Partly allowed

Imperial Systems v. Bharath Sanchar Nigam Ltd.

Kerala HC19 Oct 2023WA/1552/2023

Case brief

AI extract

What is this about?

Appeal against an order banning the appellant from participating in future tenders. The Court noted the contract termination is pending arbitration and allowed the respondent to issue a show-cause notice for the ban.

What did the court decide?

Allowed the appeal and observed that the respondent must issue a show-cause notice to the appellant before banning them from future tender processes.

Imperial Systems Vs Bharath Sanchar Nigam Ltd. — Company and Corporate | Kerala HC (2023)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE THE CHIEF JUSTICE MR. A.J.DESAI

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THE HONOURABLE MR.JUSTICE V.G.ARUN

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THURSDAY, THE 19TH DAY OF OCTOBER 2023 / 27TH ASWINA, 1945
WA NO. 1552 OF 2023

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AGAINST THE JUDGMENT IN WP(C) 24971/2023 OF HIGH COURT OF
KERALA

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APPELLANT/PETITIONER:

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IMPERIAL SYSTEMS
ADOOR TOWERS, CENTRAL ADOOR,
PATHANAMTHITTA REPRESENTED BY PROPRIETOR,
ZAREENA SHAMSUDEEN, W/O. SHAMSUDEEN,
AGED 42 YEARS, EMBRAYIL HOUSE, PAZHAKULAM P.O,
ADOOR, PATHANAMTHITTA, PIN – 691 523

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BY ADVS.
B.VINOD
I.V.PRAMOD
SAIRA SOURAJ P.

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RESPONDENTS/RESPONDENTS:

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1BHARATH SANCHAR NIGAM LTD
HARISH CHANDRA MATHUR LANE, JANPATH,
NEW DELHI REPRESENTED BY ITS
MANAGING DIRECTOR, PIN – 110 001

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2CHIEF GENERAL MANAGER
OFFICE OF THE CHIEF GENERAL MANAGER,
BSNL, KERALA CIRCLE, PATTOM,
THIRUVANANTHAPURAM, PIN – 695 001

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W.A.No.1552 of 2023

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3 GENERAL MANAGER TELECOM KOZHIKODE, BALAN K NAIR ROAD, KOZHIKODE, PIN – 673 001

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4 THE ASSISTANT GENERAL MANAGER(PLANNING) O/O THE GENERAL MANAGER TELECOM, KOZHIKODE, BALAN K NAIR ROAD, KOZHIKODE, PIN – 673 001

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BY ADV MATHEWS K.PHILIP

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THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
19.10.2023, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:

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W.A.No.1552 of 2023

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JUDGMENT

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Dated this the 19^th day of October 2023

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A.J. Desai, C.J.

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By way of the present appeal filed under section 5 of the Kerala High Court Act, 1958, the original petitioner/appellant challenged the judgment dated 21.08.2023 in W.P.(C)No.24971 of 2023, by which the learned single Judge, by granting liberty to the appellant to take appropriate remedies as per the contract, closed the writ petition filed against banning the appellant from participating in other tender processes of the respondent-Bharat Sanchar Nigam Limited.

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The learned Advocate appearing for the appellant, after taking us through the relevant terms and conditions of the tender agreement, would submit that, even if the authority could have terminated the contract, it could not have banned the appellant from participating in other tender processes of the respondent, without giving an opportunity of hearing to the appellant. In support of his argument, he relied on the decisions of the Hon’ble Apex Court in Harbanslal Sahnia and Another v. Indian Oil Corporation Limited and Others ((2003)

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W.A.No.1552 of 2023

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2 SCC 107), Vetindia Pharmaceuticals Limited v. State of Uttar Pradesh and Another ((2021) 1 SCC 804) and UMC Technologies Private Limited v. Food Corporation of India and Another ((2021) 2 SCC 551). He would submit that, the appellant has opted for arbitration with regard to the legality and validity of the termination of contract and shall raise all issues with regard to the same before the Arbitrator.

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On the other hand, the Standing Counsel appearing for the respondent would submit that the respondent will issue a show cause notice for banning the appellant as per the terms and conditions and shall decide the case in accordance with law.

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In view of the above statements made by the learned Advocates for the respective parties, we dispose of this appeal with the following observations:

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i. It would be open for the respondent to issue a notice, requiring the appellant to show cause as to why it should not be banned from participating in the tender which may be floated by respondent No.1 in future.

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ii. The present appellant shall respond on being

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W.A.No.1552 of 2023

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served with the notice.

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iii. The authority shall thereupon take a decision in

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accordance with law.

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