APARESH KUMAR SINGH, ANUBHA RAWAT CHOUDHARY
Xo Footwear Pvt. Ltd. – Appellant
Versus
State of Jharkhand through its Chief Secretary – Respondent
23. The factual and legal grounds urged by the appellants have been referred to in detail in the foregoing paragraphs. The rival stand of JEPC have also been taken note of. Both the sides have placed reliance on several authorities also to buttress their arguments, referred to in the preceding paragraphs. The scope and power of an employer to blacklist an agency or contractor has been laid down by the Hon'ble Supreme Court from time to time. It is not necessary to multiply the authorities while reiterating the settled principles of law on the power of blacklisting. However, it would be profitable to draw upon the illuminating discussion on this subject by the Apex Court in the case of Kulja Industries Limited (supra) wherein the precedents on this have been referred to and relied upon. The power to blacklist a contractor has been held to be inherent in the party allotting the contract. There is no need for any such power being specifically conferred by statute or reserved by the contractor. It is because of the simple reason that a party affected by the breach is entitled to take a business decision not to enter into any contractual relationship with the party committing the breach
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