Blacklisting of forest contractors without an opportunity of hearing violates the principles of natural justice.

1. Civil Writ Jurisdiction Case Nos. 80 and 79 of 1977 have been heard together as a common point of law arises for decision on similar facts. In C. W. J. C. No. 80 of 1977 Gopal Nath Sharma, the petitioner in this case, has prayed that the order contained in Annexure-2 of 9th Aug. 1975 be quashed. In C. W. J. C. No. 79 of 1977, the petitioner, namely Bhola Nath Choudhary has prayed that the order contained in Annexure-3 of the same date be quashed. The petitioner in either case by the said Annexure has been black-listed permanently and debarred from purchasing any forest coupe and to work as an agent of any forest contractor in the Bihar Forest Department. The orders contained in both the annexures have been passed by the Chief Conservator of Forest, Bihar and the same were communicated to the petitioners by the Divisional Forest Officers concerned who are respondent No. 3 in the writ petitions.

2. The case of the petitioners is that they had been doing forest contract business under Forest Department for about 15 years, during the course of which they had specialised and adopted forest contract as their livelihood and have made huge investments in machines etc., and for organising a big establishment. They have executed a good number of important forest contracts satisfactorily and with credit. It appears from Annexure-2 that petitioner Gopal Nath Sharma the petitioner in C. W. J. C. No. 80 of 1977 had purchased two coupes in Saranda Forest Division during 1973-74 from the Forest Department and he had to deposit Rs. 55,805.00 intially for obtaining work order. The allegation is that he did not actually deposit that amount but produced Treasury chalans showing that the said deposit had been made by him. It transpired subsequently that the chalans were forged. After detection of the forgery a police case was instituted on information lodged by respondent No. 3. That case is said to be pending. The working of the coupes purchased by the petitioner was stopped, all forest produce lying in his depot were seized and the renewal of the term of the depot was not allowed. It is said that the said petitioner filed two writ petitions before this Court being C. W J. C. Nos. 1837 and 1838 of 1974 against the above orders. Both the writ petitioners were heard on the 10th of Jan. 1975 and it is stated in the petition that they had been dismissed (in limine) at the time of admission. The portion of the order contained in Annexure-2 against which the petitioners have made a grievance in this petition is as follows:

"The facts stated above would indicate that Shri G. N. Sharma is thoroughly unreliable and is not fit to be intrusted with any contract in the Bihar Forest Department. It is hereby ordered that Shri G. N. Sharma be permanently black-listed and debarred from purchasing any coupe and to work as agent of any forest contractor in the Bihar Forest Department."

3. The other case (C. W. J. C. 79 of 1977) is that of Bhola Nath Choudhary, Annexure-3 related to the purchases that had been made by the said petitioner during the years 1973-74 and 1974-75 in Saranda Forest Division, in four lots the total price of which was Rs. 1,67,500.00, out of that amount the petitioner was required to deposit Rs. 78,150.00 as the initial instalment. It is alleged in Annexure-3 that he did not actually deposit the said amount of Rs. 78,150.00 towards the instalment and produced Treasury Chalans showing payment of the said amount and on the basis thereof obtained work order for extracting forest produce from the coupes purchased by him. Subsequently, it transpired that the report was lodged by respondents No. 3 with the police with regard to the same and a case was instituted which is said to be pending. This petitioner also filed two writ cases before this Court being C. W. J. C. Nos. 1834 and 1835 of 1974 both of which were dismissed on the 10th of Jan. 1975. (According to the petitioner the dismissal was in limine at the time of admission). After