Calcutta HC Quashes Blacklisting Order Against Helax Healthcare, Citing Violation of Natural Justice [Read Judgment]

Calcutta: The Calcutta High Court has set aside and quashed a blacklisting and debarment order issued against Helax Healthcare Private Limited by the State of West Bengal. The judgment, delivered by Justice Krishna Rao in Helax Healthcare Private Limited v. State of West Bengal & Ors., held that the punitive action was taken without adherence to the principles of natural justice.

Helax Healthcare, an L1 bidder for the supply of Telmisartan Tablets IP 40 mg, was blacklisted for three successive years, and its Performance Bank Guarantee of ₹30,00,000 was forfeited on the ground of supplying drugs of non-standard quality. The petitioner challenged the order, contending that the show-cause notices failed to specify the proposed harsh penalty of blacklisting and that the crucial test reports were never furnished to it.

The Court emphasized the mandatory requirement that a show-cause notice must clearly indicate the proposed punitive action. Upon examining the notices issued by the respondents, the Court noted:

“In none of the notices have the respondents informed the petitioner that the respondents would take penal action against the petitioner by blacklisting and debarring it.”

Relying on precedents of the Supreme Court of India, Justice Rao underscored the necessity of supplying the basis for any adverse finding. The Court observed:

“This Court also finds that the respondents have passed the impugned order of blacklisting and debarring the petitioner from participating in the tender on the ground of supply of non-standard quality of medicine, but the respondents have not supplied the report on the basis of which they arrived at the conclusion that the medicine supplied by the petitioner was of non-standard quality.”

The judgment further relied on the Supreme Court’s ruling in Gorkha Security Services v. Government (NCT of Delhi) & Ors., wherein it was held:

“Another requirement is that the nature of action which is proposed to be taken for such a breach should also be stated, so that the noticee is able to point out that the proposed action is not warranted in the given case… When it comes to blacklisting, this requirement becomes all the more imperative, having regard to the fact that it is the harshest possible action.”

The Court concluded that the cumulative lapses amounted to a violation of fair procedure. Accordingly, it held:

“In view of the above, the impugned order dated 26 September 2025 is in violation of the principles of natural justice and is therefore set aside and quashed.”

The Court clarified that the quashing of the order would not prevent the State from initiating fresh action against the petitioner in accordance with law, if it so intends. A prayer for stay of the operation of the order, made by counsel for the respondents, was refused.

Case Details:

Case Name: Helax Healthcare Private Limited v. State of West Bengal & Ors.

Case Number: WPA No. 26915 of 2025

Court: High Court at Calcutta (Constitutional Writ Jurisdiction), Appellate Side

Coram: Justice Krishna Rao

Judgment Date: 17.12.2025

Advocates for the Petitioner:
Mr. Jishnu Choudhury, Senior Advocate; Ms. Tannya Baranwal; Mr. Andolan Sarkar; Mr. Afsar Ali; Ms. Meena P.

Advocates for the State (Respondents):
Mr. Vivekananda Bose, Junior Standing Counsel; Mr. Tirthankar Dey

[Read Judgment]