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.

JUDGMENT :

B.R. Sarangi, J.

The petitioner, who is a transport contractor (Level-II), has filed this writ petition to quash the order no.1830 dated 17.05.2020 passed by the Collector, Sundargarh blacklisting him from participating in all tender process of civil supplies as well as other departments for a period of two years across the State, and consequential order no.1837 dated 17.05.2020 passed by the District Manager, OSCSC Ltd., Sundargarh vide Annexure-6 terminating the agreements, as the same have been passed in violation of principles of natural justice.

2. The factual matrix of the case, in hand, is that the petitioner was selected for appointment as transport contractor (Level-II) for Koira, Bonai, Lahunipada and Gurundia blocks in the district of Sundargarh, pursuant to the decision of the District Tender Committee, Sundargarh for the financial year 2017-19, but the District Manager- opposite party no.3 restricted execution of agreement till 31.03.2018. Thereafter, the petitioner was called upon to make security deposit and additional security deposit as per the guidelines of the tender as well as to furnish the documents as per claue-11 of the tender paper, as indicated in those letters, which includes the carriage by Road Act, 2007 and the Carriage by Road Rules, 2011 and the license issued under the Contract Labour (Regulation and Abolition) Act, 1970. The petitioner, having complied all the requirements, separate agreements were executed by the Corporation in respect of each of the blocks. The term of appointment was extended and separate agreements were executed for the extended period. Such arrangement was made on account of single bid in the fresh tender process requiring de-novo process as well as the time requisite for execution of fresh tender vis-à-vis the need of continuous supply of food stock under Public Distribution System. Accordingly, it was decided and communicated to the General Manager (PDS) of the Corporation to extend the terms of the appointment of all the Level-I, Level-II transport contractors till the appointment of new contractors or extend the period, whichever is earlier. The validity of license under OPDS (Control) Order, 2016 and Security deposit for the extended period were directed to be ensured, for the purpose. The term of appointment of the petitioner stood extended up to 20.05.2020 in terms of the letter dated 28.04.2020 of the Managing Director, Odisha Civil Supplies Corporation Ltd.

2.1 During process of execution of the job of loading of the stock of 200 bags of rice and unloading the same at Fair Price Shop, allegation of carriage of the PDS rice in the tipper bearing registration no. OD-14 B 6865 engaged by the petitioner was detected at Khandahar hill top on 27.04.2020 and on that basis, FIR was lodged and the license of the petitioner was suspended by the Sub- Collector, Bonai, which was communicated to the petitioner by the Marketing Inspector, Lahunipada on 14.05.2020. Following the order of suspension dated 14.05.2020 communicated to the petitioner by the Marketing Inspector, a notice of show cause, vide letter no.2018 dated 15.05.2020, was issued by the Sub-Collector, Bonai as the licensing authority, to show cause regarding diversion of 96 bags of PDS rice to Choda Hatting near Sujit Kar Ration Shop situated at Choda Hatting upper Khadadhar area in the same tipper which was engaged by the petitioner on 26.04.2020 for transportation of PDS rice from Lahunipada Depot to Sashyakela G.P. Such notice of show cause dated 15.05.2020 was received by the petitioner on 18.05.2020. Therefore, in terms of the said letter, the petitioner is requ