms of the contract and the principles of natural justice, and the work in question must have a public character....
The main legal point established in the judgment is that the conclusion of a contract can occur upon the award of work, and non-compliance with tender and contract terms can justify contract terminat....
Blacklisting a contractor without a fair hearing violates principles of natural justice, rendering such actions invalid, while the termination of the contract for non-compliance with security require....
The court emphasized that imposing a ban on a company should not be done in a casual or regular manner and that such actions should be justified, proportionate, and not arbitrary.
The judgment emphasizes the importance of natural justice and fair procedure in quasi-judicial proceedings, highlighting the need for open-mindedness and a reasonable opportunity for the party to reb....
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