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SUJOY PAUL, PRAKASH CHANDRA GUPTA
ROYAL SALES AND SERVICE, BHOPAL – Appellant
Versus
AMIT KUMAR GADODIYA – Respondent
ORDER SUJOY PAUL, J. : – This appeal filed under section 37 of Arbitration and Reconciliation Act, 1966 (hereinafter referred as ‘Arbitration Act’) assails the order dated 25-6-2022 whereby the application preferred by the appellant under section 9 of the Arbitration Act was rejected by the Court below.
2. In short, the admitted facts between the parties are that the appellant is a transporter and having licence and contract of plying 2 Oil Tankers. The terms and conditions to supply the tankers are specifically laid down.
3. The appellant’s tankers were suspended by order dated 29-5-2021 (Annexure P/4). The same was followed by show cause notice dated 15-7-2021 (Annexure A/6). In turn, the appellant filed its reply to the show cause notice on 4-8-2021 (Annexure A/7) followed by reminder letter No. 1 dated 5-9-2021 (Annexure A/8).
4. By the impugned order dated 7-10-2021 (Annexure A/9) passed by the respondent/Corporation, one Tanker of appellant was blacklisted and in addition, a damage of Rs. 1,00,000/- was also imposed on the appellant.
5. The appellant feeling aggrieved by the suspension order and order of blacklisting, filed the application under section 9 of the Arbitration A
The admission of tampering with locks justified the blacklisting and imposition of damages, and comparisons with other cases did not support the appellant's claim of discrimination.
Administrative decisions must be reasoned and justified; failure to provide such reasoning can lead to judicial intervention.
The procedural fairness and reasonableness of the actions cannot be called into question as due opportunity was given to the Petitioner.
The main legal point established is that a valid show cause notice for imposing the penalty of blacklisting the entire fleet of TTs must clearly inform the noticee about the possibility of such penal....
The corporation's decision to blacklist the entire fleet upon finding a duplicate dip rod in one truck was justified as per the transport discipline guidelines, emphasizing strict liability for viola....
Blacklisting of a contractor's vehicles must be proportionate to the offense; lifetime blacklisting is impermissible and must be limited to a reasonable period.
(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....
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