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MANOJ KUMAR OHRI
In the Matter of: MICA Cargo Movers – Appellant
Versus
Union of India – Respondent
JUDGMENT :
MANOJ KUMAR OHRI, J.
By way of present petition filed under Article 226 of the Constitution of India, the petitioner seeks setting aside of order dated 05.07.2017 passed by respondent No. 2/Northern Railway (hereafter referred to as ‘respondent’) whereby petitioner's registration as a contractor with Indian Railways, was cancelled alongwith cancellation of lease contracts, forfeiture of security deposit and blacklisting for a period of 5 years.
2. Petitioner claims to be proprietorship firm registered with respondent vide Registration Certificate No. 00DLIA00044 dated 23.10.2015 that was valid for a period of five years under the Comprehensive Parcel Leasing Policy (CPLP)-2014. Mr. Sanoj Kumar Modi, the petitioner's proprietor was independently registered with respondent as a Contractor vide registration dated 10.12.2013 that was valid for a period of 5 years under the provisions of CPLP-2006.
3. It is further claimed that respondent awarded a contract to Mr. Modi to operate the parcel leasing space in Train No. 12622 RSLR from NDLS to CEN with effect from 30.04.2014 to 29.04.2017 vide Agreement dated 29.04.2014. On 30.12.2016 officials of respondent apprehended consignment
The requirement of specific show cause notice before imposing penalties such as blacklisting, and the need to follow principles of natural justice in taking adverse actions against entities.
The impugned actions of issuing the show cause notice and blacklisting the petitioner were arbitrary, unconstitutional, and violated principles of natural justice. The court emphasized the requiremen....
Blacklisting or debarment cannot be permanent and must be preceded by a specific show cause notice, complying with the principles of natural justice.
The main legal point established in the judgment is the requirement for a fair hearing, specific show cause notices, and proportionate punishment before imposing blacklisting in government contracts.
The main legal point established in the judgment is that before blacklisting a person/entity, adequate notice and an opportunity to be heard must be provided, in accordance with the principles of nat....
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.
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