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VIBHU BAKHRU, AMIT MAHAJAN
Union of India – Appellant
Versus
Machine Tools India (Pvt. )Ltd. – Respondent
JUDGMENT
Vibhu Bakhru, J. (Oral)
1. The appellants have filed the present intra-court appeal, impugning an order dated 21.01.2020 (hereafter 'impugned order'), passed by the learned Single Judge in W.P.(C) 4847/2019, captioned M/s Machine Tools (India) Ltd. v. Union of India & Anr.'
2. The respondent had preferred the said writ petition, being W.P.(C) 4847/2019, to assail a letter dated 19.12.2018, whereby the respondent was black listed from participating in any tenders floated by the appellants for a period of five years.
3. The respondent's principal ground of challenge to the said letter dated 19.12.2018 was that it had already suffered punishment on the basis of the allegations that are the subject matter of the said letter. It is the respondent's contention that the respondent could not be vexed twice on the same allegations in the given set of facts.
The factual context
4. Appellant no. 2 (Diesel Locomotive Works, workshop of Indian Railways located in Varanasi) is an undertaking of the Government of India and functions directly under the Ministry of Railways.
5. Appellant no. 1 had floated a tender for supply of Flux, inviting bids from authorised dealers/ distributors.
The court established that a final punishment had been imposed on the respondent based on the investigation's findings, preventing a second punishment for the same irregularities.
The main legal point established in the judgment is the requirement for a clear mention of the proposed blacklisting action in the show cause notice, as well as the need to adhere to principles of na....
The requirement of giving reasons, adherence to principles of natural justice, and fairness in administrative actions, especially in cases of blacklisting or imposing penalties, is essential for a va....
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 decision to blacklist a contractor must follow due process and communicate the intended action clearly in the show cause notice. Non-supply of essential goods during a pandemic can justify blackl....
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