In Brief
A transformer manufacturer was debarred for three years and fined Rs. 27.98 lakh for non-supply against two tenders after the procurement authority deferred supplies without issuing resumption instructions. The High Court upheld the debarment but modified its effective date. The Supreme Court set aside both the debarment and penalty orders, holding that the show-cause notice specified only debarment, not penalty, violating natural justice. The deferment communication of 18.09.2019 without subsequent instructions absolved the appellant of sole responsibility. Substantial partial supplies and the genuine storm-caused plant damage were inadequately considered. The Court annulled the debarment and directed refund of any penalty recovered.
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