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ARTICLE · 23 NOVEMBER 2020

Show Cause Notice Without Specific Mention Of Blacklisting Not Valid For Debarment

Singhania & Partners LLP
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The Hon'ble Supreme Court of India in its most recent judgment[1] passed on 16.11.2020 has deprecated and disapproved the action of blacklisting taken by Food Corporation of India ("FCI") without giving a show cause notice with a specific mention of blacklisting action.

IndiaLitigation, Mediation & Arbitration
Vikas Goel
Vikas Goel
Vivek Gupta
Vivek Gupta
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Introduction

The Hon'ble Supreme Court of India in its most recent judgment1 passed on 16.11.2020 has deprecated and disapproved the action of blacklisting taken by Food Corporation of India ("FCI") without giving a show cause notice with a specific mention of blacklisting action. In UMC Technologies case, the Apex Court was considering the validity of a show cause notice dated 10.04.2018 issued by FCI stating, besides other things as under:

"Whereas, M/S UMC Technologies Pvt. Ltd. Kolkata is hereby provided an opportunity to explain its Position in the matter before suitable decision is taken as per T&C of MTF. The explanation if any should reach this office within a period of 15 days of receipt of this notice falling which appropriate decision shall be taken. ex-parte as per terms and conditions mentioned in MTF without prejudice to any other legal rights & remedies available with the corporation."

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