Contractor Cannot Be Blacklisted For Life; Blacklisting Order Without Specifying Period Unsustainable : Supreme Court

The Supreme Court recently observed that a contractor cannot be blacklisted for life.

"One cannot be blacklisted for life. The order of blacklisting to the extent that it has not specified the period cannot be sustained", observed a bench comprising Justices Hemant Gupta and Vikram Nath.

The blacklisting order was passed over an allegation that the contractor used foul language against the government officers in the process of tender of certain construction works.  The blacklisting order was passed on February 7, 2013. The period of blacklisting was not mentioned in the order.

Though the contractor approached the Allahabad High Court, no relief was granted. In further appeal, the Supreme Court interfered with the blacklisting order to the extent it did not specify the period.

"Since the order was passed way back in 2013 and the writ petition was dismissed on 05.09.2018, we deem it appropriate to exercise the powers under Article 142 of the Constitution to pass an order of blacklisting the appellant for a period of five years from the date the order was passed", the Court observed.

The Court clarified that this blacklisting will not debar the appellant from seeking fresh enlistment in accordance with law, so as to act as contractor in respect of works to be advertised by the State.

Case Title : M/s Chauhan Builders Raibareli versus State of Uttar Pradesh

Citation   : 2022 LiveLaw (SC) 694

Headnotes

Award of tender - Contractor cannot be blacklisted for life -One cannot be blacklisted for life. The order of blacklisting to the extent that it has not specified the period cannot be sustained.

Click Here To Read/Download Order