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IN THE HIGH COURT OF DELHI
Satish Chandra Sharma, Subramonium Prasad, JJ.
BGR Mining and Infra Limited - Appellant
Versus
NTPC Limited - Respondent
LPA 236 of 2022, LPA 237 of 2022 & CM Appls. 16711 of 2022 & 16713 of 2022, LPA 241 of 2022 and LPA 242 of 2022 & CM Appls. 16952 of 2022 & 16954 of 2022
Decided On : 22-09-2022




The court upheld the banning of appellants from business dealings due to serious allegations, emphasizing the limited scope of judicial review in administrative actions.

Headnote:(A) Arbitration and Conciliation Act, 1996 - Section 16 - The ban on business dealings against Appellants was upheld as there was no arbitrariness or unreasonableness in the decision. The Court emphasized that grave allegations warranted immediate action, without awaiting the outcome of alternative dispute resolution mechanisms. (Paras 12, 31)

(B) Judicial Review - The scope of judicial review on administrative decisions is limited, particularly when grave allegations are involved. The decision must be held to the standards of natural justice while considering judgments of lower courts. (Paras 12, 31)

(C) Review of Decisions - The main review petitions were dismissed as the newly presented evidence did not alter the gravity of the original allegations. The Minutes of Meeting was ruled insufficient to exonerate the Appellants from allegations. (Paras 14, 30)

Facts of the case:
The appellants sought condonation of delay in filing appeals against banning orders resulting from serious allegations involving corruption linked to their operations as coal contractors. The applications filed were dismissed on the grounds that no adequate explanation was provided for the delayed appeals.

Findings of Court:
The Appeals were dismissed due to inadequate justification for the delay and the upheld banning orders based on serious allegations of corruption and the gravity of the accusations.

Issues: The primary issues included the challenge to the validity and appropriateness of the banning orders and whether the judicial reviews provided sufficient grounds for the appeals.

Ratio Decidendi: The court reiterated that administrative actions such as banning are subject to limited judicial review, especially when grave allegations are present. Decisions on administrative actions must be made considering the principles of natural justice and the context of the allegations.

Result: Appeals dismissed.

Table of Content
1. delay in appeals and arbitration process (Para 1 , 2 , 3)
2. delay explanation insufficient for condonation (Para 4 , 5)
3. grounds for filing review petitions (Para 8 , 9)
4. judicial review and decision validity (Para 12 , 13)
5. arguments regarding the cbi fir and its implications (Para 17 , 18 , 20 , 21)
6. non-interference with judicial conclusions on appeal (Para 23 , 25 , 29 , 30 , 32)
7. disposal of appeals and pending applications (Para 33)

JUDGMENT

Subramonium Prasad, J.

CM APPL.16710/2022 in LPA 237/2022

CM APPL.16951/2022 in LPA 242/2022

1. CM APPL.16710/2022 and CM APPL.16951/2022 have been filed on behalf of the Appellants seeking condonation of delay in preferring the LPA 237/2022 and LPA 242/2022 respectively against the Impugned Common Judgment dated 08.01.2020, passed by the Ld. Single Judge in W.P.(C) 12068/2019 and W.P.(C)12077/2019. The instant appeals bearing LPA 237/2022 and LPA 242/2022 have been filed on 31.03.2022 and 01.04.2022 respectively.

2. The material on record reveals that prior to the dismissal of the Writ Petitions bearing W.P.(C) 12077/2019 and W.P.(C) 12068/2019 by the Ld. Single Judge vide Judgment dated 08.01.2020, the Adjudicator as envisaged under Clause 23 of the Project Agreements for resolution of disputes had been appointed by Respondent No. 1, vide letter dated 18.09.2019. Since the attempt to settle the dispute before the Adjudicator failed, Arbitration proceedings commenced before the Ld. Tribunal as envisaged under the Project Agreements.

3. After dismissal of the Writ Petitions bearing W.P.(C) 12077/2019 and W.P.(C) 12068/2019 by the Ld. Single Judge vide Judgment dated 08.01.2020, the Respondents filed an application under Section 16 of the Arbitration and Conciliation Act, 1996 before the Ld. Arbitral Tribunal contending that the banning order which was a subject matter of the proceedings before this Court, it cannot be adjudicated before the Tribunal too. The banning order was the subject matter of challenge in W.P.(C) 12077/2019 and W.P.(C) 12068/2019 which has been dismissed by the Ld. Single Judge vide Judgment dated 08.01.2020. The Tribunal vide its Order dated 29.10.2021 rejected the application filed under Section 16 of the Arbitration and Conciliation Act, 1996. Pursuant to the dismissal of the application under Section 16 of the Arbitration and Conciliation Act, 1996, the Appellants filed review petitions bearing Review Petition No. 212 of 2021 in W.P. (C) No. 12077/2019 and Review Petition No. 211 of 2021 in W.P. (C) No. 12068/2019 before this Court, these were rejected by the Ld. Single Judge vide Order dated 17.12.2021.

4. No reason has been given by the Appellants as to why the instant appeals were not filed within 30 days from the judgment dated 08.01.2020 passed by the Ld. Single Judge, which has been challenged in the present appeals. The fact that the Respondents had filed an application under Section 16 of the Arbitration and Conciliation Act, 1996 was no ground for not challenging the Order dated 08.01.2020 passed by the Ld. Single Judge by filing appeal. The fact that the delay in filing the review petitions was condoned by the Ld. Single Judge will not inure to the benefit of the Appellants. The review petitions were also dismissed by the Ld. Single Judge vide Order dated 17.12.2021.

5. In view of the fact that the delay has not been properly explained, this Court does not find any reason to condone the delay in preferring the instant appeals against the Impugned Judgment dated 08.01.2020, passed by the Ld. Single Judge in W.P.(C) 12068/2019 and W.P.(C) 12077/2019.

6. The applications are dismissed accordingly.

LPA 237/2022 & CM APPLs. 16711/2022 & 16713/2022

LPA 242/2022 & CM APPLs. 16952/2022 & 16954/2022

7. In view of the order passed in CM APPL.16710/2022 and CM APPL.16951/2022, the instant Appeals are dismissed accordingly, along with any pending applications therein.

LPA 236/2022 & LPA 241/2022

8. LPA No. 236/2022 has be

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