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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
G.S.SANDHAWALIA, CJ., JIYA LAL BHARDWAJ
Health Biotech Ltd. – Appellant
Versus
State of H.P. – Respondent
| Table of Content |
|---|
| 1. failure to furnish performance security triggers emd forfeiture (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. tender clauses permit contract annulment and emd forfeiture (Para 7 , 8) |
| 3. debarment requires specific pre-action show cause notice (Para 9 , 10 , 11 , 12 , 13 , 14) |
| 4. quash debarment for notice violation; uphold forfeiture (Para 15 , 16 , 17 , 18 , 19) |
JUDGMENT :
G.S. Sandhawalia, Chief Justice
The challenge in the present writ petition is to the order dated 21.03.2025 (Annexure P-8), whereby the respondents forfeited the EMD amount and debarred the petitioner from participating in the tender of the Department of Health and Family Welfare Govt. for a period of three years. Further directions were also issued to the indenting officers not to issue supply orders to the petitioner-firm and to initiate action as per Clause 5 of the tender document.
2. The arguments which have been put forth by the counsel for the petitioner are that in pursuance of the tender process dated 27.04.2023 (Annexure P-2), e-tenders were invited for supply of medicines and drugs for the period of a rate contract of one year, the last date of which was 15.05.2023. It is his case, that he had been foun
Tender clauses permit EMD forfeiture and contract cancellation without notice for failing performance security; debarment requires specific prior show cause notice per natural justice principles due ....
Tender bid valid 180 days from submission; post-expiry forfeiture of EMD and debarment invalid without extension. Debarment requires prior show cause notice per natural justice principles.
The principle of natural justice requires that the affected party be given a reasonable opportunity to defend themselves, and any proposed penalty/action should be mentioned specifically and unambigu....
The requirement for a fair hearing and a specific show cause notice before imposing the severe civil consequence of blacklisting, and the need for the authority to determine the period of punishment ....
Debarment or blacklisting must be proportionate to the default committed by the bidder. Proper reasons must be provided for blacklisting, and the principles of natural justice must be followed. Black....
A party cannot be blacklisted without a clear and adequate show cause notice, violating principles of natural justice, leading to severe consequences.
Blacklisting a contractor without a fair hearing violates principles of natural justice, rendering such actions invalid, while the termination of the contract for non-compliance with security require....
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