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MICHAEL ZOTHANKHUMA
Spectron Engineers Private Limited – Appellant
Versus
Oil and Natural Gas Corporation Limited – Respondent
JUDGMENT :
MICHAEL ZOTHANKHUMA, J.
1. Heard Mr. I. Choudhury, learned Sr. Counsel for the petitioners assisted by Mr. K.P. Pathak. Also heard Mr. D. Saikia, learned Sr. Counsel for the respondent ONGC assisted by Mr. N. Anix Singh.
2. The petitioners are aggrieved by the impugned order dated 09.01.2024 issued by the ONGC, by which the petitioners have been banned from having any further business dealings with the ONGC in any capacity and for participating in future tenders of the ONGC for a period of 1 year, i.e., till 08.01.2025. The petitioners’ case is that the petitioners were awarded the contract work for operation and maintenance of gas compression services at South Banskandi in the district of Cachar vide contract bearing No. 9010030760 dated 16.10.2019, for a period of 3 years, which was extended till 09.11.2023. An agreement was executed between the parties on 16.10.2019 and in terms of the said agreement, the termination of a contract of the contractor entailed the blacklisting of the contractor in terms of Clause 18 of the contract agreement. Further, Section 2 and 3 of the Integrity Pact, which is a part and parcel of the contract agreement, provided the manner in which a
Blacklisting of contractors requires adherence to contractual terms and principles of natural justice; actions taken post-contract expiration are unsustainable.
Banning orders require proof beyond reasonable doubt of misconduct; otherwise, natural justice demands adherence to procedural fairness, especially in cases invoking penalties like forfeiture.
The court upheld the banning order based on the violation of the Integrity Pact and directed the refund of forfeited Security Deposit/Earnest Money Deposits, emphasizing the importance of adhering to....
Point of Law : Work tender/Contract - Blacklisting - when the financial loss is not caused, the doctrine of proportionality to blacklist the petitioner beyond the reasons shown in the show cause not....
The Petitioner's suppression of a material fact and approach to the Court with unclean hands led to the dismissal of the Petition.
Blacklisting an entity for submission of forged bid documents is justified when the act impacts bid integrity; vicarious liability applies to employers for employee misconduct in the course of their ....
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