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2011 Supreme(Jhk) 852

2011(4) JLJR 385
IN THE HIGH COURT OF JHARKHAND AT RANCHI
R.R. Prasad, J.
M/s Anshul Agro Chemicals (in 3829) Partic Biotec Company Ltd. Madhupur, Deoghar through its Proprietor Amar g Nath Dalmia (in 6447)-Appellant
vs.
State of Jharkhand & Ors.-Respondents (in both)
WP(C) Nos. 3829 and 6447 of 2009
Decided on : 12.9.2011

Advocates appeared:
For the Appellant : Mr. Sujit Narayan Prasad (in both).
For the Respondents: J.C. to A.G.

Headnote:A) Government Contract – Order of the Secretary of Department directing make not to payment for the supplies passed before the expiry of the time mentioned in the show cause notice without considering the report of Director of Department who had accepted the replies of he supplier and without detecting any irregularities, was found to be violation of principles of natural justice as I affect right of supplier. (Para 6)

JUDGMENT :

Heard the parties

2. Learned counsel appearing for the petitioner submits that by virtue of the supply orders issued to the petitioner, Bio Fertilizer was supplied to the Agriculture and Sugarcane Development Department in the year 2009. After its supply to the Department, a Committee was constituted to see as to whether any irregularities have been committed by the petitioner in supplying Sio-Fertilizer. The Committee did find some irregularities being committed by the petitioner in supplying the Sio-Fertilizer. Thereupon, the Secretary, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, :1anchi vide its order as contained in Memo No. 4916 dated 9.7.2009 asked the Director, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, Ranchi to issue notice to the petitioner to submit its show cause in the matter relating to irregularities being committed in supplying Sio-Fertilizer.

3. Pursuant to that order, the Director, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, Ranchi vide its letter as contained in Memo No. 2825 dated 25.7.2009 asked the petitioner to submit its show cause within a period of seven days, which is to be expired on 1st August, 2009 but before expiry of said seven days, the Secretary, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, Ranchi passed at order on 30.7.2009 as contained in Memo No. 5190 whereby a direction was issued, not to make payment towards the materials supplied and further the petitioner be prevented from supplying the material.

4. Learned counsel further submits that on the other hand the Director, after taking into consideration the grounds taken in the show cause submitted by the petitioner, did find that ,the petitioner has not committed any, irregularity in the matter relating to supp; i Sio-Fertilizer. That report was submitted to the Secretary, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, Ranchi by the Director, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, Ranchi vide its Memo No. 1793 dated 17.5.2010 but the Secretary, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, Ranchi, without taking into consideration the said report and the grounds taken by the petitioner in his show cause, passed an order on 21.5.2010 as contained in Memo No. 1794 whereby, direction was issued to the Director not to make payment against the supply made by the petitioner and further not to ,consider the Tender which would be submitted in future and that no material be purchased from the petitioner-However, the order passed earlier relatll1gto recovery of the amount was stayed. The said order has also been sought to be quashed.

5. Learned counsel appearing for the State submits that no final decision has yet, been taken by the Department as the matter has been referred to the Department of Vigilance and the Vigilance is proceeding with the inquiry and has almost reached to the conclusion and therefore, at this stage, no interference is warranted in the matter.

6. Having heard learned counsel appearing for the parties, it does appear that when it was detected by the Department that some irregularities have been committed by the petitioner in supplying the Bio-Fertilizer, a Committee was constituted, who after holding inquiry did find certain irregularities being committed by the petitioner. Thereupon at the instance of the Secretary, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, Ranchi, a notice was issued by the Director, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, Ranchi vide its letter dated 25.7.2009 to the petitioner asking him to submit explanation in this regard within a period of seven days but before expiry of the seven days, an order was passed by the Secretary, Agriculture and Sugarcane Development Department, Govt. of Jharkhand, Ranchi vide letter dated 30.7.2009 as contained in Memo No. 5190 where



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