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IN THE HIGH COURT OF JUDICATURE AT PATNA
P.B. BAJANTHRI, ARUN KUMAR JHA, JJ.
Rajiv Kumar, S/o. Sri Awadh Kishore Sharma - Petitioner
Versus
The State of Bihar through the Additional Chief Secretary, Minor Irrigation Department, Government of Bihar & Ors. - Respondents
Civil Writ Jurisdiction Case No. 3860 of 2023
Decided On : 20-04-2023

Advocates Appeared:
For the Petitioner: Mr. Prabhat Ranjan, Mr. Chandan Kumar.
For the Respondent: Mr. Ajay Kumar, G.A.-9.

IMPORTANT POINT
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 requirement of a reasoned order, fair hearing, and compliance with natural justice principles before passing an order of blacklisting.

Headnote:

Blacklisting - Bihar Contractors Registration Rules - Rule 11(a)(vii) - Summary of Acts and Sections: Bihar Contractors Registration Rules, 2007 - The court discussed the impugned show cause notice and the order of blacklisting issued by the In-charge Chief Engineer, Minor Irrigation Department, Patna. The court highlighted the violation of principles of natural justice, lack of evidence, and non-speaking order in the impugned actions. The court also emphasized the requirement of a reasoned order, fair hearing, and compliance with natural justice principles before passing an order of blacklisting. The court referred to various legal provisions and case laws to support its decision.

Fact of the Case:

The petitioner, a registered contractor, participated in a tender floated by the Minor Irrigation Department, Government of Bihar. The Technical Bid Evaluation Committee disqualified the petitioner based on a complaint and recommended appropriate action. Subsequently, the Departmental Tender Committee accepted the recommendation and directed the Chief Engineer to initiate action. The Executive Engineer issued a show cause notice against the petitioner, and later, the In-charge Chief Engineer blacklisted the petitioner for 10 years. The petitioner challenged these actions in the writ petition.

Finding of the Court:

The court found that the impugned actions of issuing the show cause notice and blacklisting the petitioner were arbitrary, unconstitutional, and violated principles of natural justice. The court highlighted the lack of evidence, non-speaking order, and absence of a fair hearing in the impugned actions. The court also emphasized the need for a reasoned order, fair hearing, and compliance with natural justice principles before passing an order of blacklisting.

Issues: The issues involved in the case included the validity of the show cause notice, the order of blacklisting, compliance with natural justice principles, and the legality of the impugned actions under the Bihar Contractors Registration Rules, 2007.

Ratio Decidendi: The court held that 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 requirement of a reasoned order, fair hearing, and compliance with natural justice principles before passing an order of blacklisting. The court referred to various legal provisions and case laws to support its decision.

Final Decision: The court set aside the impugned order of blacklisting and remanded the matter to the concerned authority for taking a fresh decision in accordance with law and the discussions made in the judgment. The concerned authority was directed to complete the process within three months from the date of receipt/production of a copy of the judgment.

JUDGMENT :

Arun Kumar Jha, J.

Heard learned counsel for the petitioner and learned counsel for the respondents.

2. The present writ petition has been filed by the petitioner claiming the following reliefs :-

    “(i) Quashing of the Notice to Show Cause dated 11.10.2022 contained in Letter No. 2311 issued by Executive Engineer, Minor Irrigation Division, Gaya (Annexure 3) whereby the petitioner has been asked to Show Cause as to why for the alleged act of tampering in the "work done value" which is not as per the terms of the Tender, appropriate action under Bihar Contractors Registration Rules, 2007 and IPC/ CrPC be not taken;

(ii) Quashing of the consequential order dated 20.02.2023 as contained in Letter no. 107 (Annexure 5) by which, the Incharge Chief Engineer, Minor Irrigation Department, Patna has blacklisted the Registration of the petitioner for a period of 10 years in terms of Rule 11(a) (vii) of the Bihar Contractors Registration Rules, 2007 on the basis of a Show Cause Notice issued by an incompetent authority and without even referring to the causes shown by the petitioner

(iii) Declaration to the effect that the aforesaid exparte order of blacklisting shall not be made applicable retrospectively in connection with those tenders in which the last date for submission of the Tender documents has already lapsed and the petitioner has submitted the Tender documents and which tenders are pending disposal; and

(iv) Restraining the Respondents from giving effect to taking any precipitative / coercive action arising out of the aforesaid order of blacklisting and the dispute during the pendency of the present writ application and/or without the leave of this Hon'ble Court.”

3. Briefly stated the facts of the case, according to the petitioner, are that the petitioner is a registered contractor under the Minor Irrigation Department, Government of Bihar, Patna. The Chief Engineer, Minor Irrigation Department, floated a Notice Inviting Tender No. 13/2021-22 dated 23.03.2022 relating to various renovation and restoration works in the District of Gaya, Arwal, Nawada, Kaimur, Mohania and Patna under different irrigation schemes. The petitioner responded to the aforementioned NIT and submitted his Bid document along with all other valid certificates. It has come to the knowledge of the petitioner that during processing of the Tender, a complaint of general nature with regard to genuineness of the certificates being submitted by the prospective Bidders was lodged at the instance of one of the contractors, viz. M/s. R K Associate, intimating the Department that certain contractors are submitting certificates relating to eligibility criteria with interpolations in it. The Technical Bid Evaluation Committee convened its meeting on 30.07.2022 and, after considering the complaint, decided to disqualify the petitioner and the Committee resolved to recommend/ report the matter to the Departmental Tender Committee headed by the Additional Chief Secretary. Thereafter, the Departmental Tender Committee comprising four members presided by the Additional Chief Secretary convened its meeting on 27.09.2022 and considered the recommendation of the Chief Engineer as contained in Letter no. 1637 dated 30.07.2022 and accepted the proposal of the Technical Bid Evaluation Committee rejecting the Technical Bid of certain Contractors and directed the Chief Engineer to initiate an appropriate action against such contractors. In compliance of the direction contained in the aforesaid proceedings of the Departmental Tender Committee, the Executive Engineer vide his letter no. 2311 dated 11.10.2022 issued a Notice to Show Cause against the petitioner seeking an immediate reply as to why appropriate action be not taken under the provisions of Bihar Contractors Registration Rules, 2007 for interpolating in "work done value". The petitioner responded to the aforesaid Show Cause Notice vide Letter dated 05.12.2022 explaining all the circumstances and requested for exonerati

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