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MANOJ KUMAR OHRI
Satish Chand Rajesh Kumar Pvt. Ltd. – Appellant
Versus
New Delhi Municipal Council – Respondent
JUDGMENT
Manoj Kumar Ohri, J. - The present petition has been filed under article 226 of the Constitution of India read with Section 151 CPC on behalf of the petitioner, assailing the decision dated 04.08.2020 of the respondent No. 1/Council and communication of same vide letter dated 06.11.2020, whereby the petitioner has been debarred from participating in the NDMC tenders for a period of 3 years with effect from the date of the decision i.e., 04.08.2020.
2. It is claimed by the petitioner that being the lowest bidder, it was awarded the tender by respondent No. 1/Council for the redevelopment work of Bapu Samaj Sewa Kendra, Panchkuian Road, New Delhi. The value of the work awarded was Rs.24,66,00,663/-, which was later on modified to Rs.24,54,00,633/-. In terms of the letter of acceptance dated 07.02.2018, the petitioner furnished Performance Guarantee(s) to the Council in the form of Bank Guarantee(s) as security for due performance of the contract which was to be completed within a period of 18 months with effect from 22.02.2018, i.e., the date of the start of work.
3. according to the petitioner, when it proceeded to the project site to commence the work, the site was found to
The Court emphasized that contractual disputes, including debarring decisions, should be challenged before the arbitrator as per the remedies provided under the contract.
Debarring from tender participation without following natural justice principles is invalid; disputes arising under the contract should be resolved via arbitration, not through writ jurisdiction.
The severity of the effects of blacklisting and the resultant need for strict observance of the principles of natural justice before passing an order of blacklisting.
For a blacklisting or debarment order to be valid, a show-cause notice must explicitly inform the contractor of the potential for such penal action. Failure to provide specific notice of the intentio....
The court upheld the debarment of the contractor, ruling the action was not arbitrary and justified due to significant breaches impacting public interest, distinguishing it from minor breach preceden....
(1) Debarment as a remedy is to be invoked in cases where there is harm or potential harm for public interest particularly in cases where person’s conduct has demonstrated that debarment as a penalty....
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.
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