IMPORTANT POINT
Show cause notice is a requisite of natural justice.
Show cause must state the action contemplated or it should be discernible from the notice.
If show cause notice gives opportunity to reply, oral hearing is not necessary.

JUDGMENT :

A.K. SIKRI, J.

1. Leave granted.

2. Present appeals raise an interesting question of law pertaining to the form and content of show cause notice, that is required to be served, before deciding as to whether the noticee is to be blacklisted or not. We may point out at the outset that there is no quarrel between the parties on the proposition that it is a mandatory requirement to give such a show cause notice before black listing.

It is also undisputed that in the present case the show cause notice which was given for alleged failure on the part of the appellant herein to commence/ execute the work that was awarded to the appellant, did not specifically propose the action of blacklisting the appellant firm. The question is as to whether it is a mandatory requirement that there has to be a stipulation contained in the show cause notice that action of blacklisting is proposed? If yes, is it permissible to discern it from the reading of impugned show cause notice, even when not specifically mentioned, that the appellant understood that it was about the proposed action of blacklisting that could be taken against him?

3. The factual narration, leading to the impugned action viz. of blacklisting the appellant firm does not require much elaboration. Stating the following events would serve the purpose of addressing the issue at hand.

4. The appellant, which is a partnership firm, was awarded the contract vide letter of award dated 1.9.2011 for providing security services in Shri Dada Dev Matri Avum Shishu Chiktsalaya, Dabri, New Delhi (hereinafter referred to as the 'hospital). This hospital is under the administration of Respondent No. 1 viz. Government of NCT of Delhi. The contract was for a period of 1 year i.e. from 2.9.2011 to 1.9.2012. The payment was required to be made contractually to the appellant on monthly basis. Though the contract was upto 1.9.2012, the appellant continued to provide services even thereafter. The case of the appellant is that it has not been given any payment after the expiry of the contract period though it worked till 31.7.2013.

5. It appears that the respondents had issued a communication dated 4.8.2012, in continuation of their earlier letter dated 17.10.2011, requiring the appellant to submit the valid EPF/ ESIC certificate, list of persons deployed along with copies of their educational certificates, police verification report, medical examination report etc. and to make the payment of prescribed minimum wages to the workers through ECS or by cheque and deposit the EPF/ESIC and service tax etc. This communication further mentioned that inspite of the lapse of a long period the appellant had failed to submit the requisite documents/ information and was not making full payment of minimum prescribed wages to its workmen/ security guards nor was providing the statutory benefits like EPF/ ESIC.

Certain other deficiencies in the performance of the contract were also alleged therein. The appellant, in the first instance, sent the letter dated 7.8.2012 in response to the aforesaid notice, stating that it had obtained the EPF and ESIC numbers in respect of deployed security personnel and deposited their contributions towards EPF & ESIC with the concerned authorities. Proof in support of this was also furnished in the form of photocopies of consolidated challans with the bills. The appellant specifically maintained that it had made payment to the workers as per Minimum Wages Act.

6. Detailed reply to the notice dated 4.8.2012 was given by the appellant on 17.8.2012 wherein photocopies of bio-data in respect of deployed 32 security personnel alongwith police verification report as well as list of security personnel along with their date of birth, educational qualifications, addresses and EPF & ESIC numbers were given. Other issues mentioned in notice dated 4.8.2012 were also addressed.

7. The respondent authorities, however, were not satisfied with the reply which resulted in serving of the show cause notice