Rajasthan High Court - Jodhpur
M/S. Sikander Ali & Company vs . The State Of Rajasthan & Ors. on 13 April, 2015
Author: Sangeet Lodha
Bench: Sangeet Lodha
M/S. SIKANDER ALI & COMPANY VS. THE STATE OF RAJASTHAN & ORS.
(S.B.CIVIL WRIT PETITION NO.1356/15)
1
M/S. SIKANDER ALI & COMPANY VS. THE STATE OF
RAJASTHAN & ORS.
(S.B.CIVIL WRIT PETITION NO.1356/15)
Dated:- 13.4.15.
HON'BLE MR.JUSTICE SANGEET LODHA
Mr. L.D.Khatri, for the petitioner.
Ms. Pratistha Dave, Additional Government Counsel. Mr.Rajesh Joshi, for the respondent no.4.
1. This writ petition is directed against order dated 4.8.14 issued by the Commissioner, Municipal Council, Jaisalmer, whereby the petitioner, a business concern, has been blacklisted on account of non completion of the work awarded and alleged involvement of its proprietor, Sikandar Ali, in encroaching upon the lands of Municipal Council, Jaisalmer.
2. Precisely, the contention of the petitioner is that the order blacklisting the petitioner has been passed by the Commissioner, Municipal Council, Jaisalmer without giving any notice or an opportunity of hearing.
3. Learned counsel appearing for the respondents fairly submitted that before passing the order impugned blacklisting the petitioner, no opportunity of hearing was extended.
4. A bare perusal of the order impugned reveals that the M/S. SIKANDER ALI & COMPANY VS. THE STATE OF RAJASTHAN & ORS.
(S.B.CIVIL WRIT PETITION NO.1356/15) 2 petitioner has been blacklisted for all time to come on account of failure on its part in completing the work contract awarded and alleged involvement of the proprietor of the petitioner concern in encroaching upon the public land. Indisputably, the action in blacklisting of petitioner concern on account of non performance or alleged involvement of its proprietor in criminal activity casts stigma and many civil and evil consequences flow therefrom and therefore, such an action could only be taken after following the principles of natural justice.
5. In "M/s. Erusian Equipment & Chemicals Ltd. vs. State of West Bengal & Anr", (1975) 1 SCC, 70, the Hon'ble Supreme Court observed:
"20. Blacklisting has the effect of preventing a person from the privilege and advantage of entering into lawful relationship with the Government for purposes of gains. The fact that a disability is created by the order of blacklisting indicates that the relevant authority is to have an objective satisfaction. Fundamentals of fair play require that the person concerned should be given an opportunity to represent his case before he is put on the blacklist."
(emphasis supplied)
6. Similarly, in "Raghunath Thakur vs. State of Bihar & Ors.", (1989) 1 SCC 229, the Hon'ble Supreme Court observed that blacklisting any person in respect of business ventures has civil consequences for future business of the person concerned and therefore, even if the rules do not express so, it is an elementary M/S. SIKANDER ALI & COMPANY VS. THE STATE OF RAJASTHAN & ORS.
(S.B.CIVIL WRIT PETITION NO.1356/15) 3 principle of natural justice that parties affected by any order should have right of being heard and making representation against the order.
7. In the matter of "Gorkha Security Services vs. Government of NCT of Delhi & Ors.", (2014) 9 SCC, 105, the Hon'ble Supreme Court while relying upon the decisions in M/s. Erusian Equipment & Chemicals Ltd's case and Raghunath Thakur's case (supra), observed that the action of the blacklisting must be preceded by show cause notice setting up the precise case which noticee is required to meet. The court observed that this would require the statement of imputations detailing out the alleged breaches and defaults committed so that he gets an opportunity to rebut the same. Another requirement as pointed out by the Court is the nature of action which is proposed to be taken for such breach inasmuch as, it is incumbent upon the authority concerned to provide adequate and meaningful opportunity to the person concerned. The court further observed that when it comes to the action of blacklisting which is termed as 'civil death', a harshest possible action, it would be difficult to accept the proposition that without even putting the noticee to such a contemplated action and giving him a chance to show cause as to why such an action be not taken, M/S. SIKANDER ALI & COMPANY VS. THE STATE OF RAJASTHAN & ORS.
(S.B.CIVIL WRIT PETITION NO.1356/15) 4 final order can be passed blacklisting such a person only on the premise that this is one of the actions so stated in the provisions of NIT.
8. In Hindustan Petroleum Corporation Limited's case (supra), the Hon'ble Supreme Court while dealing with the matter regarding cancellation of dealership agreement observed that the cancellation of dealership agreement is a serious business and cannot be taken lightly. The court observed that in order to justify the action to terminate such an agreement, the authority concerned has to act fairly and in complete adherence to the rules/guidelines framed for the purpose. The court held that non service of notice to the aggrieved person before the termination of his dealership agreement also offends well established principle that no person should be condemned unheard.
9. Thus, in view of the settled position of law noticed as above, the order impugned passed by the Commissioner, Municipal Council, Jaisalmer, in gross violation of the principles of natural justice is not sustainable in the eyes of law.
10. In the result, the writ petition succeeds, it is hereby allowed. The order impugned dated 4.8.14 passed by the Commissioner, Municipal Council, Jaisalmer is quashed. However, the respondent-Municipal Council shall be at liberty to M/S. SIKANDER ALI & COMPANY VS. THE STATE OF RAJASTHAN & ORS.
(S.B.CIVIL WRIT PETITION NO.1356/15) 5 take proceedings against the petitioner afresh, by issuing notice clearly setting out the allegations and action proposed to be taken. Needless to say that fresh order shall be passed by the respondents after due investigation and giving an adequate opportunity of hearing to the petitioner, in accordance with law. No order as to costs.
(SANGEET LODHA),J.
Aditya/