A party cannot be blacklisted without a clear and adequate show cause notice, violating principles of natural justice, leading to severe consequences.

JUDGMENT :

Tarlok Singh Chauhan, C.J.

1. Heard the parties.

2. The respondent no. 3 District Supply Officer, Godda invited a tender vide tender reference no. 463 dated 19.04.2023 for providing block-wise door-step delivery services to the fair price shops in urban areas as well as all the blocks of Godda district of State of Jharkhand for period of one year. The petitioner participated in the above tender and submitted its bid along with all required documents and was declared as lowest bidder. Later on vide memo dated 27.07.2023 the petitioner was directed by the respondent no. 3 to execute the agreement but the petitioner filed representation dated 01.08.2023 mentioning therein that the petitioner is a MSME firm and as per Clause 11 of the Jharkhand Procurement Policy 2014, the MSMEs require only 10% security in the form of bank guarantee which was allowed.

3. A formal agreement was entered into between the parties on 02.08.2023. According to the work order, the petitioner was to pick up food grains from the warehouse and supply to the concerned PDS Shops till March 2024. The petitioner accordingly started carrying out the execution of the work.

4. It is the case of the respondents that it was brought to the knowledge that the petitioner was not executing the work as per the advertised tender and hence a show cause notice was issued dated 18.09.2023 but the petitioner failed to submit its reply till date. Thereafter two show cause notices were issued against the petitioner but he failed to file its reply. Later on the petitioner submitted an explanation which was not found satisfactory and therefore, vide letter dated 07.02.2024 the petitioner was debarred indefinitely from further work and relieved from the concerned work and he along with his all vehicles were black listed for the Supply Department vide order dated 08.02.2024, constraining him to file the instant writ for the following reliefs:

(A) For issuance of a writ in the nature of certiorari for quashing the order dated 08.02.2024 (annexure - 12) whereby and whereunder the respondent no. 3 without communicating/informing the petitioner their intention to impose the punishment of blacklisting as is evident from the show cause notices issued to the petitioner, in a complete arbitrary and whimsical manner debarred /black listed the petitioner along with all of its vehicles from participating in any future work in relation to DSD (Door Step Delivery).

(B) For issuance of a writ in the nature of certiorari or any other appropriate writ for quashing the order dated 19.04.2024 (annexure-18) whereby and whereunder the respondents have issued direction for recovery from the bank guarantee supplied by the petitioner to the respondent which is also illegal as even for initiating the said recovery action the petitioner was neither show caused nor afforded an opportunity of hearing in respect to the disputed amount which according to the petitioner is not at all in dispute and for that very reason the amount was released and remitted in the account of the petitioner.

(C) For issuance of a writ in the nature of certiorari or any other appropriate writ for quashing the letter with CIN no.- L65190MH2004GOI148838 (annexure-17) whereby and whereunder the respondent no. 4 has taken a unilateral decision to freeze the bank account of the petitioner on a complete wrong surmise when no such direction was issued to it by any other respondents including the bank through which the bill amount of the petitioner was remitted to the bank account of the petitioner.

(D) During the pendency of the instant writ petition the petitioner prays for an interim relief to the extent of staying the order dated 08.02.2024 (annexure-12 whereby and whereunder the respondent no. 3 has debarred / black listed the petitioner along with all of its vehicles from participating in any future work in relation to DSD (Door Step Delivery).

5. We have heard the learned counsel for the parties and have gone through the records. A