NCLAT: Consideration of Debt Restructuring by Lenders Doesn’t Bar Member from Initiating Proceedings  ||  Delhi High Court: In Matters of Medical Evaluation, Courts Should Exercise Restraint  ||  Delhi HC: Any Person in India Has Right to Legally Import Goods from Abroad and Sell the Same  ||  Delhi HC: Waiver to Section 12(5) of Arbitration Act to be Given Once Tribunal is Constituted  ||  Supreme Court Has Asked States to Regularise Existing Court Managers  ||  SC: Union & States to Create Special POSCO Courts on Top Priority  ||  SC Upholds Authority of CERC to Award Compensation for Delays  ||  SC: Arbitral Tribunal Has Discretion to Include in Sum Awarded, Interest at Rate as it Deems Reasonab  ||  SC: Cannot Use Article 142 to Frame Guidelines on Judicial Recusal  ||  SC: Satisfaction Recorder in One EP Won’t Affect Subsequent EPs for Future Breaches    

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 2025 - All Rights Reserved