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2025 Supreme(Online)(HP) 3662
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Ajay Mohan Goel, J
Rashmi Metaliks Limited – Appellant
Versus
State of Himachal Pradesh and another – Respondent
CWP No. 2950 of 2024
For the Appellants/Petitioners: Mr. Sanjeev Bhushan, Mr. Sparsh Bhushan
For the Respondents: Mr. Rahul Thakur
Blacklisting of a contractor requires a valid legal basis; non-participation alone cannot justify such an action.
Headnote:The petitioner challenged the blacklisting order issued by the Engineer-in-Chief of Jal Shakti Vibhag, which barred it from participating in tenders for D.I. pipes. The court found that the blacklisting was unjustified as the reasons provided were not valid under the applicable legal standards. The court based its decision on precedents that reinforce the importance of a rational basis for blacklisting. Thus, the court quashed the blacklisting order as it was deemed 'bad in law.'
| Table of Content |
|---|
| 1. petitioner challenged blacklisting order due to alleged procedural flaws. (Para 2 , 3 , 4 , 5) |
| 2. criteria for blacklisting must show failure in obligations, not mere inactivity. (Para 8 , 9 , 10) |
| 3. court quashes blacklisting order, finding it legally unsustainable. (Para 11 , 12) |
IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA CWP No. 2950 of 2024 th Decided on 28 April 2025 Rashmi Metaliks Limited …Petitioner Versus State of Himachal Pradesh and another …Respondents Coram Hon’ble Mr. Justice Ajay Mohan Goel, Judge
1 Whether approved for reporting? Yes For the petitioner: Mr. Sanjeev Bhushan, Senior Advocate, with Mr. Sparsh Bhushan, Advocate.
For the respondents: Mr. Rahul Thakur, Deputy Advocate General.
Ajay Mohan Goel, Judge (Oral By way of this writ petition, the petitioner has, inter alia, prayed for the following relief:-
“That an appropriate writ, order or directions may kindly be issued and the impugned communication dated 22.08.2023 Annexure P-4 and 18.07.2023 may kindly be quashed and set aside in the interest of law and justice.”
2. The petitioner is primarily aggrieved by office order dated 22.08.2023 (Annexure P-4), issued by the Engineer-in-
Chief Jal Shakti Vibhag, which reads as under:-
“In pursuance/compliance of Principal Secretary (JSV) to the Government of Himachal Pradesh letter No.JSV-B(F)-2022 dated 18.08.2023, the firm M/s Rashmi Metaliks Limited, Kolkata is hereby blacklist/debar from participating in the tendering process of D.I. Pipes in Jal Shakti Vibhag Himachal for the next one year.
Henceforth no supply orders/pipes shall be placed/procured by the department at any level in favour of the above firm for next one year.”
3. When the case was taken up for consideration today, learned Deputy Advocate General submitted that in the light of the fact that the petitioner in terms of Annexure P-4 was blacklisted for a period of one year and as the said period is over, the impugned office order has lost its efficacy and so also the writ petition, because now the petitioner can participate in any future tender.
4. Learned Senior Counsel for the petitioner submitted that the issue is as to whether the act of blacklisting the petitioner is sustainable in law or not for the reason that though the period of blacklisting is over, but, until this Court decides said issue in favour of the petitioner, the stigma of being declared as a blacklisted contractor shall always be there with the petitioner.
5. The matter was heard at length. The blacklisting of the petitioner is in terms of communication dated 18.08.2023, which is at Page 33 of the paper book and it is relevant to quote the same so as to understand the issue involved in this petition:-
“No. JSV-B(F)7-2-2022 From:
The Pr. Secretary (JSV) to the Government of Himachal Pradesh.
To The Engineer-in-Chief, Jal Shakti Vibhag, Jal Shakti Bhawan, Tutikandi, Shimla-5.
Dated Shimla-171002, the 18/-8/2023.
Subject: Representation from M/s Rashmi Metaliks Limited.
I am directed to refer to your letter No.JSV-SP-I-D.I.
Pipes-Vol-27/2023-24:3334 dated 21.06.2022, on the subject cited above and to say that representation of M/s Rashmi Metaliks Ltd., has been examined at Government level, in view of provisions at condition No.32(x) eligibility and blacklisting of the tender document for supply of DI pipes in Jal Shakti Vibhag. It has been gathered that after amendment in condition 32(x) of tender document, M/s Rashmi Metaliks Ltd. has not participated in the fresh tenders process of supply of DI pipes in Jal Shakti Vibhag, thus, the moto of the said company only to hamper the supply of DI pipes during last two years either by filing suits in the Courts or by representation. This action caused delay in procurement of DI pipes and completion of works undertaken in Hon’ble NGT targeted schemes.
Therefore, it has been decided to blacklist/debar M/s Rashmi Metaliks Ltd. from participating in the tendering process in Jal Shakti Vibhag, Himachal Pradesh with immediate effect.
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