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Showing contexts for: patel engineering case in M/S Dhanlaxmi Electricals Pvt. Ltd vs Ajmer Vidyut Vitran Nigam Limited on 31 October, 2025Matching Fragments
15. This judgment has been followed in several later judgments. Thus, in Patel Engg. Ltd. v. Union of India [Patel Engg. Ltd. v. Union of India, (2012) 11 SCC 257 : (2013) 1 SCC (Civ) 445], this Court after referring to judgment in Erusian Equipment [Erusian Equipment & Chemicals Ltd. v. State of W.B., (1975) 1 SCC 70], then held : (Patel Engg. Case [Patel Engg. Ltd. v. Union of India, (2012) 11 SCC 257 : (2013) 1 SCC (Civ) 445] , SCC p. 263, para 15) "15. It follows from the above judgment in Erusian Equipment case [Erusian Equipment & Chemicals Ltd. v. State of W.B., (1975) 1 SCC 70] that the decision of the State or its instrumentalities not to deal with certain persons or class of persons on account of the undesirability of entering into the contractual relationship with such persons is called blacklisting. The State can decline to enter into a contractual relationship with a person or a class of persons for a legitimate purpose. The authority of the State to blacklist a person is a necessary concomitant to the executive power of the State to carry on the trade or the business and making of contracts for any purpose, etc. There need not be any statutory grant of such power. The only legal limitation upon the exercise of such an authority is that the State is to act fairly and rationally without in any way being arbitrary--thereby such a decision can be taken for some legitimate purpose. What is the legitimate purpose that is sought (D.B. SAW/895/2025 has been filed in this matter. Please refer the same for further orders) (Uploaded onon01/11/2025 (Downloaded 03/11/2025atat10:07:43 10:23:20AM) PM) [2025:RJ-JP:43440] (26 of 30) [CW-10709/2025] to be achieved by the State in a given case can vary depending upon various factors."