Administrative authorities must adhere to the principles of natural justice when imposing penalties like debarment. This includes disclosing all adverse material and reports relied upon to the affected party, ensuring they have a meaningful and effective opportunity to respond before any final decision is reached.

JUDGMENT & ORDER :

MANISH CHOUDHURY, J.

1. In this writ petition preferred under Article 226 of the Constitution of India, assail is made to an Order dated 22.01.2026 issued on behalf of the respondent, Indian Oil Corporation Limited [hereinafter also referred to as ‘IOC Limited’ or ‘IOCL’ or ‘the respondent Corporation’, at places, for easy reference]. By the Order dated 22.01.2026, the petitioner has been placed on the Holiday List of the respondent IOC Limited whereby it has been debarred from entering into any contract with the IOC Limited for a period of one year effective from 22.01.2026 and removed from the list of approved Vendors / Contractors. By the Order dated 22.01.2026, the petitioner has been instructed to refund and deposit an amount of Rs. 3,23,404.80 to the respondent Corporation within seven days from 22.01.2026 failing which, the respondent Corporation would proceed to recover the same as per extant policy guidelines, tender conditions and applicable laws.

2. The petitioner, a partnership firm, is a Contractor and a registered Vendor with the respondent IOC Limited having Vendor Code no. 11012162. The petitioner firm has asserted that it has been a Vendor with the respondent Corporation for more than two decades and it had successfully executed civil and infrastructure works of worth more than Rupees One Hundred Crores across several divisions satisfactorily for the respondent Corporation.

3. The background facts which have led the petitioner to institute the present writ petition can be narrated, in brief, at first.

4. A tender process was initiated by the respondent no. 5 vide Tender no.RCC/ERO/37/2020-21/PT-108 for award of a contract on the subject : ‘Rate Contract for Carrying out Capital and Revenue works at Retail Outlets [including KSKs], Consumer Pumps, Depots, Terminals, Lube & LPG Plants, Aviation Fueling Stations, Buildings, etc. under Tinsukia Divisional Office of Indian Oil AOD State Office’.

5. In response to the tender process, the petitioner submitted its bid. Upon evaluation of the bids, the petitioner emerged as the successful bidder. The petitioner was issued a Purchase Order bearing no. 27984726 on 15.07.2022 along with a Schedule of Rate in reference to Tender no. 7504210201 and Contract Ref. no. 12024309. The Purchase Order value was Rs. 25,41,531.83.

6. The petitioner has stated that on issuance of the Purchase Order, it duly completed the contract-work, ‘Construction of Toilet and Washroom for TT crew and Security Personnel at LPG Bottling Plant Dimapur’ [‘the Contract- Work’, for short] awarded vide Purchase Order no. 27984726 on 07.12.2022 strictly as per drawings, specifications, instructions, etc. issued by the Engineers of the respondent IOC Limited and also under continuous supervision of the Site Engineer and the Engineer-in-Charge of the respondent IOC Limited. In support of such claim, the petitioner has placed reliance on a Completion Certificate issued by the authorities in the respondent IOC Limited. In the Completion Certificate issued in reference to the Contract-Work under Purchase Order no. 27984726, it was mentioned that the date of commencement was 24.08.2022 and the date of actual completion was 07.12.2022. The authorities in the respondent Corporation