Blacklisting of contractor for three years for breach of contract

Blacklisting of Contractor for three years –

The petitioner was given tender work of laying water pipelines and maintenance vide Letter of Acceptance dated 13.3.2023 by the Respondent.

On 24.7.2023, the Respondent terminated the contract before completion date of 31.10.2023.

On 29.12.2023, the respondent passed an order blacklisting the petitioner for three years under Clause 4.2.12 of the Policy for Holiday Listing.

HELD that the power to blacklist a contractor cannot be resorted to when the grounds for the same are only breach or violation of a term or condition of a particular contract when legal redress is available to both the parties.   No reasons are assigned for blacklisting the petitioner.   It is in contravention of the principles of proportionality since no reasons are assigned for blacklisting for three years which is the maximum period prescribed under Clause 4.2.12 of the Policy.

Judgment dated 6.3.2025 of the High Court of Bombay in Writ Petition No.3076 of 2024 of Harsha Infra Pvt Ltd  Vs. Bharat Petroleum Corporation Ltd and another