Judgment Link: https://main.sci.gov.in/supremecourt/2019/18159/18159_2019_40_1501_24686_Judgement_16-Nov-2020.pdf
https://www.barandbench.com/news/litigation/supreme-court-show-cause-notice-blacklist-intention
CIVIL APPEAL NO. 3687 OF 2020 (Arising out of S.L.P. (C) No. 14228 of 2019) UMC TECHNOLOGIES PRIVATE LIMITED VERSUS FOOD CORPORATION OF INDIA AND ANR. decided on 16 November 2010
Paragraph 14: Specifically, in the context of blacklisting of a person or an entity by the state or a state corporation, the requirement of a valid, particularized and unambiguous show cause notice is particularly crucial due to the severe consequences of blacklisting and the stigmatization that accrues to the person/entity being blacklisted. Here, it may be gainful to describe the concept of blacklisting and the graveness of the consequences occasioned by it. Blacklisting has the effect of denying a person or an entity the privileged opportunity of entering into government contracts. This privilege arises because it is the State who is the counterparty in government contracts and as such, every eligible person is to be afforded an equal opportunity to participate in such contracts, without arbitrariness and discrimination. Not only does blacklisting takes away this privilege, it also tarnishes the blacklisted person’s reputation and brings the person’s character into question. Blacklisting also has long-lasting civil consequences for the future business prospects of the blacklisted person.
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