Case Note & Summary
The petitioner, M.B. Hemashankar, a Class-I contractor, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Bengaluru, challenging the order dated 05.06.2020 passed by the Chief Engineer (respondent No.2) canceling his license registration and blacklisting him. The petitioner had been entrusted with the execution and construction of the Kodava Heritage Centre Building at Madikeri pursuant to a tender notification dated 31.05.2011, and he was the successful bidder. The allegation against the petitioner was that there was a delay in execution of the work. The impugned order was passed without issuing any show cause notice or affording an opportunity of hearing to the petitioner. The court noted that the order was in clear violation of the principles of natural justice, specifically the audi alteram partem rule. The court held that such an order cannot be sustained and accordingly quashed the impugned order. The matter was remitted back to respondent No.2 to pass a fresh order after issuing a show cause notice and affording an opportunity of hearing to the petitioner. The court directed that the petitioner shall be entitled to file his objections within two weeks from the date of receipt of the show cause notice, and the respondent No.2 shall pass a fresh order within four weeks thereafter. The writ petition was allowed in the above terms.
Headnote
A) Administrative Law - Natural Justice - Audi Alteram Partem - Cancellation of License and Blacklisting - Requirement of Show Cause Notice - The petitioner, a Class-I contractor, was awarded a contract for construction of Kodava Heritage Centre Building. The respondent No.2 passed an order canceling his license registration and blacklisting him without issuing any show cause notice or affording an opportunity of hearing. Held that such an order is in violation of principles of natural justice and cannot be sustained. (Paras 4-5) B) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of Constitution of India - Quashing of Administrative Order - The High Court, in exercise of its writ jurisdiction, quashed the impugned order dated 05.06.2020 passed by the Chief Engineer, PWD Department, as it was passed without following the principles of natural justice. The matter was remitted back to the respondent No.2 to pass a fresh order after issuing a show cause notice and affording an opportunity of hearing to the petitioner. (Paras 5-6)
Issue of Consideration
Whether the impugned order dated 05.06.2020 canceling the petitioner's license registration and blacklisting him is sustainable in law without affording an opportunity of hearing?
Final Decision
The writ petition is allowed. The impugned order dated 05.06.2020 (Annexure-A) passed by respondent No.2 is quashed. The matter is remitted back to respondent No.2 to pass a fresh order after issuing a show cause notice and affording an opportunity of hearing to the petitioner. The petitioner shall file his objections within two weeks from the date of receipt of the show cause notice, and respondent No.2 shall pass a fresh order within four weeks thereafter.
Law Points
- Natural justice
- Audi alteram partem
- Blacklisting
- Cancellation of license
- Show cause notice
- Opportunity of hearing
- Administrative law
- Writ jurisdiction under Articles 226 and 227 of Constitution of India
