High Court of Bombay

Mamta Khadotiya vs. Union Of India

MANU/MH/3239/2023

18.08.2023

Commercial

Prior show cause notice granting reasonable opportunity of being heard is essential element of all administrative decision-making

Instituting present proceeding under Article 226 of the Constitution of India, 1950, a challenge has been laid by the petitioner to an order to the extent the said order debars/blacklists the petitioner from participating in the bid process of catering licence of a contract for any Zonal Railways-IRCTC for a period of 5 (five) years. Under challenge is another order whereby the debarment order has been reiterated by the Divisional Commercial Manager.

As a matter of fact, the notices, did not call upon the Petitioner to show cause why debarment order may not be passed. Any notice issued requiring the petitioner to make deposit of the licence fees does not fulfill the requirement of show cause notice which is necessarily to be issued before passing of an order of debarment/blacklisting. In absence of such notice, the impugned order is in clear violation of the principles of natural justice and hence, the same cannot be sustained.

The law in regard to debarment/blacklisting is very clear. The Hon'ble Supreme Court in the case of UMC Technologies Private Limited vs. Food Corporation of India and Anr. has clearly observed that a prior show cause notice granting reasonable opportunity of being heard is an essential element of all administrative decision-making and particularly so in decisions pertaining to blacklisting which entail grave consequences. The orders are set aside. It will, however, be open to the Respondents to take decision afresh after issuing proper show cause notice. Petition disposed off.

Tags : Debarment order SCN Issuance

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