E-Paper
Procedure adopted in violation of principles of natural justice: HC
As per a departmental circular dated May 18, 2024, sample testing of the transformers were to be done in the presence of the petitioner.
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The Allahabad high court has quashed the order by which a private company was blacklisted and the contract, granted to it for the supply of 250 KVA and 400 KVA transformers to Kanpur Electricity Supply Company Limited (KESCO), terminated.The bench comprising Justice Shekhar B Saraf and justice Vipin Chandra Dixit allowed the petition filed by M/s Prinav Gis Technologies Private Limited, the company which challenged an order dated September 11 by which the contract for supply of transformers was terminated while imposing a penalty upon the petitioner and the petitioner company was also debarred/ blacklisted for two years.In January 2024, an order was issued, asking the petitioner to supply 47 units of 250 KVA distribution transformers and 100 units of 400 KVA distribution transformers but, later on, the contract was terminated as the petitioner could not supply all the transformers and KESCO found out that the quality of transformers supplied was not good.Appearing for the petitioner, advocate Tanisha J Monir argued, “Testing of the transformers was not done in the presence of the petitioner. As per a departmental circular dated May 18, 2024, sample testing of the transformers were to be done in the presence of the petitioner.”“Also, the petitioner sent repeated requests for release of funds against the supplies made for 250 KVA and 400 KVA transformers on 22.04.2024, 07.05.2024 and 15.05.2024.
However, due to delay in payment by KESCO, the petitioner started facing liquidity issues causing some delay in supply.”The court, after hearing the parties concerned, observed, “Upon a perusal of the documents, we are of the view that the respondent authorities have not followed the procedure prescribed by them with regard to sample testing and neither the report of the test carried out by third party being handed over to the petitioner.”The court while allowing the petition observed, “We find the entire procedure adopted by the authority to be not in accordance with law and in violation of principles of natural justice. It is trite law that the authority where it relies on a particular document/report the same has to be provided to the party against whom such document/report is to be used against.”“In the absence of the same, the person against whom the report is being used is put at a clear disadvantage as the person cannot dispute or deny any of the contents of the report. This particular procedure accordingly amounts to violation of the principles of natural justice,” the court added.
