M/S. DAFFODILLS PHARMACEUTICALS & ANR.V. STATE OF U.P. & ANR. versus STATE OF U.P. & ANR

M/S. DAFFODILLS PHARMACEUTICALS & ANR.V. STATE OF U.P. & ANR. versus STATE OF U.P. & ANR

The State's indefinite order prohibiting procurement from appellant, issued without affording opportunity of hearing or prior intimation, amounted to blacklisting or debarring and violated settled principles of natural justice. Such action was disproportionate and invalid.

Parties
Appellant: M/S. Daffodills Pharmaceuticals; Respondent: State of U.P.; Respondent: State of U.P. Medical and Health Department
Jurisdiction
India
Judgment Date
13 December 2019
Procedural Posture
Civil Appeal / Judgment on Appeal From High Court Final Order
Outcome
Appeal allowed. Order dated 21.08.2015 quashed. High Court judgment set aside.
Legal Topics
Natural Justice, Blacklisting, Public Procurement, Opportunity of Hearing, Judicial Review
Administrative Law Public Contract Law Natural Justice Blacklisting Public Procurement Opportunity of Hearing Judicial Review

Case Brief

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Parties

M/S. Daffodills Pharmaceuticals

Appellant

State of U.P.

Respondent

State of U.P. Medical and Health Department

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From High Court Final Order

Legal Issues

  1. 1 Whether order directing Medical and Health Department to stop procurement from appellant without hearing amounts to violation of principles of natural justice
  2. 2 Whether such order constitutes blacklisting/debarring and requires pre-decisional hearing

Ratio Decidendi

The State's indefinite order prohibiting procurement from appellant, issued without affording opportunity of hearing or prior intimation, amounted to blacklisting or debarring and violated settled principles of natural justice. Such action was disproportionate and invalid.

Court Disposition

Appeal allowed. Order dated 21.08.2015 quashed. High Court judgment set aside.

Orders

  • Order of the Principal Secretary, Government of U.P. directing departments to desist from local purchase from appellant is quashed.
  • Impugned High Court judgment is set aside.