ORDER :

1. The present writ petition has been filed for quashing the letter dated 24.05.2021 (Annexure-5 to the writ petition) issued by the respondent no. 4- Staff Officer (E&M), Piperwar Area, Central Coalfields Limited (CCL) to the petitioner whereby it has been banned for two years from being eligible to submit bid in Coal India Limited (CIL) and its subsidiaries with immediate effect alleging violation of Clause-14.2 (B), (C) & (E) of NIT No. SO(E&M)/PPR/e-NIT/20-21/97 dated 02.01.2021 (hereinafter to be referred “as the said tender”). Further prayer has been made for issuance of direction upon the respondents to award the said tender in favour of the petitioner as it was declared L1. The petitioner has also prayed for quashing the letter dated 24.06.2021 issued by the respondent no. 4 by which work order for the said tender has been issued in favour of Sweta Construction, Bachra, District- Chatra (the respondent no 5).

2. Mr. Kalyan Roy, learned counsel for the petitioner, while arguing the case, confines the prayer only to the extent of quashing letter dated 24.05.2021 issued by the respondent no. 4 in connection with NIT No. SO(E&M)/PPR/e-NIT/20-21/97 dated 02.01.2021 whereby the petitioner has been banned for two years from being eligible to submit bid in CIL and its subsidiaries with immediate effect alleging violation of Clause-14.2(B), (C) & (E) of said NIT.

3. Learned counsel for the petitioner submits that the said tender was invited by Electrical and Mechanical (E&M) Department of CCL, Piparwar Area, Chatra for the work of “repairing and maintenance of 11 KV, 440 volts overhead lines, light fittings, transformers etc. installed at Garhi Filter Plant, Bachra Siding, Kalyanpur Coal Dump, rehabilitation centre under CHP-CPP for a period of 1 year”. The petitioner participated in the said tender and submitted its online bid on 11.01.2021. It also submitted all the documents on the same day which were required to meet the eligibility criteria as per the provisions of the said NIT. On submission of bid, the petitioner was declared L1. However, after technical evaluation of documents uploaded by the petitioner, some deficiencies were found by the tender committee and as such, the petitioner was requested to upload required shortfall documents within 7 days w.e.f. 26.01.2021 at 11:00 a.m. to 02.02.2021 at 11:00 A.M. on e-portal of Coal India Limited as per Clause 14.2(B) of the said NIT which was duly uploaded by it on 01.02.2021 in the e-procurement system of CCL.

4. It is further submitted that though a valid electrical contractor license was uploaded in the portal by the petitioner along with valid license of electrical wireman having authorization for working in HT overhead line and HT installations, however the evaluator gave wrong description of the shortfall documents submitted by the petitioner on the e-procurement system of CCL, pursuant to which, the respondent no. 4, vide letter dated 24.05.2021, ordered for banning the business of the petitioner for 2 years from being eligible to submit bid in CIL and its subsidiaries with immediate effect.

5. It is also submitted that issuance of letter dated 24.05.2021 is illegal, arbitrary and bad in law as no show cause notice was issued to the petitioner at any point of time. Moreover, no opportunity of hearing was given before passing the order of banning it from submitting the future tenders of CIL and its subsidiaries. According to learned counsel for the petitioner, the guidelines as mentioned in the e-tender notice under the heading “Guidelines for Banning of Business” have to be strictly followed by CIL and its subsidiary companies for effecting ‘Banning of Business’ in respect of works and services contracts. Clause-1 of the said guidelines specifically speaks about the ‘observance of principles of natural justice’ before banning the business dealings with any contracting entity which is completely absent in the present case. It is a settled principal of law that