VIJAY KUMAR SHUKLA, DUPPALA VENKATA RAMANA
Archon Powerinfra India Ltd. – Appellant
Versus
State of M. P. – Respondent
ORDER
Per: Justice Vijay Kumar Shukla
1. The present petition is filed under Article 226 of the Constitution of India, challenging the order of blacklisting dated 24.10.2024, whereby the petitioner has been blacklisted for the remaining period of his registration for which PWD Contractor registration certificate bearing No.PWD230067007 of the petitioner is valid i.e. till 4.9.2033.
2. This is second round of litigation. The petitioner earlier filed a Writ Petition No.16956/2024, challenging the order dated 7.6.2024 by which the contract awarded to the petitioner for construction of building of new District Court at Pipliyahana, Indore was terminated and the petitioner was blacklisted for indefinite period and the registration of the petitioner Company was cancelled. He further challenged NIT dated 26.7.2024 issued by respondent for construction of balance work of new District Court building at Pipliyahana, Indore. The said petition was entertained only in respect of challenge to the order of blacklisting and the order of blacklisting dated 24.10.2024 (Annexure P-22) was quashed. The petitioner was granted 15 days' time to submit reply to the show cause notice dated 12.6.2024 and compe
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.
The main legal point established in the judgment is the requirement for a fair hearing, specific show cause notices, and proportionate punishment before imposing blacklisting in government contracts.
The penalty of blacklisting must be proportionate to the offense and should not be imposed arbitrarily.
The requirement of specific show cause notice before imposing penalties such as blacklisting, and the need to follow principles of natural justice in taking adverse actions against entities.
The judgment emphasizes the importance of fair play, natural justice, non-discrimination, equality, reasonableness, and proportionality in the process of blacklisting, and the need for a valid, parti....
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