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IN THE HIGH COURT OF MEGHALAYA AT SHILLONG
H.S. THANGKHIEW
A.S. Transportation – Appellant
Versus
Union of India, Rep. by the Secretary, New Delhi – Respondent
JUDGMENT :
H.S. THANGKHIEW, J.
1. The petitioner on 28.08.2023, had participated and submitted its bid for the work of “Handling & Transport contract on regular basis for transportation of foodgrains/allied materials etc. from RH Kumarghat to FSD Kumarghat via weighbridge (and vice versa) including loading/unloading/handling of food grains/allied materials etc. at RH/FSD Kumarghat, Tripura. (Godown Capacity: 6264 MT)” which was tendered by the FCI on 07.08.2023. Immediately after submission of its bids, the petitioner realized that it had quoted an unrealistically low rate for the work and as such, requested the respondents to allow it to withdraw its bid. The said offer for withdrawal was not acceded to by the respondents, and by way of the impugned order dated 15.11.2023, the contract of the petitioner was terminated and at the same time, the petitioner debarred from participating in any future tenders of the respondent for a period of 2(two) years. Being aggrieved with the debarment, without affording an opportunity of being heard, the petitioner is before this Court by way of the instant writ petition.
2. Mr. M. Nath, learned Senior counsel assisted by Mr. D.I. Kapil, learned coun
Debarment from future tenders without a hearing constitutes a violation of natural justice and is treated as blacklisting requiring a specific show cause notice.
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 ....
Debarment from government tenders requires issuance of a Show Cause Notice stating intended action, ensuring compliance with principles of natural justice.
Blacklisting or debarment cannot be permanent and must be preceded by a specific show cause notice, complying with the principles of natural justice.
Debarment or blacklisting must be proportionate to the default committed by the bidder. Proper reasons must be provided for blacklisting, and the principles of natural justice must be followed. Black....
Blacklisting a bidder from future contracts requires adherence to principles of natural justice, including providing notice and an opportunity to be heard.
The imposition of debarment requires a clear Show Cause Notice specifying the penalty and grounds, ensuring adherence to principles of natural justice.
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.
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