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2026 Supreme(Jhk) 259

IN THE HIGH COURT OF JHARKHAND AT RANCHI
Deepak Roshan, J.
M/s. Vandi Industrial Engineers - Petitioner
Versus
The State of Jharkhand - Respondent
W.P.(C) No. 704 of 2021, W.P.(C) No. 36 of 2021, Cont. Case (Civil) No. 154 of 2023
Decided On : 25-02-2026

Advocates Appeared:
For the Petitioner:Mr. Krishna Murari, Advocate
For the Respondent: Mr. Manish Mishra, G.P.-V, Mr. J.F.Toppo, G.A.-V, Mr. Shresth Gautam, Adv.

Writ courts under Article 226 cannot resolve factual disputes on competency certificate revocations for condition violations or misrepresentations; expired certificates not restorable; deemed approval requires complete submissions; pursue statutory appeals.

Headnote:(A) Factories Act, 1948 - Sections 2(ca), 6 - Jharkhand Factories Rules, 1950 - Rule 2(A) sub-rule (4)(c) - Constitution of India - Article 226 - Competency certificate issued to carry out tests, examinations, inspections cancelled for violations of clauses (v), (vi), (ix) and others requiring advance test schedules (Clause 5), photographs/synopsis submission (Clause 6), log book maintenance (Clause 8), test copies provision (Clause 9), equipment calibration (Clause 10), training (Clause 11), and furnishing incorrect information about proprietorship firm registered post private limited incorporation. Show cause notices issued; reply addressed only entity names, found unsatisfactory. Deemed approval under Section 6 inapplicable absent complete plans/specifications; appeal to central government available. (Paras 6-20, 22-28, 32)

(B) Writ Jurisdiction - Article 226 - Scope - Cannot delve into factual disputes on condition compliance or entity details; inappropriate for restoration of expired certificate (valid 10.01.2019 to 09.01.2020); interim stay infructuous post dismissal. (Paras 30-33)

Facts of the case:
Petitions sought quashing of competency certificate cancellation letter, restoration, release of payments withheld due to rejected stability certificates, amid contempt for alleged violation of interim stay order during pendency.

Findings of Court:
Cancellation upheld; no restoration or payment direction; contempt dropped.

Issues: Validity of revocation for condition breaches and misrepresentation; applicability of deemed approval; entitlement to restoration despite expiry and writ remedy for factual grievances.

Ratio Decidendi: Revocation followed due opportunity via show causes; petitioner failed to prove adherence to conditions; writ court barred from factual adjudication, directing statutory remedies; expired certificate bars relief.

Result: Writ petitions dismissed; contempt disposed; no relief granted.

Table of Content
1. interlinked writs challenging certificate cancellation heard together. (Para 2 , 3 , 4 , 5)
2. petitioner alleges arbitrary revocation ignoring replies. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12)
3. no factual probe in writ; certificate expired; no deemed approval. (Para 13 , 29 , 30 , 31 , 32)
4. state revokes for false information and entity misrepresentation. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20)
5. violations of certificate clauses confirmed via show causes. (Para 21 , 22 , 27)
6. competency certificates governed by factories act rules. (Para 23 , 24 , 25 , 26 , 28)
7. petitions dismissed; contempt infructuous. (Para 33 , 34)

JUDGMENT :

DEEPAK ROSHAN, J.

Heard learned counsel for the parties.

2. W.P.(C) No. 36 of 2021 was filed under Article 226 of the Constitution of India for the following reliefs: -

I. For quashing the impugned letter no. JH/CIF/7/Com. 1046/2015 dated 14.08.2020 issued under the signature of Respondent No. 4, whereby and whereunder the Competency Certificate No. JH/CIF/7/Com.1046/2015 dated 03.02.2020 of the Petitioner has been cancelled/revoked.

II. Consequently, for direction upon the respondents to restore the Competency Certificate of the petitioner.

3. Thereafter, another case being W.P.(C) 704 of 2021 was filed challenging the order, whereby, the claim for payment by respondent SAIL was rejected on the ground that stability certificate has been rejected by the Chief Inspectors of Factory and further the competency certificate to conduct stability tests has also been cancelled.

4. It is worthwhile to mention herein that during pendency of the instant writ petition, one Contempt application being Cont. Case (Civil) No.154 of 2023 was preferred for violation of order dated 10/08/2021 passed in W.P. (C) No. 36 of 2021.

5. All three matters being interlinked are being heard together.

Factual Matrix & Submissions of the Petitioner:

6. Briefly stated, vide letter dated 14.08.2020, the Certificate of Competency bearing No. JH/CIF/7/Com.1046/2015 dated 03.02.2020 was cancelled alleging certain violations of terms enumerated in the certificate, more specifically for violation of clause (v), (vi), & (ix) of competency certificate.

7. The stand of the Petitioners is that due to cancellation of his Competency Certificate and on being issued show cause notices by the respondent authorities, the petitioner duly replied by answering the queries made; however, the same was not properly considered by the respondent authorities and the respondents by going beyond the scope of Show cause; cancelled/revoked the certificate of competency which is arbitrary and illegal and also mala-fide.

8. Further grounds have been taken that several contractual works in different companies were affected and entire activity of the petitioner and its employees have been steeled and payment of work already executed has been stopped.

9. It has been argued that the authorities have unnecessarily made allegations that the petitioner has obtained competency certificates on the basis of incorrect information; however, the fact remains that the earlier CIF had granted competency certificates after assessing all the requirements and hence the certificates issued in pursuance to the same could not be reviewed by the present CIF.

10. It has further been contended that though the petitioner filed a recall/restoration application dated 25.08.2020 along with affidavit dated 28.01.2013 and other relevant documents and tried to establish his bona-fide and transparency but the same was not considered and entire activity of the petitioner-firm and its employee has been stalled, therefore, the petitioner has approached this court by filing the instant writ application.

11. During pendency of the writ petition, one Interlocutory Application being I.A. No. 3058/2021 in W.P. (C) No. 36 of 2021 was filed and vide order passed by this Court in the said Interlocutory Application, order cancelling the competency certificate was stayed.

12. It has also been contended by

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