Point of Law: It is a settled position of law that a fair hearing to the party being blacklisted is an essential pre-condition for a proper exercise of the power and a valid order of blacklisting made thereto.

JUDGMENT :

VIJU ABRAHAM, J.

1. The above writ petition is filed seeking to quash Ext.P12 order whereby the petitioner firm was blacklisted and the licence granted to the firm has been cancelled.

2. Brief facts of the case are as follows:- The petitioner is a contractor. As per agreement No. SE(K)/186/2017-18 dated 09.10.2017, the petitioner executed the road works of improvements to Padiyotchal- Kodamuttu Road KM0/000 to 7/400 in Kannur district. The work commenced on 13.10.2017 and the same was duly completed on 30.03.2019, within the extended period granted by the department. Ext.P1 is the copy of the certificate of completion of work with a covering letter dated 19.10.2019 and Ext.P2 is the copy of the experience certificate. As per Ext.P3 Government Order, the defect liability period (DLP) for the type of work of the kind the petitioner executed is 18 months. Reckoning the period of completion from 30.03.2019, the defect liability period of 18 months is over on 30.09.2020. The petitioner has also made available necessary credentials like quality control test from the PWD-approved quality laboratory centre. Having satisfied that the work is perfectly executed and no defects whatsoever occurred, respondents 1 to 4 duly approved the release of Treasury security deposits of Rs.9,43,550/- and bank guarantee of Rs.9,43,550/- lying with South Indian Bank, Panaji Branch. In Ext.P4 order issued by the 2nd respondent it has been specifically certified that the work was completed in all respect on 30.03.2019 and no rectification work was necessitated within the guarantee period and no liability occurred during the liability period and hence the security deposit may be released. Thereupon, the 1st respondent issued an order for the release of security deposit of Rs.18,87,100/- and thereupon as is evident from Ext.P6 release notice, the security deposit has been released to the petitioner. Petitioner submits that had there been any defects in the work in 2019 as alleged, they would not have issued a completion certificate, or experience certificate and released the security deposit to the petitioner in the year 2021. While so, the PWD roads wing initiated a surprise inspection of works throughout Kerala as per order dated 24.09.2019 of the 5th respondent named as “Operation Saral Rasta.” As part of the said inspection, the work executed by the petitioner was also allegedly subjected to inspection by the special departmental inspection wing on 24.09.2019 at about 09.30 am. It is also learnt that the Vigilance and Anti Corruption Bureau (VACB) Kannur Unit has forwarded a report to the 7th respondent which contains inter alia that the work executed by the petitioner is suffering from a shortfall of quality for which the petitioner as well as Assistant Executive Engineer Sri. Deveshan and Assistant Engineer Sri.Jayadeep. K are also vicariously liable and recommended appropriate disciplinary action to be taken against them. The said report which is produced as Ext.P8 also recommended blacklisting and other penal actions against the petitioner as well. Based on Ext.P8 report, Ext.P9 show cause notice was issued by the 1st respondent to the petitioner. To the said notice, the petitioner submitted Ext.P10 reply mainly contending that he completed the work three years ago and that the work was good in quality till when devastating flood contributed some minor defects of scratch over the surface. Later, the petitioner was heard on 07.06.2022 and in the hearing also petitioner appeared and explained the true and relevant facts. Besides Ext.P11, written submission was also submitted by the petitioner. Without considering the petitioner's version and conducting a correct probe in the matter and without appraising such other reasons that contributed to the damage of completed work on account of natural calamities, etc, the 1st respondent issued Ext.P12 order whereby the petitioner was removed from the approved list of contractors and has inflicted a pu