IN THE HIGH COURT OF JUDICATURE AT PATNA
P. B. BAJANTHRI and ARUN KUMAR JHA, JJ.
CWJC No.12853 of 2023
(3.11.2023)
JDM Engineering and Construction Pvt. Ltd. ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Government Contract – Black-listing – Petitioner has been blacklisted for a period of 10 years – Very object of providing show cause notice and obtaining reply and in not considering reply, only empty formalities have been completed by official respondents – Petitioner has made out a case so as to interfere with blacklisting order as it is not a speaking order – Requirement to record reasons emanates from broad doctrine of fairness in decision making – Concerned authority directed to issue afresh detailed show cause notice in proposing to blacklisting petitioner for a period of 10 years – Petitioner hereby directed to file his say on afresh notice to be issued by concerned authority – Concerned authority hereby directed to pass a detailed speaking order after due consideration of each of contention to be raised by petitioner – Impugned order set aside – Writ petition allowed. (Paras 4, 6, 7 and 8)
ORDER
Heard learned counsel for the parties.
2. In the instant petition, petitioner has prayed for the following reliefs:—
"(i) To issue an appropriate Writ(s), Order(s) or Direction(s) to the respondent authorities to quash the office order dated 11.05.2023 contained in memo no. 111 whereby the petitioner's bid in NIT No. 10/2022-23 at serial no. 8 has been rejected on the ground that the petitioner has been blacklisted for a period of 10 years without issuance of any show cause notice or providing any opportunity of hearing;
(ii) That in the alternative and without prejudice to the petitioner's right, to issue an appropriate Writ(s), Order(s) or Direction(s) to the respondent authorities to declare that the blacklisting order dated 11.05.2023 contained in memo no. 111 is unrelated/unconnected to the petitioner company which is a separate legal entity to JMD Engineering and
Construction Private Ltd., and that therefore bids submitted by the petitioner cannot be rejected on the ground that JMD Engineering and Construction Private Ltd. has been blacklisted;
(iii) To issue an appropriate Writ(s), Order(s) or Direction(s) to the respondent authorities for providing the petitioner with an opportunity of hearing before taking any coercive and harsh action against the petitioner.
(iv) To issue an appropriate Writ(s), Order(s) or Direction(s) to the respondent authorities for keeping the letter dated 11/05/2023 as contained in memo no. 111 in abeyance till the final adjudication of this case;
(v) To issue an appropriate Writ(s), Order(s) or Direction(s) to the respondent authorities to quash the minutes of the meeting of Technical Bid Committee dated 13.07.2023 by which the petitioner has been declared unqualified for the NIT No. MR-3054-04/2023-24;
(vi) To issue an appropriate Writ(s), Order(s) or Direction(s) to the respondent authorities to allow the petitioner to participate in other bids and tenders that are issued by the State Government; and
(vii) To pass any other appropriate Writ(s), Order(s), or Direction(s) that this Hon'ble Court may deem fit on the facts and in the circumstances of the case."
3. It is necessary to reproduce Annexure- P-7 order dated 11.05.2023 which reads as under:—
dk;kZy;&vkns'k
la[;k&111 iVuk] fnukad&11-05-2023
fuxe }kjk vkeaf=r fufonk lwpuk la[;k&10@2022&23 ds Øe la[;k&8 Construction of +2 Level School Building (G+2) at Upgraded Senior Secondary School, Nagar Gama, Block-Dalsinghsarai, Distt-Samastipur (Group No. SSS-1401) ds fufonk esa laosnd "JMD Engineering & Construction & Pvt. Ltd. (Chakradhar Choudhary) Add-At+P.O.-Kewta, Dalsinghsarai, Samastipur" }kjk fufonk esa viyksM fd;s x;s dk;kZuqHko izek.k&i= dk;Zikyd vfHk;ark ¼eqŒ½ BSEIDC, iVuk }kjk lacafèkr foHkkx ls lR;kiu djk;k x;kA lacafèkr foHkkx] fcgkj jkT; Hkou fuekZ.k fuxe fyfeVsM] njHkaxk dk i=kad&730] fnukad&09-11-2022 ls xyr ,oa QthZ ik;k x;k gSA dkyhÑr djus gsrq vkils dkj.k i`PNk dh xbZ] ftlds vkyksd esa vkids }kjk tokc ugha lefiZr fd;k x;kA
vr% mijksDr rF;ksa ds vkyksd esa 41oha funs'kd i"kZn dh cSBd ds fu.kZ;kuqlkj Bhdsnkjh fucaèku fu;ekoyh] 2012 ds la'kksfèkr n.M ds vkyksd esa laosnd "JMD Engineering & Construction & Pvt. Ltd. (Chakradhar Choudhary) Add-At+P.O.-Kewta, Dalsinghsarai, Samastipur" ds fucaèku dks i= fuxZr dh frfFk ls vxys 10 ¼nl½ o"kksZ ds fy, dkyhÑr fd;k tkrk gSA
bl izLrko ij l{ke izkfèkdkj dk vuqeksnu izkIr gSA
¼gLrk{kj½
eq[; vfHk;ark
4. By the aforementioned order petitioner has been blacklisted for a period of 10 years. In this regard, show cause notice was stated to have been issued on 25.01.2023 and 21.03.2023. Petitioner is stated to have filed reply on 02.05.2023. The very object of providing show cause notice and obtaining reply and in not considering the reply, the very object of issuance of show cause notice in other words only empty formalities have been completed by the official respondents. Therefore, prima facie, the impugned order dated 11.05.2023 is bereft of material information. On this count itself, the impugned order is
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.
Blacklisting an entity without providing notice and an opportunity for hearing violates the principles of natural justice and renders the decision invalid.
The court emphasized the need for strict observance of the principles of natural justice before passing an order of blacklisting and highlighted the requirement of a valid, particularised, and unambi....
The judgment emphasizes the importance of fair play, natural justice, non-discrimination, equality, reasonableness, and proportionality in the process of blacklisting, and the need for a valid, parti....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.