The blacklisting of a contractor without a proper show-cause notice outlining the potential for such action violates principles of natural justice and legal standards for debarment.

JUDGMENT :

Heard Mr. A.K. Sahani, learned counsel for the appellant and Mr. L.C.N. Shahdeo, learned counsel appearing for the respondent Ranchi Municipal Corporation.

2. This appeal is directed against the order dated 06-01- 2015 passed by the Learned Single Judge in W.P.(C) No. 3901 of 2013 whereby and whereunder the challenge which has been made to the blacklisting of the writ petitioner has been rejected.

3. The factual aspects of the case reveal that the writ petitioner/appellant was a registered contractor under the Ranchi Municipal Corporation and pursuant to N.I.T. No. 6056 dated 18-12-2012, the writ petitioner had made his offer in respect of Group No. 64 relating to the work of improvement of road from Kanke Road-Military Camp Road Junction to Ratu Road, Durga Mandir. The writ petitioner, being successful in the Notice Inviting Tender, the work was accordingly allotted to him. An agreement being Agreement No. 241 of 2012-13 was executed by the respondent No. 4 in favour of the writ petitioner.

Consequent upon entering into an agreement, a Work Order was issued in favour of the writ petitioner with respect to the said work and it is the case of the writ petitioner that immediately on issuance of the work order, he had commenced the work and had completed most of the work, within the specifications, as laid down in the agreement. On 27-05-2013, the writ petitioner was served with a letter No. 540 dated 22-05- 2013 issued by the Respondent No. 4 wherein he was directed to carry out the work in terms of estimate within a period of three days. Subsequent thereto, the respondent had issued a communication as contained in Letter No. 2062 dated 30-05- 2013, whereby and whereunder the registration of the writ petitioner was cancelled and he was placed under blacklist. Being aggrieved with the contents of the letter dated 30-05-2013, the writ petitioner had preferred W.P.(C) No. 3901 of 2013 which, however, was dismissed on 06-09-2015 constraining the writ petitioner to prefer the present appeal.

4. It has been submitted by Mr. A. K. Sahani, learned counsel appearing for the writ petitioner/appellant that the impugned order dated 30-05-2013 by which the registration of the petitioner was cancelled and he was blacklisted, was preceded by a purported show-cause notice with respect to blacklisting on 22-05-2013 without specifying that the show-cause notice is specifically with respect to blacklisting and, therefore, it can be construed that prior to the order dated 30-05-2013, the writ petitioner was never issued a show-cause notice. Learned counsel has also submitted that the order of blacklisting dated 30-05-2013 seems to be permanent in nature, which is arbitrary and is in colourable exercise of power on the part of the respondents.

Mr. A.K. Sahani has submitted that the learned Single Judge had committed an error while coming to a conclusion that the letter dated 22-05-2013, which was with respect to improving the quality of the work which has been done by the petitioner was construed as a show-cause notice for the purposes of blacklisting and, therefore, apart from the violation of the principles of natural justice, learned counsel has also referred to the permanent nature of the debarment of the writ petitioner as contained in the order dated 30-05-2013. Mr. Sahani in support of his contention, has referred to the case of Gorkha Security Services v. Govt.(NCT of Delhi) and Others reported in (2014) 09 SCC 105 and Kulja Industries Ltd. v. Chief General Manager, Western Telecom Project, Bharat Sanchar Nigam Ltd. and Others reported in (2014) 14 SCC 731.

5. Mr. L.C.N. Shahdeo, learned counsel appearing for Ranchi Municipal Corporation has submitt