MAHAMAYA CHEMICALS HINOO Vs. STATE OF JHARKHAND
LAWS(JHAR)-2006-12-5
HIGH COURT OF JHARKHAND
Decided on December 06,2006

MAHAMAYA CHEMICALS, HINOO Appellant
VERSUS
STATE OF JHARKHAND Respondents

JUDGEMENT

- (1.) Petitioner is aggrieved of the order No. 123 dated 25th August, 2006, blacklisting the petitioner and the order dated 9-9-2006 cancelling the work already allotted. Petitioner is a proprietorship concern duly registered with the District Industrial Centre, Ranchi and is engaged in manufacturing and processing of unslacked lime etc. Petitioner participated in the bid and was declared as a successful bidder for supply of the unslacked lime. A formal agreement is said to have been executed, which was in operation till 30th September, 2006. Vide impugned order No. 123 dated 25th August, 2006, issued under order of the Under Secretary, Drinking Water and Sanitation Department, Government of Jharkhand, Ranchi petitioner has been blacklisted and -has been deprived of all future contracts with a further direction not to allow execution of current work. This blacklisting order has been passed on the ground that the representative of the petitioner entered into the office of the Executive Engineer, Drinking Water & Sanitation Division, Hatia Project, Ranchi without permission and attempted to destroy the papers lying on the table of the officer and also misbehaved with the Executive Engineer, Drinking Water & Sanitation Division, Hatia Project, Ranchi and threatened to kill him. Consequently, another order has been passed dated 9-9-2006, whereby petitioner's order of supply dated 26th June, 2006 for supply of 25 metric tonne of lime stone and 59 metric tonne of Alluminna Ferric has also been cancelled with a further direction not to make any payment to him. Though petitioner has made so many allegations against respondent No. 7, who is the Executive Engineer, Drinking Water & Sanitation Division, Hatia Project, Ranchi and this Officer has been impleaded as a party by name but primarily impugned orders has been assailed being in contravention of the provisions of Bihar Public Works Department Code and violation of principles of natural justice. Reliance is placed upon Clause 18 of the Bihar Public Works Department Code, which reads as under :- "18. (i) De-registration - If any of the documents produced by the contractors at the time of registration is found to be faulty, his registration will be cancelled with immediate effect. (ii) Black listing - If obvious defect is found at a later date in the work done by the contractor or his conduct and behaviour is found unbecoming of a civilized person either during or after the construction period (but within the period of registration or he is found guilty of any criminal offence, or it is established that he has managed to receive excess paymentfrom the Department, or engineers employed by him are found to be associated or employed simultaneously with other firms, or any information furnished by him is found to be wrong or misleading during any time his registration is valid, then for any; or all of the above reasons it will be open to the Department to black-list the contractor for an indefinite or a specified period and/or de-register him and withhold any further payment due to him and forfeit his earnest money, and security deposit after giving him proper opportunity to represent his case. During the period the contractor has been blacklisted, he will not be eligible to purchase tender or apply for any work or receive contract anywhere for any work in the Department."
(2.) Mr. M. K. Laik, learned Sr. S.C, I while defending the impugned order has vehemently argued that in the present case, there is no necessity of observing the principles of natural justice as the representative of the petitioner, who is her husband is guilty of misbehaviour as is evident from the impugned order dated 25th August, 2006. He has further relied upon Rules 13 and 14 of Bihar Contractors Registration, Rules, 1996, which reads as under :- "Rule 13.- The name of the contractor in any of the category of P.W.D. (Public Works Department) due to any of the following category of corruption by a Contractor or any partner of a registered firm or by any director or any technical employee or any of the authorized representative of a private public committee company, personally, may be put under blacklist. (i) Indisciplined behaviour with any Officer or employee of the concerned department. (ii) Laches in the disposal of work in accordance with the agreement or prescribed specification. (iii) For creating law and order problem in the Government Office at the time of receiving tender papers or producing tender papers or any work connected with it. Rule 14.-- The final decision shall be taken by the competent registering Officers of a particular class/rank only after issuing show cause notice for blacklisting any contractor of a particular class.
(3.) It is, accordingly, stated that under Rule 14 only contractor of the special category is entitled to notice before blacklisting and petitioner being not a special category contractor, was not entitled to any such notice.;


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