Debarring can be defined as exclusion or preclusion from doing or having something, or some place or condition, on authoritative orders. Blacklisting has the effect of preventing a person from the privilege and advantage of entering into lawful relationship with the Government for purposes of gains. Debarment/blacklisting’ is never permanent and the period of debarment would invariably depend upon the nature of the offence committed by the erring contractor. The competent authority may for the sake of objectivity and transparency formulate broad guidelines to be followed in such cases.There is no legal/statutory provision in Constitution of India for debarring/blacklisting of a vendor.Also, there is no need for any such power being specifically conferred by statute or reserved by contractor because ‘blacklisting’ simply signifies a business decision by which the party affected by the breach decides not to enter into any contractual relationship with the party committing the breach.This case study is a very good example of how vendor’s initially quote very low unsustainable prices to gain entry and then deviate from the terms and conditions of the agreement, which in turn affects the hospital services. Therefore, it becomes important that such vendors may be debarred so that they are not allowed to participate at other institutions. This will act as deterrent for other vendors/suppliers towards unsatisfactory provisioning of services. Although this is not a routine administrative path chosen and very rarely such actions are initiated against the vendors. However, hospital administration should not hesitate in adopting this path in case of defaulting vendors/suppliers.
Keywords: Debarring, Blacklistings
Monday, April 18, 2016