IN THE HIGH COURT OF JUDICATURE AT PATNA LPA No.1458 of 2001 THE STATE OF BIHAR & ORS Versus M/S GAMMON INDIA LTD. For the Appellant Mr.Arup Kumar Chogndar, J.C.to A.A.G.II. For the Respondents : Mr.Shyam Kishore Sharma, Adv. Mr. Nilesh Kumar Nirala,Adv. ----------- 9 22.07.2008 A decision to black-list the writ-petitioner-respondent Company was the reason for the writ petition, which has been allowed, in view of the agreement recorded in the minutes of the meeting held on 4th December 1998 whereby and under, amongst others, it was specifically mentioned that the Department will lift black-listing and allow the respondent Company to participate in the tender for a job on 9th December 1998. The writ Court noted that the respondent Company, in terms of the said agreement, had two obligations, namely, to furnish Bank Guarantee for a sum of Rs.2,30,22,436/-, which it furnished on 8th December 1998, and to withdraw a case, for which it filed an application on 9th December 1998 and in terms thereof the case in question was withdrawn on 5th Febrfuary 1999. The respondent Company was also allowed to participate in the tender that was due on 9th December 1998, as has been noted by the writ Court. The writ Court held that the order of black-listing which was agreed to be withdrawn by the - 2 - agreement dated 4th December 1998 was reinserted in a later decision dated 10th May 2001 by which the respondent Company was once again black-listed. Before the writ Court, two contentions were raised, one of them was that the black- listing order dated 27th May 1997 was thesubject matter of challenge in C.W.J.C.No.11890 of 1999 and the said writ petition was decided on 9th August 2000 and in the mean time the said agreement dated 4th December 1998 was entered into and, accordingly, the agreement dated 4th December 1998 cannot be taken into account for the purpose of considering the black-listing order dated 10th May 2001. The writ Court answered that question by simply saying that a look at the order of this court dated 9th August 2000 passed in C.W.J.C.No.11890 of 1999 could amply demonstrate that the said writ petition was allowed and thereby black-listing order dated 27th May 1997 was quashed only on the ground of breach of principle of natural justice and, accordingly, while passing the said order, the Court had no occasion to look into or consider the effectiveness of the agreement dated 4th December 1998. The other contention that was raised before the writ court was that subsequently the Government did not agree to - 3 - abide by the agreement dated 4th December 1998.In this connection, reference was placed on a letter dated 17th February 1999. By that time, the Bank Guarantee was received without any demur and the application for withdrawal of the case was filed. The writ Court held that after discharge of obligation by one of the contracting parties in the manner as indicated in the contract, the other contracting party, despite having had allowed black-listed tenderer to participate in the tender on 9th December 1998, could not scuttle the agreement. This being the principal reason in support of the order, we find no reason to interfere. Accordingly, the appeal fails and the same is dismissed. Jay/ (Barin Ghosh,J) (C.M.Prasad,J)