The Allahabad High Court has reversed a decision that blacklisted a private company called M/s Prinav Gis Technologies for failing to deliver transformers to Kanpur Electricity Supply Company Limited (KESCO).
Originally, KESCO hired the company to supply 250 KVA and 400 KVA transformers. However, they later canceled the contract, claiming the company didn’t deliver all the transformers and that the transformers provided were of poor quality.
The company’s lawyer, Tanisha J Monir, argued in court that testing of the transformers was not done in front of the company representatives, which went against the rules. There was a department rule stating that testing should involve the company. She also mentioned that the company had asked multiple times for payment for the transformers they delivered on specific dates in April and May 2024. KESCO had been slow in paying, which caused money problems for the company and delayed their transformer deliveries.
After considering the case, the court noted that KESCO did not follow their own procedures for testing and did not share important testing documents with the company. The court said this lack of fairness violated natural justice principles.
They ruled that because the company wasn’t given a fair chance to dispute the testing results, the blacklisting and penalties were not valid. As a result, the court allowed the company’s petition and lifted the blacklisting.
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