
The Madhya Pradesh High Court has ruled that blacklisting a contractor amounts to "civil and commercial death," with consequences beyond mere monetary loss. A five-judge bench decided that a challenge to blacklisting…
The Madhya Pradesh High Court has ruled that blacklisting a contractor amounts to "civil and commercial death," with consequences beyond mere monetary loss. A five-judge bench decided that a challenge to blacklisting cannot be taken before the statutory arbitration tribunal defined under the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983, because it is not a "dispute" under that law. The court further held that only a chief engineer or officer of equivalent rank can issue a blacklisting order, as per a 2015 PWD circular. The judgment, which referenced 131 prior cases, also clarified that the 2025 amendments to the Act do not change this position.
Some narratives paint this judgment as a blow to government efficiency, but the real story is about procedural fairness. The court did not shield contractors from action; it insisted on a competent authority, not an arbitrary tribunal, making the call. The lazy claim that this ties the hands of government misses how the ruling actually streamlines accountability by setting a clear, senior-level test. The real test now is whether the state will train its chief engineers to apply these standards consistently, or let the new clarity rot into another layer of delay.
Source: freepressjournal.in
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