As per case facts, M/s Floral Electrical Private limited., as a JV partner, had its contract for constructing a 132 KV sub-station terminated by Haryana Vidyut Prasaran Nigam Limited (HVPNL). ... HVPNL blacklisted/debarred the petitioner for one year, alleging delays and non-performance, and forfeited performance guarantees. The petitioner argued that as a non-lead partner, it should not be held solely liable, especially since an arbitration proceeding is ongoing regarding the disputes. The question arose whether the blacklisting/debarment order was a premature, harsh, and disproportionate penalty, especially when a bona fide dispute exists and arbitration is pending. Finally, the High Court found merit in the Writ Petition, stating that imposing such a drastic penalty prematurely, while arbitration is ongoing and a bona fide dispute is raised, is not permissible. The court quashed the blacklisting/debarment order, directing its removal from records, and observed a lack of natural justice compliance.