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PRATHIBA M. SINGH
Royal Electrical Company – Appellant
Versus
Govt. of N. C. T. of Delhi – Respondent
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.
2. The Petitioner - Royal Electrical Company, A-771, Shastri Nagar, Delhi-110052, stated to be a registered government contractor, challenges the impugned circular dated 25th November, 2019 whereby the Petitioner has been debarred for a period of 5 years by the Delhi Jal Board (`DJB').
3. The work order dated 4th January, 2018 was awarded to the Petitioner for the purpose of renovation of the electrical system of the Sewage Pumping Station (SPS) at sector 17 Rohini. The total value of the work order was Rs.2,48,127/- (Rupees Two Lakh forty eight thousand one hundred and twenty seven). The DJB issued show cause notice on 2nd April, 2019 seeking reasons as to why the Petitioner ought not to be blacklisted/removed/temporarily suspended from the list of approved contractors on the ground that some of the work, which was allegedly claimed to have been carried out by the Petitioner, had turned out to be bogus/fictitious. A reply was given by the Petitioner to the said show cause notice, on 16th April, 2019 explaining that the work order was actually executed to the satisfaction of the officials of the
Debarment orders must be communicated to the affected party, and the Debarment Committee must afford a hearing for the debarment to sustain.
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.
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.
Blacklisting decisions must adhere to principles of fairness, reasonableness, and natural justice, ensuring proper consideration of the contractor's defense.
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