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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
SURESHWAR THAKUR, VIKAS SURI
Floral Electrical Pvt. Ltd. – Appellant
Versus
Haryana Vidyut Prasaran Nigam Ltd. – Respondent
JUDGMENT :
Sureshwar Thakur, J.
Through the instant writ petition, the petitioner herein - M/s Floral Electrical Private Limited, prays for the quashing of the letter dated 24.05.2024 (Annexure P-20), wherebys, the petitioner-Company is blacklisted/debarred from doing any business with respondent No. 1-HVPNL for one year, individually or with any other entity in partnership. The relevant contents of Annexure P-20 becomes extracted hereinafter.
2. The contractual date of completion was 30.08.2022 (after interim time extension). However, till date, major electrical and civil activities are still pending including commissioning of 2 Nos 16/20MVA 132/llkV T/F (supplied by HVPNL) and 1 Nos 20/25MVA 132/33 kV T/F (supplied by HVPNL). As such, it is clear that the work is lagging far behind the schedule and your firm would not be able to complete the work of ibid substations, at such snail pace.
3. The approach of your firm was lethargic since beginning, owing to the various issues of your firm. Your firm was continuously persuaded by field as well as head office officers for completion of work at the earliest. However, even after lapse of contractual period, the progress of work at site was
(1) Debarment as a remedy is to be invoked in cases where there is harm or potential harm for public interest particularly in cases where person’s conduct has demonstrated that debarment as a penalty....
Blacklisting in public contracts requires compelling evidence of misconduct; mere disputes over contract terms do not justify severe penalties.
The Petitioner's suppression of a material fact and approach to the Court with unclean hands led to the dismissal of the Petition.
Blacklisting a contractor without a fair hearing violates principles of natural justice, rendering such actions invalid, while the termination of the contract for non-compliance with security require....
Blacklisting or debarment cannot be permanent and must be preceded by a specific show cause notice, complying with the principles of natural justice.
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