MOHIT KUMAR SHAH
S. K. Traders through its Proprietor Shankar Kumar – Appellant
Versus
Bihar School Examination Board through its Chairman, Patna – Respondent
ORDER
The present writ petition was initially filed seeking a direction upon the respondents to quash the work order, issued to the respondent no. 5, upon the petitioner being deprived of the same. During the interregnum period, an order dated 27.04.2020 has been passed by the respondent-Bihar School Examination Board, Patna, whereby and whereunder the petitioner has been blacklisted for two years.
2. The learned counsel for the petitioner, at the outset, seeks liberty to invoke Clause 22 of the N.I.T. in question, for the purposes of resolution of other disputes, except the issue of blacklisting. Liberty, so sought, is granted.
3. The learned counsel for the petitioner has assailed the order of blacklisting dated 27.04.2020 on the ground that no separate show cause notice was issued to the petitioner before passing the said order of blacklisting.
4. The learned counsel for the respondent-Board has submitted that it is true that no separate show cause notice was issued to the petitioner prior to passing of the blacklisting order dated 27.04.2020, hence the same be quashed and the matter be remanded back to the respondent- Board for passing of fresh orders.
5. Having regard to the facts
Voestalpine Schienen GMBF vs. Delhi Metro Rail Corporation Ltd.
The authority to blacklist a contractor lies with the party privy to the contract, and any action taken without jurisdiction breaches natural justice.
Indefinite blacklisting without defined duration and proper procedural fairness is arbitrary, violating natural justice principles and requiring a clear basis for such action.
The main legal point established in the judgment is the requirement for a fair hearing, specific show cause notices, and proportionate punishment before imposing blacklisting in government contracts.
Natural justice requires that prior notice be given before penalties such as blacklisting; however, if adequate opportunity and communication are established, decisions can stand.
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