Simplified Explanation of the Judgment
In this case, the Patna High Court examined the legality of a 10-year blacklisting order issued against a contractor by the Chief Engineer, Rural Works Department, Government of Bihar. The petitioner challenged the order on the grounds that no show cause notice was ever served to him and that the punishment imposed was highly excessive and disproportionate.
The Court observed two major violations:
- Violation of Natural Justice: The petitioner was not served with a notice asking for his explanation before being blacklisted. There was no record proving that any such notice was issued or received.
- Disproportionate Punishment: Even if there were valid grounds for disciplinary action, imposing a 10-year blacklisting without hearing the contractor was considered unjust and excessive by the Court.
Referring to various Supreme Court decisions, the Patna High Court reiterated the principle that blacklisting has serious civil consequences. It restricts the affected person from engaging in any contractual relationship with the government, effectively resulting in what is sometimes termed “civil death.” Thus, any such action must strictly follow due process and give the affected person a fair hearing.
The Court particularly relied on the judgments in Gorkha Security Services v. Govt. of NCT of Delhi, Kulja Industries v. BSNL, and Vetindia Pharmaceuticals Ltd. v. State of UP, all of which emphasize that blacklisting must be backed by proper notice, hearing, and a reasoned order.
As a result, the Patna High Court quashed the blacklisting order dated 12.01.2022 and directed the concerned department to issue a fresh show cause notice (old or new), give the petitioner two weeks to respond, and then pass a final reasoned order within four weeks thereafter. Meanwhile, the petitioner was allowed to participate in government works.
Significance or Implication of the Judgment
This judgment strengthens procedural safeguards for contractors working with government departments in Bihar. It sends a clear message to public authorities that severe administrative penalties like blacklisting cannot be imposed without respecting legal rights and ensuring procedural fairness.
The judgment is especially relevant for contractors and vendors who depend on government contracts for livelihood. It protects against arbitrary exclusion from public tenders and upholds the constitutional guarantees of equality and fair treatment.
Legal Issue(s) Decided and the Court’s Decision
- Was the petitioner served with a show cause notice before blacklisting?
- No. There was no record of service of notice.
- Was the punishment of 10 years’ blacklisting excessive?
- Yes. The Court held it was disproportionate and unjustified.
- Is blacklisting without hearing a violation of natural justice?
- Yes. The Court reiterated that hearing is essential.
- Can the department issue a fresh notice and reconsider?
- Yes. The Court allowed a fresh process with proper notice and hearing.
Judgments Referred by Parties
- State of Orissa v. Balram Sahu, (2009) 2 SCC 652
- Patel Engineering Ltd. v. Union of India, (2012) 11 SCC 257
- Gorkha Security Services v. Government of NCT of Delhi, (2014) 9 SCC 105
- Kulja Industries Ltd. v. BSNL, (2014) 14 SCC 731
Judgments Relied Upon or Cited by Court
- Vetindia Pharmaceuticals Ltd. v. State of Uttar Pradesh, (2021) 1 SCC 804
- Natwar Singh v. Director of Enforcement, (2004) 13 SCC 255
- SEBI v. Akshaya Infrastructure (P) Ltd., (2014) 11 SCC 112
- H.L. Trehan v. Union of India, (1989) 1 SCC 764
Case Title
Binod Kumar Singh v. State of Bihar & Ors.
Case Number
CWJC No. 9012 of 2022
Coram and Names of Judges
Hon’ble the Chief Justice Sanjay Karol and Hon’ble Mr. Justice S. Kumar
Names of Advocates and Who They Appeared For
Mr. Sita Ram Prasad and Mr. Noushad Khan – for the petitioner
Mr. Kumar Alok, SC-7 – for the respondents
Link to Judgment
https://www.patnahighcourt.gov.in/ShowPdf/web/viewer.html?file=../../TEMP/506d1b39-6a40-4bca-832a-04bad00fcde7.pdf&search=Debarment
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