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ASHUTOSH KUMAR
Rishi Builders India Pvt. Ltd. – Appellant
Versus
State Of Bihar – Respondent
JUDGMENT
Ashutosh Kumar, J. - Heard the learned counsel for the parties.
2. The petitioner/company, which is a Class-I contractor, has challenged the order dated 27.01.2020 passed by the Engineer-in-Chief, Road Construction Department, Govt. of Bihar, Patna, whereby the petitioner's firm has been blacklisted for ten years and the excess amount, which is said to have been paid to the petitioner/company for the work which was never executed, has been directed to be recovered.
3. The matter was heard on 18.02.2020 and this Court recorded as follows:
"2. It appears from the records that a tender was bagged by the petitioner for widening and strengthening of road for the year 2017-18. Certain anomalies were found by the Flying Squad with respect to the work executed by the petitioner/company and, therefore, a notice was issued to the petitioner/company on 06.08.2019, indicating such anomalies and the petitioner/company was directed to furnish his explanation within seven days of the receipt of such notice as to why the agreement with the petitioner/company be not cancelled. It further appears from the records that the petitioner/company sought certain documents for effectively replying to
The necessity of a specific show cause notice for blacklisting and the requirement to state the proposed action.
It is a settled position of law that a fair hearing to the party being blacklisted is an essential pre-condition for a proper exercise of the power and a valid order of blacklisting made thereto.
The impugned actions of issuing the show cause notice and blacklisting the petitioner were arbitrary, unconstitutional, and violated principles of natural justice. The court emphasized the requiremen....
Blacklisting or debarment cannot be permanent and must be preceded by a specific show cause notice, complying with the principles of natural justice.
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