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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Excel Sports International - Appellant
Versus
North Delhi Municipal Corporation - Respondent
W.P.(C) 5784 of 2021
Decided On : 03-06-2021




The court reaffirmed the requirement of notice and opportunity for a hearing before punitive actions such as blacklisting can be imposed, upholding the principles of natural justice.

Headnote:(A) Delhi Municipal Corporation Act, 1957 - Petitioner blacklisted from tender participation - No show cause notice for blacklisting provided - Respondent has withdrawn the blacklisting order pending issuance of a fresh notice. (Paras 2-5)

(B) Natural justice - Requirement for notice and opportunity to be heard prior to punitive action. (Paras 2, 5)

Facts of the case:
The petitioner was blacklisted without being served a specific show cause notice indicating a proposed action of blacklisting. The respondent later agreed to withdraw the order and the notice, reserving rights to issue a fresh notice.

Findings of Court:
The court set aside the blacklisting order and the show cause notice, allowing the respondent to issue a new notice in accordance with the law.

Issues: Whether the petitioner was adequately notified about the blacklisting and if due process was followed in the original decision.

Ratio Decidendi: The court emphasized that the principles of natural justice require that a party be given notice and an opportunity to be heard before punitive actions are taken against them.

Result: Petition disposed of as per terms stated.

Table of Content
1. impugned order blacklisting petitioner for one year (Para 2)
2. arguments regarding lack of show cause notice (Para 3 , 4)
3. court sets aside order & offers fresh procedure (Para 5 , 6)
4. petition disposed of with order details (Para 8 , 9)

JUDGMENT

Sanjeev Sachdeva, J.

CM APPLN. 18137-38/2021 (Exemption)

Allowed, subject to all just exceptions.

W.P.(C) 5784/2021 & CM APPLN. 18136/2021 (stay)

1. The hearing was conducted through video conferencing.

2. Petitioner impugns order dated 31.03.2021 (allegedly received on 22.05.2021) whereby petitioner has been blacklisted for a period of one year from participating in any tender work of SDMC.

3. Learned counsel for the petitioner, inter-alia, contends that prior to issuance of the subject order no show cause notice was given to the petitioner, putting the petitioner to notice that a possible action of blacklisting is proposed against the petitioner. It is contended that a notice dated 01.12.2020 was issued, however, the notice did not specifically state that an action of blacklisting was proposed against the petitioner.

4. Learned counsel appearing for the respondent-SDMC appearing on advance notice, on instructions of Mr. Sanjay Hingorani, Executive Engineer, Sanitary Land Fields (SLF), submits that without prejudice to the rights and contentions, impugned order dated 31.03.2021 as well as show cause notice dated 01.12.2020 be deemed to have been withdrawn, reserving the right of the Respondent to issue fresh show cause notice.

5. In view of the above, impugned order dated 31.03.2021 and show cause notice dated 01.12.2020 are set aside reserving the right of the respondent to issue a fresh show cause notice in accordance with law.

6. On receipt of the show cause notice, petitioner shall file a response thereto within one week. Thereafter respondent shall be at liberty to pass a fresh order after giving an opportunity of personal hearing to the petitioner. Keeping in view the present prevailing situation, personal hearing may be granted over video conferencing.

7. All rights and contentions of parties are reserved.

8. The petition is disposed of in the above terms.

9. Copy of the order be uploaded on the High Court website and be also forwarded to learned counsels through email by the Court Master.

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