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As per case facts, a contractor's agreement for an Elevated Service Reservoir was terminated and they were blacklisted after the reservoir's top dome collapsed, leading to multiple inquiries confirming negligence,
...despite the contractor offering reconstruction. The appellant challenged the termination and blacklisting, arguing insufficient opportunity to defend and lack of a specific blacklisting notice. The question arose whether the blacklisting order was valid without a distinct show cause notice, separate from the termination proceedings, given its severe consequences. Finally, the Supreme Court upheld the termination due to clear negligence and adequate opportunity provided. However, it set aside the blacklisting order, emphasizing that blacklisting is a drastic step requiring a specific and unambiguous show cause notice detailing the proposed action, which was absent here. The Court decided the blacklisting would cease immediately, avoiding further litigation.
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