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INDRAJIT MAHANTY, S. G. CHATTOPADHYAY
Sterling & Wilson Private Limited – Appellant
Versus
Tripura State Electricity Corporation Limited – Respondent
JUDGMENT
S.G. Chattopadhyay, J. - By filing this writ petition, the petitioner who is a company registered under the Companies Act, 1956 has challenged:
(i) The notice dated 18.06.2021 (Annexure-12) issued by the Tripura State Electricity Corporation Limited (TSECL for short) whereby the contract awarded to the petitioner by Notification of Award (NOA) dated 11.01.2021 (Annexure-5) was terminated and the Earnest Money Deposit (EMD for short) submitted by the petitioner in the shape of bank guarantee of an amount of Rs.2,73,83,153/- (Rupees two crores seventy three lakhs eighty three thousand one hundred fifty three only) was forfeited by TSECL.
A N D
(ii) The memorandum dated 23.06.2021 (Annexure-13) whereby the petitioner was put on the blacklist and debarred from participating in any tender of TSECL for next 5 years w.e.f. the financial year 2021-22.
2. The factual context of the case is as under:
The petitioner submitted its bid to the tender floated by TSECL for the works and supply contract, being a turnkey project, for up-gradation of Surjamaninagar Substation of TSECL from 132 KV to 400 KV. TSECL by issuing Notification of Award (NOA) dated 11.01.2021 (Annexure-5) confirmed the ac
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....
The Petitioner's suppression of a material fact and approach to the Court with unclean hands led to the dismissal of the Petition.
The requirement for a fair hearing and a specific show cause notice before imposing the severe civil consequence of blacklisting, and the need for the authority to determine the period of punishment ....
Termination and blacklisting of a contractor based on poor performance is justified, provided due process is followed in accordance with statutory provisions.
Point of Law : Tender - Blacklisting - Order of blacklisting has an effect of depriving a person of equality of opportunity in the matter of public contract.
Blacklisting in public contracts requires compelling evidence of misconduct; mere disputes over contract terms do not justify severe penalties.
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