The Supreme Court of India (SC) vide its judgment dated 04.10.2013 in the case of M/s. Kulja Industries Ltd. v. Chief Gen. Manager W.T. Proj. BSNL & Ors. (2014) 14 SCC 731 held that an instrumentality of the State needs to act proportionally in its dealing with private entities while debarring/blacklisting its contractor(s) or supplier(s) from future contracts or tenders. SC recognised that the right of an entity to delist or blacklist any party/contractor/dealer is inherent; and no phrases or clauses in the contract can restrict that autonomy, albeit any such decision is subject to judicial scrutiny when it is taken by the State and/or State instrumentalities.
