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Patna High Court

Anand Consultants A Proprietor Firm ... vs The State Of Bihar & Ors on 14 March, 2018

Author: Vikash Jain

Bench: Vikash Jain

          IN THE HIGH COURT OF JUDICATURE AT PATNA

               Civil Writ Jurisdiction Case No.13601 of 2017
===========================================================
Anand Consultants, a Proprietory Firm through Rupesh Kumar Srivastava son
of Late Anand Bihari Srivastava resident of 157-C, Patliputra Colony, Near
Tennis Court, Patna - 800013.

                                                            .... .... Petitioner/s
                                    Versus

1. The State of Bihar through Principal Secretary, Dept. of Industries, Govt. of
Bihar, Patna.
2. Infrastructure Development Authority (A Government of Bihar Undertaking)
1st Floor, Udyog Bhawan, East of Gandhi Maidan, Patna - 800004.
3. The Managing Director, Infrastructure Development Authority, 1st Floor,
Udyog Bhawan, East of Gandhi Maidan, Patna - 800004.
4. Director (Project & Implementation), Infrastructure Development Authority,
1st Floor, Udyog Bhawan, East of Gandhi Maidan, Patna - 800004.
5. Executive Engineer, Infrastructure Development Authority, 1st Floor, Udyog
Bhawan, East of Gandhi Maidan, Patna - 800004.

                                                       .... .... Respondent/s
===========================================================
       Appearance :
       For the Petitioner/s : Mr. P.K.Shahi, Sr. Adv
                               Mrs. Poonam Singh, Adv
                               Mr. Abhimanyu Vatsa, Adv
                               Mr. Rajni Kant Singh, Adv
       For the Respondent/s  : Mr. Abbas Haider-SC6
===========================================================
CORAM: HONOURABLE MR. JUSTICE VIKASH JAIN
ORAL JUDGMENT
Date: 14-03-2018


               The present writ petition has been filed for the following
   reliefs:-
               (i)            To quash and cancel the show cause notice as
                              contained in letter no. 1391 dated 26.07.2017
                              as also to quash and cancel the decision/order
                              of      the      Director       (Project        and
                              Implementation)/Director (P&I) (Respondent
                              No. 4) as contained in office order no.
                              1608/Tech dated 04.09.2017 by which the
 Patna High Court CWJC No.13601 of 2017 dt.14-03-2018                                   2




                                       agreement no. 103/SBD/2015-16 executed in
                                       favour of the petitioner has been terminated
                                       and in accordance with the Bihar Contractors
                                       Registration Rules, 2007, Clause 11(ka)(ii) the
                                       petitioner firm has been blacklisted for all time
                                       to come and the Earnest Money Deposit has
                                       also been forfeited.
                     (ii)              To issue a writ of mandamus restraining the
                                       respondents     from   giving   effect   to   the
                                       order/direction as contained in office order no.
                                       20 dated 04.09.2017.
                     (iii)             To issue any other appropriate writ/writs,
                                       direction/directions as the Hon'ble Court may
                                       deem fit and proper in the facts and
                                       circumstances of the case.
                   2. Mr.P.K. Shahi, learned senior counsel appearing on behalf of

           the petitioner submits that the impugned order dated 04.09.2017

           (Annexure-12) is wholly arbitrary and illegal. Pursuant to show

           cause notice dated 26.07.2017 (Annexure-11), the petitioner

           submitted its detailed reply dated 04.08.2017 and 30.08.2017

           against the proposed action of cancellation of the agreement,

           blacklisting, institution of the FIR etc. The impugned order, however,

           has been passed without due application of mind and without

           assigning any reason for not accepting the show cause reply of the

           petitioner. However, the petitioner has been blacklisted for

           indefinite period, contrary to the settled principles of law. He relies

           on the decision of the Apex Court in Kulja Industries Limited vs. Chief
 Patna High Court CWJC No.13601 of 2017 dt.14-03-2018                               3




           General Manager, Western Telecom Project, Bharat Sanchar Nigam

           Limited and others, (2014) 14 SCC 731.

                       3. Having heard the parties and on consideration of the

           materials on record, this Court finds merit in the submissions of the

           petitioner. In Kulja Industries (supra) it was observed as follows :-

                      "25. Suffice it to say that "debarment" is recognised and
                      often used as an effective method for disciplining deviant
                      suppliers/contractors who may have committed acts of
                      omission      and     commission   or   frauds   including
                      misrepresentations, falsification of records and other
                      breaches of the regulations under which such contracts
                      were allotted. What is notable is that the "debarment" is
                      never permanent and the period of debarment would
                      invariably depend upon the nature of the offence
                      committed by the erring contractor."
                          4. It would appear that the principles in regard to -*

            "debarment" and "blacklisting" would be the same in view of para

            21 of the said judgment, wherein it has been observed as follows -

                        "21. The legal position governing blacklisting of
                        supplies in U.S.A. and U.K. is no different. In U.S.A.
                        instead of using the expression "blacklisting" the
                        term "debarring" is used by the statutes and the
                        Courts."
                    5. In the above view of the matter, the impugned order dated

        04.09.2017

(Annexure-12) is hereby quashed and the matter remanded to the Director (Project & Implementation), Infrastructure Development Authority, Ist Floor, Udyog Bhawan, East of Gandhi Patna High Court CWJC No.13601 of 2017 dt.14-03-2018 4 Maidan, Patna - 800 004 (Respondent No. 4) to pass orders afresh after considering the aforesaid replies of the petitioner, pursuant to the show cause notice, before passing fresh orders in accordance with law.

6. The writ petition stands disposed of.





                                                                        (Vikash Jain, J)

Chandran/BT


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