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IN THE HIGH COURT AT CALCUTTA
OM NARAYAN RAI
IDL Explosives Limited – Appellant
Versus
Coal India Limited – Respondent
| Table of Content |
|---|
| 1. overview of tender process and debarment (Para 2) |
| 2. petitioners challenge ban period as excessive (Para 3 , 4 , 5 , 6 , 7 , 8) |
| 3. impact of ban on petitioners' business opportunities (Para 9 , 10 , 11 , 12) |
| 4. court's previous orders shape decision-making (Para 13 , 14 , 15) |
| 5. respondents' view on gravity of offence (Para 19 , 20 , 21) |
| 6. proportionality as a key consideration (Para 35 , 36 , 37) |
| 7. court remands matter for reconsideration (Para 61 , 62) |
JUDGMENT :
Om Narayan Rai, J.
1. The petitioners, three in number, are aggrieved by the debarment of the petitioner no. 1 from contracting with Coal India Limited and its subsidiaries. The petitioners’ request to the respondents to review the two years’ ban imposed on the petitioner no. 1 has been spurned by an order dated May 02, 2025 passed by the Chairman, Coal India Limited and hence the writ petition.
FACTS:
2. Shorn of minute details, the salient facts of the case, as may be gathered from the pleadings of the parties (i.e. the writ petition filed by the petitioner and the affidavit-in-opposition filed on behalf of the respondent), are as follows:-
a) On July 23, 2021 a “Notice Inviting Tender cum e-Reverse Auction Op
Mandatory consideration of both gravity of the offense and actual loss suffered is required for imposing maximum penalties in administrative debarment.
The maximum period of banning/suspension for participation in tenders under the Coal Linkage Auction Scheme 2022 is 5 years, and in cases where the reason for suspension is not completely mitigated d....
Point of law: The threshold at which the High Court and the Court of Appeal could find the Ministry of Defence policy irrational was placed so high that it effectively excluded any consideration by t....
The court upheld the debarment of the petitioner for failing to submit a performance guarantee on time, affirming the procedural fairness and adherence to the RFP guidelines.
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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