High Court of Karnataka Allows Writ Petition Quashing Cancellation of Work Order in Tender Matter — Violation of Natural Justice. Failure to Provide Show Cause Notice Before Cancelling Work Order Renders Impugned Order Invalid Under Article 226 of Constitution.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, Object Technologies, a registered partnership firm, was awarded a work order by the 3rd respondent, District Health and Family Welfare Officer, Chikkamagalur, on 28.03.2017 for a period of one year from 01.04.2017. The work order required the petitioner to provide 56 personnel in various categories such as District Level Data Entry Operator, Drivers, Accounts Assistants, LDC, etc., for health organizations in the district. However, by an order dated 12.06.2017, the 2nd respondent cancelled the work order without issuing any show cause notice or providing an opportunity of hearing to the petitioner. The petitioner challenged this cancellation by filing a writ petition under Articles 226 and 227 of the Constitution of India, seeking a writ of certiorari to quash the cancellation order. The court observed that the cancellation was in clear violation of the principles of natural justice, as the petitioner was not given any notice or hearing before the adverse order was passed. The court held that such an order cannot be sustained and accordingly quashed the impugned order dated 12.06.2017. The writ petition was allowed.

Headnote

A) Administrative Law - Natural Justice - Audi Alteram Partem - Cancellation of Work Order - The petitioner's work order was cancelled without any show cause notice or opportunity of hearing, which is a clear violation of principles of natural justice. The court held that such cancellation cannot be sustained and quashed the impugned order. (Paras 1-4)

B) Contract Law - Tender - Outsourcing Contract - Work Order - The petitioner was awarded a work order for providing manpower to health organizations. The cancellation was challenged on grounds of lack of notice. The court found no justification for the cancellation without hearing the petitioner. (Paras 1-3)

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Issue of Consideration

Whether the cancellation of a work order without issuing a show cause notice to the petitioner violates principles of natural justice.

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Final Decision

The writ petition is allowed. The impugned order dated 12.06.2017 in No.DPMU/NHM/OS/Sec-2/11/2017-18 issued by the 2nd respondent is quashed.

Law Points

  • Natural justice
  • audi alteram partem
  • cancellation of work order without notice
  • writ jurisdiction under Article 226
  • tender cancellation
  • outsourcing contract
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Case Details

2017 LawText (KAR) (08) 30

Writ Petition No.28195/2017 (GM-TEN)

2017-08-09

Dr. Vineet Kothari

Sri. Manmohan P.N. for Petitioner, Smt. Prathima Honnapura for Respondents

Object Technologies

State of Karnataka & Ors.

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Nature of Litigation

Writ petition challenging cancellation of work order without notice.

Remedy Sought

Writ of certiorari to quash the cancellation order dated 12.06.2017.

Filing Reason

Cancellation of work order without show cause notice or opportunity of hearing.

Issues

Whether cancellation of work order without show cause notice violates principles of natural justice.

Submissions/Arguments

Petitioner argued that cancellation was without notice and in violation of natural justice. Respondents did not contest the violation.

Ratio Decidendi

Cancellation of a work order without issuing a show cause notice or providing an opportunity of hearing is a violation of principles of natural justice and cannot be sustained.

Judgment Excerpts

The petitioner has challenged the impugned cancellation of his work order given to him by the 3rd Respondent... The impugned order of cancellation is in clear violation of the principles of natural justice... The impugned order dated 12.06.2017 is quashed.

Procedural History

The petitioner was awarded a work order on 28.03.2017. On 12.06.2017, the 2nd respondent cancelled the work order without notice. The petitioner filed the present writ petition on an unspecified date. The court heard the matter and passed the order on 09.08.2017.

Acts & Sections

  • Constitution of India: Articles 226, 227
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