Point of law : Before proposing to pass a black listing order or debarring orders the parties had to be given hearing followed by an appropriate reasoned order.

ORDER :

Heard the learned Counsel for petitioner and the Learned Government Pleader for Medical Health and Family Welfare.

2. The prayer pleaded by the petitioner in the present writ petition is as follows:

“to issue order, Writ or direction more particularly one in the nature of Mandamus declaring the action of respondent No. 4 in black listing and terminating the services of the petitioner vide letter No.523-D/25/13/DIET/2017-Gen-V-II, dated 26.12.2022 without looking into the explanation submitted by the Petitioner as illegal, arbitrary and violative of principles of natural justice apart from violative of Fundamental Rights under Articles 14 and 21 of the Constitution of India and consequently set aside the same.”

3. The case of the petitioner, in brief, is as follows:

a) The petitioner is a Diet Contractor and had participated in the e-tender notice Bid No GEM/2021/B/1636730, dated 02.11.2021 to provide Health Care and Kitchen Dietary Services in ESIC Super Specialty Hospital for a period of one year from 01.01.2022 to 31.12.2022 and the said bid had been awarded to petitioner as successful bidder. Since then, the petitioner had been providing satisfactory services to the patients and Doctors.

b) To the surprise of the petitioner, a show cause notice has been issued by the 4th respondent on 03.12.2022 stating that the Director (FAC), MIMS, Hyderabad vide letter Rc.No.10560/P1/2021 dated 11.11.2022, the experience certificate of ESI, Nacharam, submitted by the petitioner is fake and not genuine and further that the same certificate has been submitted by the petitioner for GeM bid.

c) The petitioner had submitted a reply to the said show cause notice dated 05.12.2022 denying all the allegations against the fake certificate and sought the details of the enquiry conducted behind the back of the petitioner.

d) The 4th respondent without taking into consideration the explanation of the petitioner had mechanically issued the impugned letter No.523-D/25/13/DIET/2017-Gen-V-II, dated 26.12.2022 terminating the petitioner’s service from 01.02.2023 and blacklisting the petitioner from participating in future tender/bids floated by ESIC for 3 (Three) years from the date of blacklisting and revoking the bank guarantee No. 04250100000116 dated 21.12.2021.

d) The petitioner had filed the W.P.No. 42999 of 2022 before this High Court against suspension of the petitioner’s service and blacklisting the petitioner firm and the interim orders were passed suspending the letter Rc.No.10560/P1/2021, dated 11.11.2022 issued by the Director (FAC), MIMS, Hyderabad. Despite the pending Writ Petition, the 4th respondent had issued the proceedings impugned letter No.523-D/25/13/DIET/2017-Gen-V-II, dated 26.12.2022, which is already being challenged in W.P.No. 42999 of 2022.

e) The action of the 4th respondent is based on the frivolous complaint of the unsuccessful bidders with malafide and ulterior motive. The coercive Action/s taken against the petitioner vide impugned letter No.523-D/25/13/DIET/2017-Gen-V-II, dated 26.12.2022 is illegal and arbitrary. Blacklisting takes away the petitioner’s right to participate in e-tender and tarnishes the reputation and brings the character into question.

f) Even though the present lease period ends on 31.12.2022, the impugned order was passed blacklisting the petitioner in the future bids of ESIC and terminating the petitioner’s service from 01.02.2023 and for the petitioner to participate in fresh bids of ESIC for the year 2023, the impugned letter passed by the 4th respondent dated 26.12.2022 have to be set aside.

g) The petitioner had challenged the order passed by the 4th respondent dated 26.12.2022 vide W.P.No.46490 of 2022 and the same was withdrawn giving liberty for including the 3rd respondent herein. Hence, this Writ Petition.

PERUSED THE RECORD

4. The order impugned dated 26.12.2022 issued by the 4th respondent reads as under:

“Please refer to this office show cause notice cited under reference (3) wherein you were