In Brief
Blue Dreamz Advertising, an advertising contractor, was debarred for five years by Kolkata Municipal Corporation (KMC) after failing to pay contractual dues and perform obligations relating to street hoarding advertisements. The corporation blacklisted the company. The High Court's single judge set aside the debarment, but a division bench reversed this. The Supreme Court held that blacklisting is a drastic remedy justified only where a contractor demonstrates dishonesty, fraud, or threats to public interest. Here, the dispute was a bona fide civil matter involving mutual allegations about contractual performance—ordinary business disagreements rather than misconduct warranting blacklisting. The Court disapproved the disproportionate penalty and restored the single judge's decision, setting aside the debarment order.
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