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Permanent blacklisting of a company is impermissible in law

The Supreme Court in B.C. BIYANI PROJECTS PVT. LTD. VS. STATE OF MADHYA PRADESH AND OTHERS has held that order for blacklisting a company permanently is impermissible in law. A Bench comprising of Justices Madan B. Lokur and R.K. Agrawal was considering plea of a company which was blacklisted for the award of contracts by the state of Madhya Pradesh since it is stated that there was unreasonable delay in the completion of six contracts awarded to the appellant. The order of blacklisting was for an indefinite period. The Apex Court referred to its earlier decision in Kulja Industries Limited Vs. Chief General Manager, Western Telecom Project Bharat Sanchar Nigam Limited and Others [(2014) 14 SCC 731], wherein it was held that“debarment” cannot be permanent and the period of “debarment” would invariably depend upon the nature of the offence committed by the erring contractor. The Court observed: “Since the appellant was blacklisted by an order dated 14th March, 2013 and since more than t...