Blue Dreamz Advertising Pvt. Ltd. vs Kolkata Municipal Corporation 2024 INSC 589 – Blacklisting

Blacklisting – Blacklisting has always been viewed as a drastic remedy and the orders passed have been subjected to rigorous scrutiny -Too readily invoking the debarment for ordinary cases of breach of contract where there is a bona fide dispute, is not permissible -Any decision to blacklist should be strictly within the parameters of law and has to comport with the principle of proportionality- where the case is of an ordinary breach of contract and the explanation offered by the person concerned raises a bona fide dispute, blacklisting/debarment as a penalty ought not to be resorted to. Debarring a person albeit for a certain number of years tantamounts to civil death inasmuch as the said person is commercially ostracized resulting in serious consequences for the person and those who are employed by him. (Para 22- 38)

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