The need for a fair hearing and proportionality in blacklisting decisions, as well as the requirement of a valid show-cause notice, are essential principles established in the given judgment.

ORDER :

1. Though the present writ petition was filed for quashing the order as contained in memo no. 644 dated 09.09.2021 passed by the Special Rationing Officer, Ranchi-respondent no. 3, whereby the petitioner’s agreement with respect to providing block-wise doorstep delivery (transportation and handling) services of ration materials to the fair price shops located in urban areas and blocks of Ranchi district has been rescinded by blacklisting him from participating in all future transportation-cum-handling work of ration materials.

2. In course of argument, learned counsel for the petitioner confines the prayer to the extent of challenging the order of blacklisting only.

3. The factual matrix of the case, as stated in the writ petition, is that the petitioner participated in the tender invited by the Deputy Commissioner, Ranchi-respondent no. 2 for providing block-wise doorstep delivery (transportation and handling) services of ration materials from godown nos. I and II, Kadru, Ranchi of Jharkhand State Food Corporation (in short ‘JSFC’) to concerned PDS dealers. The petitioner participated in the said tender process and, on being found the lowest bidder, was selected for the said work for the financial years 2020-21 and 2021-22. Thereafter, the work order was issued to the petitioner vide memo no. 70 dated 03.02.2021 under the signature of the respondent no. 3. Subsequently, a show cause notice was issued to the petitioner vide memo no. 798 dated 28.07.2021 under the signature of the respondent no. 4, pointing out certain discrepancies relating to delay committed in transportation of food grains from the said godowns to the concerned PDS dealers, directing him to file reply within 24 hours as to why his agreement be not rescinded and he be not blacklisted by forfeiting his security amount. The petitioner replied the said show cause notice stating that he had lifted and transported food grains within 15 days. However, from the month of May, 2021, lifting of food grains under two allotments i.e. Priority House Holds (PHH)/Antyodaya Anna Yojana (AAY) and Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) were entrusted to the petitioner in which he had lifted food grains within the period of 24 days as against the permissible period of 30 days granted for lifting food grains under the aforesaid two allotments. Since on account of non-payment of his pending bills, he was facing difficulty in making arrangement of labourers, a request was made to ensure payment of pending bills and to drop the proposed action to be taken against him. However, a fresh show cause notice was issued to the petitioner vide memo no. 956 dated 01.09.2021 under the signature of the respondent no. 4, asking him to file reply within 24 hours as to why his service be not dispensed with and appropriate action be not taken against him for the delay committed in transportation and handling service of ration materials from the said godowns to the concerned PDS dealers. The petitioner filed reply to the said show cause notice on 02.09.2021 stating that the payment against his bills for the period from May, 2021 to August, 2021 was not made due to which he was facing acute financial crisis. Finally, an order as contained in memo no. 644 dated 09.09.2021 was passed by the respondent no. 3, whereby the petitioner’s contract was rescinded by blacklisting him with respect to executing all the works of transportation and handling.

4. Learned counsel for the petitioner submits that the said action of the respondent no3 in passing the impugned order dated 09.09.2021 is in violation of the principles of natural justice and is fit to be set aside. It is also submitted that from the contents of the final show cause notice dated 01.09.2021, it would be apparent that the same was not issued, intending to blacklist the petitioner for not providing doorstep delivery of food grains to the concerned PDS dealers within time. It is further submitted that the order of blacklisting is a