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TARA VITASTA GANJU
Aurobindo Realty And Infrastructure Private Limited KMC Constructions Limited Consortium – Appellant
Versus
National Highways Authority Of India – Respondent
JUDGMENT :
(Tara Vitasta Ganju, J.)
CM APPL. 63019/2024 [Stay]
1. The Petitioner has filed this Petition seeking to quash letter dated 10.05.2024 which was issued by Respondent/NHAI debarring the Petitioner from participating in any tender issued by the Respondent/NHAI for a period of 2 years. The Petition also impugns a communication dated 25.04.2024 issued by the Respondent/NHAI wherein a contract which was awarded to the Petitioner by the Respondent/NHAI, was withdrawn by the Respondent/NHAI.
2. By way of the present Application, the Petitioner is seeking grant of interim relief of stay of the letter dated 10.05.2024 [hereinafter referred to as “Debarment Letter”] debarring the Petitioner either individually or jointly from participating in any tender issued by the Respondent/NHAI in a consortium with any other entity or in any capacity or in any manner whatsoever.
3. The Application also seeks a stay on the operation of the letter dated 25.04.2024 [hereinafter referred to as “LoA withdrawal letter”] wherein the Letter of Award dated 31.03.2023 [hereinafter referred to as “LoA”] has been withdrawn by the Respondent/NHAI.
4. Learned Counsel for the Respondent/NHAI opposed the grant of
The imposition of debarment requires a clear Show Cause Notice specifying the penalty and grounds, ensuring adherence to principles of natural justice.
Debarment or blacklisting must be proportionate to the default committed by the bidder. Proper reasons must be provided for blacklisting, and the principles of natural justice must be followed. Black....
The requirement for a fair hearing and a specific show cause notice before imposing the severe civil consequence of blacklisting, and the need for the authority to determine the period of punishment ....
The court upheld the debarment of the petitioner for failing to submit a performance guarantee on time, affirming the procedural fairness and adherence to the RFP guidelines.
(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....
Debarment from future tenders without a hearing constitutes a violation of natural justice and is treated as blacklisting requiring a specific show cause notice.
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