YASHWANT VARMA
Theme Engineering Services Pvt Ltd. – Appellant
Versus
National Highways Authority of India – Respondent
JUDGMENT
1. The petitioner who was appointed as a Supervision Consultant by the National Highways Authority of India [NHAI] in connection with the construction, supervision of balance work of 4 laning of Ranchi-Rargaon-Mahulia section from 114.00 to km 277.568 at National Highway-33 falling in the State of Jharkhand impugns the validity of an order of blacklisting dated 12 January 2021. In terms of the said order, the Review Committee of NHAI has drawn an order of debarment which was to operate for a period of six months. The impugned order passed by the Review Committee has on a reconsideration of all relevant facts reduced the period of debarment of two years as was made originally in terms of an order dated 17 December 2020.
2. Undisputedly, by the time the present petition was taken up for consideration, the period of debarment had already come to an end. The petitioner however has sought an appropriate declaration since the order of debarment was asserted to have a continued detrimental effect and impact on the right of the petitioner to participate in future contracts either with NHAI or other bodies. For the purposes of sketching out the necessary backdrop and in order to
The Court held that the impugned order of blacklisting was unsustainable on the following grounds:
1. The order was based on allegations that were not included in the SCN issued to the petitio....
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....
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.
Blacklisting of a contractor must adhere to the principles of natural justice, requiring a specific show cause notice containing proposed penalties. Furthermore, permanent or indefinite blacklisting ....
(1) Debarment as a remedy is to be invoked in cases where there is harm or potential harm for public interest particularly in cases where person’s conduct has demonstrated that debarment as a penalty....
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