VidhiSangh

Supreme Court of India · 02/04/2026

M/S A.K.G. CONSTRUCTION AND DEVELOPERS PVT. LTD versus STATE OF JHARKHAND & ORS.

[2026] 4 S.C.R. 331 · 2026 INSC 312

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

After a reservoir dome under construction collapsed, the Court upheld the termination of the appellant's contract but set aside the five-year blacklisting. Blacklisting is distinct from termination and not its automatic consequence. Rule 10.5 of the Contractor Registration Rules, 2012 requires a specific show-cause notice proposing it, which the general notice issued here did not satisfy. Given the time that had passed, the blacklisting was directed to cease immediately rather than be redone.

Issues

  1. Whether the termination of the contract after the collapse of the elevated service reservoir's top dome was valid on merits and as a matter of due process.
  2. Whether the blacklisting order was valid when the only show-cause notice did not propose blacklisting and the order gave no separate reasons for it.
  3. What relief should follow when the blacklisting is set aside.

Provisions considered

Held

Result

Appeals disposed of: the termination and the High Court's judgment and review order upholding it were affirmed; the blacklisting order was set aside and directed to cease to operate with immediate effect.

Judgment PDF: Supreme Court of India, [2026] 4 S.C.R. 331.