LA MONTE ENTERPRISE Vs. UNION OF INDIA

JUDGEMENT

(1.) This application under Article 226 has been filed by the petitioner challenging the impugned order dtd. 27/5/2020 issued by the respondent No.2 by which the contract awarded to the petitioner against the Tender Notice No. iv. 18081/2018-19/Ord/M&E/Mod-iii/CISR dtd. 26/9/2018 and Corrigendum dtd. 26/10/2018 and 12/11/2018 stood terminated with immediate effect and the petitioner was banned from business and debarred from entering into any business dealings with the Assam Rifles. The impugned order also directed for filing of a criminal complaint with the jurisdictional police station against the petitioner for committing fraud against the Assam Rifles.

(2.) On 25/2/2020, a notice was issued by the respondent on the ground of violation of Code of Integrity for Public Procurement (CIPP) asking the petitioner to confirm his spousal relationship with the proprietor of M/s GSG Associates. The petitioner confirmed his spousal relationship with the proprietor of M/s GSG Associates and further by a letter dtd. 2/3/2020 clarified that he and his wife are separate business entity having no business transaction whatsoever between them. On 17/3/2020, the petitioner received a show-cause notice for termination of the contract for alleged violation of clause (iii) 'Anti-Competitive Practice' and clause (v) 'Conflict of Interest' of the Appendix ' L of the tender document which was submitted by the petitioner along with his bid as certificate for abiding by the Code of Integrity for Public Procurement. The petitioner submitted a detailed reply to the show-cause on 24/5/2020 and denied that there was any violation or breach of any condition and no false declaration or suppression was ever made by him while taking part in the tender process. The impugned order dtd. 27/5/2020 was passed thereafter by the respondent No.2 terminating the contract awarded in favour of the petitioner and debarring him from taking part in any business dealings with the Assam Rifles. The impugned order also directed for filing of criminal complaint against the petitioner for committing fraud.

(3.) At the outset, before the matter is taken up for consideration on merit, learned DSGI submits that the respondents have taken a decision not to initiate or file any criminal complaint against the petitioner. He further submits that during the pendency of this writ petition, the competent authority of Assam Rifles has also taken a decision to cancel the entire project of CSIR for which the petitioner was awarded the contract. In view of the above, the learned Counsel appearing for the petitioner submits that the petitioner will not press the aforesaid two issues and challenge to the impugned order dtd. 27/5/2020 in the present writ petition be confined and limited only to the issue of banning and debarring the petitioner from entering into any business dealings with the Assam Rifles.