Simplified Explanation of the Judgment
The Patna High Court recently upheld the decision of the Rural Works Department, Government of Bihar, to blacklist a private contractor for a period of three years due to failure to complete public infrastructure work within the agreed timeline. The petitioner, a construction company, had challenged the blacklisting order as well as the rejection of their appeal against it.
The dispute originated from a government contract awarded to the petitioner on 11 October 2022 for rural works to be completed by 10 April 2024. Despite a clear work schedule, the contractor failed to initiate and carry forward the construction activities on time. Multiple warnings and reminders were issued by the department, yet progress remained unsatisfactory.
By the end of 13 months from the start date, only about 10% of the project had been completed. Authorities were left with no option but to take coercive action. The contract was rescinded, the pending dues were calculated, and the department initiated recovery proceedings under certificate laws, commonly used to recover dues from defaulters.
The petitioner argued that he did not fully understand the terms of the contract and opposed the scheduled rates despite having agreed to them earlier. However, the court did not accept these justifications and described them as “naivete” on part of the petitioner.
The High Court emphasized that the State must maintain discipline and adherence to timelines in public works, especially where taxpayer money is involved. Authorities had provided adequate notice and opportunity to the petitioner before blacklisting. Given these facts, the court found no legal flaw in the blacklisting decision and declined to interfere.
Further, since the petitioner had not challenged the rescission of the agreement or the recovery proceedings, the court refrained from commenting on those aspects and confined itself to the blacklisting order. As a result, the writ petition was dismissed.
Significance or Implication of the Judgment
This judgment reinforces the principle that contractors engaged in public works must honor their contractual obligations, especially when public funds and essential infrastructure are involved. The court’s decision validates the government’s authority to blacklist non-performing contractors after following due process.
For private companies working on government projects, this serves as a reminder that repeated warnings and leniency will not shield them from strict action if they continue to violate contract terms. It also highlights that ignorance of contract terms is not a defense in the eyes of the law.
From a governance standpoint, this ruling empowers departments to enforce compliance and accountability without undue fear of legal backlash, provided due process is followed.
Legal Issue(s) Decided and the Court’s Decision
- Whether the blacklisting of the petitioner was justified ✔ Yes, due to gross delay and lack of progress despite warnings.
- Whether the petitioner was denied an opportunity to be heard ✔ No, petitioner was issued notices and his reply was considered.
- Whether the High Court should interfere with the administrative decision ✔ No, as the authorities acted within law and due process was followed.
- Was the petitioner’s ignorance of contract terms a valid ground? ✔ No, court held it reflected naivete, not a legal defense.
Case Title
JDM Engineering and Construction Pvt. Ltd. vs. State of Bihar & Ors.
Case Number
Civil Writ Jurisdiction Case No.2222 of 2025
Coram and Names of Judges
Hon’ble Acting Chief Justice Ashutosh Kumar
Hon’ble Mr. Justice Partha Sarthy
Names of Advocates and who they appeared for
Mr. Sriram Krishna, Advocate – for the petitioner
Mr. Amarjeet, Advocate – for the petitioner
Mr. Prabhat Kumar Singh, Advocate – for the petitioner
Mr. Ajit Kumar, Advocate – for the State
Link to Judgment
https://www.patnahighcourt.gov.in/ShowPdf/web/viewer.html?file=../../TEMP/50fd9454-bc9b-4b96-b77e-67c04d69dc0a.pdf&search=Blacklisting
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