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HIGH COURT OF RAJASTHAN (JODHPUR BENCH)
ARUN MONGA, SUNIL BENIWAL
United Coal Carrier, Through Authorized Representative Namely Arvind Singh Rathore S/o Shri Darshan Singh Rathore – Appellant
Versus
Rajasthan State Mines And Mineral Limited, Through Chairman – Respondent
Order :
Sunil Beniwal, J.
1. The present writ petition has been filed aggrieved by the order/communication dated 24.12.2023 (Annexure-38) issued by Rajasthan State Mines and Minerals Ltd. (‘RSMML’), whereby the tender contract relating to “Loading of limestone gitti of various sizes into tippers/dumpers from crusher hopper(s) and/or different stacks lying at the company's Sanu mines, District Jaisalmer, its transportation from the mines to the railway siding at Sanu Railway Station, and its unloading, stacking, watch & ward, and mechanized loading of limestone gitti into railway wagons using front-end loaders etc.”, which had been awarded to the petitioner, was terminated. Further, the petitioner’s security deposit was forfeited and the petitioner was blacklisted for a period of three years.
2. The brief facts of the case are that RSMML issued a Notice Inviting Tender (‘NIT’) dated 23.03.2023 (Annexure-3) for the aforesaid work. The petitioner participated in the tender process and was declared the L-1 bidder. A Letter of Acceptance was issued in favour of the petitioner on 17.07.2023 and an addendum was issued on 20.07.2023 (Annexure-6 colly). In the said Letter of Acceptance, it was
Termination and blacklisting of a contractor based on poor performance is justified, provided due process is followed in accordance with statutory provisions.
Judicial review is permissible in contractual disputes involving public law elements, but the existence of an arbitration clause limits the scope of such review.
The court emphasized that public authority's arbitrary termination of a contract without following due procedures violates principles of fairness and justness, meriting judicial intervention.
A terminated contract cannot be revived by administrative order, and the principles of transparency and fairness must be upheld in public procurement processes.
A terminated contract cannot be revived by administrative order, and any such action must adhere to principles of transparency and fairness as mandated by public procurement laws.
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