PWD can’t blacklist firm indefinitely: Alld HC

The PWD orders dated December 29, 2023 and January 24, 2024 were challenged through a bunch of petitions

The Allahabad high court has held that the Public Works Department cannot blacklist a company indefinitely.

For representation only (HT File Photo)

The bench comprising justice Shekhar B Saraf and justice Vipin Chandra Dixit held in bunch of petitions filed by M/s MI Construction, M/s Mohd Jeeshan Contractor and Mohd Jeeshan, a contractor, whose character certificate was cancelled after the two companies were indefinitely blacklisted by the department for allegedly providing wrong information.

The PWD orders dated December 29, 2023 and January 24, 2024 were challenged through a bunch of petitions. Through the orders, the petitioner firm was arbitrarily and illegally debarred for six months and later blacklisted for an indefinite period.

Advocate Tanisha Jahangir Monir appearing for the petitioners argued, “No reason whatsoever has been recorded by the respondent while passing the impugned orders. It is too settled law that where an

authority makes an order in exercise of quasi-judicial function, it must record its reasons in support of the order it makes.”

“An order of blacklisting is required to be passed taking into consideration all aspects and should not be passed in a casual and cavalier manner. Further, a company cannot be blacklisted for an indefinite period.”

The court after hearing the parties concerned allowed the petitions and observed, “ Accordingly, the order of blacklisting and the earlier order of debarring are quashed and set aside. We make it clear that respondent authority shall be at liberty to issue a fresh show cause notice, if so advised and proceed in accordance with law.”