Delhi High Court

Delhi HC Asks Centre to Provide Reasons for Suspending Business with Company in AgustaWestland Probe

The Delhi High Court has asked the Centre to issue a show cause notice with reasons and relevant material to Defsys Solutions, a defense equipment supplier. The government had suspended its business dealings due to a CBI probe related to the AgustaWestland VVIP helicopter case.

The court, in a petition filed by the company challenging the suspension order, emphasized that the suspension should not have occurred without a show cause notice, solely based on the involvement of defense procurement. It directed that the petitioner be given an opportunity to respond before a reasoned order is issued within three months.

The court clarified that suspension cannot be indefinite and must follow due process for banning or revocation. It stressed that the principles of natural justice should not be bypassed unless national security concerns outweigh fairness, and such a decision should be justified.

Suspension orders must be reviewed every six months, and the duration of any subsequent ban should consider the time already spent in suspension. In this case, the suspension was based on CBI intimation letters regarding an investigation against one of the petitioner’s ex-directors and his companies, without prior notice, reply, or hearing.

The court called for clarity on the nature of allegations and investigation. It asserted that the involvement of defense procurement does not exempt the issuance of a show cause notice.

Existing contracts with the petitioner were ordered to continue as per interim arrangements. The Centre’s suspension order, issued in December 2022, did not affect ongoing contracts.

The petitioner, a regular supplier of defense equipment to the Union of India since 2007, was surprised by the suspension order, which cited an alleged connection to the AgustaWestland case. However, the petitioner claimed no involvement or investigation in that case.

The CBI case relates to a Rs 3,600-crore alleged scam in the purchase of VVIP helicopters, and the suspension order was based on national security considerations and guidelines.

 

 

Nunnem Gangte

Recent Posts

KJS Cement Case: SC Refuses To Set Aside Second FIR Against Pawan Kumar Ahluwalia

The Supreme Court of India recently declined to intervene in a case involving Pawan Kumar…

52 minutes ago

Non-Compliance In 2021 Defamation Case: Former Diplomat Lakshmi Puri Moves Delhi HC Against TMC leader Saket Gokhale

Former Diplomat Lakshmi Puri on Monday has approached the Delhi High Court in relation to…

2 hours ago

Vandalism At Allu Arjun’s House: Hyderabad Court Grants Bail To 6 Accused

Six individuals, accused of vandalizing actor Allu Arjun's residence in Hyderabad's Jubilee Hills, has granted…

2 hours ago

BJP MLAs Petition Delhi HC Over Pending CAG Reports

Several Bharatiya Janata Party MLAs from Delhi have approached the Delhi High Court on Monday…

2 hours ago

Delhi HC Extends Kuldeep Singh Sengar’s Interim Bail For One Month

The Delhi High Court on Monday has extended the interim bail of Kuldeep Singh Sengar,…

3 hours ago

Supreme Court Says “Marriage Is Relationship Built On Mutual Trust, Companionship”

The Supreme Court has upheld a decision by the Madras High Court granting a divorce…

2 days ago