IN THE HIGH COURT OF JUDICATURE AT PATNA
Mohit Kumar Shah, J.
Raj Kumar Singh Raja Construction Pvt. Ltd. - Appellant
Versus
The State Of Bihar & Ors. - Respondent
Civil Writ Jurisdiction Case No. 3441 of 2020
Decided On : 22-06-2021
Bihar Contractor Registration Rules, 2007 – Rule 11(d) – Petitioner firm blacklisted for ten years – Materials on the basis of which charges contained in show cause notices are based, have not been supplied to petitioner firm – Petitioner firm has been precluded from being afforded an opportunity of rebutting the same and putting forth its defence, resulting in non-compliance of principles of natural justice – Show cause notices do not depict that there is intention on part of respondents to blacklist petitioner – Petitioner firm has been precluded from being afforded opportunity of rebutting materials on the basis of which charges contained in show cause notices have been based – Order of blacklisting quashed – Matter remanded back to respondent authorities with liberty to serve a fresh show cause notice to petitioner firm. (Paras 9 to 13)
2020 (4) BLJ 487; (2014) 9 SCC 105; (2021) 2 SCC 551 – Relied.
JUDGMENT
1. The present writ petition has been filed by the petitioner for quashing the order dated 27.01.2020 and memo dated 05.02.2020 issued under the signature of the Engineer-in-Chief, Road Construction Department, Government of Bihar, Patna, whereby and where under the registration of the petitioner firm has been blacklisted for ten years.
2. The brief facts of the case are that the petitioner is a company registered under the provisions of the Companies Act and is a registered Class-I contractor in terms of the provisions of the Bihar Contractor Registration Rules, 2007. The Government of Bihar, through the office of the Executive Officer, Road Construction Department, Road Division, Motihari, had issued a tender dated 21.09.2017 for construction of various roads stated therein including construction, up-gradation and maintenance of the Shankar-Saraiya to Chhapwa Road from 0.00 km. to 20.650 km. for the year 2017-18 and the time of completion of the work in question was stipulated as 18 months. The petitioner along with others had participated in the said tender and eventually, the petitioner was awarded the tender in question, whereafter it had entered into an agreement dated 31.01.2018 with the Respondent No. 5 i.e. the Executive Engineer, Road Construction Department, Road Division, Motihari. The petitioner had then commenced its work in accordance with the agreement and was also made payment after due verification by the authorities, however, suddenly, the petitioner received a show cause notice dated 14.08.2019 wherein it was stated that the Flying Squad has submitted an inquiry report dated 12.06.2019 wherein irregularities have been found (as mentioned in the said notice dated 14.08.2019), hence, the petitioner was directed to explain as to why necessary action under the provisions of the Bihar Contractor Registration Rules, 2007 and under the agreement be not taken. Similar notice was sent to the petitioner by the Engineer-in-Chief, Road Construction Department, Bihar, Patna, vide letter dated 09.10.2019 wherein certain additional issues had been raised, however, no proposed punishment was mentioned therein. In fact, the Engineer-in-Chief, by issuing the aforesaid additional show cause notice dated 09.10.2019, had also relied on a report of the Flying Squad, Division No. 4, dated 12.06.2019, however, the copy of the same was never supplied to the petitioner. The petitioner had then submitted a common reply dated 05.11.2019 to the aforesaid show cause notices dated 14.08.2019 and 09.10.2019, explaining therein that the entire work has been done in accordance with the agreement and the same can also be verified from the records. The petitioner had also relied upon an inspection report dated 06.09.2019, of the Respondent No. 5, addressed to the Special Secretary, Road Construction Department, Patna in which discussion with regard to the status of Shankar-Saraiya to Chhapwa Road was made and from perusal of the same, it is apparent that the work had been done by the petitioner as per the specification mentioned in the agreement dated 31.01.2018. The petitioner had also furnished the point-wise reply to the allegations / deficiencies pointed out in the aforesaid show cause notices. Thereafter, the Respondents, without considering the aforesaid show cause reply of the petitioner dated 05.11.2019, had again issued another show cause notice dated 06.01.2020 to the petitioner, under the signature of the Superintending Engineer, Motihari, in which new deficiencies and grounds were raised, to which the petitioner had again submitted a detailed reply dated 15.01.2020 stating therein that no irregularity had been committed on the part of the petitioner.
3. The respondent-Engineer-in-Chief, Road Construction Department, Bihar, Patna, by the impugned order dated 27.01.2020, relying upon an ex-parte report dated 11.04.2019 and an ex-parte report of the Committee constituted under the Chairmanship of the Chief Engineer, Kendriya Ni
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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....
The main legal point established in the judgment is the requirement for a clear mention of the proposed blacklisting action in the show cause notice, as well as the need to adhere to principles of na....
The necessity of a specific show cause notice for blacklisting and the requirement to state the proposed action.
The main legal point established in the judgment is that before blacklisting a person/entity, adequate notice and an opportunity to be heard must be provided, in accordance with the principles of nat....
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