The main legal point established in the judgment is the requirement for due consideration of all material aspects in the adjudication of a show-cause notice, especially in the context of civil consequences following the adjudication.

JUDGMENT :

A.S. CHANDURKAR, J.

1. RULE. Rule made returnable forthwith and heard the learned counsel for the parties.

2. Since the challenge raised in both the writ petitions is to the order of blacklisting, they are being decided together by this common judgment.

3. Petitioner-M/s H.D. Enterprises (for short ‘HDE’) in Writ Petition No. 5900 of 2023, a registered partnership firm entered into a joint venture/consortium agreement with the petitioner-M/s Gaurav Contracts Company (for short ‘GCC’) in Writ Petition No. 6197 of 2023 on 23.05.2018. The said joint venture agreed to submit a bid for the work advertised by the respondent no. 1-Western Coalfields Limited (for short ‘the WCL’). It was stated in the said agreement that the joint venture would continue till the project in question was completed including the defects liability period. On the basis of this joint venture, a work order dated 03.01.2019 came to be issued and the joint venture undertook such work. Thereafter on 06.04.2023 the WCL issued E-Tender notice No. 3/24 inviting bids for undertaking expansion of its mines at Chandrapur area. The bids were to be submitted by 24.04.2023 at 11.00 a.m. HDE responded to the said bid on 24.04.2023 and uploaded its bid at 10.37 a.m. By publishing a corrigendum the last date for submission of bids was extended to 04.05.2023. Alongwith the tender documents HDE submitted an undertaking as prescribed by Annexure-P in the tender notice. As per said undertaking, it was stated the if HDE had relationship with another bidder either directly or through common third parties that would put HDE in a position to have access to information about or influence on the bid of another bidder it would be disqualified in the tender. The undertaking submitted by HDE was dated 15.04.2023.

4. Prior to the last date of submission of bids, GCC submitted its bid at 18.50 p.m. on 03.05.2023. The technical bids were thereafter examined and on evaluation, the bids of HDE as well as GCC were held to be disqualified. On 21.06.2023, the WCL issued a show cause notice to HDE as well as GCC stating therein that in terms of Clause 4.2(d)(e) both the bidders had failed to disclose the entering into of a joint venture agreement on the basis of which the work order dated 03/05.01.2019 had been issued to it and that work was in progress. It was stated that the entities did not make a correct disclosure in Annexure-P and had thus furnished a false undertaking. They were called upon to show cause as to why action in the form of forfeiture of Earnest Money Deposit (for short, ‘EMD’) as well as debarment for a period of twelve months from participating in future tenders of the WCL be taken. HDE submitted its reply to the show cause notice on 03.07.2023 and denied the grounds raised in the show cause notice. It was stated that the joint venture had been entered into only for the earlier tender notice that resulted in issuance of a work order dated 03/05.01.2019. It stated that there was no functional integrity between two entities that were independent partnership firms. It was further stated that HDE be granted an opportunity of personal hearing. GCC submitted its reply to the show cause notice on 05.07.2023 and denied the statements made in the show cause notice. Since there was no bar for a member of the joint venture to participate in the subsequent tender process in its individual capacity there was no breach of Clause 4.2 of the tender notice. An additional reply was also submitted by GCC on 11.06.2023.

5. The WCL thereafter granted personal hearing to both the entities and by the order dated 26.08.2023 it proceeded to forfeit the EMD that was furnished by both the entities. Similarly they were also de-barred from participating in any future tenders of the WCL for a period of twelve months. The said orders dated 26.08.2023 are the subject matter of challenge in these writ petitions.

6. Shri Sunil Manohar, learned Senior Advocate for HDE submitted that the impugned communic