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DELHI HIGH COURT
MANOJ KUMAR OHRI
Satish Chand Rajesh Kumar Pvt. Ltd. – Appellant
Versus
New Delhi Municipal Council – Respondent
| Table of Content |
|---|
| 1. the debarment was due to contractor's alleged performance issues. (Para 1 , 2 , 3 , 4) |
| 2. petitioner claims natural justice was denied in debarring decision. (Para 5 , 6) |
| 3. respondent argues petition is not maintainable in court. (Para 7 , 8) |
| 4. debarment decision based on contractual non-performance. (Para 9 , 10 , 11 , 12) |
| 5. challenges to the decision should be made in arbitration. (Para 13 , 14) |
| 6. petition dismissed with referral to arbitration for relief. (Para 15 , 16) |
JUDGMENT
Manoj Kumar Ohri, J. The present petition has been filed under Article 226 of the Constitution of India read with Section 151 CPC on behalf of the petitioner, assailing the decision dated 04.08.2020 of the respondent No. 1/Council and communication of same vide letter dated 06.11.2020, whereby the petitioner has been debarred from participating in the NDMC tenders for a period of 3 years with effect from the date of the decision i.e., 04.08.2020.
2. It is claimed by the petitioner that being the lowest bidder, it was awarded the tender by respondent No. 1/Council for the redevelopment work of Bapu Samaj Sewa Kendra, Panchkuian Road, New Delhi. The value of the work awarded was Rs.24,66
Debarring from tender participation without following natural justice principles is invalid; disputes arising under the contract should be resolved via arbitration, not through writ jurisdiction.
The Court emphasized that contractual disputes, including debarring decisions, should be challenged before the arbitrator as per the remedies provided under the contract.
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 court upheld the debarment of the contractor, ruling the action was not arbitrary and justified due to significant breaches impacting public interest, distinguishing it from minor breach preceden....
For a blacklisting or debarment order to be valid, a show-cause notice must explicitly inform the contractor of the potential for such penal action. Failure to provide specific notice of the intentio....
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.
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