UNITED INDIA INSURANCE COMPANY LIMITED Vs. THE STATE OF JHARKHAND AND ORS.
LAWS(JHAR)-2020-6-57
HIGH COURT OF JHARKHAND
Decided on June 10,2020

UNITED INDIA INSURANCE COMPANY LIMITED Appellant
VERSUS
THE STATE OF JHARKHAND AND ORS. Respondents

JUDGEMENT

- (1.) The present case is taken up through video conferencing.
(2.) The learned counsel for the petitioner while making argument has confined the prayer in the present writ petition to the extent of quashing and setting aside the order as contained in memo no. 598 dated 11.04.2017 issued under the signature of the Deputy Inspector General of Police (Budget), Jharkhand Ranchi (the respondent no. 5) whereby the petitioner-company has been blacklisted permanently without following the principles of natural justice.
(3.) The factual background of the case as stated in the writ petition is that the respondent no. 5 invited quotation for Group Insurance coverage for various police personnel in the State of Jharkhand for the period of 2016-17. Altogether four Nationalized Insurance Companies participated in the said tender process and one broker namely M/s Microsec Brokers Pvt. Ltd. also submitted its quotation. The said broker however participated in the tender without the express written mandate of the Director General of Police, Jharkhand (the respondent no.2) as was required in compliance of the Gazette of India, Extraordinary, No. 230 dated 17.10.2002 of the Insurance Regulatory and Development Authority of India (IRDAI). The petitioner's corporate office situated at Kolkata discovered misrepresentation on the part of the said broker and accordingly withdrew its reference of quotation given to the broker by mentioning that as per information furnished to them by the broker in regard to the proposal for Gr.P.A. Policy based on which the petitioner's corporate office situated at Kolkata had quoted the Capital Sum Insured for the risk, was not correct and the same was duly communicated to the office of the respondent no. 5 vide letter dated 27.03.2017. The order of withdrawal of the quote was also communicated to the office of the respondent no. 5 by the petitioner company vide its letter dated 28.03.2017. However, the respondent no. 5, by reasons of its Office Order contained in memo no. 598 dated 11.04.2017, blacklisted the petitioner-company permanently from participating in any future bid of the respondents alleging that the respondents have suffered inconvenience due to withdrawal of the bid by the petitioner.;


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