15 July 2021| Apaar Infratech Private Limited v. NHPC Limited | OMP (I) (Comm.) 207 of 2021 | Vibhu Bakhru J | Citation not available

A contract for a hydropower project awarded to the petitioner was terminated, alleging delay in commencing the project. Later, after an opportunity to show cause had been afforded, the petitioner was blacklisted in terms of the “Guidelines for Banning Business Dealings.”

The petitioner applied to the court under Section 9 ACA challenging the order, but, as contemplated under their agreement, the parties were asked to arbitrate under the SCOPE Forum of Conciliation and Arbitration (SFCA). The application was directed to be treated as one made under Section 17 ACA.

Later, because the tribunal’s constitution was taking time, the petitioner applied to the court again under Section 9 ACA.

Bakhru J took note of the precedent and noted that blacklisting not only affected the petitioner’s business but its ability to secure contracts from other agencies. He also noted the phraseology used by the Supreme Court to describe blacklisting: “stigma”, “instrument of coercion”, “civil death”, and others. Considering the nature of the dispute (breach of contract) and the serious adverse consequences on the petitioner, he thought it apposite to stay the order for six weeks to enable the parties to approach the tribunal.

Read the judgment here.