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IN THE COURT OF MADURAI BENCH OF MADRAS HIGH
Mrs.J.NISHA BANU, Mrs.S.SRIMATHY, JJ
Muthupandeeswari, Proprietor, M/s.Muthupandeeswari Modern Rice Mill – Appellant
Versus
Managing Director, Tamil Nadu Civil Supplies Corporation – Respondent
JUDGMENT :
J. NISHA BANU, J.
This Writ Appeal is filed as against the order dated 17.02.2025 passed in W.P.(MD).3829 of 2025, wherein, the writ court referred the dispute to the sole arbitrator for adjudication of the matter relating to the blacklisting of the appellant rice mill by the 2nd respondent.
2. The Appellant is M/s.Muthupandeeswari Modern Rice Mill. The Appellant is an authorized hulling agent with the Tamil Nadu Civil Supplies Corporation (hereinafter referred to 'TNCSC') from the year 2007 through an agreement for the period of 5 years which was lastly renewed on 29.07.2020. The 2nd respondent is an authorized person responsible for allotting and supplying paddy to the mills. The appellant used to receive paddy from the 2nd respondent based on monthly allotments, determined by eligibility criteria and issued through "Delivery Orders." Upon receipt of the paddy, the appellant issued a "Paddy Acknowledgment Receipt" through TNCSC contract carriers. A monthly paddy input register and a monthly check card are maintained at the mills, and the said register and check card must be verified, checked, and duly signed by the offices of the 1st and 2nd respondents every month.
3. The
Blacklisting without notice or hearing violates principles of natural justice and is subject to judicial review under Article 226 of the Constitution.
Blacklisting without a hearing violates principles of natural justice; orders must be reasoned and fair.
The penalty of blacklisting must be proportionate to the offense and should not be imposed arbitrarily.
The main legal point established in the judgment is the importance of following the principles of natural justice, particularly fair opportunity of hearing, before taking actions with civil consequen....
The principles of natural justice must be adhered to in administrative proceedings affecting civil rights; failure to provide a fair hearing invalidates the resulting orders.
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