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MOUSHUMI BHATTACHARYA
E. C. Blades and Tools Pvt. Ltd. – Appellant
Versus
Union of India – Respondent
JUDGMENT :
MOUSHUMI BHATTACHARYA, J.
1. The petitioner seeks setting aside of an order dated 12.5.2022 passed by a Committee consisting of three Officials of the respondent Chittaranjan Locomotive Works (CLW) which was confirmed by the General Manager of CLW on 21.5.2022. The impugned order recommended delisting of the petitioner for a period of 1 year from the date of delisting and made the decision subject to review based on change in circumstances. The impugned decision was communicated by a letter dated 28.5.2022; a hearing was given to the petitioner and held on 6.5.2022.
2. The petitioner assails the impugned decision to delist the petitioner on the ground of breach of the principles of natural justice. Learned counsel appearing for the petitioner urges that the petitioner was not given any prior intimation of the intention to delist in the form of a show-cause notice or otherwise. Counsel submits that the General Manager, CLW, being the Appellate Authority, simply agreed with the recommendation of the Committee without indicating reasons for the same. Counsel submits that the petitioner was also not given any opportunity to explain its position before the Appellate Authority. C
Prior show cause notice is mandatory before delisting a vendor; failure to comply invalidates the decision and is contrary to principles of natural justice.
The procedural fairness and reasonableness of the actions cannot be called into question as due opportunity was given to the Petitioner.
Imposing a 'Holiday Listing' without a personal hearing violates natural justice principles, affecting a party's ability to contract and thus constituting a civil consequence.
The principles of natural justice must be adhered to in administrative proceedings affecting civil rights; failure to provide a fair hearing invalidates the resulting orders.
The main legal point established in the judgment is that the decision-making process must adhere to the principles of natural justice, and any order carrying civil consequences must be made consisten....
The court affirmed that in institutional hearings, the principle that the one who hears must also decide is not absolute, provided the decision-making process is fair.
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