SHELADIA ASSOCIATES Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has filed the present petition impugning a Circular (hereafter 'the impugned order') dated 06.02.2019 issued by respondent no.2 (National Highways Authority of India - hereafter 'NHAI') debarring the petitioner from participating in any work connected with NHAI for a period of one year.

(2.) The petitioner formed a joint venture with another entity (Aarvee Associates) for the purpose of acting as a Consultant for NHAI projects. The Joint venture so formed entered into an agreement with NHAI for the purpose of carrying out the contract for Consultant's services in respect of "Four Laning of Beawar - Pali - Pindwara section of NH-14 (From km.0.000 to km.244.120) in the State of Rajasthan under NHDP Phase-III on Design, Build, Finance, Operate and Transfer (Toll) Basis" (hereafter "the Project").

(3.) The petitioner assails the impugned order, essentially, on three grounds. First, it is contended that the impugned order is in violation of principles of natural justice inasmuch as no show cause notice was issued to the petitioner specifically stating that NHAI proposed to blacklist the petitioner. Second, the impugned order is arbitrary and discriminatory inasmuch as whereas the petitioner has been debarred on account of substandard construction of the Highway in question, no such punitive action has been taken against the Concessionaire despite the fact that the allegations of poor performance are primarily attributable to the Concessionaire. And third, that the petitioner disputes the proportionality of the punitive action imposed on it for the reason that only liquidated damages has been imposed against the Concessionaire for poor performance whereas the petitioner has been debarred for a period of one year.