WP(MD)/21917/2026 of K.Manikandan Vs The District Collector and C on 6 October 2026

ORDER

The first respondent floated a tender for the work of strengthening and maintenance of roads in Package TN-KKM-06 in Munchirai Block, __________

( Uploaded on: 08/10/2026 01:00:31 pm )

WP(MD) No. 21917 of 2026 Kanyakumari District. The petitioner submitted a bid and the said bid was accepted. Pursuant thereto, the first respondent issued Letter of Acceptance dated 02.03.2026 to the petitioner. The petitioner remitted the Earnest Money Deposit (EMD) along with the technical bids and also furnished a fixed security deposit of Rs.2,32,500/-. Meanwhile, the Model Code of Conduct came into operation. After the Model Code of Conduct ceased to operate, on the ground that the petitioner failed to execute the contract, the impugned order dated 19.06.2026 was issued.

2. Referring to the impugned order, learned counsel for the petitioner points out that the order records that the Model Code of Conduct operated between 15.03.2026 and 07.05.2026 and impeded the execution of the contract. After expiry of the Model Code of Conduct, he submits that the first respondent did not call upon the petitioner to execute the contract. He also submits that the petitioner was barred from participating in any tenders floated by the District Rural Development Agency, Kanyakumari, under the impugned order and that such blacklisting was done without providing a reasonable opportunity to the petitioner. Placing reliance on the judgment of the Supreme Court in M/s. AKG Construction and Developers Private Limited v. State of Jharkhand and others, SLP(C) No.23858 of 2025, learned counsel submits that a Show Cause Notice is mandatory before an order of blacklisting. __________

( Uploaded on: 08/10/2026 01:00:31 pm )

WP(MD) No. 21917 of 2026

3. Mr.S.I.Muthiah, learned Additional Government Pleader, accepts notice for the respondents. Relying on Clause 12 of the tender conditions, learned counsel submits that the first respondent was expressly authorised to forfeit the EMD if the bidder fails to sign the agreement within the specified time limit. With regard to blacklisting, relying on Clause 27, learned counsel submits that it empowers blacklisting for any violation of the terms and conditions.

4. On perusal of the impugned order, it is noticeable that the operation of the Model Code of Conduct between 15.03.2026 and 07.05.2026 was taken note of. It was recorded that the petitioner failed to sign the agreement even after the Model Code of Conduct ceased to operate. The said order was issued on 19.06.2026, which is about 1 ½ months after the Model Code of Conduct ceased to operate.

5. As pointed out by learned Additional Government Pleader for the respondents, the terms and conditions of tender enable the Tendering Authority to forfeit the EMD if the successful bidder fails to sign the agreement within the specified time limit. The specified time limit was fifteen days from the date of issuance of the Letter of Acceptance. The Letter of Acceptance was issued on 02.03.2026. Even if the fifteen days were to be computed from 07.05.2026, the __________

( Uploaded on: 08/10/2026 01:00:31 pm )

WP(MD) No. 21917 of 2026 impugned order was issued after recording that the contract was not signed within a reasonable time after the expiry of the Model Code of Conduct. I find no infirmity in the order insofar as it pertains to forfeiture of the Earnest Money Deposit. The aspect relating to blacklisting remains to be considered.

6. In the impugned order, it is recorded as under: “Further, the contractor Thiru.K.Manikandan, Manjalumoodu is barred to participate in any tenders in District Rural Development Agency Kanniyakumari and 9 blocks of Kanniyakumari Distict.”

7. Thus, the petitioner was barred from participating in any tenders floated by the District Rural Development Agency, Kanyakumari. The record shows that this decision was not preceded by a Show Cause Notice. Blacklisting has the effect of depriving a party of vital civil rights. This principle was affirmed in Erusian Equipment and Chemicals Limited v. State of West Bengal, reported in (1975) 1 SCC 70 and has been consistently followed thereafter, including in the judgment cited by learned counsel for the petitioner.

8. Learned Additional Government Pleader for the respondents relied on Clause 37 of the terms and conditions, which reads as under: “37.

Violation

in

Terms

and

Conditions: For any violation in terms and conditions maximum penalty of __________

( Uploaded on: 08/10/2026 01:00:31 pm )

WP(MD) No. 21917 of 2026 blacklisting the Bidder besides, recovery of cost plus 100% penalty and forfeiture of Security Deposit would be imposed.”

9. While this clause enables the imposition of the maximum penalty of blacklisting for violation of the terms and conditions, it does not prescribe the procedure relating thereto. Given the drastic consequences of blacklisting, as per the principles enunciated by the Hon’ble Supreme Court, such order should have been preceded by a Show Cause Notice and the provision of reasonable opportunity to the petitioner.

10. For the reasons aforesaid, the impugned order is partly set aside insofar as the direction to bar the petitioner from participating in tenders floated by the District Rural Development Agency, Kanyakumari, and nine blocks of Kanyakumari District is concerned. In all other respects, no interference is warranted with the order. The fixed security deposit amount remitted by the petitioner shall be refunded within thirty (30) days from the date of receipt of a copy of this order.

11. This Writ Petition is disposed of in these terms. No costs. Consequently, connected miscellaneous petition is closed. 06-10-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No apd __________

( Uploaded on: 08/10/2026 01:00:31 pm )

WP(MD) No. 21917 of 2026 To

1. The District Collector and Chairman District Rural Development Agency, Kanyakumari District, Nagercoil.

2. The Superintending Engineer (Highways) Nabard and Rural Roads, Tirunelveli. __________

( Uploaded on: 08/10/2026 01:00:31 pm )

WP(MD) No. 21917 of 2026 SENTHILKUMAR RAMAMOORTHY, J. apd WP(MD) No. 21917 of 2026 06-10-2026 __________

( Uploaded on: 08/10/2026 01:00:31 pm )