SHREE DURGA INDUSTRY Vs. UNION OF INDIA

JUDGEMENT

(1.) The writ petitioners are registered suppliers of the Government e-Market Place (GeM) portal. The petitioner no. 1-Firm participated in an e-auction floated through the GeM by respondent no. 3, the Inspector General, Ftr. Hq. BSF Jodhpur. However, primarily alleging that the petitioners participated in the bid along with a sister/associated/allied concern, an incident was raised and subsequently escalated within the contemplation of the General Terms and Conditions (GTC) on GeM 4.0 (Version 1.13) dated November 29, 2023, read with the GeM Incident Management Policy applicable with effect from July 1, 2023. Such action has been challenged in the present writ petition.

(2.) Learned counsel for the petitioners argues that the genesis of the GeM portal is Rule 149 of the General Financial Rules (GFR), 2017. Rule 151 thereof contemplates two types of debarment from bidding. Clauses (i) and (ii) of the said Rule speak about general debarment on conviction of an offence under the Prevention of Corruption Act, 1988 or the Indian Penal Code or any other law for the time being in force for causing any loss of life or property or causing a threat to public health as part of execution of a public procurement contract.

(3.) On the other hand, Clause (iii) speaks about limited debarment by the procurement entity with regard to tenders floated by such entity only for a period not exceeding two years. It is argued that the petitioners were not given adequate opportunity to show cause and of hearing before taking the decision of the petitioners being uploaded as a debarred entity.