Indefinite blacklisting of a company is unlawful

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Allowing an appeal in BC Biyani Projects Pvt Ltd v State of Madhya Pradesh and Others, the Supreme Court has held that a permanent order for blacklisting a company is impermissible in law.

businessman_trapped_isolated_in_a_cageThe court was considering the plea of a company which was blacklisted for the award of contracts by the state of Madhya Pradesh because of unreasonable delays in the completion of six contracts which had been awarded to the company. The order of blacklisting made in March 2013 was for an indefinite period.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi.

The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.