THE HIGH COURT OF GAUHATI (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MANISH CHOUDHURY, J
The Chairman And Managing Director, Oil And Natural Gas Corporation Ltd. And 5 Ors - Appellant
Versus
Oval Projects Engineering Private Limited - Respondent
I.A.(Civil) 24 / 2025
Decided On : 28-01-2025
(A) Contract Law - Clauses 8.3 and 16 of the Contract Agreement - Show Cause Notice issued for termination of contract due to submission of forged documents - The court held that the issuance of a show cause notice does not amount to a final decision and provides an opportunity for the contractor to respond before any action is taken. (Paras 5 , 11 , 22 )
(B) Writ Jurisdiction - The court emphasized that ordinarily, a writ petition against a show cause notice is not maintainable unless it is shown to be wholly without jurisdiction or illegal. (Paras 18 , 19 )
(C) Fair Hearing - The court noted that the contractor must be given a fair chance to present its case in response to the show cause notice. (Paras 21 , 24 )
Facts of the case:
The applicants sought modification of an interim order regarding a show cause notice issued for the termination of a contract due to alleged forgery in submitted documents. The contractor was given an opportunity to respond to the notice.
Findings of Court:
The interim order was recalled, allowing the contractor to respond to the show cause notice within 14 days.
Issues: The main issues included the validity of the show cause notice and the contractor's right to a fair hearing.
Ratio Decidendi: The court ruled that a show cause notice is a preliminary step and does not constitute a final decision, emphasizing the need for a fair hearing.
Result: The interim order dated 29.11.2024 stands recalled.
ORDER :
MANISH CHOUDHURY, J.
Heard Mr. I. Choudhury, learned Senior Counsel assisted by Ms. S. Chakraborty, learned counsel for the applicants-respondent nos. 1 to 6; and Ms. M. Hazarika, learned Senior Counsel assisted by Ms. V.V. Thangu, learned counsel for the opposite party-writ petitioner.
2. The instant interlocutory application is preferred by the applicants-respondent nos. 1 - 6 seeking vacation / modification of an interim order dated 29.11.2024 passed in the accompanying writ petition, W.P.[C] no. 6299/2024, which was passed ex-parte.
3. The accompanying writ petition has been preferred by the opposite party as the writ petitioner to assail a Show Cause Notice dated 21.11.2024 issued to the opposite party-writ petitioner by the Chief General Manager, Head MM [the respondent no. 2].
4. The interim order which has been sought to be vacated / modified, read as under :-
5. As the genesis of this interlocutory application is the Show Cause Notice dated 21.11.2024 which came to be issued after a series of communication exchanged between the parties, mentioned in the reference clause of the Show Cause Notice, the relevant excerpts of the Show Cause Notice are extracted hereinbelow, for better appreciation of the issues raised by the contesting parties, :-
Union of India and another vs. Kunisetty Satyanarayana
A show cause notice does not constitute a final decision; it allows the affected party to respond before any action is taken.
Delay in adjudication of show cause notices is a violation of principles of natural justice.
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