IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
PARTH PRATEEM SAHU, J.
M/s Rakesh Kumar Choubey – Appellant
Versus
State of Chhattisgarh – Respondent
WPC No. 2139 of 2022
Decided on : 05-09-2023
Blacklisting - Forfeiture of security deposit - Petitioner challenging order by which respondent No.3 has blacklisted petitioner for a period of three years and forfeited security amount deposited by petitioner – Held, Perusal of show-cause notice issued to petitioner would show that it clearly mentions proposed action of blacklisting and forfeiture of security deposit - It is apparent that proper opportunity was granted to petitioner to meet out proposed actions to be taken against him - It is provided that in case of any defect/slackness in execution of contract by successful bidder, Corporation shall have rights to terminate contract and blacklist said firm for specified period - Considering entirety of facts and circumstances of case, period in which purchase order was placed to petitioner, nature of goods to be supplied by petitioner i.e. crude ayurvedic drugs to be used for manufacturing Ayush medicines, Court do not find any arbitrariness in decision making process of respondents - Writ petition dismissed.
ORDER :
1. Petitioner has filed this writ petition challenging the order dated 13.4.2022 (Annexure P-1) by which respondent No.3 has blacklisted the petitioner for a period of three years and forfeited the security amount deposited by petitioner.
2. Facts of the case, in brief, are that petitioner was awarded the contract for supply of crude ayurvedic medicine, plants and herbs to respondent Chhattisgarh Medical Services Corporation Ltd. for the year 2019-20 and accordingly, an agreement was entered into between the petitioner and respondent No.2 on 8.1.2021. As per agreement, the contract is for a period of one and half year, which may extend for a further period of six months. Thereafter, respondent Corporation issued as many as five purchase orders to the petitioner for supply of products mentioned therein. Petitioner failed to supply the contracted products within stipulated period of time as a result a show-cause notice was issued calling upon petitioner to explain as to why petitioner should not be blacklisted and why security amount should not be forfeited as petitioner failed to comply with Conditions No.5 & 7 of the tender. Petitioner submitted reply to show-cause notice explaining the circumstances for non-supply of products in time. Respondent No.2 vide order impugned blacklisted the petitioner for a period of three years and forfeited the amount deposited by petitioner as security deposit.
3. Learned counsel for the petitioner submits that due to lockdown, in the wake of second wave of Covid-19 pandemic, the petitioner was not in a position to supply products ordered by respondent Corporation as the same went out of stock from the market. Ascribing acute shortage of products in the market due to Covid-19 pandemic situation, petitioner intimated respondent Corporation about his inability to supply certain products, which are required by them, and requested to cancel the purchase orders. Instead of showing sympathetic consideration and considering the case of petitioner on humanitarian ground, respondent No.2 issued show cause notice dated 29.1.2022 calling upon the petitioner to showcause as to why petitioner should not be blacklisted and why security amount deposited should not be forfeited. He submits that as per Clause 24 of the agreement entered between petitioner and respondent No.2, in case of any dispute between the parties, all possible efforts has to be made to resolve the dispute amicably. Respondent No.2 without taking any step for amicable settlement of dispute has straight away issued notice of blacklisting to petitioner. Therefore, petitioner preferred writ petition bearing WPC No.819/2022 which came to be disposed of along with other connected writ petitions on 14.2.2022 directing petitioner herein to file response to showcause notice and in turn, respondent Corporation authorities were directed to consider the same in an objective manner. Thereafter, petitioner submitted detailed reply to show-cause notice explaining reason for non-supply of the products-mentioned in purchase order. Petitioner has categorically pleaded that supply and availability of products mentioned in purchase order as also in the list of accepted items was badly affected due to spread of second wave of Covid-19 and therefore, petitioner could not be able to discharge the obligation undertaken in the agreement. Petitioner has also shown his willingness to supply four items out of total five items mentioned in purchase order. However, respondent No.2 vide order impugned blacklisted the petitioner for a period of three years and also forfeited the security amount deposit.
4. Learned counsel for petitioner further submits that petitioner could not be faulted for non-supply of products in time which was due to spread of corona virus across the country after issuance of purchase order by respondent No.2. The order of blacklisting passed by respondent No.3 is without proper notice and a non-speaking order as no reason is assigned for not a
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The main legal point established in the judgment is the requirement of a valid, particularized, and unambiguous show-cause notice before blacklisting, and the need for fair hearing and proportionate ....
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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....
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