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, particularized, and unambiguous show-cause notice.

ORDER :

1. The present writ petition has been filed for quashing the order, as contained in letter no.874/S&P dated 27.09.2022 (Annexure-18 to the writ petition) issued by the General Manager (S&P), JBVNL, Ranchi-respondent no.4, whereby the petitioner has been blacklisted for a period of three years in the Jharkhand Bijli Vitran Nigam Limited (in short ‘JBVNL’) (erstwhile JSEB) and the Bank Guarantee or the amount deposited against the purchase orders for the period 2008 and 2009 being P.O. no.28 (S&P) dated 11.12.2008 and P.O. no.39 (S&P) dated 13.01.2009 has been forfeited. The petitioner also prayed for quashing the show cause notice as contained in letter no.1102 (S&P) dated 12.11.2021 issued by the respondent no.4, whereby it has been asked to submit its reply within a week.

2. In course of argument, learned senior counsel for the petitioner confines the prayer to the extent of challenging part of letter no.874/S&P dated 27.09.2022 issued by the respondent no.4, whereby the petitioner has been blacklisted for a period of three years. So far as forfeiture of bank guarantee (SBG & PBG) or the amount deposited against the aforesaid purchase orders is concerned, learned senior counsel for the petitioner submits that since the said issue is already pending before the Jharkhand Micro and Small Enterprises Facilitation Council, Directorate of Industries, Ranchi, he does not press the said part of the letter dated 27.09.2022.

3. Learned senior counsel for the petitioner submits that the respondent- JBVNL floated two notices inviting tenders being NIT No. 515/JSEB/PR/07-08 and NIT No. 514/JSEB/PR/08-09 for supply of 3860 kilometres ISI marked ACSR Weasel Conductor and 1460 kilometres ISI marked ACSR Rabbit Conductor. The petitioner participated in the said tender process and on being declared successful (L1), the said tenders were awarded in its favour. Thereafter, letters of intent were issued to the petitioner vide LOI nos.860 (S&P) and 857 (S&P), respectively, both dated 20.10.2008. Accordingly, Agreement nos.22/2008-09 and 21/2008-09 were executed between the competent authority of the JSEB and the petitioner followed by issuance of purchase orders dated 11.12.2008 and 13.01.2009 to it. The petitioner supplied the first and second lots of required materials pursuant to the aforesaid purchase orders and the respondent-JBVNL received the materials after pre-despatch inspection on being satisfied with quality of the materials, which were also duly utilized. The petitioner made several requests to the respondent no.3 to make payment of supplied materials, however, the said respondent failed to make the said payment and due to non-availability of required capital, the petitioner being a Small Scale Industrial Unit was not able to supply remaining quantity of materials in time. The respondent no.3 vide letter no.606(S&P) and 607(S&P) both dated 15.07.2009 issued with respect to ACSR Weasel Conductor and ACSR Rabbit Conductor, respectively, cancelled the despatch instruction vide letters dated 23.01.2009 and 21.01.2009 earlier issued against the aforesaid purchase orders on the ground of non-supply of balance quantity of materials within the scheduled time of delivery.

4. It is further submitted that upon closure of the said purchase orders, the petitioner requested the concerned authority of erstwhile JSEB to release its payment with respect to the quantity of materials supplied by it. A Central Purchase Committee was constituted to redress the grievance of the petitioner and the said Committee convened its meeting on 14.09.2010, in which while considering the issue in question relating to the petitioner as agenda no.22/2010-11, it was decided to release admissible payment to it for supplied materials in terms with the aforesaid purchase orders after deducting the amount against short supply of materials and extra amount paid to it on price variation. The said decision of the Central Purchase Committee was communicated to the conce