If a Contractor is blacklisted or banned from taking part in any contract, there are civil consequences. Before blacklisting or banning a Contractor, the reasons for doing so have to be communicated, and once a response is received, a final order can be made, is upheld by the High Court of Karnataka through the learned Judge JUSTICE G PANDIT in the case of M/S. Crest Facility Management V Union Of India (WRIT PETITION NO.39350/2019).
Brief facts of the case:
The respondent-Railways had solicited bids for Housekeeping, Catering, and Loading Unloading support services, and the petitioner was among the successful caterers. Even though the petitioner’s bid was approved, on the grounds that the tenderer/petitioner failed to complete the job, the petitioner was disqualified by letter dated 05/04/2019.
Advocate Abhinay YT, representing the Railways, said that no notice was sent to the petitioner previous to the 5 April 2019 letter.
In the present case, since no notice was provided prior to the petitioner being debarred or blacklisted from participating in the catering services of the respondent-Railways, a request for quashing Annexure-G dated 05.04.2019 was made, with the respondent free to take appropriate action after affording the petitioner an opportunity.
Inclusion on a blacklist or exclusion from participation in any contract would result in civil penalties. In such a case, a person whose debarment or blacklisting is enacted would be unable to participate in any contracts and his right to life would be compromised. When an action of the authorities might result in civil repercussions, a prior notice specifying the basis for blacklisting or debarment should be provided, and a blacklisting or debarment order shall be issued after receiving a response
JUDGEMENT REVIEWED BY – HARILAKSHMI