IN THE HIGH COURT OF ALLAHABAD
R. A. SHARMA, M. C. AGARWAL
MAJHIYARI MATSYA PALAN EVAM NAUKA SANCHALAN SAMITI - Appellant
Versus
COMMISSIONER, ALLAHABAD DIVISION, ALLAHABAD - Respondents
C. M. W. P. 38470 Of 1994
Decided On : 02/16/1995
Natural Justice - Auction of Ferry over River Yamuna - The court quashed the order of the Commissioner, Allahabad Division, holding the bidder as not eligible without giving an opportunity of hearing, and remanded the matter back to the Commissioner to pass a fresh order after giving an opportunity of being heard to the parties.
Fact of the Case:
The petitioner participated in an auction for the settlement of a ferry over river Yamuna and was provisionally accepted. However, the Commissioner refused to accept the bid and directed for re-auction based on a complaint that the petitioner was not a registered society.
Finding of the Court:
The court found that the proceedings against the petitioner were initiated without giving any opportunity of hearing, and the order holding the bidder as not eligible was passed without following the principle of natural justice.
Issues: The main issue was the lack of opportunity of being heard before holding the bidder as not eligible based on an enquiry report.
Ratio Decidendi: The court held that the order holding a bidder as not eligible is a serious matter and should not be passed without giving an opportunity of hearing, in accordance with the principle of natural justice.
Final Decision: The court allowed the writ petition, quashed the impugned order, and remanded the matter back to the Commissioner to pass a fresh order after giving an opportunity of being heard to the parties.
( 2 ) ZILLA Panchayat and the Government have filed counter affidavits. Petitioner has filed rejoinder affidavit in reply thereto.
( 3 ) WE have heard the learned counsel for the petitioner and the learned standing Counsel.
( 4 ) FROM the perusal of the pleadings, of the parties, it appears that a complaint was made against the bid of the petitioner on the ground that it was not a registered society and as such was not entitled to participate in the auction it appears an enquiry was initiated on the basis of the said complaint and ultimately a report was submitted against the petitioner by the Zilla Panchayat and thereafter by Additional Commissioner to the Commissioner. In the later report it was mentioned that there is nothing on the record to find out as to whether the petitioner society is registered or not and it is also not clear from the letter dated 30-9-1994 of the fisheries department. On the basis of the above report the Commissioner has passed impugned order.
( 5 ) IN the instant case the proceedings were initiated against the petitioner on the basis of a complaint filed by a rival businessman against its eligibility for participation in the auction. After making enquiry the petitioner was held not to be eligible. This enquiry was conducted without giving any opportunity of hearing to the petitioner. Commissioner also passed the impugned order on the basis of the enquiry report without giving it any such opportunity.
( 6 ) IT is open to the Commissioner not to accept the bid but if he rejects the bid on the basis of the report of an enquiry holding the bidder as not eligible, it was incumbent on him to pass the order in accordance with the principle of natural justice. The order holding a bidder as not eligible is a serious matter and such an order should not be passed without giving an opportunity of hearing to him. In the instant case no such opportunity was given to the petitioner.
( 7 ) THIS writ petition is, accordingly, allowed. The impugned order passed by the Commissioner, Allahabad Division, Allahabad is quashed.
( 8 ) AS the impugned order is being set aside the consequential orders prohibiting the petitioner from operating the ferry are also quashed. The matter is remanded back to the Commissioner to pass fresh order on or before 31-3-1995 after giving an opportunity of being heard to the parties. Learned counsel for the parties have given undertaking that their clients will appear before the Commissioner on 6/03/1995 on which date they will file a certified copy of this order before him, who will give them a date for hearing and for producing any material in their support. After giving such an opportunity the learned Commissioner will pass appropriate order within the time specified above. It is made clear that if any of the party does not appear on the date fixed by the Commissioner, it will be open to him to proceed ex parte against him. After the Commissioner has passed the order the rights of the parties will be governed by it and the petitioner will not be able to operate the ferry thereafter unless his bid has been accepted. Order accordingly.
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