Authority: Supreme Court of India

Order Date: 21 September 2026

Case Overview

  • Petitioner: M/s Sri Paulthai Lorry Booking Office; Respondent: General Manager, Food Corporation of India & others.
  • Tender issued by respondent; petitioner declared successful bidder on 11 August 2022; work order issued on 30 November 2022 (digitally signed 23 September 2026); contract completed on 30 November 2024 and subsequently awarded for the next period.
  • Discrepancies in salary payments to a few employees led to show‑cause notices, resulting in blacklisting and forfeiture of the security deposit on 24 October 2025. The petitioner filed writ petition W.P. (MD) No. 31219 of 2025.
  • Single Judge, on 25 November 2025, set aside the blacklisting order partially and remanded the matter for fresh consideration; respondent accepted this judgment.
  • Division Bench of the Madurai High Court dismissed the writ appeal on 20 July 2026, setting aside the Single Judge’s order in its entirety; the writ appeal was dismissed, no costs were awarded, and the connected miscellaneous petition was closed.
  • During the pendency of the writ appeal, the respondent corporation issued speaking orders on 20 May 2026 and 17 July 2026 upholding the forfeiture and blacklisting.

Final Outcome

  • The Supreme Court disposed of the Special Leave Petition, granting the petitioner liberty to file a fresh writ petition challenging the orders dated 20 May 2026 and 17 July 2026.
  • The respondent‑Corporation stated it will not raise any objection to the petitioner approaching the grievance redressal committee; this statement is placed on record.
  • Any writ petition filed challenging the subsequent orders shall be decided on its own merits, uninfluenced by the High Court orders or this Supreme Court order.

Topics: Legal Remedy, Government Procurement