Law: Sindh Public Procurement Rules, 2010

Section: 35,4

Law: Contract Act, 1872

Section: IX,5,20,22

Law: Constitution of Pakistan, 1973

Section: 4,10A,25

(a)    Sindh Public Procurement Rules, 2010--- ----R.35---Contract cancelled by Procuring Agency---Bidder blacklisted--Procuring Agency, powers of---Scope---Procuring Agency (Transport and Mass Transit Department) cancelled contract with Insurance Company (Appellant ) submitting / claiming that the Appellant was blacklisted at the time of being given the contract, a fact allegedly unknown to them (Procuring Agency /Respondent)---Validity---Admittedly, the Appellant successfully bid and was granted the agreement by Respondent and the said agreement was unilaterally terminated by the Respondent vide cancellation letter---Submission put forth by the Respondents did not appear to hold merit for the reason that in order to initiate blacklisting proceedings an entire process had been established, inter alia, under R.35 of the Sindh Public Procurement Rules, 2010 ( the Rules 2010), and, in the present case, Respondent was the procuring agency itself having powers to initiate the process of blacklisting---Therefore, for the Respondent to grant the Appellants contract and then subsequently claiming they were unaware of the blacklisting appeared to be contrary to the provisions contained in the Rules 2010---Furthermore, the Respondents had failed to provide any documentation showing blacklisting related proceedings initiated against the Appellant---Rule 4 of the Rules 2010, upon which the Respondents had relied, merely states procurement to be conducted in a fair and transparent manner, which is a commonly known principle and does not offer the Respondents any legal assistance in the circumstances---Therefore the High /Appellate Court set aside the Impugned stay-declining order, returning the matter /suit to the Trial Court for adjudication on merits---Appeal was allowed accordingly. (b)    Contract Act (IX of 1872)--- ----Ss.5, 20 & 22---Contract---Unilateral cancellation---Scope and effect--Procuring Agency (Transport and Mass Transit Department), relying on S.20 Contract Act, 1872, cancelled contract with Insurance Company (Appellant) submitting / claiming that the agreement was contradictory to law and void--Validity---Respondents in…