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2024 Supreme(MP) 825

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
GURPAL SINGH AHLUWALIA, J.
M/S Yogendra Dev Pandey, Travelling Agency, Through Its Proprietor Yogendra Dev Pandey, S/o. Shri Om Sharan Pandey – Petitioner
Versus
Bhopal Sahkari Dugdh Sangh Maryadit, Through Its Chief Executive Officer, Bhopal Dairy Plant, Habibganj, Bhopal (Madhya Pradesh) and Ors. – Respondents
Writ Petition No. 16902 of 2020
Decided On : 28-05-2024

Advocates Appeared:
For the Petitioner:Smt. Shobha Menon- Senior Advocate with Ms. Ritu Janjani Advocate
For the Respondents:Shri Ajay Mishra- Senior Advocate With Ms. Pankhuri Vishwakarma- Advocate

Blacklisting of a contractor's vehicles must be proportionate to the offense; lifetime blacklisting is impermissible and must be limited to a reasonable period.

Headnote:(A) Constitution of India - Article 226 - Writ of certiorari - Petition challenging blacklisting of petitioner and his tankers for alleged theft and adulteration of milk - Court found that blacklisting of all tankers was arbitrary as only one tanker was involved in the incident - Blacklisting for life is impermissible; period modified to 5 years. (Paras 27, 28)

(B) Natural Justice - Right to be heard - Petitioner was not given an opportunity to defend against blacklisting, violating principles of natural justice. (Paras 4, 6)

Facts of the case:
The petitioner was blacklisted without a hearing based on allegations of theft and adulteration of milk involving one tanker. The petitioner challenged the blacklisting orders, asserting that the actions were arbitrary and lacked due process. (Paras 3, 4)

Findings of Court:
The court held that blacklisting all tankers was unjustified as only one was implicated in the theft. The blacklisting period was modified to 5 years, aligning with legal precedents. (Paras 24, 28)

Issues: The main issues included whether all tankers could be blacklisted for the actions of one and the legality of a lifetime blacklisting. (Paras 13, 25)

Ratio Decidendi: The court emphasized that blacklisting must be proportionate to the offense and that the principle of natural justice requires an opportunity to be heard before such punitive measures are taken. (Paras 27, 28)

Result: The petition was disposed of with the modification of the blacklisting period to 5 years.

ORDER :

GURPAL SINGH AHLUWALIA, J.

This petition under Article 226 of Constitution of India has been filed seeking the following the reliefs:-

“(i) call for the entire records leading to the impugned action for the perusal of this Court;

(ii) issue a writ of certiorari setting aside the impugned orders dated 11.09.2020 (Annexures P- 11); dated 24.09.2020 (Annexure P-13) and Memo dated 29.09.2020/30.09.2020 (Annexure P- 16/P16A) and hold them as arbitrary, illegal and unreasonable;

(iii) pass such other orders directing respondents to pay compensation for the period the work was not taken from the petitioner for no cogent and tangible reasons and besides direct the respondents to release all the monetary benefits as detailed in chart/or such orders be passed in accordance with law.

(iv) order costs of the petition to the petitioner;

(v) pass any other relief which this Hon’ble Court deems fit and proper, in the interest of justice.”

2. It is submitted by counsel for petitioner that respondents floated a tender on 27.08.2018 for transportation of milk from the Municipal limits of Bhopal to the Chilling Center as also transportation from Multai/Betul to the Dairy Center at Bhopal. The petitioner participated in the bid process and was declared as successful bidder for transportation of milk from the Chilling Center within the State of Madhya Pradesh and accordingly, agreement dated 14.11.2018 was executed, which was valid for a period of two years i.e. up to 30.09.2020 with a stipulation that the CEO with the consent of the contractor can extend the period of contract subject to the satisfactory performance of contract.

3. It is submitted that on 14.12.2019, Sub Inspector, Police Station Crime Branch, Bhopal seems to had received an information that a Tanker bringing milk from the Chilling Plant, Multai has stopped at a Dhaba wherein the driver has stolen the milk and has mixed it with water and urea. The aforesaid Tanker was bearing registration No. MP- 13-H-2178. As soon as the Police approached, the man was identified as Gopal and the driver of the Tanker was identified as Farhan. On inspection, the seal of the lid of the tanker was found broken. The milk was to be transported from the Chilling Plant at Multai to Bhopal Milk Federation of Habibganj. On the basis the aforesaid allegation, an FIR was lodged against the Driver and another person as well as the petitioner and it has been specifically mentioned in the writ petition that the said matter is pending for prosecution before the competent Court of law. An order of detention under Section 3 of National Security Act was also passed against the petitioner. The said order of detention was challenged by the wife of the petitioner by filing W.P.No.28729/2019 and by order dated 27.02.2020, the said writ petition was allowed and the order of detention under the National Security Act was quashed.

4. On 15.12.2019, the respondents on the basis of the alleged FIR in regard to the incident dated 14.12.2019, black listed the petitioner without giving any opportunity of hearing and accordingly, the order of black listing was challenged before this Court by filing W.P.No.8603/2020. The order of black listing was stayed and ultimately the order of black listing was set aside on the ground of non-grant of opportunity of hearing.

5. It is submitted that on 18.12.2019, an enquiry report was submitted pointing out that since the Tanker is parked in the Police Station, therefore the sample of the milk could not be collected. The Federation has the Laboratory to detect the presence of urea beyond 0.08% because in the natural milk 0.07% urea is found. Had there been any instances of mixing the urea in the past, then it would have been detected in the laboratory but no such adulteration was detected by the laboratory. However, in the said report, it was also mentioned that in between 20.11.2019 to 11.12.2019, the seal of 9 Tankers was found broken.

6. It is also submitted by counsel for petitioner that alt

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