In Brief
A pharmaceutical supplier challenged a state government's order preventing it from supplying medicines to hospitals following a criminal case against its former director. The High Court dismissed the challenge, reasoning that judicial review of public contracts is limited. The Supreme Court held that any debarring or blacklisting action requires prior notice and fair hearing before it is imposed, regardless of the label used. The Court quashed the indefinite procurement ban as violative of natural justice principles, emphasizing that a former director's criminal involvement cannot unilaterally justify adverse action against the company without affording it opportunity to be heard. The appeal was allowed and the impugned order set aside.
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