Monday, 11, May, 2026
 
 
 
Expand O P Jindal Global University
 
  
  
 
 
 

M/S.Global Infra Solutions vs /
2025 Latest Caselaw 4581 Mad

Citation : 2025 Latest Caselaw 4581 Mad
Judgement Date : 22 May, 2025

Madras High Court

M/S.Global Infra Solutions vs / on 22 May, 2025

Author: D.Bharatha Chakravarthy
Bench: D.Bharatha Chakravarthy
    2025:MHC:1204




                                                                                                W.P.No.11098 of 2025

                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                        ORDERS RESERVED ON                                    : 22.04.2025

                                        ORDERS PRONOUNCED ON                                  : 22.05.2025

                                                               CORAM

                     THE HON’BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY

                                                   W.P.No.11098 of 2025
                                                           and
                                              W.M.P.Nos.12523 & 12524 of 2025

                     1.           M/s.Global Infra Solutions,
                                  F-2, E-8/11A, Sukhsagar Apartment,
                                  Trilanga, Bhopal – 462 039.
                                  Madhya Pradesh,
                                  Though its sole Proprietor,
                                  Mr.Sandeep Singh

                     2.           Dhruv Consultancy Services Limited,
                                  501, Pulkit Plaza, C.B.D.Belapur,
                                  Navi Mumbai – 400 614,
                                  Through its Authorized Representative,
                                  Mr.Sandeep Singh.

                     3.           M/s.MS Consultant,
                                  E-8/11A, Sukhsagar Apartment,
                                  Trilanga, Bhopal – 462 039.
                                  Madhya Pradesh,
                                  Though its Partner,
                                  Mr.Sandeep Singh
                                                                                                       .. Petitioner
                                                                 /versus/

                     1.           Union of India,

                     1/27



https://www.mhc.tn.gov.in/judis                     ( Uploaded on: 22/05/2025 07:46:20 pm )
                                                                                               W.P.No.11098 of 2025

                                  Through the Secretary,
                                  Ministry of Road Transport & Highways,
                                  Transport Bhawan,
                                  1, Parliament Street, New Delhi - 110 001.

                     2.           National Highway Authority of India,
                                  O/o. Regional Officer,
                                  Chennai Region,
                                  5 Floor, CMRL Building,
                                   th


                                  Poonamallee High Road,
                                  Koyembedu, Chennai – 600 107.

                                  Also at:
                                  Corporate Office,
                                  G-5 & 6, Sector – 10, Dwarka,
                                  New Delhi - 110 075.

                     3.           National Highway Authority of India,
                                  Project Implementation Unit- Krishnagiri,
                                  259/1, Salem Main Road,
                                  Near KAKC Petrol Bunk,
                                  Krishnagiri - 635 001.
                                  Tamil Nadu.                                                .. Respondents

                     Prayer: Writ Petition filed under Article 226 of Constitution of India for
                     the issuance of Writ of Certiorari, to call for the records of the second
                     respondent pertaining to impugned order in NHAI/11021/16/PIU-K'
                     giri/2023/834/33/(243693) dated 11.03.2025 debarring the petitioner from
                     participating in future bids for a period of 2 years and quash the same.




                                        For Petitioners        : Mr.Rajive R.Raj

                     2/27



https://www.mhc.tn.gov.in/judis                    ( Uploaded on: 22/05/2025 07:46:20 pm )
                                                                                               W.P.No.11098 of 2025

                                                                  for Mr.A.R.Ramanathan

                                         For R1                : Ms.P.J.Anitha
                                                                 Central Government Standing Counsel

                                         For R2 & R3           : Mr.A.R.L.Sundaresan
                                                                Additional Deputy Solicitor General
                                                                assisted by Ms.S.R.Sumathy

                                                                ORDER

A. The Writ Petition:

This writ petition challenges the impugned order in

NHAI/11021/16/PIU-K' giri/2023/834/33/(243693) dated 11.03.2025,

which debarred the petitioners as consultants for a period of two years

and prohibited them from participating in future bids during this period,

effective from 11.03.2025. The debarment was made without prejudice to

any other actions that may be taken against the petitioners.

B. The Case of the Petitioners:

2. The case of the petitioners is that they are a consortium of three

entities, all premier consulting engineering companies operating in India,

providing Civil Engineering Consultancy to the Government, its agencies,

and the private sector. Meanwhile, the second respondent invited bids for

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

Independent Engineering Services related to its work on “Four laning of

Neraluru (Karnataka) -Thorapalli Agraharam (Hosur Taluk, Krishnagiri

District) section of NH – 844 from Km. 0.000 to 23.350 (Design

Chainage) under Bharatmala Pariyojna Phase -I (National Corridor) on

Hybrid Annuity Mode in the State of Tamil Nadu and Karnataka

(Package -I)”. According to the Request for Proposal (RFP), the

petitioners participated and were judged as the highest-scoring bidder

(H1), subsequently awarded the contract through a letter of award dated

15.12.2022. Following this, the consultancy agreement was executed on

11.01.2023. While the petitioners were fulfilling their obligations under

the contract, a show cause notice dated 15.05.2024 was issued. This

notice included seven allegations, and the petitioners were requested to

provide an explanation. The petitioners submitted their explanation on

29.05.2024, detailing their responses to each allegation. Nevertheless, the

impugned order dated 11.03.2025 was issued, resulting in a two-year

debarment of the petitioners. Additionally, the petitioners' contract was

terminated, against which separate proceedings have been initiated.

3. Regarding the debarment, the petitioners argue that the action

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

was taken outside the scope of the contract agreement executed by the

parties. Appendix N permits debarment only concerning specific actions,

which are absent in this case. Moreover, when certain violations

occurred by the concessionaire, they were acknowledged on the spot by

the key professionals/team leader, who were solely sponsored by the

second respondent. For the mistakes made by these professionals, actions

are now being initiated against the petitioners. In fact, no action has been

taken concerning any violations against the key professionals, the

concessionaire, or the Project Director, who was present at the site while

the work was being conducted. The action against the petitioners appears

to be an attempt to make them scapegoats for the entire incident.

C. The case of the Respondents:

4. The writ petition is resisted by the respondents. The counter-

affidavit has been filed by the third respondent. It is their case that after

the execution of the contract agreement on 11.01.2023, the consultant's

team leader also joined on 16.01.2023. When the concessionaire

submitted the design and drawings on 24.01.2023, the petitioners

approved the construction of box culverts on 21.02.2023 without taking

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

the site conditions into account. No site observations were issued by the

petitioners, and no instructions were provided to the concessionaire to

stop construction. According to the agreement, Clause 4.4(c) requires

prior approval from the authority in the event of the absence of any key

professionals. The Resident Engineer cum Highway Engineer was absent

from the site during February and March 2024. The team leader was

absent from the site for more than 10 days in March 2024.

5. A show cause notice was issued in this regard. Despite repeated

directions and reminders, several shortcomings on the part of the

petitioners persisted. In light of these defaults, the Project Director,

Krishnagiri, through communication dated 16.03.2024, recommended to

the Regional Office, Chennai, that actions be initiated against the

consultants. A detailed show cause notice was issued, and several

allegations related to serial numbers 3(a), (b), (c), (d), and (e) in

Appendix N were presented. The explanation offered by the petitioners

was considered but deemed unacceptable. Consequently, the penalty of

debarment for a period of two years was imposed. The grounds raised in

the writ petition lack merit; thus, the writ petition is subject to dismissal.

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

D. The Arguments:

6. Heard Mr.Rajive R.Raj, the learned Counsel appearing for the

petitioners. Firstly, he submits that no adequate and informed

opportunity was granted to the petitioners. The show cause notice was

generally given and was vague. It did not specify what deficiencies, as

listed in clauses 3(a) to 3(e) in Appendix N, were present in the instant

case. Therefore, the petitioners were unable to respond effectively.

Furthermore, as per Clause 3 of Appendix N, the punishment of

debarment can only be imposed if the discrepancies or lapses impact

more than 1% of the construction cost, which is Rs. 484.74 crore, or if the

time implication exceeds 5%. No such quantum of cost or time

implication is indicated in the show-cause notice. Therefore, the show

cause notice was issued.

7. The learned counsel for the petitioners would rely on the

judgment of the Honourable Supreme Court of India in Gorkha Security

Services vs. Government (NCT of Delhi) and others, reported in 2014

(9) SCC 105, specifically pointing to paragraphs 19 and 20, and submit

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

that since the show cause notice itself is vague, the impugned order of

punishment, namely debarment, must be set aside by this Court. The

learned counsel would contend that the show cause notice was issued for

an alleged violation of Clause 3.1.1 of the General Conditions of Contract

(GCC) and Clauses 4.1, 4.4, and 5.3 of the Terms of Reference (TOR) of

the consultancy agreement. However, the punishment of debarment is to

be imposed only for violations of Clause 3.2 of the GCC and Clause 13 of

the TOR. Therefore, when these allegations were not specifically

mentioned in the show cause notice, the entire exercise is illegal. When

the petitioners was compelled to provide an explanation concerning other

clauses, the debarment order was suddenly issued. Therefore, the

authority cannot be allowed to change the goalposts while passing the

order. Reference is made to paragraph 23 of the judgment of the

Honourable Allahabad High Court in A.K Construction Company versus

Union of India and others (Writ -C No. - 20223 of 2024).

8. Next, the learned Counsel appearing for the petitioners submits

that the debarment order will have a cascading effect on the petitioners,

as they will not be able to participate in any future bids. The petitioners

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

employ more than 2,000 people, and the livelihoods of 1,500 families are

affected. Upon perusal of the allegations, it is evident that the punishment

of debarment is grossly disproportionate to the alleged deficiencies and

discrepancies. First of all, it appears that the alleged deficiencies and

discrepancies are rectifiable and were, in fact, rectified even before the

debarment order was issued. In this view of the matter, and in light of the

pronouncement of the Honourable Supreme Court of India in Kulja

Industries Limited Vs. Chief General Manager, Western Telecom

Project Bharat Sanchar Nigam Limited and others, reported in 2014

(14) SCC 731, specifically paragraphs 25 and 26, the impugned order is

liable to be quashed.

9. The learned Counsel appearing for the petitioners would then

submit that absolutely no action was taken against the team leader,

Project Director, National Highway Authority of India (NHAI), or the

concessionaire. The learned Counsel submits that it is evident that the

team leader had to be selected from the INFRACON portal, which is

maintained by the second respondent. The petitioners were required to

choose the Team Leader solely from this panel. This individual approved

the design on the spot without consulting the other professionals in the

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

petitioners' consultancy. Similarly, the Project Director was present at the

site and signed the same. When lapses and deficiencies were

subsequently discovered, it became evident that the primary mistake lay

solely with the Team Leader and the Project Director. The

concessionaire, who violated the terms of reference by making certain

designs and constructions that were deemed incorrect by the second

respondent, has not been held accountable at all. No action was taken

against the Team Leader, Project Director, or the concessionaire;

therefore, the impugned order of debarment is illegal, as it scapegoats

only the petitioners for the mistakes of the other authorities.

10. Furthermore, the petitioners contend that debarment or

blacklisting should not be imposed for ordinary breaches of contract or

for every violation. Debarment is akin to capital punishment and amounts

to the civil death of a company, commercially ostracising it and leading

to serious consequences. The pronouncements in paragraphs 26 and 27 of

the Honourable Supreme Court of India in Blue Dreamz Advertising

Private Limited and another versus Kolkata Municipal Corporation

and others reported in (2024) 8 S.C.R 189 and Erusian Equipment and

Chemicals Limited vs. State of West Bengal and another, 1975 (1) SCC

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

70, are relied upon.

11. The learned counsel would submit that, overall, there was no

potential harm to the public interest. In such cases, especially when the

construction had not been terminated, the rectifications were made, and

the project was completed, the order of debarment ought not to have been

passed.

12. Mr.A.R.L.Sundaresan, the Learned Additional Deputy Solicitor

General of India, appearing for the second and third respondents, would

draw the attention of this Court to the show cause notice dated

15.05.2024, which was issued by the second respondent. In the said show

cause notice, in paragraph 2, seven specific allegations were made.

While the show cause notice mentions explicitly that the violations of

stipulations are noted under clauses 3.1.1 of the GCC and clauses 4.1, 4.4,

and 5.3 of the TOR of the consultancy agreement, it also categorically

mentions to show cause as to why action should not be initiated for

debarment for a period of two years, apart from declaring the firm as a

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

non-performer. Therefore, it cannot be said that the show cause notice is

vague or that the impugned order travelled on any allegations beyond the

scope of the show cause notice. In respect of these seven allegations, the

petitioners have submitted a categorical reply.

13. Mr.A.R.L.Sundaresan, would then draw this Court's attention

to Appendix N of the contract, which categorically mentions the types of

deficiencies, the penal actions against key personnel, and the nature of

actions to be taken. Under Appendix N, regarding any allegations falling

within clauses 3(a) to 3(e), the key personnel and team leader are liable to

be removed from the project and debarred for up to two years. It is also

stated that, in the case of firms, in addition to rectifying deficiencies and

taking adequate measures to prevent their recurrence, the consultant may

be debarred for up to two years. Adverting to the nature of the

allegations, he would submit that they clearly fall within clauses 3(a) to

3(e). Therefore, it is within the scope of the respondents' powers to have

initiated the action and debar the petitioner for a period of two years.

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

14. According to the learned Additional Solicitor General of India,

this is not a case of permanent debarment. Therefore, the principles laid

down by the Honourable Supreme Court of India regarding the civil death

of a company, as in Blue Dreamz Advertising and Eurasian

Equipment(cited supra), do not apply in this case. He would submit that

the Project Director of the National Highways Authority of India (NHAI)

was never at fault. The Project Director has pointed out the absence of

authorities and the errors that are committed by the concessionaire and

key personnel from time to time. Therefore, action should be initiated

against the petitioners as well as the other persons involved. As far as the

concessionaire is concerned, it is not always advisable to terminate the

concession. In the public interest, the concessionaire was instructed to

rectify the defects and ensure that the constructions were carried out

properly. The entire action was necessitated by the inaction of the

petitioners. Therefore, action is being taken against them. The Team

Leader is also chosen by the petitioners and is deemed to be an employee

of the petitioners, not that of the second respondent. Therefore, the

argument made in that regard is without merit.

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

E. The Questions:

15. I have considered the rival submissions made on either side and

examined the material record of the case. The following questions are

raised for consideration:-

(a) Is the second respondent justified in initiating debarment

proceedings against the petitioners?

(b) Is the impugned order liable to be quashed on the grounds that

the show cause notice is vague?

(c) Is the impugned order based on any grounds not mentioned in

the show cause notice?

(d) Is the punishment of debarment proportionate and appropriate?

F. Question (a).

16. The copy of the consultancy agreement signed between the

parties on 11.01.2023 is filed, along with the General Conditions of

Contract (GCC) and the Terms of Reference (ToR) for the independent

engineer, including the respective appendices. The roles and functions of

the independent engineer during the design stage, development period,

and construction period are detailed in clauses 3, 4, and 5 of the ToR.

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

Additionally, the penal actions to be taken against the independent

engineer are outlined in Appendix N. The picture image is reproduced

here for reference:

Appendix N: Penal Actions against independent Engineer (IE) and Concerned Key Personnel 1.1 Following penal actions shall be taken against independent Engineer in case of lapses on their part/deficiencies in services provided under this contract.

Sr.No. Type of Deficiency Penal Actions Key Personnel Firm 1 (a) Failure to detect For first three instances, key i. For first three design / quality personnel may be kept on instances, to be deficiency in Non- "watch list". Thereafter, the kept on watch key Components* concerned key personnel & list.

Team Leader to be removed ii. Thereafter, a 1(b) Failure to issue from the project and monetary penalty follow-up notices to debarred up to 6 months. of 1% of the contractor / consultancy fee concessionaire for (the aggregate of delays in closure of such penalties in NCRS, delays in a contract would 1 (c) furnishing detail of not exceed the time & cost claims performance / COS / revised Guarantee work programmes / amount) and /or work declaring the methodologies, etc. consultant as Delays or Non-performer submission of up to 6 months of improper MPRS, till rectification improper review of of deficiencies# methodologies, and taking temporary works, adequate QA plan / manual, measures not to O&M plan / repeat such Manual etc. instances in future whichever is earlier.









https://www.mhc.tn.gov.in/judis                        ( Uploaded on: 22/05/2025 07:46:20 pm )


                                  Sr.No. Type of Deficiency                      Penal Actions
                                                                      Key Personnel              Firm
                                  2 (a)   Failure to detect The     concerned      key Declaring       the
                                          design / quality personnel & Team Leader to Consultant        as

deficiency in key be removed from the project Non-Performer component** not and debarred up to 1 year. up to 1 year or having substantial till rectification cost (below 1% of of deficiencies# civil work (cost) and taking and / or time adequate implication (below measures not to 5% or project repeat such completion period) instances in 2 (b) future, whichever Failure to detect is earlier.

                                          deficiency        in
                                          quantity executed
                                          vis-a-vis design not
                                          having substantial
                                          financial
                                          implication (below
                                  2 (c)   1% civil work cost)
                                          Failure          to
                                          conduct/witness
                                          tests as prescribed
                                          in the consultancy
                                          contract agreement
                                  2 (d)   Delay            in
                                          processing
                                          EOT/COS
                                          proposals,
                                          inaccurate
                                          assessment of COS
                                          proposals,      not
                                          issuing       NCRs,
                                          delays / improper
                                          review of designs /
                                          drawings / work
                                          programme        or
                                          failure to submit
                                          completion        /
                                          Provisional
                                          Completion
                                          Certification    as
                                          prescribed       in
                                          contract.








https://www.mhc.tn.gov.in/judis                        ( Uploaded on: 22/05/2025 07:46:20 pm )


                                  Sr.No. Type of Deficiency                        Penal Actions
                                                                        Key Personnel              Firm
                                  3 (a)   Failure to detect The        concerned      key In addition to
                                          deficiency       in personnel & Team Leader to rectification   of

quantity executed be removed from the project deficiencies and vis-a-vis design and debarred up to 2 years. taking adequate having substantial measures not to financial repeat such implication (1% of instances in civil work cost or future, the more) consultant to be 3 (b) debarred up to 2 Failure to detect years.

                                          design / quality
                                          deficiency in key
                                          component having
                                          substantial    cost
                                          (1% of civil work
                                          cost or more) and /
                                          or time implication
                                          (5% of project
                                          completion period
                                  3 (c)   or more)
                                          Failure to detect
                                          deficiency / not
                                          reviewing design
                                          (including
                                          temporary works)
                                          and construction
                                          (including
                                          methodology)     of
                                          structural
                                          components       of
                                          flyover / bridges /
                                          underpasses       /
                                          overpasses / ROB /
                                          RUB etc.
                                  3(d)    Failure to propose
                                          action (like cure
                                          period notice, levy
                                          of damages, etc.)
                                          on contractor /
                                          concessionaire as
                                          per           contract
                                          agreement for their
                                          default     /    poor
                                          progress       having
                                          material adverse
                                          effect on the project
                                          implementation in






https://www.mhc.tn.gov.in/judis                          ( Uploaded on: 22/05/2025 07:46:20 pm )


                                   Sr.No. Type of Deficiency                         Penal Actions
                                                                          Key Personnel              Firm
                                            terms of cost (1%
                                            of civil work cost
                                            or more) and / time
                                            (5% of project
                                            completion period
                                            or more).
                                            Improper / wrong
                                            interpretation     of
                                            provision          in
                                   3(e)     contract agreement
                                            or             wrong
                                            certification      of
                                            payment / COS
                                            value / cost & time
                                            claims; or poor
                                            performance        of
                                            services leading to
                                            cost (1% of civil
                                            work cost) and / or
                                            time (5% of project
                                            completion period)
                                            claims        against
                                            NHAI awarded by
                                            DRB/CCIE/Arbitra
                                            tion / Court.




17. Upon reviewing the documents, it is evident that if the

allegations fall within clauses 3(a) to 3(e), the second respondent has the

authority to debar the independent engineer/consultant for a period of up

to two years. In this regard, the following allegations were included in the

show cause notice, which are also considered in the impugned order:-

“Issue 1: The Profile submitted by the concessionaire deviated from the provision of the Concession Agreement as the design speed was considered

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

as 80 Kmph instead of 100 Kmph and Limited Gradient was adopted instead of Ruling Gradient. However, IE arbitrarily reviewed profile without verifying the scope of work and without furnishing any comment about the site conditions that warrants deviations from the Concession Agreement. Further IE not only failed to ascertain that the Profile of Main Carriageway is in accordance with the provisions of the Concession Agreement and Standards & Specifications, but also issued a letter no.026A dated 13.03.2023 (back dated & without submitting any copy to the Authority) thereby approving (as claimed by the concessionaire), the submission of concessionaire vide letter no.112 dated 16.03.2023 which is contrary to TOR of Independent Engineer and also contrary to CI.1.18 (a) of IRC:SP 84-2019, CI.12.2 (c) of CA and CI.4.1 of ToR of IE services. Further, IE letter dated 13.03.2023 contained reference to Concessionaire's submission dated 16.03.2023.

Issue 2: Approval of the Drawings of Underpasses wherein the levels have been lowered w.r.t. adjoining ground levels and also the levels of the cross roads at Km 1+055, Km 2+881, Km 9+370, Km 9+370, Km 21+048 below OGL. Also construction of LVUP at Km 1+859 has not been aligned with the crossroads and the profile of MCW was lowered by the concessionaire as compared to the provisions of CA.

Issue 3: Approval of drawings of SVUP at Km 5+300 even after knowing about the discrepancy in highway profile at the said location.

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

Issue 4: Lapse in supervision of work: Box culvert was constructed at Km 6+205 with a residential building on the downstream end.

Issue 5: Non-availability of Resident cum Highway Engineer for complete February 2024 and no response further.

Issue 6: IE certified that the concessionaire achieved Project Milestone II on 10.01.2024 without examining the provisions as per clause 3.2 of Schedule G of the concession agreement.

Issue 7: Failure to review the reports of the safety consultant.

18. Thus, upon reviewing the same, it is clear that the repeated

allegations fall within the scope of failing to detect deficiencies in the

review of the design and construction of structural components of the

project. It also constitutes a failure to propose action against the

concessionaire, even though the 1% or 5% cost criteria are not

categorically mentioned. However, with respect to the violation of clause

3(c), no such cost slab is required. When the allegations regarding the

construction of box culverts are made, it highlights the inappropriate

location of SVUP and underpasses that are situated without alignment

with crossroads. It can be seen that the allegations levelled would fall

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

within various clauses 3(a) to 3(e), more specifically 3(c). Therefore, I

hold that the respondents are justified in initiating action for debarment

against the petitioners.

G. Question (b) & (c):

19. In the show cause notice dated 15.05.2024, paragraph 4 states

as follows:

4. Therefore, for above said deficiencies, a Show Cause Notice is hereby served to the Independent Engineer in terms of the Consultancy Agreement, as to why action should not be initiated against your firm for declaring your firm as a "non-performer" & Debarment for 02 years period in terms of IE's Consultancy Agreement, NHAI Policy Circulars and Applicable Laws. In case, consultant fails to submit an explanation within 15 days time, it shall be presumed that it has nothing to submit in this regard and the Authority is at liberty to initiate aforesaid action without any further notice to the consultant.

(E m p h a s i s sup pli e d )

20. Thus, it can be seen that when the common show cause notice

was issued regarding the declaration of the petitioner as a non-performer

and debarment, the process for declaring non-performance was detailed in

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

paragraph 3. It cannot be claimed that the show cause notice is vague.

Specific allegations are made, and an explanation is requested as to why

debarment should not be imposed. Similarly, the impugned order

addresses the seven items mentioned in the show cause notice and does

not take into account any other extraneous reasons or materials when

issuing the order of debarment against the petitioners.

21. On the merits of the allegations, after considering the entire

averments made in the affidavit and the arguments presented, it can be

seen that when the allegation of approving a wrongful design was raised,

the respondents stated that the team leader made the decision on the spot.

When questioned about the incorrect location of the box culverts, it was

again submitted that the consultants were situated elsewhere. However,

upon reviewing the Terms of Reference, it becomes evident that the

consultants were responsible for both the design and construction stages.

They were tasked with reviewing the drawings and documents during

both the development and construction periods. Their roles and functions

are clearly delineated in clauses 3, 4, and 5 of the ToR. Therefore, if one

were to accept the arguments made on behalf of the petitioners, no role

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

can be identified for them. Thus, when the team leader is part of their

team, it is the responsibility of the independent engineering consultants to

have their engineers on site, and they are accountable for any errors in

design, execution, and construction. Consequently, I answer the questions

(b) & (c) that the show cause notice is not vague and the impugned order

does not take into account any grounds which is not mentioned in the

show cause notice.

H. Question (d):

22. In the instant case, it can be seen that the allegations are

levelled regarding the approval of the design stage, the execution stage,

and the construction stage, where the box culverts are located in the

wrong place, and constructions were made. The underpasses were located

in the wrong place, and constructions were made. The entire job of the

independent engineer seems to verify the original plan with reference to

the terms of reference for the concessionaire and ensure that the design is

properly made according to the standards of the second respondent and

that the work is executed strictly in terms of the design. The allegations

refer to lapses at every level. At each level, the petitioners claims that it is

not their responsibility. The same cannot be accepted.

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

23. Therefore, for such allegations that could lead to the loss of

lives (for example, if underpasses are poorly located, accidents may occur

when they are not situated optimally), this matter cannot be treated

lightly. In any event, in this instance, the debarment does not result in

civil death as it is a suspension, limited to two years. Therefore, it cannot

be characterised as disproportionate, nor can the principles regarding civil

death or permanent closure of the company's business be applied here, as

the punishment is confined to a period of only two years. Consequently,

the submissions made by the learned Senior counsel for the petitioner,

based on the rulings of the Honourable Supreme Court in the Blu e

D r e a m z Ad v e rti si n g and Eu r a s i a n Eq u i p m e n t & C h e m i c a l s Li m it e d cited

(supra), cannot be upheld.

24. The allegations made relate to every aspect of the project's

execution. Therefore, merely because the concessionaire was given one

more opportunity to rectify all the defects and because no disciplinary

action has been taken against the team leader, the same would not enure

to the benefit of the petitioners who are alleged to have failed in their

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

actions at every stage. The receipt of the consultation fee is for

performing these tasks. However, the pleading in respect of every charge

is to disclaim responsibility; if accepted, one can see no role for the

petitioners in the whole execution of the contract, and as such, the

contention cannot be accepted. If allegations that are made are viewed in

the context, it cannot be said that the debarment is either disproportionate

or inappropriate.

I. The Result:

25. Finding no merits, this writ petition is dismissed. Consequently,

the connected miscellaneous petitions are closed. No costs.

22.05.2025

Neutral citation: Yes nsl

To

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

1. The Secretary, Union of India, Ministry of Road Transport & Highways, Transport Bhawan, 1, Parliament Street, New Delhi - 110 001.

2. The Regional Officer, National Highway Authority of India, Chennai Region, 5 Floor, CMRL Building, th

Poonamallee High Road, Koyembedu, Chennai – 600 107.

Also at:

Corporate Office, G-5 & 6, Sector – 10, Dwarka, New Delhi - 110 075.

3. National Highway Authority of India, Project Implementation Unit- Krishnagiri, 259/1, Salem Main Road, Near KAKC Petrol Bunk, Krishnagiri - 635 001, Tamil Nadu.

D.BHARATHA CHAKRAVARTHY,J.

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

nsl

22.05.2025

https://www.mhc.tn.gov.in/judis ( Uploaded on: 22/05/2025 07:46:20 pm )

 
Download the LatestLaws.com Mobile App
 
 
Latestlaws Newsletter
 

Publish Your Article

 

Campus Ambassador

 

Media Partner

 

Campus Buzz

 

LatestLaws Guest Court Correspondent

LatestLaws Guest Court Correspondent Apply Now!
 

LatestLaws.com presents: Lexidem Offline Internship Program, 2026

 

LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!

 
 

LatestLaws Partner Event : IJJ

 

LatestLaws Partner Event : Smt. Nirmala Devi Bam Memorial International Moot Court Competition

 
 
Latestlaws Newsletter