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Jharkhand High Court

Bhilai Engineering Corporation ... vs Steel Authority Of India Limited And Ors on 26 July, 2024

     IN THE HIGH COURT OF JHARKHAND AT RANCHI
                 W.P(C)No. 4186 of 2024

Bhilai Engineering Corporation Limited            ......... Petitioner
                             Versus
Steel Authority of India Limited and Ors.     .... ... Respondents

CORAM: HON'BLE THE ACTING CHIEF JUSTICE
       HON'BLE MR. JUSTICE ARUN KUMAR RAI

For the Petitioner              : Mr. Sumeet Gadodia, Advocate
For the Respondents             : Mr. Shresth Gautam, Advocate
                                 ---------

Order No.3/Dated:26th July 2024 In the present writ petition under Article 226 of the Constitution of India the petitioner-Firm has prayed for the following reliefs:

(i) For issuance of an appropriate writ/order/direction, for quashing/setting aside the order no.2024-25/263 dated 20.05.2024 [Annexure-28] issued by Respondent No.2, wherein an order has been passed suspending the business dealings of the petitioner with Bokaro Steel Plant/Steel Authority of India Limited with effect from 20th May, 2024 up to a period of six months or till the decision of management, whichever is earlier.
(ii) For issuance of further appropriate writ/order/direction, for quashing/setting aside the Show Cause Notice dated 29.06.2024 [Annexure-31] issued by Respondent No.3, wherein petitioner has been directed to show cause as to why action be not initiated against the petitioner in terms of the guidelines on banning of business dealings.

2. The first prayer has been made for quashing/setting aside the order dated 20th May 2024 and the second prayer is for quashing/setting aside the Show Cause Notice dated 29th June 2024 directing the petitioner- Firm to show cause as to why action be not initiated against the petitioner- Firm in terms of the guidelines on banning of business dealings.

3. Mr. Sumeet Gadodia, the learned counsel for the petitioner- Firm while arguing the matter has raised the issue that either the order of suspension of the business dealings or the show cause notice for initiation of the action with regard to banning of business dealings of the petitioner- Firm is concerned the same is contrary to the terms and conditions of the contract. The conditions of the contract have been stipulated under Clause 5.1 and Clause 7 so far as the suspension of business dealings or banning of business dealings is concerned.

4. Mr. Shresth Gautam, the learned counsel appearing for the respondent-SAIL has submitted by referring to the order dated 10th October 2023 passed by a Coordinate Bench of this Court in W.P(C) No.2053 of 2023 wherein the root lies. It has been submitted by the learned counsel for the respondent that although the cause of action of the present writ petition is different from that writ petition being W.P(C) No.2053 of 2023 but a detail counter-affidavit has been filed in that writ petition which would be necessary for appreciation of the facts with regard to suspension of business dealings or banning of business dealings of the petitioner-Firm. Therefore, he prays that the present writ petition may be listed along with W.P(C) No.2053 of 2023. He has further submitted that he will file a detail counter- affidavit giving para-wise reply to the averments made in the present writ petition for which he has sought for two weeks' time.

5. Considering the same, let this matter be listed on 12th August 2024 along with W.P(C) No.2053 of 2023.

(Sujit Narayan Prasad, A.C.J.) (Arun Kumar Rai, J.) Sudhir 2