IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
Rustam Ali, Proprietor of COSMOS Enterprises - Petitioner
Versus
The State of Jharkhand and Ors. - Respondents
W.P.(C) No. 1081 of 2020
Decided On : 23-03-2023
Tender - Order of blacklisting - Writ petition has been filed for quashing order whereby petitioner has been blacklisted for an indefinite period and his claim for payment against supply of blankets has been refused – Held, Impugned order cannot be said to have passed yardstick of fair play since explanation submitted by petitioner has not at all been discussed while passing same, rather respondent no. 5 has outrightly rejected it by stating that same has not been found satisfactory - Thus, impugned order is liable to be vitiated having been passed in violation of principles of natural justice - Moreover, order of blacklisting is for an indefinite period which is in teeth of proposition laid down in case of Kulja Industries Limited (supra) - Order as contained in memo issued by respondent no. 5, so far as same relates to putting petitioner’s firm on blacklist, is hereby set aside - Writ petition is allowed in part.
ORDER :
1. The present writ petition has been filed for quashing the order as contained in memo no. 02(i) dated 21.01.2020 issued by the Deputy Commissioner, Simdega (the respondent no. 5) whereby the petitioner has been blacklisted for an indefinite period and his claim for payment against supply of blankets (total 23,034 in numbers) has been refused.
2. In course of argument, learned counsel for the petitioner confines the prayer only to the extent of quashing the part of order as contained in memo no. 02(i) dated 21.01.2020 issued by the respondent no. 5 whereby the petitioner has been blacklisted. So far as the petitioner’s claim for payment against the supply of blankets is concerned, learned counsel for the petitioner submits that the petitioner will be taking other available recourses under law.
3. Learned counsel for the petitioner further submits that a short term Notice Inviting Tender (NIT) relating to financial year 2019-20 was issued by the respondent no. 5 vide memo No. 589 (ii) dated 03.09.2019 for supply of woolen blankets in Simdega District by Reverse e-auction process through NeML platform. The petitioner’s firm namely COSMOS Enterprises participated in the said tender and after fulfilling all the requirements, the said tender was awarded to it. Accordingly, work order for the aforesaid work was issued to the petitioner’s firm vide memo no. 671(ii) dated 09.10.2019 specifying the number of woolen blankets (total 23,034) to be supplied in ten respective Circles of Simdega district. The petitioner’s firm supplied the blankets as per the said work order for which all the concerned Circle Officers as well as Nazir of the Blocks/Circles of Simdega district issued quality certificates. Thereafter, the petitioner continuously approached the concerned authority for the payment of due bill but no action was taken. In the meantime, letters dated 14.12.2019 and 24.12.2019 were issued by the Assistant Director, Social Security Cell, Simdega (the respondent no. 4) to the petitioner’s firm seeking clarification as to why its security amount be not forfeited by taking appropriate legal action against it as well as it should not be put on blacklist on the ground that the blankets were not supplied as per the prescribed standard and displayed samples. The petitioner submitted explanation on 27.12.2019 stating that if any blanket was not supplied in terms with the prescribed standard, he would either replace the same or supply additional blanket. However, the respondent authorities did not consider it and vide impugned order dated 21.01.2020, the respondent no. 5 blacklisted his firm for indefinite period as well as stopped payment of the due bills submitted against supplied woolen blankets.
4. Learned counsel for the petitioner also submits that the impugned order dated 21.01.2020 by which the petitioner’s firm has been put on blacklist is highly arbitrary and illegal primarily for the reason that the petitioner’s reply dated 27.12.2019 has not at all been considered by the respondent no. 5 while passing the said order. Moreover, the petitioner’s firm has been put on blacklist for indefinite period.
5. On the contrary, the submission of learned counsel for the respondents is that pursuant to NIT issued vide memo no. 589 (ii) dated 03.09.2019 for supply of woolen blankets in Simdega district through reverse e-auction mode on NeML platform, five tenderers/suppliers were found technically eligible for bidding and the e-auction was conducted on 25.09.2019. The said work was finally allotted to the petitioner’s firm finding its financial bid as L1. However, subsequently on the direction of the respondent no. 5 issued to all the Circle Officers of Simdega district vide letter no. 948(ii) dated 12.12.2019, 05 woolen blankets supplied by the petitioner’s firm were randomly tested by washing and drying the same whereafter their weights were found varying from 1.400 kg to 1.700 kg (average weight 1.6 kg) against the standard weight of
Kulja Industries Limited Vs. Chief General Manager
Erusian Equipment & Chemicals Ltd. v. State of West Bengal & Another reported in (1975) 1 SCC 70
Gorkha Security Services Vs. Government (NCT of Delhi) & Others reported in (2014) 9 SCC 105
The main legal point established in the judgment is the requirement of a valid, particularized, and unambiguous show-cause notice before blacklisting, and the need for fair hearing and proportionate ....
The main legal point established in the judgment is the requirement for a fair hearing, specific show cause notices, and proportionate punishment before imposing blacklisting in government contracts.
The judgment emphasizes the importance of fair play, natural justice, non-discrimination, equality, reasonableness, and proportionality in the process of blacklisting, and the need for a valid, parti....
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