Delhi HC Grants Interim Stay On Delhi Govt's Blacklisting Order Issued To Contractor

In a case concerning the constitutional rights of contractors, the Delhi HC has stayed a Department order issued by the Delhi government. In the instant case, the petitioner, M/s. B.L. Goel and Co. challenged the said order which blacklisted the company for one year. The case originated from a construction project for a Residential Complex for Judicial Staff at Sector-26, Rohini, Delhi, completed between 2014 and 2016, with the defect liability period ending in 2018. Six years later, a Show Cause Notice was issued to the petitioner for faulty construction, followed by the blacklisting order on the same date, without an opportunity for the petitioner to respond.

Relying on the principles of fairness, transparency and due process, the petitioners argued that the deployment of blacklisting by government departments marks a departure from the constitutional rights afforded to contractors.

The Single Judge Bench of the Delhi High Court has stayed the Debarment Order until the next hearing date. It allowed the petitioner to respond to the show cause notice and directed the respondent to pass further orders in accordance with the law before the next hearing.

The petitioner was represented by Kred Jure—with Mr. Ankur Mahindro as its Partner and Senior Associates, namely Mr. Aditya Kapur, Mr. Rohan Taneja, Mr. Soumil Gonsalves, Mr. Ankush Satija, and Mr. Mohit Dagar, Advocates.

The respondent was represented by Mr. Udit Malik, ASC for GNCTD, with Mr. Vishal Chanda, Advocate.