Simplified Explanation of the Judgment
In a significant ruling, the Patna High Court set aside a blacklisting order issued by the Health Department of Bihar against a printing contractor, citing violation of the principles of natural justice. The Court held that no proper show-cause notice had been issued to the contractor before publishing the blacklisting order, making the entire action legally unsustainable.
The petitioner, a printing press based in Saharsa district, had entered into a contract to provide services to Jannayak Karpoori Thakur Medical College and Hospital, Madhepura. A dispute arose regarding certain materials being retained by the petitioner. In response, the department issued a letter on 25.01.2024, which merely asked the petitioner to lift the materials and warned of possible blacklisting if it failed to comply.
Subsequently, a public notice was issued, declaring the petitioner blacklisted. The petitioner challenged this public notice before the Patna High Court.
The High Court, after reviewing the letter and the public notice, observed that:
- The letter dated 25.01.2024 was not a proper show-cause notice; it lacked specific allegations and merely threatened action.
- The public blacklisting notice failed to refer to the contents of the earlier letter or any pending show-cause proceedings.
- The petitioner was never given an opportunity to understand the precise grounds of alleged misconduct or to respond to the charges.
The Court referred to binding precedents from the Hon’ble Supreme Court in Oryx Fisheries (P) Ltd. v. Union of India and Gorkha Security Services v. Government (NCT of Delhi) which emphasize that:
- A show-cause notice must clearly state the grounds and proposed penalty.
- The person must feel that a fair opportunity will be given to contest the allegations.
- A prejudged or vague notice is not legally sufficient.
Further, in Erusian Equipment & Chemicals Ltd. v. State of West Bengal, the Supreme Court had already clarified that blacklisting affects an individual’s right to equality in public contracts and amounts to civil consequences — hence, it requires strict adherence to fairness and legality.
Applying these principles, the Patna High Court found the blacklisting order to be in complete violation of natural justice. The Court made it clear that any blacklisting decision must follow a legally sound and transparent procedure.
Hence, the blacklisting order (Annexure-17) was quashed. However, the Court granted liberty to the authorities to issue a fresh, lawful show-cause notice if they so desire.
Significance or Implication of the Judgment
This decision reaffirms a fundamental rule of administrative law — that no adverse action affecting legal rights or business reputation can be taken without giving the affected party a fair hearing. For contractors, especially those dealing with government institutions in Bihar, this judgment is a protective shield against arbitrary blacklisting.
For government departments, the judgment serves as a caution: even if the cause appears justified, procedural safeguards — especially fair and detailed show-cause notices — must be strictly followed. Otherwise, the entire action is liable to be struck down.
This ruling is particularly relevant for vendors, small businesses, and contractors engaged in public projects across Bihar, where blacklisting can spell financial and reputational ruin.
Legal Issue(s) Decided and the Court’s Decision
- Was there a valid and sufficient show-cause notice before blacklisting the petitioner?
→ No. The communication did not meet legal standards for a show-cause notice. - Was the blacklisting order passed in violation of natural justice?
→ Yes. The order was passed without a fair hearing or detailed allegation. - Can the blacklisting order survive in absence of proper procedure?
→ No. It was quashed for procedural illegality.
Judgments Relied Upon or Cited by Court
- Oryx Fisheries (P) Ltd. v. Union of India, (2010) 13 SCC 427
- Gorkha Security Services v. Govt. (NCT of Delhi), (2014) 9 SCC 105
- Erusian Equipment & Chemicals Ltd. v. State of West Bengal, (1975) 1 SCC 70
Case Title
M/s Vijayshree Press v. The State of Bihar & Others
Case Number
Civil Writ Jurisdiction Case No. 2517 of 2024.
Coram and Names of Judges
Hon’ble the Chief Justice
Hon’ble Mr. Justice Harish Kumar
Names of Advocates and who they appeared for
- Mr. Prashant Sinha, Advocate (for the petitioner)
- Mr. Vikas Kumar, Advocate (for the respondents)
Link to Judgment
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