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IN THE HIGH COURT OF DELHI AT NEW DELHI
SACHIN DATTA
Cembond Constructions Pvt Ltd – Appellant
Versus
National Thermal Power Corporation Limited – Respondent
JUDGMENT :
SACHIN DATTA, J.
1. The present petition has been filed by the petitioner assailing a “banning circular” bearing Ref. No. CS-QS-C-B-2025/3 dated 07.03.2025 issued by the respondent no.1/M/s National Thermal Power Corporation Limited (NTPC) whereby, the business dealings between respondent no.1 and the petitioner have been banned for a period of one year with effect from 26.02.2025 to 25.02.2026. The said circular reads as under:
“NTPC Ltd.
(Corporate Contracts- Planning & Systems Group)
Ref No. CS-QS-C-B-2025/3 Date 07.03.2023
CIRCULAR NO. B-2025/3
Sub. Banning of Business dealings with M/s Cembond Constructions Pvt. Ltd. for a period of one year from 26.02.2025 to 25.02.2026
1.0 It has been decided to ban business dealings with M/s Cembond Constructions Pvt. Ltd, 1st Floor, House No. 37, Road No-7, East Punjabi Bagh, New Delhi-110026 (Pan NO. AACCC0337K) for a period of one year from 26.02.2025 to 25.02.2026.
2.0 Accordingly, no bidding/tender documents shall be issued and/or award shall be made to M/s Cembond Constructions Pvt. Ltd. for any tender floated from Corporate Centre/USSC/Regional Offices/Projects/Stations and
Banning an entity from business dealings requires adherence to principles of natural justice, including a show-cause notice and an opportunity to defend against such actions.
Debarment orders must include sufficient reasoning and adhere to natural justice principles as they significantly impact the affected party, equating to civil death.
If there is a power to decide and decide detrimentally to the prejudice of a person, the duty to act judicially is implicit in exercise of such a power and the rule of natural justice operates in are....
The court established that a blacklisting order must be based on a fair inquiry process, including the provision of relevant reports to the affected party.
Debarment from government tenders requires issuance of a Show Cause Notice stating intended action, ensuring compliance with principles of natural justice.
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