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IN THE HIGH COURT AT CALCUTTA
KRISHNA RAO, J.
Pam Developments Private Limited & Anr. – Plaintiff’s
Versus
State of West Bengal & Ors. – Defendants
IA No. GA 11 of 2022 In CS 102 of 2016
Decided On : 08-01-2024
G.A No. 11 of 2022 - Amendment of Plaint - Continuous Cause of Action - Section 80 Notice Not Required
Fact of the Case:
The plaintiff filed a suit against State Authorities challenging various orders and seeking reliefs. The defendants issued a show cause notice and a memo leading to the suit. The plaintiff faced blacklisting and debarment from tender participation, leading to financial loss and defamation. The plaintiff sought to amend the plaint to include these additional reliefs.
Finding of the Court:
The court found that the amendment sought by the plaintiff was a continuous cause of action and would not change the nature and character of the suit. The court allowed the amendment in terms of the Master’s Summons.
Issues: The main issue was whether the proposed amendment, relating to the blacklisting and debarment orders, constituted a new cause of action and required a notice under Section 80 of the Code of Civil Procedure.
Ratio Decidendi: The court held that the amendment sought by the plaintiff was a continuous cause of action and would not change the nature and character of the suit. The court also found that the Appellate Court had already granted leave to the plaintiffs to proceed with the suit without issuance of notice under Section 80 of the Code of Civil Procedure.
Final Decision: G.A No. 11 of 2022 was allowed in terms of prayer (a), (b), and (c) of the Master’s Summons.
JUDGMENT :
Krishna Rao, J.
1. The plaintiff has filed the present application being G.A No. 11 of 2022 seeking amendment by incorporating some averments and prayers in the plaint. The plaintiff has filed the suit against the State Authorities praying for the following reliefs:
b) The said purported orders being imposing penalty under Clause 2(a) to be delivered up and cancelled;
c) Declaration that the purported memo No. 1021/R-131 dated 29.05.2015 rescinding the contract is wholly illegal, null and void and not binding upon the plaintiffs;
d) The said purported memo No. 1021/R-131 dated 29.05.2015 be delivered up and cancelled;
e) Declaration that the Memo No. 126-E-in-c/2016 dated 8th March, 2016 was issued by the Engineer-in-Chief & Ex-Officio Secretary, PWD, Nabanna is wholly illegal, null and void and not binding upon the plaintiffs;
f) The said purported Memo No. 126-E-in-c/2016 dated 8th March, 2016 was issued by the Engineer-in-Chief & Ex-Officio Secretary, PWD, Nabanna be delivered up and cancelled.
g) Decree for perpetual injunction restraining the defendants their men and/or agents from giving effect to the memorandum issued from time to time imposing penalty aggregating to Rs. 48,76,035.00 and/or from the memo No. 1021/R-131 dated 29.05.2015 rescinding the contract illegally in any manner whatsoever;
h) Decree for a sum of Rs. 2,21,61,296.00 as pleaded in paragraph 44 above; i) Decree for a sum of Rs. 55,76,035.00 as pleladed in paragraph 54 above;
j) Interim interest and interest on judgment at the rate of 12% per annum on the decreetal sum till realization;
k) Decree of an amount of Rs. 19,00,000.00 (Rupees nineteen lakhs) only as pleaded in paragraph 56 above;
r) An inquiry be made into further loss and damages suffered by the plaintiff on account of the wrongful act and conduct of the defendants as aforesaid and a decree be passed for such sum as may be found due and payable upon such inquiry.”
2. Before filing of the suit by the plaintiff, an order dated 7th July, 2015 was communicated to the plaintiffs by the defendant no. 2 barring to participate in any tender floated by the PWD for the next two years with effect from the date of the said order. The said order was assailed in W.P. No. 1043 of 2015 before this Court on the premise that the decision to blacklisting the plaintiff without affording an opportunity of hearing is opposed to the principles of natural justice. The said order was set aside by this Court by an order dated 26th August, 2015 with categorical observations that the said order shall not preclude the concerned authority to proceed against the plaintiff afresh in accordance with law.
3. Subsequent to the order dated 26th August, 2015, the defendants have again issued a show cause notice on 18th September, 2015 to the plaintiff as to why punitive action should not be taken. On receipt of the show cause notice, the plaintiff has submitted a detailed reply. On receipt of reply, the defendants have not proceeded with the show cause notice but a memo was issued to the plaintiff on 8th March, 2016 by fixing a date of hearing on 29th March, 2016. Being aggrieved with the said memo, the plaintiff has filed the present suit as well as G.A No. 1339 of 2016 in C.S No. 102 of 2016. This Court by an order dated 11th May, 2016 had passed the following order in GA No. 1339 of 2016 :
The amendment sought by the plaintiff was a continuous cause of action and did not require a notice under Section 80 of the Code of Civil Procedure.
(1) Limitation – Cause of action is a bundle of facts giving rise to a legal right – Debarment orders form a continuous cause of action.(2) Section 80 of CPC is irrelevant in case of continuous cause....
(1) Debarment as a remedy is to be invoked in cases where there is harm or potential harm for public interest particularly in cases where person’s conduct has demonstrated that debarment as a penalty....
The court upheld the debarment of the petitioner for failing to submit a performance guarantee on time, affirming the procedural fairness and adherence to the RFP guidelines.
No order of debarment can be made against a party without first issuing a specific show cause notice, ensuring compliance with the principles of natural justice.
The judgment established the requirement of a valid, particularized and unambiguous Show-Cause Notice for blacklisting and the discretion of the High Court to entertain a writ petition.
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