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IN THE HIGH COURT OF DELHI
D.N. Patel, Jasmeet Singh, JJ.
National Highways Authority of India - Appellant
Versus
Theme Engineering Services Private Ltd. - Respondent
LPA No. 56 of 2021
Decided On : 26-03-2021




A debarment order must consider all grounds presented, and judicial review in such cases requires a thorough evaluation of the facts rather than summary judgments.

Headnote:(A) National Highways Act, Debarment Guidelines - Clause 3.7(ix)(b) - The appellant challenged the lower court’s decision to stay debarment based solely on the assumption that false CVs were the sole issue. The Review Committee provided multiple grounds for debarment, supported by evidence from Annexure-VI. (Paras 10-13)

(B) Judicial Review - The court has clarified that debarment entails significant consequences, meriting thorough review rather than summary relief. Decisions involving penal consequences require careful scrutiny. The appellate court emphasizes the need for a complete examination of the case by the lower court. (Paras 14-16)

Facts of the case:
The present appeal concerns the debarment of a contractor by the National Highways Authority due to discrepancies in submitted CVs and other grounds. The prior ruling stayed this debarment until a full hearing could occur.

Findings of Court:
The court concluded that the initial claim regarding the singular reason for debarment was unfounded. It confirmed all grounds in the debarment order and requested an expedited hearing of the writ petition.

Issues: The principal issues were whether the debarment grounds included only false CVs and if the stay was justified.

Ratio Decidendi: The court stated that the Review Committee's comprehensive assessment warranted respect and the lower court must conduct a final hearing to evaluate the merits fully.

Result: LPA allowed, and the previous order was set aside.

JUDGMENT

Jasmeet Singh, J.

LPA 56/2021 & CM APPL. 12166/2021-STAY

1. The present Letters Patent Appeal has been filed by the appellant (Original respondent in the writ petition W.P (C) No. 1173/2021) being aggrieved by the order dated 01.02.2021 passed in WP(C) No. 1173/2021 titled as Theme Engineering Services Private Ltd. & Anr. Vs. National Highways Authority of India & Ors..

2. By virtue of the impugned order, the learned Single Judge was pleased to stay prospectively the order of debarment dated 12.01.2021.

3. The learned Senior Counsel appearing for the appellant has contended that the learned Single Judge has gone purely on the premise that the order of debarment has been passed under Clause 3.7 (ix)(b) section 2 of Appendix `L' as the information given by two key personnel in their CVs were found to be fake.

4. The learned senior counsel for the appellant has stated that a bare perusal of Annexure-VI would show that the incorrect information in CVs was not the only ground but there were other grounds which were set out in Annexure-VI. The learned senior counsel argued for the appellant that the Review Committee after due consideration of the representations as well as the charges set out in Annexure-VI was pleased to pass an order of debarment for a period of 6 months.

5. The learned senior counsel appearing for the appellant has relied upon on NHAI Vs. Neeraj Upadhyay, Civil Appeal No. 2732 of 2014 decided on 21.02.2014.

6. The learned senior counsel appearing for the respondent on the other hand has submitted that the order of debarment dated 12.01.2021 is a penal order and none of the grounds mentioned in Annexure-VI have been made out. The learned senior counsel has drawn our attention at Clause 3.7 (ix)(b) which reads as under:

    Clause 3.7 "The Technical Proposal should provide the following information using but not limited to the formats attached in Section 4:

    ix) Requirement for submission of CVs.

    b. Key information should include years with the firm and degree of responsibility held in various assignments. In CV format, at summary, the individual shall declare his qualification & total experience (in years) against the requirements specified in TOR for the position (Ref. Annexure-I, II & Ill of TOR). If any information is found incorrect, at any stage, action Including termination and debarment from future projects upto 2 years may be taken by Employer on the personnel and the Firm.

To contend that if there is any violation, action, may be taken against the personnel.

7. The learned senior counsel for the respondent has further taken us through 4.5(c) to contend that only 4 personnels were replaced and not 6 as stated in Annexure-VI. The learned senior counsel for the respondent further stated that even the ground of not extending the validity of additional bank guarantee up to 25.05.2024 is incorrect as the same was duly extended the respondent.

8. Lastly, the learned senior counsel for the respondent has relied on the judgment dated 19.04.2017 passed in L.N. Malviya Infra Projects Pvt. Ltd. & Anr. Vs. National Highways Authority of India, W.P. (C) 3326/2017 by the learned Single Judge of this Hon'ble Court, judgment dated 09.07.2018 passed by the Division Bench of this Hon'ble Court in National Highways Authority of India Vs. L.N. Malviya Infra Projects Pvt. Ltd. & Anr., LPA 660/2017 to contend that order of blacklisting has serious civic and economic consequences and results in loss of reputation, goodwill and damages.

9. We have heard the learned counsel for the parties and perused the records.

10. In the present case, the learned Single Judge has passed the impugned order dated 01.02.2021 on the premise that the only reason for passing the order of debarment dated 12.01.2021 was giving of false CVs of two personnels.

11. We are unable to agree.

That the order of the debarment, especially in para 10 categorically states as under:

    "Having considered the explanations and other relevant m

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