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IN THE HIGH COURT OF JHARKHAND AT RANCHI
Rajesh Shankar, J.
M/s Verma Enterprises, Dhanbad through its Partner Rajesh Vishwakarma - Petitioner
Versus
The State of Jharkhand through its Principal Secretary, Department of Health, Medical Education & Family Welfare and ors. - Respondents
W.P.(C) No. 2802 of 2020 & 1886 of 2021
Decided On : 08-08-2022
Blacklisting - Sanitation and Housekeeping - NIT No. 1467 dated 14.08.2019, Letter No. 559 dated 07.04.2021, Letter No. 749(6) dated 08.10.2020, Letter No. 333(6) dated 07.04.2021 - The court quashed the order of blacklisting the petitioner due to non-compliance with principles of natural justice and lack of specific show cause notice for blacklisting. The court emphasized the need for fairness, relevance, natural justice, non-discrimination, equality, reasonableness, and proportionality in blacklisting decisions.
Fact of the Case:
The petitioner was engaged in sanitation and housekeeping work and was aggrieved by the cancellation of work orders and blacklisting by the respondents without due process. The petitioner's reputation and business prospects were affected.
Finding of the Court:
The court found that the order of blacklisting was passed without following due procedure of law, including the lack of a specific show cause notice for blacklisting and the absence of a defined period for blacklisting. The court quashed the order of blacklisting and allowed the respondent to take a fresh decision in accordance with established legal principles.
Issues: The issues revolved around the cancellation of work orders and the blacklisting of the petitioner without adherence to principles of natural justice and fair procedure.
Ratio Decidendi: The court emphasized the importance of fairness, relevance, natural justice, non-discrimination, equality, reasonableness, and proportionality in blacklisting decisions. It highlighted the need for a specific show cause notice for blacklisting and the requirement for a defined period of blacklisting.
Final Decision: The court quashed the order of blacklisting and disposed of the writ petitions, allowing the respondent to take a fresh decision in accordance with the established legal principles.
ORDER :
W.P.(C) No. 2802 of 2020 has been filed for quashing the order as contained in Memo No. 1267 dated 11.09.2020 (Annexure-8 to the writ petition) issued by the Superintendent, Patliputra Medical College & Hospital, Dhanbad (the respondent no.2) whereby e-tender being Tender Ref. No. 1467/PMCH dated 14.08.2019 as well as work order as contained in memo no. 1907 dated 23.10.2019 issued in favour of the petitioner by the said respondent have been cancelled with immediate effect with a direction to the petitioner to continue with the work related to complete sanitation and housekeeping with collection, segregation, storage and safe transportation of Municipal waste and segregation of Bio-Medical waste at Patliputra Medical College & Hospital, Dhanbad till finalization of new tender process or for a period of one month whichever is later. Further prayer has been made for issuance of direction upon the respondents to produce a copy of letter as contained in memo no. 562(6) dated 20.08.2020 issued by the Principal Secretary, Department of Health, Medical Education & Family Welfare, Government of Jharkhand (the respondent no. 1) whereby the respondent no. 2 has been directed to ensure cancellation of the work order issued to the petitioner in connection with Tender No. 1467 dated 14.08.2019, to take steps for floating a fresh tender in relation to the said work at Patliputra Medical College & Hospital, Dhanbad and to submit his opinion regarding blacklisting of the petitioner. The petitioner has also prayed for quashing the letter as contained in memo No. 562(6) dated 20.08.2020 issued by the respondent no. 1.
2. W.P.(C) No. 1886 of 2021 has been filed for quashing letter no. 559 dated 07.04.2021 (Annexure-5 to the writ petition) issued by the Superintendent, Sahid Nirmal Mahto Medical College & Hospital (earlier known as Patliputra Medical College & Hospital) (the respondent no.2) whereby the petitioner has been blacklisted. Further prayer has been made for quashing the work order as contained in memo no. 561 dated 07.04.2021 (Annexure-8 to the writ petition) issued by the respondent no.2 in favour of the respondent no.3 for executing the work of “complete sanitation and housekeeping with collection, segregation, storage and safe transportation of municipal waste and segregation of bio-medical waste” in terms with tender notice being Tender Ref. No. 52/SNMMCH dated 11.01.2021.
3. In course of argument, Mr. Indrajit Sinha, learned counsel appearing for the petitioner in both the writ petitions, has confined the prayer to the extent of quashing the order of blacklisting as contained in letter no. 559 dated 07.04.2021 issued by the respondent no.2.
4. Learned counsel for the petitioner submits that the petitioner-firm is primarily engaged in the business of sanitation and housekeeping with complete collection, segregation, storage and transportation of municipal waste and segregation of bio-medical waste having good reputation in the said field. The respondent no.2 floated e-tender being Tender Ref. No.1467/PMCH dated 14.8.2019 for outsourcing the work of "complete sanitation and house keeping with collection, segregation, storage and safe transportation of municipal waste and segregation of bio-medical waste" for a minimum period of one year, which was extendable up to three years. The petitioner being eligible participated in the aforesaid e-tender and was found technically qualified in the said tender process. After opening of the financial bid, the petitioner was declared L-1 and subsequently, work order was issued on 23.10.2019 and to that effect an agreement was executed on 25.10.2019 between the petitioner and the respondent no.2. However vide office order as contained in memo no.1267 dated 11.09.2020 [Annexure-8 to W.P.(C) No. 2802 of 2020], the respondent no.2 cancelled the said e-tender and work order with immediate effect, directing the petitioner to continue with the work till finalization of the new tender process or for
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