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2023 Supreme(Del) 233

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
M/S. Ratan Kumar Singh - Petitioner
Versus
Central Railside Warehouse Company Limited - Respondent
W.P.(C) No.222 Of 2022 & CM APPL. No.614 Of 2022
Decided On : 23-01-2023

Advocates Appeared:
For the Petitioner: Mr. Neeraj Malhotra with Mr. Parmatma Singh, Mr. Mayank Jain, Mr. Madhur Jain and Mr. Nimish Kumar, Advs.
For the Respondent: Mr. Ashish Tiwari and Mr. Sahib Patel.

Headnote:

Tender - Blacklisting order - Challenging blacklisting order passed by Respondent which has now been transferred to Central Warehousing Corporation – Held, No specific show cause notice was given prior to blacklisting of Petitioner - As per tender, it is maximum period for which blacklisting can be undertaken - Vide letter, Respondent had mentioned that non-adherence to order for taking over operation at RWC would lead to actions being initiated against Petitioner in terms of tender clauses including clause relating to blacklisting - However, undeniably, no opportunity to be heard was given - Accordingly, Petitioner is directed to deposit a sum of Rs.18,00,000/- in accordance with conditions laid down in tender, with Respondent within four weeks - Upon said deposit being made, impugned black listing order shall stand lifted and Petitioner will no longer be treated as having been a blacklisted entity vide said order - Petition disposed of.

JUDGMENT :

[Prathiba M. Singh, J.]

1. This hearing has been done through hybrid mode.

2. The present petition has been filed by M/s Ratan Kumar Singh, which is a sole proprietary concern, challenging the blacklisting order dated 30th November, 2021 passed by the Respondent-Central Railside Warehouse Company Ltd. which has now been transferred to Central Warehousing Corporation. The said order reads as:

“Whereas, you have participated in the tender and furnished all requisite documents as per eligibility criteria along with the declaration that you agree to abide by all terms and conditions of Contract.

Whereas as you were selected as L1 bidder and accordingly the said contract was awarded to you vide letter no.- CRWC-II/RWC-Badnera/H&T-Tender/2021-22/1429 dated 12.11.2021.

Whereas, vide award letter dated 12.11.2021 you were asked to take over the work at RWC Badnera w.e.f. 16.11.2021 and submit the security deposit within 15 days of the date of award letter as per tender terms & conditions.

Whereas, vide letter dated 15.11.2021, you had shown your inability to take over work and asked for cancellation of the award letter.

Whereas, vide this office letter dated 25.11.2021 you were again requested to take over the work at RWC Badnera and submit the security deposit within 15 days of the date of award letter i.e., by 27.11.2021 failing which necessary action will be initiated against you as per the tender clause, terms & conditions mentioned below:

- BLACKLISTING/ DEBAR (Clause 19, page 29/75):

The non-performing/defaulting service provider may be Suspended / banned for trade relation/black listed/debarred for participation in future Tender enquiry for the period upto 5 years based on the gravity of non-performance/breach of any terms of the Contract/default of the service provider by the Managing Director of the CRWC whose decision in the matter shall be final and binding.

- BID SECURITY DECLARATION (Appendix-XV-page 75/75):

As per Bid Security Declaration duly stamped, signed and submitted by you wherein you have accepted that in case of withdrawal of bid during the validity period you would be suspended for a period of 05 years from the date of NIT by CRWC.

- SECURITY DEPOSIT (Clause iv, page 12-13/75):

The successful Bidder shall furnish, within a fortnight from the date of award of work by CRWC, Security Deposit of Rs. 18, 00, 000/- (Rs. Eighteen Lakhs Only) failing which the work order shall be liable to be cancelled at his/their risk and cost and also subject to such other remedies as may be available to the Company under the terms of the contract. Besides the CRWC may suspend/ban the trade relations with him/them or debar to participate in all future Tender enquiries with CRWC based on the merit of each case upto a period of five years without prejudice to any other rights and remedies of the CRWC under the contract and law.

Whereas, vide letter dated 26.11.2021, you have conveyed your inability to take over the work for handling rail/road borne cargo at Railside Warehouse Complex Badnera, Maharashtra.

Whereas, you have failed to take over the work awarded, failed to execute the agreement with CRWC and failed to submit the security deposit within fortnight from the dated of award of contract, as per terms and condition agreed by you.

Whereas, you have breached the terms and conditions of the tender.

Therefore, you have been backlisted and debarred by CRWC for participation in future tender enquiries of CRWC for a period of 05 (five) years from date of issue of this letter and same shall be applicable to Central Warehousing Corporation (CWC) after merger of CRWC with CWC.”

Background

3. The Respondent had floated a tender dated 14th September, 2021 for ‘Appointment of service provider for handling rail/road borne cargo’ at Railside Warehouse Complex Badnera, Maharasthra.

4. The said location had a specific condition in respect of employment of labour. The labour was to be provided in that area by the Amravati Mathadi & Unp

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