ERUSIAN EQUIPMENT & CHEMICALS LTD. vs STATE OF WEST BENGAL & ANR.

The Supreme Court held that blacklisting contractors without providing an opportunity to be heard violates Article 14 of the Constitution, which guarantees equality before the law and equal protection of the laws. The Court emphasized that while the State has the power to conduct trade and make contracts, it must do so fairly and without discrimination. The judgment clarified that the exclusion of individuals from public contracts must be justified and that blacklisting can tarnish reputations, thus requiring a fair procedure even if an oral hearing is not mandated. The Court ruled that the blacklisting order was invalid due to the lack of fair procedure.