The Delhi High court in M/S Thermo Engineers v. DDA and others in W.P (C) No. 669/2013 quashed the order passed by DDA that debarred/blacklisted the petitioner from further tendering to DDA. This blacklisting was for unspecified period. The Delhi High Court allowed the writ petition of petitioner and held that the debarment of the petitioner for an indefinite period and not for a specified period in the absence of a show cause notice specifying the same and in the absence of opportunity being offered to appellant to defend against the same cannot be sustained in law. The court said this did not met with the requirement of law. The Court said that it is settled proposition of law that order debarring a person from doing business with government or its agencies carries civil consequences and therefore no such order can be passed against him without giving notice to him or requiring him to show cause against the proposed debarring/blacklisting. The court also observed that blacklisting carries a very severe consequence and therefore requires being a prescribed period and cannot be for an indefinite period. The court said that notice inviting quotation for supply of sports and fitness equipment did not contain a term for debarring the tenderer in case goods supplied by the tenderer were found to be defective. The court also said that correspondence between the petitioner and respondents could not be said to be interpreted as show cause notice against debarment or providing an opportunity to the petitioner to explain his position qua the proposed blacklisting/debarring. The court also said that the notice issued to the petitioner did not specify the action that the respondent proposed to take against the petitioner and therefore quashed the order passed by the respondent in view of absence of showcase notice and absence of opportunity given of being heard. The court also said that respondent had liberty to pass fresh order debarring the petitioner for a specified period after giving a proper show cause notice and an opportunity of hearing to petitioner. The dispute in said case pertained to the supply of defective sports item i.e. belts for Johnson trend mills by the petitioner by virtue of quotations invited by way of tender by the respondents. The respondents had passed an order debarring the petitioner for future tender for indefinite period.
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