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Supreme Court of India 2022-02-24 partly_allowed

State of Odisha & Ors vs Panda Infraproject Limited

Bench: 2 — M.R. Shah

In Brief

A contractor was blacklisted permanently after a ten-metre flyover slab collapsed during construction, killing one person and injuring eleven others. The contractor challenged the blacklisting order in the High Court, which quashed it on grounds of breach of natural justice. The Supreme Court held that the blacklisting order did not violate natural justice, as a show cause notice was issued and the contractor's reply was considered. While affirming that the contractor acted seriously negligently, the Court found permanent blacklisting too harsh and reduced the ban to five years, emphasizing that debarment duration should depend on the gravity of the breach, not be fixed uniformly per offence.

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Government Contracts Blacklisting/Debarment Natural Justice Administrative Law

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