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IN THE HIGH COURT OF DELHI AT NEW DELHI
PRATEEK JALAN
Maan Builders Pvt. Ltd. – Appellant
Versus
Union Of India – Respondent
JUDGMENT :
PRATEEK JALAN, J.
1. The petitioner has filed this petition, under Article 226 of the Constitution, against the order dated 17.02.2023, by which the petitioner and its allied/sister firms were debarred for a period of two years from dealing with the Indian Railways and its production units. The principal ground of challenge is that the impugned order does not disclose any reasons.
2. The impugned order reads as follows:
“No.2022/CE-I/CBL/I/Maan Builders(3409117) New Delhi, Dated :17.02.2023
As per list attached.
Sub: Banning of business dealings with M/s Mann Builders, SC0-44, 2nd floor, Sector-12, Panchkula, Haryana-134112 and its allied/sister concerns.
M/s Maan Builders was served with a Memorandum and Statement of charges/Misconduct for banning of business dealings with them for concealing of information/submitting incorrect information by deviating from the contractual agreement with malafide intention,
2. Reply to the Memorandum submitted by M/s Maan Builders through Northern Railway has been considered in detail by the Competent Authority, who has concluded that M/s Maan Builders has concealed information/submitting incorrect information with malafide intention violating
Debarment orders must include sufficient reasoning and adhere to natural justice principles as they significantly impact the affected party, equating to civil death.
Blacklisting or debarment cannot be permanent and must be preceded by a specific show cause notice, complying with the principles of natural justice.
Debarment from future tenders without a hearing constitutes a violation of natural justice and is treated as blacklisting requiring a specific show cause notice.
Blacklisting an entity without providing notice and an opportunity for hearing violates the principles of natural justice and renders the decision invalid.
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