Civil Writ Petition No.8454 of 2011 -1- **** IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Civil Writ Petition No.8454 of 2011 Date of decision: 12.5.2011 M/s Chandigarh Medical Corporation ...Petitioner Versus State of Haryana and others ...Respondents CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL, ACTING CHIEF JUSTICE. HON'BLE MR.JUSTICE AJAY KUMAR MITTAL Present: Mr. Mohit Jaggi, Advocate for the petitioner ADARSH KUMAR GOEL, ACJ. This petition seeks quashing of order dated 21.3.2011 by which the petitioner has been debarred for three years from doing business with Haryana Government. Case of the petitioner is that High Power Purchase Committee of the Government placed order with it for certain supplies in the year 2003. The material was not supplied. Show cause notice dated 20.7.2007 was issued to the petitioner proposing to forfeit the security and to take other penal actions. This was followed by letter dated 4.1.2008 proposing action of debarring for three years. It was stated that failure of the petitioner to execute the supply within the stipulated period and seeking amendment in the conditions for supply which were not accepted, rendered the petitioner liable to be debarred from doing business with the Government. This stand was contested by the petitioner and finally impugned order Annexure P-38 was passed after considering the reply of the petitioner and Civil Writ Petition No.8454 of 2011 -2- **** affording personal hearing to the petitioner. We have heard learned counsel for the petitioner. Learned counsel for the petitioner submits that failure to execute the order for supply was for reasons beyond the control of the petitioner and, therefore, impugned order was not justified. We are unable to accept the submission. Admittedly, the petitioner defaulted in giving the supply as per contract which justified action. Due procedure has been followed before passing of the impugned order. After due consideration of explanation of the petitioner, it has been categorically held that there was no valid justification for failure of the petitioner to execute the supply order. Finding recorded is as under:- “10. The competent authority in PGIMS Rohtak was called upon to submit a point-by-point response to the reply submitted by the supplier firm. After the receipt of comments from the PGIMS, Rohtak on the reply of the firm, the representatives of the firm were given personal hearing on 10.2.2011, as per their request, which was attended by Shri D.S.Kohli, Managing Director, Chandigarh Medical Corporation, Chandigarh. Sh. Kohli stated during the hearing that the equipments could not be supplied initially due to delay in opening of L/C by PGIMS, Rohtak and subsequently the LCs could not be encashed at the level of their principal manufacturers due to administrative reasons. He further stated that they were keen to honour the supply orders and had requested the PGIMS, Rohtak to authorise them to raise invoice in Indian Currency and collect their payment. Since, this request was not accepted by PGIMS, Rohtak, the Civil Writ Petition No.8454 of 2011 -3- **** equipments could not be supplied. 11. The point by point rebuttal by PGIMS, Rohtak vide their letter No.PAII/18638 dated 14.12.2010 was read out to the representative of the firm. It was clarified to him that as per PGIMS, Rohtak report, there was inordinate delay on their part in submitting the correct proforma invoice to PGIMS Rohtak. Moreover, after receipt of their proforma invoice, PGIMS, Rohtak opened the L/C but still the firm did not supply the equipment. The plea taken by the firm regarding non- encashment of L/C due to administrative reasons at the level of their principal manufacturer was an internal matter between the parties. Mr. Kohli could not rebut the above facts. He requested to take a lenient view in this case since their firm was an intermediary and their security amounting to Rs.9000/- had already been forfeited. 12. I have gone through all the facts and relevant record of the case. In view of the facts of the case, comments of PGIMS, Rohtak, reply of the firm and their averment during personal hearing, it is clear that the firm failed to supply the equipment as per terms and conditions of the supply order which is a clear violation of the terms and conditions of the order. Hence, M/s Chandigarh Medical Corporation, Chandigarh is hereby debarred for a period of three years from the date of pronouncement of this order from doing business with Haryana Government, for their un-business like dealings.” The above reasons are not shown in any manner to be perverse. In these circumstances, we are unable to hold that order Civil Writ Petition No.8454 of 2011 -4- **** debarring the petitioner from doing business is illegal, arbitrary or violative of principle of natural justice which may call for interference by this Court. The last submission on behalf of the petitioner is that debarring petitioner period of three years is excessive. It was pointed out that default of the petitioner for supply order was in respect of contract awarded in the year 2003. Even though the period of debarring is within purview of the concerned authority, there is no consideration in the impugned order about the duration for debarring. Period of debarring has to be fixed after due consideration and should have nexus with the magnitude and nature of default. In absence thereof, the matter may have to be remanded or period of debarring may be reasonably reduced to avoid further proceedings. In the facts and circumstances of the case, we are of the view that period of debarring may be reduced to one year from the date of impugned order. Accordingly, we direct that period of debarring will stand reduced to one year, unless a fresh order is passed by the concerned authority to the contrary within one month from the date of receipt of a copy of this order. Since we are passing this order without issuing notice, if the respondents are aggrieved by this order, they can approach this Court. The petition is disposed of. (Adarsh Kumar Goel) Acting Chief Justice May 12, 2011 (Ajay Kumar Mittal) Pka Judge