Supreme Court: Uncrystallized Contractual Damages Not an Operational Debt under Section 9 IBC  ||  Supreme Court: Interest Accrued in Suspense Account After NPA Classification is Recoverable as Debt  ||  Supreme Court: S.69 GST Arrest Order with “Reasons to Believe” Must Precede Arrest  ||  Supreme Court: Winding-Up Proceedings Period Cannot be Excluded under Section 14 Limitation Act  ||  Supreme Court: Separate Appeals Unnecessary Against Common Judgment on Suit and Counterclaim  ||  Supreme Court: Unsuccessful Party Can Seek Post-Award Section 9 Relief in Exceptional Cases  ||  Delhi HC Rejects Black Money Act Challenge, Imposes Rs. 60,000 Costs over Prosecution Avoidance  ||  Delhi HC Affirms Teacher's POCSO Conviction, Urges Schools to Encourage Children to Speak Up  ||  Kerala HC: NGO Funding Peaceful Protests Can't Justify FCRA Renewal Denial  ||  Delhi HC: Courts Cannot Judge Sufficiency of Material For Issuing Look Out Circular    

Mamta Khadotiya vs. Union Of India - (High Court of Bombay) (18 Aug 2023)

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

MANU/MH/3239/2023

Commercial

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  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved