The legal principle established is that prior to blacklisting or debarment, a show cause notice is mandatory, and debarment issued without notice and during the pandemic period is untenable.

JUDGMENT :

PRATHIBA M. SINGH, J.

1. This hearing has been done through hybrid mode.

2. This is a petition filed by the Petitioner - M/s Mohini Electricals Limited challenging the impugned circular dated 17th August, 2021 issued by the Respondent - Delhi Jal Board (DJB). By the said circular, the Petitioner has been debarred from participating in any tenders of the DJB for a period of one year or till sufficient progress is achieved. The relevant portion of the circular is set out below:

“The work of “Construction of 37.10 ML capacity master balancing reservoirs (MBR)/BPS at Palla” was awarded to the contractor firm M/s SNS Techno Corp Pvt. Ltd. (30% share) in. Joint Venture with M/s Mohini Electricals Ltd. (70% share).

The progress of Palla UGR work, awarded on 15.10.2018 having completion period of 24 months i.e. date of completion 30.09.2020 extended to 30.04.2021 due to Covid-19, is still not satisfactory. Present progress of the work is only 33% (approx.). Though, there were some initial delays due to change in the drawing to avoid tree cutting, ban on construction activity from NGT, restriction due to Covid-19 etc. yet the slow execution of work and progress by the agency has been major contributor in delay of Palla UGR work. Agency was served Show Cause Notice vide letter dated 04.08.2020 and reply submitted by the firm vide letter dated 11.08.2020 was not satisfactory. Agency was again asked vide CE (W) Project-I letter dated 23.06.2021 to expedite the progress of the work and submit revised bar chart to expedite the work which was replied by the agency vide letter dated 02.07.2021. However, the agency has not been adhering to its own given bar chart and progress of work is still very slow.

Hon'ble Minister (Water) also inspected the Palla UGR site on 09.07.2021 along, with Member (WS) and other senior officers. The progress of work was still not satisfactory. Agency has further been served Notices on 15.07.2021 under clause 10 of Contract Agreement for levy of compensation for the delay in work and under clause-11 for rescinding of work.’

Considering above facts including the replies of the Agency on record, it has been decided that M/s SNS Techno Corp Pvt. Ltd. and M/s Mohini Electrical Ltd. should not be allowed to bid in future tenders of Delhi Jal Board for a period of one year or till sufficient progress is achieved in Palla MBR work, whichever is later.

This is issued with the approval of competent authority.”

3. The Petitioner was awarded a tender floated by the DJB for “Construction of 37.10. ML capacity Master Balancing Reservoir (MBR) IBPS at Palla” vide NIT No 02(2017-18) on 15th October, 2018.

4. An agreement between the parties was executed on 29th October, 2018 with a period of completion of 24 months for execution, three months for trial run and a ten years' period for operations and maintenance of the project. The completion date in terms of the agreement was 29th October, 2020. However, admittedly, there were delays in the execution of the project. According to the DJB, various notices were issued to the Petitioner to expedite the work. However, the same was not executed within time. Thereafter, the impugned circular dated 17th August, 2021 was issued to the Petitioner.

5. More than 18 months have passed since the issuance of the impugned circular. Today, Ms. Bharti, ld. Counsel submits that the project is almost reaching completion and since the debarment was only for a period of one year or till sufficient progress is achieved, the debarment order has run its course.

6. Ms. Salwan, ld. Counsel for the Petitioner submits that the case of the Petitioner is that no show cause notice was issued for the debarment/blacklisting and therefore that the debarment is itself contrary to law. It is further submitted that the drawings which were to be given to the Petitioner were given after the date for completion was ov