Health Care Medical Devices Pvt. Ltd. Vs. MP Public Health Services Corp. Ltd., & Anr

Madhya Pradesh High Court (Division Bench (DB)- Two Judge)

WRIT PETITION, 2281 of 2021, Judgment Date: Mar 16, 2021

Law laid down - 

Blacklisting and debarment-it has drastic impact on the contractor - Thus, such a drastic action can be taken by following “due process”. Issuance of a notice by which contractor can gather the nature of allegations and intended action to be taken is must. The order of blacklisting/debarment cannot be passed unless such an action is proposed in the show cause notice or it can be clearly inferred by reading of notice that such an action was proposed.

The parameters for taking decision of blacklisting/debarment - The actual or potential harm, impact and result of non-supply, duration of wrong doing and cooperation of contractor with Department are relevant factors.

Clause-10 of NIT- It's plain reading makes it clear that it can not been read in isolation because it enables the authority to take into account and take action as per prevailing provisions of tender documents/NIT. Thus, a conjoint reading of Clause-12 (d), (k) and Section 10 is permissible and action based there upon cannot be faulted with.

Clause-12 (explanation) a vis-majure - The petitioner in his reply to show cause notice did not take defence regarding any night curfew in the area where manufacturing plant is situated. Rest of the reasons are not covered by vis-majure.

No prejudice is shown - The petitioner understood the specific allegation and intended punishments flowing from show cause notice and filed his detailed reply. Hence, no prejudice is caused to him. Even if show cause notice is not happily worded, it does not require any interference by this Court.

Health Care Medical Devices Pvt. Ltd. Vs. MP Public Health Services Corp. Ltd., & Anr.