An order of blacklisting against a corporate debtor post-approval of a resolution plan is invalid as it contradicts the objectives of the Insolvency and Bankruptcy Code, aiming for a clean start under new management.

1. This writ petition seeks quashing of the order dated 5th October, 2023 issued by the respondents whereby the petitioner has been blacklisted for a period of three years and debarred from participating in the tender process for any work advertised by the Government of Tripura (Annexure - 1 to the writ petition).

2. The order of blacklisting has been passed after approval of the resolution plan under S.31 of the Insolvency and Bankruptcy Code, 2016 on 11th August, 2023 by the learned NCLT, Kolkata whereby the petitioner's management has been transferred to a new management. Earlier the petitioner was blacklisted vide order dated 6th March, 2023 and debarred from participating in any tender process for any work of the Government of Tripura. This was the subject matter of challenge in WP(C) No.271 of 2023 wherein this court vide order dated 29th May, 2023 quashed the blacklisting order dated 6th March, 2023. Thereafter, the impugned order of blacklisting has been passed.

3. The genesis of the dispute is the allotment of work for providing consultancy services for the Geographic Information System (GIS) based Master Plan Formulation for 20 cities in the State of Tripura under Tripura Town and Country Planning Act, 1975 as per the Request for Proposal issued on 23rd August, 2017 by the respondent.

4. As per the averments of the petitioner, the work was awarded after opening of price bids vide letter of acceptance dated 29th November, 2018 for a sum of Rs.4, 77, 90, 000/- (Rupees Four Crore Seventy Seven Lakh and Ninety Thousand only). The petitioner furnished a Performance Bank Guarantee of Rs. 95, 58, 000/- (Rupees Ninety Five Lakhs and Fifty Eight thousand only) on 14th December, 2018. Parties entered into an agreement on 7th January, 2019 wherein the petitioner was engaged to provide consultancy services for the above work. The petitioner was asked to complete the work within 345 days from the date of signing of the contract vide letter dated 8th January, 2019. He submitted an inception report on 25th January, 2019. In the first meeting of the Consultancy Evaluation and Review Committee of the AMRUT sub-scheme for formulation of Master Plan held on 26th March, 2019 it was decided that the petitioner would finalize the planning areas of 20 towns. The first installment of consultancy fee was also recommended for release. Thereafter, the petitioner submitted the base map of the master plan for the city of Agartala and 19 towns in Tripura on 15th November, 2019. A sum of Rs. 95, 58, 000/- (Rupees Ninety Five Lakhs and Fifty Eight thousand only) was sanctioned towards 20% of the consultancy fee on approval of the base map on 25th November, 2019. On 13th December, 2019 a cheque of Rs.84, 11, 040/- (Rupees Eighty Four Lakhs Eleven Thousand and Forty only) was issued in favour of the petitioner. The respondents granted extension of time for completion of the project on 21st December, 2019.

5. The respondents further issued a memorandum for sanction of Rs.9, 58, 443/- (Rupees Nine Lakhs Fifty Eight thousand Four hundred and Forty Three only) towards payment of income tax. The petitioner submitted the Differential Global Positioning System Survey Report for remaining three towns in Tripura on 5th February, 2020. On 7th February, 2020 the petitioner submitted the Revised Socio - Economic Report for 20 towns in the State of Tripura. On 17th February, 2020 it submitted the Secondary Data Collection Report which included the crime report for the last three years, education data, tour