IN THE HIGH COURT OF JUDICATURE AT PATNA
SANJAY KAROL, CJ and S. KUMAR, J.
(8.2.2022)
CWJC No. 15824 of 2021
M/s Sudheer Kumar Jha
through its Proprietor Sudheer
Kumar Jha @ Sudhir Kumar
Jha : Petitioner
Vs.
State of Bihar & Ors. : Respondents
Bihar Contractor Registration Rules, 2007 – Suspension of registration of Contractor – Impugned order debarring petitioner for participating in any of works of respondent-Department, for a period of three years does not contain any reason – Order entails civil consequences, inasmuch as petitioner's right to participate in contracts to be awarded by respondents would stand stunted – Order suspending registration of petitioner as a contractor for a period of three years quashed and set aside and matter remanded back to concerned authority to pass a speaking and reasoned order afresh, in accordance with law. (Paras 2 to 4)
(2010) 9 SCC 496 – Referred.
SANJAY KAROL, CJ.:–Heard learned counsel for the parties.
Petitioner has prayed for the following relief(s):—
i. For setting aside the order dated 14.06.2021 contained in Memo No.2922 issued under the signature of Engineer-in-Chief-cum Additional Commissioner-cum- Special Secretary, Department of Building Construction, Bihar, Patna whereby and whereby suspended the contractors registration of the petitioner for a period of three years in terms of Bihar Contractor Registration Rules, 2007 with effect from the date of order without considering the reply that no forged or fabricated documents was uploaded rather uploaded wrong experience certificate which was not at all required with respect to the work in question, is just a matter of mistake occurred inadvertently.
ii. For any other relief/reliefs for which petitioner deemed entitled too.
2. We notice that the impugned order debarring the petitioner for participating in any of the works of the respondent-Department, for a period of three years does not contain any reason. The order entails civil consequences, inasmuch as petitioner’s right to participate in the contracts to be awarded by the respondents would stand stunted. This Court in CWJC No.2625 of 2021 titled as Satyendra Kumar and Co. Const. Pvt. Ltd. Company Vs. The State of Bihar & Ors. decided on 24.01.2022, while extensively dealing with the issue of following due process, as stipulated under the Bihar Contractors Registration Rules, 2007, has already warned the State to be careful in future.
3. In the instant case, we also reiterate the principles laid down by Hon’ble the Apex Court in Kranti Associates (P) Ltd. Vs. Masood Ahmed Khan, (2010) 9 SCC 496, emphasizing the need for the authorities to assign reasons. The relevant portion is extracted hereinunder:—
“47. Summarising the above discussion, this Court holds:
(a) In India the judicial trend has always been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially.
(b) A quasi-judicial authority must record reasons in support of its conclusions.
(c) Insistence on recording of reasons is meant to serve the wider principle of justice that justice must not only be done it must also appear to be done as well.
(d) Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power.
(e) Reasons reassure that discretion has been exercised by the decision-maker on relevant grounds and by disregarding extraneous considerations.
(f) Reasons have virtually become as indispensable a component of a decision-making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies.
(g) Reasons facilitate the process of judicial review by superior courts.
(h) The ongoing judicial trend in all countries committed to rule of law and constitutional governance is in favour of reasoned decisions based on relevant facts. This is virtually the lifeblood of judicial decision-making justifying the principle that reason is the soul of justice.
(i) Judicial or even quasi-judicial opinions these days can be as different as the judges and authorities who deliver them. All these decisions serve one common purpose which is to demonstrate by reason that the relevant factors have been objectively considered. This is important for sustaining the litigants' faith in the justice delivery system.
(j) Insistence on reason is a requirement for both judicial accountability and transparency.
(k) If a judge or a quasi-judicial authority is not candid enough about his/her decision-making process then it is impossible to know whether the person deciding is faithful to the doctrine of precedent or to principles of incrementalism.
(l) Reasons in support of decisions must be cogent, clear and succinct. A pretence of reasons or “rubber-stamp reasons” is not to be equated with a valid decision-making process.
(m) It cannot be doubted that transparency is the si
The main legal point established is the requirement for specific notice and reasoned decision in cases of suspension or blacklisting under Rule 11 of the Bihar Contractors Registration Rules, 2007.
Administrative decisions affecting anyone prejudicially must contain reasons for the conclusion, as emphasized by Section 47 of Kranti Associates Pvt. Ltd and Another Vs. Masood Ahmed Khan and Others....
Authorities cannot reject tenders pending an inquiry, and show cause notice must be issued by the registering authority.
The court emphasized the importance of providing a reasonable opportunity to respond, ensuring that orders are in accordance with the rules, and maintaining proportionality in the imposition of penal....
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