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2007 Supreme(Del) 1682
High Court Of Delhi
S. RAVINDRA BHAT
INTEGRATED TECHNO SYSTEMS PVT LTD - Appellant
Versus
N. D. M. C - Respondents
CM 11145 Of 2007
Decided On : 08/17/2007
ANJANA GOSAIN, H.S.SHARMA
The main legal point established in the judgment is that the court will intervene if it is satisfied that the procedure adopted by a public agency in issuing a debarring order was unfair or illegal. The court's focus is on the fairness of the process of decision making rather than the merits of the decision.
Headnote:
Debarring - Contractual Dispute - 8.6.2006, 10-2-2004, 25-2-2004, 12-3-2004 - The court discussed the contractual dispute and the debarring of the petitioner from tendering with the NDMC for a period of two years. The court analyzed the fairness of the procedure adopted by the NDMC and found that the impugned order was made after considering relevant factors and following a fair procedure.
Fact of the Case:
The petitioner challenged an order debarring it from tendering for two years by the NDMC. The petitioner was awarded a consultancy contract in 2003, but the contract was rescinded in 2004. The NDMC issued a show cause notice proposing the debarring in 2006, and the impugned order was issued in 2006.
Finding of the Court:
The court found that the impugned order was made after considering relevant factors and following a fair procedure. The petition was dismissed, but the petitioner's right to invoke arbitration under Clause 25 was upheld.
Issues: The issues involved the contractual dispute between the petitioner and the NDMC, the fairness of the procedure adopted by the NDMC in issuing the debarring order, and the petitioner's right to invoke arbitration.
Ratio Decidendi: The court's decision was based on the finding that the impugned order was made after considering relevant factors and following a fair procedure. The court also upheld the petitioner's right to invoke arbitration under Clause 25.
Final Decision: The writ petition and CM 11145/2007 were dismissed, but subject to the petitioner's right to invoke arbitration under Clause 25. No costs were awarded.
( 1 ) ISSUE notice. Ms. Anjana Gosain, learned counsel accepts notice on behalf of the New Delhi Municipal Committee (hereafter "ndmc" ). With consent of counsel for the parties, the matter was heard finally.
( 2 ) THE petitioner challenges an order dated 22. 12. 2006 by which it was been debarred from tendering for a period of two years. The impugned order was made by the NDMC. The petitioner was awarded a consultancy contract in 2003 for technical repair and desilting of SWD system in NDMC area under sub-head survey of SWD system for GIS mapping. The price bid was submitted pursuant to the ndmc's request on 28. 5. 2003. The petitioner was informed that its tender was accepted on 8. 8. 2003. It is not disputed that thereafter the petitioner commenced its work. Apparently, the petitioner was executing the contract till 15. 7. 2004 when the respondent acting through its Executive Engineer (Drainage) rescinded it. This was preceded what was termed as a final show cause notice on 22. 2. 2004 It is further not disputed that the decision was accepted by the petitioner who did not seek legal recourse.
( 3 ) ON 8. 6. 2006, the NDMC issued a show cause notice proposing to debar the petitioner from tendering with it for a period of two years. The show cause notice reads as follows:
To,
M/s. Integrated Techno system (P) Ltd.
118-B, Shahpur Jat , Second Floor
Opposite Khel Gaon ,
New Delhi " 49.
Sub: - T/r and desilting of SWD system in NDMC area.
SH: - Survey of SWD system in NDMC area for GIS mapping.
(SHOW CAUSE NOTICE)
Sir,
The above noted work was awarded to you by EE ( Dr.) vide letter of award
No. D/184-194/ EE ( Dr.) dated 8-8-2003 with stipulated ate of start and
completion as 18-8-2003 and 18-4-2004 respectively. Inspite of repeated
letters/reminders/notices dated 10-2-2004, 25-2-2004, 12-3-2004 and 22-6-2004 But you have failed to complete the aforesaid work. This act on your part is unbecoming of a contractor.
In view of the above, you are hereby given notice to show cause within 07 days from the date of issue of this notice as to why you may not be debarred from further tendering in NDMC, for a period of two year. In case you fail to show cause with in a stipulated period or the cause shown by you is not found to the satisfaction of the competent authority action against you as contemplated above shall be taken without any further notice.
(S. M. Kumar)
SR. ACCOUNTS OFFICER (W) -I
( 4 ) THE petitioner replied to this show cause notice and recorded its objections by letters dated 22. 6. 2006 and 27. 9. 2006. The communications were detailed and it sought to give particulars about the claims that the petitioner proposed against the NDMC.
( 5 ) ON 22. 12. 2006, the NDMC issued the impugned order, in the following terms:
D. No. /a-III/254/ce (C )- I/sr. A. O. (W ) -I Dated 22. 12. 2006
To
M/s. Integrated Techno System )P ) Ltd.
118-B, Shahpur Jat , IInd Floor
Opposite Khel Gaon
New Delhi " 49.
Sub:- t/r and desilting of SWD system in NDMC area.
SH:- survey of SWD system in NDMC area for GIS Mapping.
The above said work was awarded to you vide letter No. E. E. (Drainage)
D/184-94 dt . 8-8-2003 with stipulated date of start and completion as 18-8-2003 and 18-4-2004 respectively. In spite of repeated letters/reminders/notices dt .
10-2-2004, 25-2-2004, 12-3-2004 and 22-6-2004; but you have failed to complete the aforesaid work. This act on your part is unbecoming of contractor. Subsequently a show cause notice No. D/a-III/153/ce (C)-I/sr. A. O. ( W)-I, dt. 8-6-2006 was also served upon you to show cause as to why you may not be debarred from further tendering in N. D. M. C. for a period of two years.
Your reply dated 22-6-2006 received in this office in response to the
aforesaid show cause notice has been examined by the competent authority and thesame has been found unsatisfactory.
Now, with prior approval of the competent authority, you are, hereby,
debarred from
