IN THE HIGH COURT OF ORISSA, CUTTACK
Dr. S. Muralidhar, B.P. Routray, JJ.
M/s. Panda Infraproject Limited - Appellant
Versus
State Of Odisha & Ors. - Respondents
W.P.(C) No. 26408 of 2017
Decided On : 23-03-2021
Blacklisting - Super-Class Contractor - MORT&H specification for Road and Bridges - Erusian Equipment & Chemicals Ltd. v. State of West Bengal (1975) 1 SCC 70, Raghunath Thakur v. State of Bihar (1989) 1 SCC 229 - [115.3 of the MORT&H specification, Sub-section 1503.1 of Section 1500 of MORT&H specification, Erusian Equipment & Chemicals Ltd. v. State of West Bengal, Raghunath Thakur v. State of Bihar, Kulja Industries Limited v. Chief General Manager, Western Telecom Project Bharat Sanchar Nigam Limited, Civil Appeal No.3647 of 2020 (Vetindia Pharmaceuticals Limited v. State of Uttar Pradesh)]
Fact of the Case:
The Petitioner, a Super-Class Contractor, was blacklisted by the Chief Engineer (DPI & Roads), Odisha following an accident during the construction of a rail over bridge. The blacklisting was based on a report submitted by a Committee formed by the Works Department, Government of Odisha.
Finding of the Court:
The Court found that the blacklisting of the Petitioner was pre-determined and the entire process lacked fairness and reason. The Court also noted that the impugned order did not satisfy the requirements of law and made the blacklisting permanent, which was legally untenable.
Issues: Pre-determined blacklisting, lack of fairness and reason in the process, permanent blacklisting
Ratio Decidendi: The impugned order of blacklisting the Petitioner did not satisfy the requirements of law and made the blacklisting permanent, which was legally untenable.
Final Decision: The petition was allowed, and the impugned order blacklisting the Petitioner was set aside.
ORDER
1. The challenge in the present petition by the Petitioner, who is admittedly a Super-Class Contractor is to an order dated 12th December, 2017 passed by the Chief Engineer (DPI & Roads), Odisha banning the Petitioner 'from participating or bidding for any work to be undertaken by Government of Odisha' and also banning it from 'transacting business with Government of Odisha either directly in the name of propriety bidder or indirectly under different name or title'.
2. The background to the present petition is that the Petitioner, who is a contractor involved in the construction of rail over bridge (ROB) along with bridge over ROB at-L.C. No-188- SPL- 3E at-RD-433/23.25 km. of Howrah-Chennai Railway Line at RD-1/200 km from N.H.-203 (Bomikhal Square) connected to RD-1/30 km. to Janapath Via-Maharshi College, Saheed Nagar. It is stated that there was an accident where ten meters slab collapsed during the concreting of the said ROB at Level Crossing No.188 SPL-3E, Bhubaneswar resulting the death of one person and injuries to some others.
3. As a result of this incident, a Committee was formed by the Works Department, Government of Odisha to enquire into and submit a detailed report. That report was submitted on 26th September, 2017. The said inquiry report is stated to have placed the responsibility for incident on the Petitioner.
4. By letter dated 10th October, 2017, the Under Secretary to Government of Odisha, Works Department addressed the communication to the Chief Engineer (DPI & Roads) stating that on the basis of the aforementioned report submitted by the Committee on 22nd September, 2017 the 'Government orders have been obtained for blacklisting M/s.Panda Infra Projects (India) Pvt. Ltd., Bhubaneswar, the contractor for intentional violation of important conditions of contract, leading to injuries and loss of life. You are therefore requested to take immediate necessary action may be processed for blacklisting the contractor M/s. Panda Infra Projects (India) Pvt. Ltd., Bhubaneswar, following the procedure as per OPWD Code.'
5. As a result of the above direction, a show cause notice (SCN) was issued by the Chief Engineer to the Petitioner on 18th October, 2017 asking the Petitioner to show cause why it should not be blacklisted.
6. On 1st November, 2017, the Petitioner submitted a detailed reply to the SCN notice inter alia pointing out that the contract was a P1 contract, wherein items of work executed, their quantity and rates are specified in the contract itself. The work had to be executed by the contractor 'as per detail Design, Drawing and Specifications determined, approved and provided by the Department and also as per the direction of Engineer-in-Charge of the site.' It was further stated that before casting of the Span from P19 to P20 the arrangement of the Petitioner for 'shuttering and centering, staging, safety arrangements were inspected by the Departmental Engineers and the reinforcement were measured' and after which the Petitioner was allowed to 'lay concrete which were also executed in presence of the Departmental Engineers'. It was also stated that 'all our material permanent as well as temporary' had satisfied the requisite specifications that have been accepted by the Engineer-in-Charge and they were permitted to go ahead to the concreting under the direct supervision of Departmental Engineers 'after they were satisfied all our arrangements.' The Department was accordingly asked to withdraw the SCN.
7. Thereafter the impugned order was passed on 12th December, 2017, blacklisting the Petitioner 'with immediate effect' as per codal provisions for 'intentional violation of the condition of contract leading to injuries and loss of life.' The registration of the Petitioner as a Super Class Contractor also stood suspended.
8. This Court has heard the submission of Mr. Milan Kanungo, learned Senior Counsel for the Petitioner and Mr. D.K. Mohanty, learned Additional Government Advocate.
9. Mr. Kanungo submit
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