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MANOJ KUMAR GUPTA, DINESH PATHAK
Bcits Pvt. Ltd. – Appellant
Versus
Purvanchal Vidhyut Vitran Nigam Ltd. – Respondent
JUDGMENT :
1. The short issue that arises for consideration in the instant writ petition is whether show cause notice issued to the petitioner seeking explanation as to why it should not be black listed and debarred from entering into contracts for next two years is a valid notice or not.
2. The petitioner-Company was given contract of "Door to Door Meter Reading, Bill Generation and Serving through SBM/Mobile App/Other Suitable Means with Downloading" by the respondent-Corporation on 23.7.2018 for a period of three years. Subsequently it was extended for two months more. On 6.06.2020, the petitioner was issued a notice threatening to blacklist it on account of alleged irregularities on its part. It was replied by the petitioner on 19.6.2020 and according to the case of the petitioner, the notice was dropped, as no action was taken in pursuance thereof. After about a year and a half, another notice dated 13.8.2021 was issued with the same/similar allegations. It was replied by the petitioner company on 23.8.2021 but thereafter no further action was taken. Yet another notice dated 18.8.2021 with the same allegations was issued, again threatening the petitioner to blacklist it. It was
Issuing a show cause notice with premeditation and expressing a predetermined mind renders the notice invalid.
The necessity of issuing a show cause notice before passing an order of blacklisting, specifying the grounds and proposed action in the notice to provide the noticee with an adequate opportunity to r....
The court emphasized the importance of providing a clear and proper opportunity to the party being blacklisted to explain and take remedial measures before being debarred or blacklisted.
A valid blacklisting order requires clear communication of intent and grounds, ensuring the affected party's right to a fair opportunity to respond.
A show cause notice for blacklisting must be based on reasonable grounds and cannot be issued merely for breach of contract without substantial evidence of misconduct.
The necessity of a valid, particularised and unambiguous show-cause notice before passing an order of blacklisting or debarment.
The main legal point established in the judgment is that a valid, particularized, and unambiguous show-cause notice is essential for decisions pertaining to blacklisting, and a failure to do so would....
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