Patna High Court Quashes Blacklisting Issued Without Show-Cause Notice

In a significant ruling that reinforces procedural fairness, the Patna High Court has quashed a blacklisting order issued against a social welfare organization without any prior show-cause notice. The Court held that such unilateral action violates fundamental legal principles and cannot be sustained.

The case involved Dauli Shiksha Sah Samaj Kalyan Sansthan, a registered social organization operating in West Champaran district. The organization was abruptly blacklisted by the District Welfare Officer through a notice published in the Hindustan newspaper dated 20.11.2019. There was no official communication, no explanation sought, and no opportunity given to the petitioner to defend the organization.

The petitioner approached the Court contending that this action was taken in complete violation of due process, and infringed upon Articles 14 (Right to Equality), 19 (Freedom of Association), and 21 (Right to Life and Livelihood) of the Constitution of India. The petition sought quashing of the newspaper publication, removal from the blacklist, initiation of an inquiry into the District Welfare Officer’s conduct, and compensation for the harm caused.

The Hon’ble Division Bench, comprising Hon’ble Mr. Justice P. B. Bajanthri and Hon’ble Mr. Justice Jitendra Kumar, agreed with the petitioner that the order was issued without adhering to basic legal requirements. Relying on precedents laid down by the Hon’ble Supreme Court, the Bench held that before blacklisting any individual or entity, the authority must issue a detailed show-cause notice and provide a fair opportunity of hearing.

Citing the recent apex court rulings in Isolators and Isolators v. MP Madhya Kshetra Vidyut Vitran Co. Ltd. [2023 SCC OnLine SC 444] and UMC Technologies Pvt. Ltd. v. Food Corporation of India [(2021) 2 SCC 551], the Court underscored that blacklisting has serious civil consequences and therefore must be preceded by procedural safeguards.

Accordingly, the High Court quashed the impugned blacklisting order dated 20.11.2019 and directed the competent authority to restart the process, strictly in accordance with the law. A fresh show-cause notice must be issued within four months, and only after the petitioner submits a detailed reply and is heard, can a final order be passed.

This judgment is a timely reminder that arbitrary administrative action, especially those with serious consequences like blacklisting, cannot bypass principles of natural justice.

Significance or Implication of the Judgment

This judgment significantly strengthens the rights of NGOs, contractors, and service providers working with the government, especially at the district level. It affirms that blacklisting—which can deprive an organization of its livelihood and reputation—must be conducted with transparency and fairness.

For public officials and departments, this ruling reiterates that even urgent administrative actions must respect legal procedures. Using newspaper announcements or informal communications to blacklist without notice will no longer stand scrutiny.

Importantly, this case provides a reference point for other organizations in Bihar and across India that face sudden or informal blacklisting, giving them grounds to seek remedy in courts.

Legal Issue(s) Decided and the Court’s Decision

• Whether an organization can be blacklisted without issuing a show-cause notice?
  ✔ No, the Court held this to be a violation of natural justice and constitutional rights.
• Whether publication in a newspaper can substitute a formal notice of blacklisting?
  ✔ No, the Court ruled such action illegal and without jurisdiction.
• Whether the authority must follow Supreme Court guidelines before blacklisting?
  ✔ Yes, the process must follow laid down legal precedents and give due opportunity to the affected party.

Judgments Relied Upon or Cited by Court

• Isolators and Isolators v. MP Madhya Kshetra Vidyut Vitran Co. Ltd. [2023 SCC OnLine SC 444]
• UMC Technologies Pvt. Ltd. v. Food Corporation of India [(2021) 2 SCC 551]

Case Title
Dauli Shiksha Sah Samaj Kalyan Sansthan vs. State of Bihar & Others

Case Number
Civil Writ Jurisdiction Case No. 4874 of 2020 (with CWJC Nos. 6999 of 2021 and 1939 of 2020)

Coram and Names of Judges
Hon’ble Mr. Justice P. B. Bajanthri
Hon’ble Mr. Justice Jitendra Kumar

Names of Advocates and who they appeared for
Mr. Surendra Kumar Singh — for the Petitioner
Mr. S.K. Mandal (SC-3), Mr. Bipin Kumar, Ms. Neelam Kumari — for the Respondents

Link to Judgment
https://www.patnahighcourt.gov.in/ShowPdf/web/viewer.html?file=../../TEMP/e6e69bff-9493-4df3-ba78-ee1b35061d91.pdf&search=Blacklisting

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