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2021 (3) TMI 1421 - MADHYA PRADESH HIGH COURTPrinciples of Natural Justice - No reasons are assigned as to why the conclusion was drawn that the reply is not satisfactory - debarring or blacklisting a contractor - HELD THAT:- In the catena of judgments, the Hon'ble Supreme Court opined that debarring or blacklisting a contractor has drastic consequences on him. The said penal action cannot be passed without following the “due process” and without assigning adequate reasons. The reply to the show cause notice submitted by the petitioner clearly shows that the petitioner has assigned detailed reasons in support of his defense. He mentioned about various clauses of NIT and prayed that no coercive action be taken against him - the aforesaid finding that reply is not satisfactory is a conclusion drawn by the Managing Director for which no reasons are assigned. Reasons are held to be heart beat of conclusion. On the basis of Judgment in Kranti Associates [2010 (9) TMI 886 - SUPREME COURT], in contractual matter, the Division Bench of this Court in M/S. AICONS ENGINEERING PVT. LTD. VERSUS STATE OF M.P. & OTHERS [2019 (11) TMI 1796 - MADHYA PRADESH HIGH COURT] set aside the order which was not a speaking order and no reasons were assigned. The order dated 22.01.2021 cannot be upheld because it does not contain any reason whatsoever for the conclusion that reply is not satisfactory - petition allowed.
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