Lawstreet Journal

Bombay HC Dismisses BVG's Plea Challenging Civic Body's 'No-Blacklister' Condition in Hospital Tender; says “Court is Not a Pedantic School Master” [READ JUDGMENT]

Lawstreet Journal 24 Mar 2021 12:02am

Image courtesy: Lawstreet Journal Judiciary Bombay HC Dismisses BVG's Plea Challenging Civic Body's 'No-Blacklister' Condition in Hospital Tender; says “Court is Not a Pedantic School Master” [READ JUDGMENT]

The Bombay High Court recently rejected a petition by mechanised housekeeping major Bharat Vikas Group (BVG India Ltd) and held that ‘A tender condition disallowing a contractor from participating in the process again, because his work was previously terminated, would not amount to blacklisting.’

A division bench was headed by Chief Justice Dipankar Datta and Justice GS Kulkarni, who ruled that the Navi Mumbai Municipal Corporation (NMMC) was entitled to impose such a condition as the "terms of invitation to tender" were not open to judicial scrutiny and the condition is neither illegal nor arbitrary.

The bench further held that it was fallacious on BVG's part to hold such a condition as implied blacklisting, as, the condition was neither applicable only to them nor were they debarred from participating in other tenders of the Corporation. 

The bench observed that blacklisting is a method/phenomenon by which the tendering authority intends not to enter into a contractual relationship with a party which has civil consequences. Moreover, a contractor cannot be blacklisted without giving him a chance to be heard in adherence to the principles of natural justice.

Facts of the case:

BVG (The   petitioner)  was   awarded   acontract   by   the respondent-Navi   Mumbai  Municipal   Corporation   (for  short   ‘the Corporation’)  inJanuary  2016,  fora  period  offive  years  forthe  work  of mechanisedhousekeeping  and  multi-purpose(patient  care)  servicesin its  health  centres(three  general  hospitalsand  three  maternityand  child health  centres),and  which  cameto  be  terminatedby  the  Corporation on  15March  2017.

BVG, however, challenged the pre-qualification criteria/eligibility condition in the fresh tender issued for the same work, in two… Continue Reading...

Tagged: Bombay High Court  
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