A private firm cannot be barred or blacklisted from doing business with the government
or its agencies without a proper show cause notice as such actions have 'serious' consequences, the
Delhi High Court has said.
The court's observation came in a verdict by which it quashed a circular of Delhi Development Authority (DDA).
DDA blacklisted M/s Thermo Blow Engineers, engaged in manufacturing and supply of
sports and fitness equipment, from taking part in future tenders on the ground that it supplied faulty belts and decks for the treadmills in 2012. DDA, in one of the letters, alleged that due to faulty spares,’ jerk was felt during workout of treadmill and there were chances of the user getting injured during the workout.’ The DDA issued a notice later seeking replacement of equipment.