Termination Valid, Blacklisting Invalid – SC Separates Consequences, Enforces Strict Natural Justice

A.K.G. Construction And Developers Pvt. Ltd Vs State of Jharkhand & Ors. (Supreme Court of India) Termination Valid, Blacklisting Invalid – SC Separates Consequences, Enforces Strict Natural Justice The Supreme Court upheld the termination of contract but set aside the blacklisting order, holding that blacklisting is not an automatic consequence of termination and requires independent application of mind and due process. In this case, the appellant contractor’s work (construction of a water reservoir) collapsed, leading to a termination-cum-blacklisting order for 5 years. While mul...