Dismissed

M/s Orion Security Solution Pvt. Ltd. v. The General Manager of Bihar

Patna HC8 Feb 2024CWJC/2381/2024

Case brief

AI extract

What is this about?

Security services contractor blacklisted for failing to disburse wages to employees challenged the order by writ nearly two years later despite an arbitration clause in its contract. The court declined to exercise its discretion on grounds of delay and dismissed the petition, permitting the petitioner to make a representation to the authority.

What did the court decide?

Writ petition dismissed; petitioner permitted to make a representation to the authority, consideration left to its discretion.

M/s Orion Security Solution Pvt. Ltd. Vs The… — Contract and Commercial Disputes | Patna HC (2024)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.2381 of 2024

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M/s Orion Security Solution Pvt. Ltd. through the Managing Director, Ashutosh Jha aged about-52 Years, Gender-Male, Son of Late Satish Kumar Jha, State Official Bihar and Jharkhand Regional Office- Sakal Dina House No. 24 Basant Vihar Colony, Boring Road, Patna-1.

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... ... Petitioner/s

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Versus

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The General Manager of Bihar, State Power Transmission Co. Ltd. Muzaffarpur.

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... ... Respondent/s

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====================================================== Appearance : For the Petitioner/s : Mr.Shashank Kumar Singh, Advocate For the Respondent/s : Mr. Kunal Tiwari, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE RAJIV ROY ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

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Date : 08-02-2024

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The petitioner is concerned with Annexure-P/1, order dated 30.07.2022. The contract was for supply of security services that too, limited to one year, which period expired on 29.02.2020. The petitioner, despite providing services, was not disbursing the money, paid under the contract, to the employees. Against which, complaints were received by the authority. A series of show cause notices were issued, which were not responded to and eventually Annexure-P1, blacklisting the petitioner was issued.

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Learned counsel for the petitioner submits that

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Patna High Court CWJC No.2381 of 2024 dt.08-02-2024 2/3

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there was an arbitration clause and in fact, without resorting to such dispute resolution, the blacklisting order was passed.

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Learned counsel for the respondent, however, points out that there were repeated show cause notices issued for disbursement of amounts to the employees, on failure of which the blacklisting was ordered.

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We find that Annexure-P/1 order was dated 30.07.2022 and the petitioner did not take any remedies available to him either by way of arbitration or by way of filing a writ petition under Article 226 within a reasonable time of the impugned order. In fact, when there is an arbitration clause in the agreement, the petitioner ought to have resorted to that method. Having not resorted to the method, an application under Article 226 has been filed, which also is grossly delayed.

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In such circumstances, we decline discretion and reject the writ petition. However, we make it clear that the petitioner would be entitled to approach the authority with a representation, especially since now almost one and half years have expired from the date of blacklisting.

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We further make it clear that we have not made any observation on the consideration of the representation, which will be at the discretion of the authority.

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Patna High Court CWJC No.2381 of 2024 dt.08-02-2024 3/3

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The writ petition stands dismissed.

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(K. Vinod Chandran, CJ)

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( Rajiv Roy, J)

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Sujit/-

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AFR/NAFR	NAFR
CAV DATE
Uploading Date	09.02.2024
Transmission Date

M/s Orion Security Solution Pvt. Ltd. v. The General Manager of Bihar

Case brief

What is this about?

What did the court decide?

M/s Orion Security Solution Pvt. Ltd. v. The General Manager of Bihar

Case brief

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What did the court decide?

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