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2014 Supreme(Raj) 1463

RAJASTHAN HIGH COURT
P.K.Lohra, J.
M/s. Nayak Construction - Appellant
Versus
State of Rajasthan and others - Respondent
S.B. Civil Writ Petition No.12921 of 2012.
Decided On : 21-05-2014

For the Petitioner:C.S. Kotwani with S.P. Joshi, Advocates.
For the State: Mukesh Dave, Dy. Govt. Counsel
For the Respondent No. 4:Sachin Acharya, Advocate.

The principles of natural justice require that a person be given a fair hearing before being adversely affected by a decision, but this requirement may be circumscribed in certain circumstances, such as when the facts are admitted and only one conclusion is possible.

Headnote:

PUBLIC WORKS - BLACKLISTING - MISBEHAVIOUR - PRINCIPLES OF NATURAL JUSTICE - MALAFIDE - CONTRACTOR - PUBLIC WORKS FINANCIAL AND ACCOUNTS RULES - APPENDIX XVI PART II SECTION VIII - STANDARD CODE PARA VIII.4 - INTERPRETATION - JUDICIAL REVIEW - EVIDENCE - BURDEN OF PROOF - CONTRACTUAL RELATIONSHIP - STATUTORY RULES - SHOW CAUSE NOTICE - REPLY - TIME PERIOD - ADMISSIBILITY OF EVIDENCE - COURIER SERVICES - REGISTERED AD - PROOF OF RECEIPT - FINDINGS OF FACT - JUDICIAL DISCRETION - EQUITABLE JURISDICTION - CLEAN HANDS DOCTRINE - CONDUCT OF PARTIES - RELEVANCE - JUDICIAL REVIEW - SCOPE - ADMINISTRATIVE ACTION - JUDICIAL INTERFERENCE - EXTENT - NATURAL JUSTICE - APPLICABILITY - CIRCUMSTANCES - ADMITTED FACTS - SINGLE CONCLUSION - PENALTY - DISCRETION OF COURT - WRIT OF MANDAMUS - FUTILITY - ENCROACHMENT - REMOVAL - URGENCY - PUBLIC PLACES - PUBLIC CONVENIENCE - TIME-CONSUMING PROCEDURES - MALAFIDE ALLEGATIONS - SUBSTANTIATION - BURDEN OF PROOF - JUDICIAL REVIEW - SCOPE - CONTRACTUAL RELATIONSHIP - STATUTORY RULES - SHOW CAUSE NOTICE - REPLY - TIME PERIOD - ADMISSIBILITY OF EVIDENCE - COURIER SERVICES - REGISTERED AD - PROOF OF RECEIPT - FINDINGS OF FACT - JUDICIAL DISCRETION - EQUITABLE JURISDICTION - CLEAN HANDS DOCTRINE - CONDUCT OF PARTIES - RELEVANCE - JUDICIAL REVIEW - SCOPE - ADMINISTRATIVE ACTION - JUDICIAL INTERFERENCE - EXTENT - NATURAL JUSTICE - APPLICABILITY - CIRCUMSTANCES - ADMITTED FACTS - SINGLE CONCLUSION - PENALTY - DISCRETION OF COURT - WRIT OF MANDAMUS - FUTILITY - ENCROACHMENT - REMOVAL - URGENCY - PUBLIC PLACES - PUBLIC CONVENIENCE - TIME-CONSUMING PROCEDURES - MALAFIDE ALLEGATIONS - SUBSTANTIATION - BURDEN OF PROOF

Fact of the Case:

Petitioner, a proprietorship firm and 'AA' Class Contractor with the Public Works Department (PWD), challenged the order blacklisting it for misbehavior with government officials under Appendix XVI Part II Section VIII of the Standard Code Para VIII.4 of the Public Works Financial and Accounts Rules. The petitioner alleged malafide intent, violation of natural justice principles, and improper service of the show cause notice. The respondents defended their action, citing the petitioner's consistent misbehavior, criminal charges against its proprietor, and failure to submit a timely reply to the show cause notice.

Finding of the Court:

The court found that the petitioner's proprietor had engaged in serious misbehavior, including committing cognizable offenses at the residence of a government official. It held that the show cause notice was properly served and that the petitioner had not provided sufficient evidence to prove that its reply was received by the competent authority. The court also rejected the petitioner's allegations of malafide intent, finding no concrete evidence to support them.

Issues: 1. Whether the blacklisting of the petitioner firm violated the principles of natural justice? 2. Whether the show cause notice was properly served and whether the petitioner's reply was received by the competent authority? 3. Whether the respondents' action was motivated by malafide intent?

Ratio Decidendi: 1. The court held that the principles of natural justice were not violated in this case. It noted that the petitioner had been given a show cause notice and an opportunity to respond, and that the competent authority had considered the petitioner's reply before making its decision. The court also found that the petitioner's conduct amounted to misbehavior within the meaning of the Public Works Financial and Accounts Rules, justifying the blacklisting. 2. The court found that the show cause notice was properly served on the petitioner firm through Registered AD. It also held that the petitioner had not provided sufficient evidence to prove that its reply was received by the competent authority. The court noted that the petitioner had chosen to send its reply through courier services, which was not an approved method of communication according to the Public Works Department. 3. The court rejected the petitioner's allegations of malafide intent, finding no concrete evidence to support them. It held that the respondents' action was taken in accordance with the relevant provisions of the Public Works Financial and Accounts Rules and that there was no evidence of any ulterior motive.

Final Decision: The court dismissed the petition, upholding the blacklisting of the petitioner firm.

JUDGMENT

1. - Petitioner, a proprietorship firm, having status of "AA" Class Contractor with the Public Works Department (for short, 'PWD') has launched this legal battle against the order dated 27th of November 2012 (Annex.6) passed by the second respondent, whereby it was blacklisted in terms of Appendix XVI Part II Section VIII of the Standard Code Para VIII.4 of the Public Works Financial and Accounts Rules.

2. The facts, in brief, giving rise to this writ petition are that petitioner firm a "AA" Class contractor of PWD is involved in various construction works at District Dungarpur. The said status of "AA" Class contractor was conferred on the petitioner firm by the Chief Engineer, Public Works Department, Jaipur vide order dated 31st of July 2009 (Annex.3). According to the version of the petitioner, fourth respondent while working as Executive Engineer, PWD, Dungarpur, with ulterior motive withheld some of the bills of the petitioner firm to extract illegal gratification for their clearance. With a view to struck a deal for clearance of bills, the fourth respondent invited the proprietor of the firm at his residence on 25th of October 2012. When the proprietor of the petitioner firm visited residence of fourth respondent, he refused to accede to the undue desire of the fourth respondent and thereupon a first information report was lodged by him against the petitioner for offences under Section 452, 307, 427/34 of the Indian Penal Code read with Section 3 (1)(x) of the Scheduled Caste and Scheduled Tribes (Prevention of Atrocities) Act 1989 and Section 3/25 of the Arms Act. According to the petitioner firm, the entire edifice of the FIR was falsehood and in fact no offence was committed by the proprietor of the firm. An endeavour was made at its behest through proprietor to challenge the said FIR before this Court by way of S.B. Criminal Misc. Petition No.2763/12. In the criminal misc. petition, at the threshold, notices were issued and interim protection was granted. It so happened that the FIR lodged against the petitioner firm in the interregnum was taken cognisance, and when the matter was reported to the higher authorities, a show cause notice was issued to the petitioner firm on 01.11.2012 (Annex.4) by the Chief Engineer and Addl. Secretary, PWD, Jaipur. Responding to the said notice, according to the petitioner firm, a detailed reply was submitted but without considering the reply the order Annex.6 was passed, which is impugned in the present petition. Assailing the action of the respondent, the petitioner has categorised the same as high-handed action in gross violation of principles of natural justice.

3. On behalf of the official respondents, reply to the writ petition is submitted defending the impugned action. While questioning the work efficiency of the petitioner firm in execution of the contract works, the respondents have very specifically pleaded in the reply that petitioner firm has consistently misbehaved with the officers of the department and for that purpose earlier also notices were issued to it. Adverting to the incident for which the impugned action was taken, the respondents have specifically pleaded in the reply that the bills of the petitioner were rightly withheld by the fourth respondent because of certain defects in maintenance work and when the petitioner firm was asked to get the work done, its proprietor instead of carrying the same, threatened fourth respondent and exerted undue pressure on him to clear bills. Highlighting his conduct of committing serious cognisable offence at the residence of fourth respondent, the respondents have submitted in the reply that the proprietor of the firm used fire arms. Insisting on the persistent misbehaviour of the petitioner firm, the respondents have also placed on record complaint laid by a Lower Division Clerk of PWD Sub- Division, Sagwara, wherein he has averred threat perception from the petitioner firm to him and his family. Thus, in totality, th















































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