AI Overview...
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Blacklisting Definition and Legal Context - Blacklisting involves the exclusion of a person or entity from entering into lawful relationships with the government, often due to alleged misconduct such as submission of forged documents or other violations. The Supreme Court and various rules emphasize that blacklisting should be based on fair procedures, including notice and an opportunity to be heard, and should not be arbitrary or disproportionate. For example, in Daffodils Pharmaceuticals Ltd., the Court held that an order of blacklisting beyond three to five years is disproportionate and that proper notice and opportunity are essential BVG India Ltd VS State of Maharashtra - Bombay, Espan Infrastructure (I) Limited Earlier known as Espan Infrastructure Ltd. VS State of Bihar Department of Road Construction, Visheshwaria Bhavan, Bihar - Patna, Espan Infrastructure(i) Limited Earlier Known As Espan Infrastructure Ltd. VS State Of Bihar Department Of Road Construction - Patna, Espan Infrastructure (i) Limited Earlier Known As Espan Infrastructure Ltd VS State Of Bihar Department Of Road Construction, Visheshwaria Bhavan, Bihar, Patna - Patna.
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Procedure and Principles of Fairness - Proper procedures, such as issuing a clear show cause notice specifying the penalties and giving the affected party an opportunity to respond, are mandatory before blacklisting. The Supreme Court has stressed that blacklisting without notice or a pre-decisional hearing is liable to be set aside, as it violates principles of natural justice BVG India Ltd VS State of Maharashtra - Bombay, Espan Infrastructure(i) Limited Earlier Known As Espan Infrastructure Ltd. VS State Of Bihar Department Of Road Construction - Patna, In the Matter of: MICA Cargo Movers VS Union of India - Delhi.
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Duration and Disproportionality of Blacklisting - The duration of blacklisting is a critical factor; blacklisting beyond three to five years is generally considered disproportionate unless justified by exceptional circumstances. Indefinite or lifetime blacklisting is viewed as excessive and potentially illegal, especially if based on conduct that does not warrant such severity Espan Infrastructure (I) Limited Earlier known as Espan Infrastructure Ltd. VS State of Bihar Department of Road Construction, Visheshwaria Bhavan, Bihar - Patna, Realty Advance Structure Enterprises Pvt. Ltd. VS State of Bihar - Patna.
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Specific Cases and Judicial Observations - Cases like Bihar Contractor Registration Rules and the judgment in UMC Technologies highlight that blacklisting should be based on substantiated grounds and proper procedural adherence. Arbitrary or disproportionate blacklisting orders, particularly those made without considering the explanation or response of the affected party, are liable to be challenged and set aside Espan Infrastructure (i) Limited Earlier Known As Espan Infrastructure Ltd VS State Of Bihar Department Of Road Construction, Visheshwaria Bhavan, Bihar, Patna - Patna, Realty Advance Structure Enterprises Pvt. Ltd. VS State of Bihar - Patna.
Analysis and Conclusion
Blacklisting is a serious administrative action with significant consequences, including barring entities from government contracts. Judicial precedents underscore that such actions must adhere to principles of natural justice—namely, fair notice and hearing—and should be proportionate in duration. Arbitrary or indefinite blacklisting is prone to legal challenge and can be deemed disproportionate. Proper procedural safeguards, including clear notices and opportunity to respond, are essential to uphold fairness and legality in blacklisting procedures.
References
- BVG India Ltd VS State of Maharashtra - Bombay
- Espan Infrastructure (I) Limited Earlier known as Espan Infrastructure Ltd. VS State of Bihar Department of Road Construction, Visheshwaria Bhavan, Bihar - Patna
- Espan Infrastructure(i) Limited Earlier Known As Espan Infrastructure Ltd. VS State Of Bihar Department Of Road Construction - Patna
- Daffodills Pharmaceuticals Ltd. VS State of U. P. - Supreme Court
- In the Matter of: MICA Cargo Movers VS Union of India - Delhi
- Espan Infrastructure (i) Limited Earlier Known As Espan Infrastructure Ltd VS State Of Bihar Department Of Road Construction, Visheshwaria Bhavan, Bihar, Patna - Patna
- Ems Infracon Pvt. Ltd. VS State Of Bihar - Patna
- Ems Infracon Pvt. Ltd. M/s Technocraft Construction Pvt. Ltd. JV VS State Of Bihar - Patna
- Realty Advance Structure Enterprises Pvt. Ltd. VS State of Bihar - Patna
- Star Build Max Pvt. Limited VS State Of Bihar - Patna
Search Results for "Daffodil Blacklisting"
2021 0 Supreme(Bom) 935 • India - Bombay
DIPANKAR DATTA, G.S.KULKARNI
The Court held that the Corporation was entitled to impose the pre-qualification criteria and that it did not amount to blacklisting ... Daffodils also contended that the decision not to procure the pharmaceuticals from Daffodills, amounted to blacklisting, as it was issued without notice or a pre-decisional hearing and hence was liable to be set aside. ... It is in this context the Supreme Court examined the issue of blacklisting and held that the decision of the State that no purchases be made from Daffodills certainly....
2020 0 Supreme(Pat) 501 • India - Patna
ASHUTOSH KUMAR
Bihar Contractor Registration Rules, 2007 – Clause 11(Ka) – Black-listing for ten years – Blacklisting tarnishes ... entering into lawful relationship with Government for the purposes of gains – Fact that that disability is created by order of blacklisting ... opportunity to represent his case before he is put on blacklist – Apart from conditions and parameters of notice to a firm before blacklisting ... It is also required to be noted that in Daffodils Pharmaceuticals (supra), the Supreme Court has observed that an orde....
2021 0 Supreme(Pat) 715 • India - Patna
ANIL KUMAR SINHA
11 (ka) – Black-listing for ten years – Alleged submission of forged challans to claim payment of bill – Before passing order of blacklisting ... Notice/show cause must contain particular penalty/action which is proposed to be taken, specifically and unambiguously – Action of blacklisting ... language implied by respondents in show cause inasmuch as various other punishments and action is prescribed in 2007 Rules – Since blacklisting ... It is also required to be noted that in Daffodils Pharmaceuticals (supra), the Supre....
2019 0 Supreme(SC) 1365 • India - Supreme Court
R.F.NARIMAN, S.RAVINDRA BHAT
debarring and preventing State of U.P. from local purchase of medicines from Daffodills for an indefinite duration – Unlike a normal blacklisting ... indefinite directive (which appears to be co-terminus with lifetime of criminal case) is facially far more disproportionate than a blacklisting ... objectionable activities, that ipso facto could not have resulted in unilateral action of kind which State resorted to- against Daffodils ... Unlike a “normal” blacklisting order which has a finite life span (of three or maximum....
2023 0 Supreme(Del) 503 • India - Delhi
MANOJ KUMAR OHRI
Blacklisting - Indian Railways Contractor - CPLP-2014, Arbitration & Conciliation Act - Erusian Equipment & Chemicals Ltd. v. ... It emphasized the need for a specific show cause notice before imposing penalties such as blacklisting, citing relevant case law. ... State of Bihar, Daffodils Pharmaceuticals Ltd. v. State of UP, UMC Technologies Private Limited v. ... Here, it may be gainful to describe the concept of blacklisting and the graveness of the consequences occasioned by it. Blacklisting has the ....
2020 0 Supreme(Pat) 396 • India - Patna
ASHUTOSH KUMAR
of blacklisting. ... Blacklisting - Contract Dispute - Bihar Contractor Registration Rules, 2007 - Clause 17 of the special conditions of contract ... The petitioner challenged the blacklisting as illegal, arbitrary, and in violation of principles of natural justice. ... It is also required to be noted that in Daffodils Pharmaceuticals ( supra), the Supreme Court has observed that an order of blacklisting beyond three years or maximum of five years is disproportionate . 25. ... The writ petition is, the....
2021 0 Supreme(Pat) 410 • India - Patna
CHAKRADHARI SHARAN SINGH
Undertakings intend to have or adopt any document in form of Act, Rules, Regulations, Notifications or Guidelines for the purpose of blacklisting ... Blacklisting has the effect of preventing a person from the privilege and advantage of entering into lawful relationship with the Government for purposes of gains. ... Of NCT Of Delhi & Ors., (2014) 9 SCC 105, Daffodils Pharmaceuticals Ltd. and Another vs. ... There is no material on record to show whether the aforesaid request made by the Director Project of the NMCG, which was issued with ....
2021 0 Supreme(Pat) 38 • India - Patna
ASHUTOSH KUMAR
Sanjay that the order reflects non application of mind in as much as this could not have been a ground for blacklisting the petitioner has substantial force. ... Blacklisting has the effect of preventing a person from the privilege and advantage of entering into lawful relationship wit the Government for purposes of gains. ... Sanjay has further argued that the explanation furnished by the firm is self explanatory but the same has not at all been taken into account before passing the order of blacklisting. ... Apart from this, it has been....
2021 0 Supreme(Pat) 1035 • India - Patna
ANIL KUMAR SINHA
Bihar Contractor Registration Rules, 2007 – Rule 11 (c) – Debarment of Contractor – Order of blacklisting ... beyond three years or maximum of five years is disproportionate and such blacklisting/debarment should not be for indefinite period ... whom registering officer works, which in present case is Engineer-in-chief and not Executive Engineer – Before passing order of blacklisting ... State of Uttar Pradesh and Another, reported in 2021 (1) SCC 804, the Supreme Court has observed that an order of blacklisting beyond t....
2021 0 Supreme(Pat) 735 • India - Patna
CHAKRADHARI SHARAN SINGH
He contends that in response to the show cause notice dated 06.09.2018, the petitioner had submitted his reply on 22.09.2018 itself, which has not at all been considered by the Engineer-in-Chief in his blacklisting order. ... The appellate authority shall also take a call on the issue whether the order of blacklisting be deferred till the final decision by the Tribunal in Case No. 129 of 2009. With the aforesaid direction/observation, the writ petition stands disposed off. ... Ambastha, learned Standing Counsel No. 26 has submitted that there is no illega....
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