SHEKHAR B. SARAF, MANJIVE SHUKLA
Hi Tech Pipe Limited – Appellant
Versus
State of Uttar Pradesh – Respondent
JUDGMENT :
1. Heard Sri Anoop Trivedi, learned Senior Advocate assisted by Sri Ronak Chaturvedi, learned counsel appearing for the petitioner, learned Standing Counsel appearing for Respondent No. 1 and Sri Sanjay Kumar Om, learned counsel appearing for Respondents No. 2 and 3.
2. Petitioner through this writ petition has challenged the order dated 23.1.2024 passed by the Executive Director, State Water and Sanitation Mission, Uttar Pradesh Lucknow whereby petitioner has been debarred from making any supply to any project of Jal Jeevan Mission.
3. Learned Senior Advocate appearing for the petitioner has argued that while passing the impugned order dated 23.1.2024 the Executive Director has not considered the reply submitted by the petitioner at all and only this much has been said that petitioner's reply has not been found satisfactory. He further argues that vide order dated 23.1.2024 petitioner firm has been debarred from making supply for an indefinite period whereas the Hon'ble Supreme Court in catena of judgments had categorically held that debarment or blacklisting cannot be done for an indefinite period.
4. On the other hand, Sri Sanjay Kumar Om, learned counsel appearing for th
Erusian Equipment & Chemicals Ltd. v. State of West Bengal
Radhakrishna Agarwal and Ors. v. State of Bihar & Ors. (1977) 3 SCC 457
Blacklisting decisions must adhere to principles of fairness, reasonableness, and natural justice, ensuring proper consideration of the contractor's defense.
Indefinite blacklisting without defined duration and proper procedural fairness is arbitrary, violating natural justice principles and requiring a clear basis for such action.
Blacklisting or debarment cannot be permanent and must be preceded by a specific show cause notice, complying with the principles of natural justice.
Blacklisting cannot be for a permanent period and must adhere to the principles of natural justice.
Blacklisting orders must comply with principles of natural justice, requiring specific grounds and opportunity for rebuttal; such orders cannot be indefinite and are subject to revocation.
Blacklisting of a contractor requires prior contractual obligations; mere non-participation in tender processes does not justify blacklisting.
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