DEFSYS SOLUTIONS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) LPA 672/2023 and LPA 682/2023 are filed challenging the same impugned order dtd. 5/9/2023 passed by the learned single Judge. The brief facts are: On 8/1/2007 the appellant company was incorporated and has been regular supplier to the Government of India for its requirements in the armed forces for being one of the foremost and sought after suppliers in the Indian private sector defence industry. Mr.Sushen Gupta, was appointed as director of the appellant in the year 2013 and thereafter he ceased to be a director by 2018. Many contracts were issued to the appellant between the year 2018-21 by the respondent. On 9/12/2022 the appellant was surprised to learn from the press reports, the respondent had passed an order suspending the appellant from all business dealings with respondent No.1. It was purported this was due to an ex-director of the appellant having been involved in the Augusta Westland case. The suspension order was not served upon the appellant and till date has not been provided to the appellant.

(2.) On 15/12/2022 the appellant addressed a representation to the respondent citing rules of natural justice but no response was received from the respondent. The appellant challenged the suspension order in W.P.(C)17456/2022. On 23/12/2022 during the pendency of the writ petition the learned Single Judge passed an interim order granting relief to the petitioner in relations to the existing contracts between the appellant and the respondent, based on respondent's statement the ongoing contracts would not be affected. On 5/9/2023 the learned Single Judge passed the judgment in W.P.(C)17456/2022 wherein it found the suspension was based in violation of principles of natural justice but it failed to quash it and instead directed the respondent to issue a show cause notice and dispose of the issuance of suspension after giving a hearing. On 19/9/2023 without prejudice, an application CM.APPL.48747/2023 was moved by the appellant seeking to clarify the continuation of the suspension order, but no clarification was ever issued. Hence this appeal.

(3.) It is submitted the suspension order dtd. 9/12/2022 was passed only on a direct intimation received from the CBI seeking certain queries from one of the directors of the appellant and it was not a reasoned order. It is stated Augusta Westland case is pending for the last ten years. The FIR in the said case was registered on 12/2/2013 and on 6/9/2017 first chargesheet was filed against 12 persons. On 17/9/2020 first supplementary chargesheet was filed against 15 persons and on 15/3/2022 second supplementary chargesheet was filed against 5 more accused persons. The said FIR is pending trial.