Srinagar: The Jammu and Kashmir High Court has ruled that blacklisting of an agency or contractor is subject to judicial review.
Allowing a petition filed by a firm whose contract was cancelled by the J&K Medical Supplies Corporation Limited (JKMSCL) for not submitting an undertaking, a bench of Justice Ali Muhammad Magrey held that the decision-making process of the Government or its agencies in contractual matters has to be reasonable and in conformity with requirements of fundamental rights.
While the court underscored that law is clear that there must be judicial restraint in interfering with the administrative action, particularly in the matters of tender or contract, it said “the decision-making process can certainly be subject to judicial review”.
The soundness of the decision, the court said, may be questioned if the decision made was arbitrary and irrational and if the process adopted or decision made by the authority was malafide or intended to favour someone.
“To allot the works or enter into contract with citizens has to be rational, non- arbitrary and reasonable” the court said.
According to the aggrieved firm which petitioned through advocate Faisal Qadri, in terms of a tender notice issued by the JKMSCL in 2020, quotations were invited by the Corporation from different manpower supplying agencies for supply of different categories of manpower, including Assistant Programmer, Data Entry Operators and other supporting staff for working in the Corporation.
The firm claimed that it submitted all the relevant documents and Corporation accepted its bid and same was found to have qualified in the technical evaluation process amongst other eligible bidders.
Apart from cancelling its contract by an order of February 8 this year, JKMSCL also blacklisted the firm for two years on the basses of an order passed on April 6 for not filing an affidavit indicating successful performance of contract allotted.
Pointing out that in the instant case when the firm was not given any opportunity to show cause against the proposed punishment to be imposed against it, the court said in such eventuality, the decision of the Corporation to cancel the contract and blacklist the firm amounted to an action which is out of keeping with law.