Patna High Court Overturns Blacklisting Order for Lack of Due Process

The Patna High Court has allowed a petition challenging the blacklisting order issued on August 24, 2018, by respondent no. 6. The court emphasized the necessity for authorities exercising quasi-judicial powers, such as blacklisting or debarring a contractor, to act fairly and follow due procedures, adhering to the principles of natural justice.

Brief Facts:

• Contract and Agreement:
  • The petitioner responded to an advertisement by the Commandant, Mounted Military Police, for the supply of various items including fodder grains and rock salt.
  • The petitioner was selected and an agreement was executed for the supply of ground oats, ground barley, and rock salt.
  • Due to an unexpected rise in the price of ground oats, the petitioner requested a rate revision for further supply.
• Dispute and Blacklisting:
  • Upon sudden cessation of supply, the petitioner was served with a notice demanding resumption of supply.
  • Subsequently, the petitioner’s firm was blacklisted on August 24, 2018, prompting the present writ petition.

Contentions:

• Petitioner:
  • The petitioner argued that no show-cause notice or opportunity for a hearing was provided before the blacklisting order was issued.
  • The petitioner contended that the blacklisting was unjustified and ad infinitum, lacking plausible reasoning.
• Respondent:
  • The respondents asserted that the petitioner abruptly stopped the supply, breaching the agreement’s terms.
  • Repeated requests for resumption were ignored, compelling the blacklisting decision.

Court’s Observations:

• Lack of Due Process:
  • The court noted that the petitioner was not served with a show-cause notice nor given an opportunity to be heard.
  • Emphasizing the quasi-judicial nature of blacklisting powers, the court stated the necessity for fairness and adherence to due process and natural justice principles.
• Directive:
  • The court directed the respondent authority to issue a fresh show-cause notice with specific charges necessitating the blacklisting action.

Decision: The Patna High Court set aside the blacklisting order and remitted the matter to the concerned respondent for re-evaluation following the due process and principles of natural justice.

Case Details:

• Case Title: Kameshwar Kumar Singh v. The State of Bihar & Ors.
• Coram: Hon’ble Justice K. Vinod Chandran and Hon’ble Justice Harish Kumar
• Case No.: Civil Writ Jurisdiction Case No. 1419 of 2024
• Advocates:
  • Petitioner: Mr. Praveen Kumar
  • Respondents: Mr. Standing Counsel 16

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