Citation : 2025 Latest Caselaw 9590 Ker
Judgement Date : 10 October, 2025
W.P.(C).No.28668 of 2022 1
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE VIJU ABRAHAM
FRIDAY, THE 10TH DAY OF OCTOBER 2025 / 18TH ASWINA, 1947
WP(C) NO. 28668 OF 2022
PETITIONER:
M.C.BABY
AGED 58 YEARS
CONTRACTOR, S/O. CHACKO, MATTATHIL HOUSE,
MONAPPILLY, PUTHENCRUZ P.O., ERNAKULAM, PIN - 682
308.
BY ADVS.
SRI.P.MARTIN JOSE
SRI.P.PRIJITH
SRI.THOMAS P.KURUVILLA
SRI.R.GITHESH
SHRI.AJAY BEN JOSE
SRI.MANJUNATH MENON
SHRI.SACHIN JACOB AMBAT
SMT.ANNA LINDA EDEN
SHRI.HARIKRISHNAN S.
SRI.S.SREEKUMAR (SR.)
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY PRINCIPAL SECRETARY, PUBLIC WORKS
DEPARTMENT, ROADS AND BRIDGES, SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695 001.
2 THE CHIEF ENGINEER,
(ROADS DIVISION), PUBLIC WORKS DEPARTMENT,
THIRUVANANTHAPURAM - 695033.
3 THE SUPERINTENDING ENGINEER,
P.W.D. CENTRAL CIRCLE, ALUVA, PIN - 683 101.
4 THE EXECUTIVE ENGINEER,
P.W.D ROAD DIVISION, THRIKKAKARA P.O., KOCHI, PIN -
W.P.(C).No.28668 of 2022 2
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682 021.
5 THE ASSISTANT EXECUTIVE ENGINEER,
P.W.D. ROADS SUB DIVISION, ERNAKULAM, KOCHI, PIN -
682021.
6 THE ASSISTANT ENGINEER,
P.W.D. ROAD SECTION, THRIPUNITHURA, PIN - 682301.
BY ADV GOVERNMENT PLEADER
OTHER PRESENT:
SPL GP - MANOJ
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
10.10.2025, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
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VIJU ABRAHAM, J.
--------------------
W.P.(C).No.28668 of 2022
--------------------------------
Dated this the 10th day of October, 2025
JUDGMENT
Petitioner has approached this Court seeking to
quash Exts.P5 to P7 orders passed by the 3 rd
respondent imposing a fine on the extension of time
for the said work. Petitioner has also sought a
direction to quash Ext.P29 order passed by the 3rd
respondent, cancelling the A Class Contract License
of the petitioner and black listing him.
2. The petitioner is an 'A' Class Government
Contractor. A tender submitted by the petitioner for
the work Budget work 2016-2017 improvements to
town road and reconstruction of damaged drain and
foot path of stable road CH0/0000/30 Kannankulangara
road CH0/000-0/300 Sanskrit College Road, CH/0/200 to
0/300, BHS road CH0/200-0/400 Chakkankulangara Road
CH0/200-0/300 was accepted and Ext.P1 agreement was
executed. Though the period for completion of the
said work is fixed as 12 months from the date of
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handing over the site, the work was completed on
15.06.2020 within the extended time granted by the
authorities. Petitioner would submit that extension
was granted as per Exts.P4 to P7, while granting
extension as per Exts.P5 to P7, a fine was imposed
without any reason. Based on a complaint preferred by
the Member of the Legislative Assembly regarding
certain allegations regarding the work undertaking
against the petitioner, an enquiry was conducted
through the Vigilance Wing of the PWD and Ext.P10
report dated 19.11.2019 was submitted. Petitioner,
relying on Ext.P12, submits that the authorities
itself have found that the allegations against the
petitioner are not correct. Later, the petitioner
was issued Ext.P27 notice to show cause as to why
steps shall not be taken for cancelling his licence
invoking Clause 1916 of the PWD Manual 2012.
Petitioner submitted Ext.P28 reply to the same,
stating that in the show cause notice, none of the
defect or fault on the part of the petitioner leading
to issuance of Ext.P7 notice is given, and therefore,
he could not file a proper reply to Ext.P27. Now, by
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Ext.P29 order the license was cancelled, and he was
black listed. It is aggrieved by the same that the
petitioner has approached this Court.
3. The learned Government Pleader, on the
basis of the counter affidavit filed by the 3 rd
respondent, submitted that the work undertaken by
the petitioner regarding the improvement of
Nadakkavu-Mulanthuruthy Road was cancelled at the
risk and cost of the contractor, and though the
petitioner has challenged the same, the Court has
repelled the said challenge. Further, relying on the
Vigilance Report of the Deputy Chief Engineer,
Vigilance, dated 30.01.2020, a decision was taken to
cancel the license and also black listed the
petitioner.
4. I have considered the rival contentions on
both sides.
5. As regards the imposition of a fine, as
per Exts.P5 to P7, it is seen that the petitioner
has accepted the extension order granted by imposing
a fine and completed the said work. Therefore, the
petitioner cannot now turn down and challenges the
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imposition of fine in the said proceedings. But as
regards the challenge against Ext.P29, it is to be
seen that Ext.P27 is the show cause notice issued to
the petitioner. It is seen that Ext.P27 notice was
also issued based on Ext.P22 report of the Deputy
Chief Engineer, Vigilance. But a perusal of Ext.P27
would reveal that the reason for taking a decision
to cancel his license is not stated in Ext.P21 and
further the copy of the Vigilance report relied on
to issue Ext.P27 notice is also not served on the
petitioner. In Ext.P28 reply given by the petitioner
he has taken a specific contention that since no
allegations on which the steps have been taken to
cancel his license has not been stated in Ext.P27
notice, he could not give an effective reply.
Thereafter, by Ext.P29, based on the reason that the
work for improvement of Nadakkavu-Mulanthuruthy Road
has been cancelled at the risk and cost of the
petitioner and also relying on the report of the
Deputy Chief Engineer, Vigilance, a decision was
taken to cancel his license and black listed him.
Petitioner relies on the judgment in M/S. Abcon
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Engineering v. Superintend of Engineer, PWD and
Others and contend that blacklisting has the effect
of preventing a person from the privilege and
advantage of gaining a lawful relationship with the
Government for the purposes of gains, and that a
disability is created by the order of blacklisting,
it is incumbent on the part of the Government to put
him on notice of the reason for the blacklisting
while issuing the order. Though the report of the
Deputy Chief Engineer, Vigilance, was relied on for
the issuance of Ext.P29, a copy of the said report
has also not been made available to the petitioner
and since no reasons have been stated in Ext.P27
show cause notice petitioner could not submit a
proper reply to Ext.P27 notice.
Taking into consideration the above facts and
circumstances, I am of the opinion that the matter
requires reconsideration. Accordingly, Ext.P29 order
is set aside, with a consequential direction to the
3rd respondent to issue a proper notice to the
petitioner pointing out the reasons for which they
are proposing to cancel the license and blacklist
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the petitioner and the petitioner shall be given
sufficient opportunity to file reply to the same and
after affording an opportunity of being heard, fresh
orders shall be passed by the 3rd respondent. The
relief sought as relief No. (c) is left open,
leaving open liberty to the petitioner to agitate
the same, after a decision is taken as directed
above.
The writ petition is disposed of as above.
sd/-
VIJU ABRAHAM,JUDGE
pm
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APPENDIX OF WP(C) 28668/2022
PETITIONER'S EXHIBITS
EXHIBIT P1 IS THE TRUE PHOTOCOPY OF THE LETTER REQUESTING TO EXECUTE THE AGREEMENT DATED 03.06.2017 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P2 IS THE TRUE COPY OF THE AGREEMENT NO.61/SECCA/17-18 DATED 22.06.2017 BETWEEN THE PETITIONER AND THE 3RD RESPONDENT.
EXHIBIT P3 IS THE TRUE PHOTOCOPY OF THE COMPLETION CERTIFICATE ISSUED BY THE 6TH RESPONDENT. EXHIBIT P4 IS THE TRUE PHOTOCOPY OF THE TIME EXTENSION FOR THE PERIOD FROM 29.06.2018 TILL 30.03.2019 WITHOUT IMPOSING FINE. EXHIBIT P5 IS THE TRUE COPY OF THE ORDER IMPOSING A PENALTY OF RS. 1,54,445.00/- DATED 05.06.2020 PASSED BY THE 3RD RESPONDENT.
EXHIBIT P6 IS THE TRUE COPY OF THE ORDER IMPOSING A
FINE OF RS. 2,02,223.00/- DATED
05.06.2020 PASSED BY THE 3RD RESPONDENT. EXHIBIT P7 IS THE TRUE COPY OF THE ORDER IMPOSING A FINE OF RS. 85,556/- DATED 05.06.2020 PASSED BY THE 3RD RESPONDENT.
EXHIBIT P8 IS THE TRUE PHOTOCOPY OF THE COMPLAINT MADE BY THE THEN MEMBER OF LEGISLATIVE ASSEMBLY, MR. SWARAJ TO THE THEN P.W.D. MINSTER DATED 12.07.2019.
EXHIBIT P9 IS THE TRUE PHOTOCOPY OF THE LETTER DATED 26.09.2018 SEND BY THE 5TH RESPONDENT TO THE 4TH RESPONDENT STATING THE UTILISATION OF SAVINGS OCCURRED IN THE BUDGET WORK.
EXHIBIT P10 IS THE TRUE PHOTOCOPY OF THE REPORT DATED 19.11.2019 SEND BY THE 4TH RESPONDENT TO THE 3RD RESPONDENT.
EXHIBIT P11 IS THE TRUE PHOTOCOPY OF THE REPORT DATED 01.10.2021 SEND BY THE 5TH RESPONDENT TO THE 4TH RESPONDENT.
EXHIBIT P12 IS THE TRUE PHOTOCOPY OF THE REPORT DATED 11.10.2021 SUBMITTED BY THE 5TH RESPONDENT TO THE 4TH RESPONDENT. EXHIBIT P13 IS THE TRUE PHOTOCOPY OF THE LETTER DATED 16.10.2021 SEND BY THE PETITIONER TO THE 3RD RESPONDENT.
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EXHIBIT P14 IS THE TRUE PHOTOCOPY OF THE LETTER DATED 17.03.2020 SEND BY THE PETITIONER TO THE 3RD RESPONDENT.
EXHIBIT P15 IS THE TRUE PHOTOCOPY OF THE LETTER DATED 27.05.2020 ISSUED BY THE 6TH RESPONDENT TO THE PETITIONER.
EXHIBIT P16 IS THE TRUE PHOTOCOPY OF THE MASS COMPLAINT DATED 27.05.2020 SUBMITTED BY THE MERCHANTS TO THE 5TH RESPONDENT. EXHIBIT P17 IS THE TRUE PHOTOCOPY OF THE COMPLAINT SUBMITTED BY SREE DURGA HARDWARES DATED 30.03.2018 TO THE 3RD RESPONDENT. EXHIBIT P18 IS THE TRUE PHOTOCOPY OF THE COMPLAINT SUBMITTED BY SREE DURGA HARDWARES TO THE 3RD RESPONDENT DATED 27.12.2018. EXHIBIT P19 IS THE TRUE PHOTOCOPY OF THE LETTER DATED 04.05.2020 SEND BY THE 6TH RESPONDENT TO THE MUNICIPAL SECRETARY.
EXHIBIT P20 IS THE TRUE PHOTOCOPY OF THE REPRESENTATION SUBMITTED BEFORE THE HONOURABLE MINSTER OF PUBLIC WORKS DEPARTMENT BY THE PETITIONER DATED 03.03.2020.
EXHIBIT P21 IS THE TRUE PHOTOCOPY OF THE REPLY LETTER FORWARDED BY THE 6TH RESPONDENT TO THE PETITIONER DATED 27.11.2021.
EXHIBIT P22 IS THE TRUE PHOTOCOPY OF THE VIGILANCE REPORT DATED 30.01.2020.
EXHIBIT P23 IS THE TRUE PHOTOCOPY OF THE REPORT SUBMITTED BY THE 6TH RESPONDENT TO THE 5TH RESPONDENT.
EXHIBIT P24 IS THE TRUE PHOTOCOPY OF THE LETTER DATED 07.08.2020 FORWARDED BY THE 6TH RESPONDENT TO THE 5TH RESPONDENT. EXHIBIT P25 IS THE TRUE PHOTOCOPY OF THE LETTER DATED 23.01.2021 FORWARDED BY THE 4TH RESPONDENT TO THE 3RD RESPONDENT. EXHIBIT P26 IS THE TRUE PHOTOCOPY OF THE REQUEST LETTER FOR RETURN OF THE BILLS AMOUNT AND DEPOSITS DATED 12.03.2021 SUBMITTED BY THE PETITIONER TO THE 6TH RESPONDENT. EXHIBIT P27 IS THE TRUE PHOTOCOPY OF THE SHOW CAUSE NOTICE DATED 17.06.2022 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER.
EXHIBIT P28 IS THE TRUE PHOTOCOPY OF THE REPLY STATEMENT DATED 27.06.2022 SUBMITTED BY THE PETITIONER TO THE 3RD RESPONDENT.
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EXHIBIT P29 IS THE TRUE PHOTOCOPY OF THE ORDER NO.FCR 1901/2010 DATED 29.06.2022 PASSED BY THE 3RD RESPONDENT CANCELLING THE LICENSE NO. 36A/SECCA/2010-2011 OF THE PETITIONER AND BLACK LISTED HIM.
EXHIBIT P30 IS THE TRUE PHOTOCOPY OF THE MINUTES OF THE PROCEEDING OF THE 6TH RESPONDENT DATED 27.06.2022 RESPONDENT EXHIBITS
EXHIBIT R3(d) TRUE COPY OF THE LETTER NO.CEPWD4083/2020-Vig 8-AD DATED 24.11.2021 EXHIBIT R3(a) TRUE COPY OF ORDER NO.DEE-614/2017 DATED 23.12.2021 EXHIBIT R3(e) TRUE COPY OF THE LETTER NO.2007/CE-
1/CBL/3/New Delhi DATED 10.09.2007 EXHIBIT R3(b) TRUE COPY OF THE LETTER NO .Vig.8/18571/2019 DATED 19.06.2020 EXHIBIT R3(c) TRUE COPY OF THE LETTER NO:A4/4414/2021 DATED 21.10.2021 PETITIONER EXHIBITS
EXHIBIT P31 THE TRUE PHOTOCOPY OF THE AGREEMENT FOR BANK GUARANTEE NO.25/2017 PROVIDED BY THE CANARA BANK, THRIPUNITHURA BRANCH FOR A PERIOD OF 20.06.2017 TO 20.08.2021 EXHIBIT P32 THE TRUE PHOTOCOPY OF THE LETTER DATED 29.10.2021 ISSUED TO THE 3RD RESPONDENT BY THE CANARA BANK EXTENDING THE BANK GUARANTEE UP TO 13.06.2023 EXHIBIT P33 THE TRUE PHOTOCOPY OF THE LETTER DATED 06.08.2022 ISSUED BY THE DEPUTY CHIEF ENGINEER, P.W.D. VIGILANCE DEPARTMENT TO THE 3RD RESPONDENT HEREIN EXHIBIT P34 THE TRUE PHOTOCOPY OF THE LETTER DATED 07.03.2023 ISSUED BY THE 3RD RESPONDENT TO THE MANAGER, CANARA BANK, THRIPUNITHURA EXHIBIT P35 TRUE COPY OF THE CERTIFICATE OF COMPLETION OF WORK DATED 29-10-2021 ISSUED BY THE 3 RESPONDENT EXHIBIT P36 TRUE COPY OF THE COVERING LETTER DATED 07-02-2018 ALONG WITH THE REVISED ESTIMATE SUBMITTED BY THE RESPONDENT NO.6 BEFORE THE RESPONDENT NO.5 EXHIBIT P37 TRUE COPY OF THE LETTER DATED 09-10-2021
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ISSUED BY THE RESPONDENT NO.2 TO THE RESPONDENT NO.3 SANCTIONING THE REVISED ESTIMATE FOR RS.1,43,92,664.19/- EXHIBIT P38 TRUE COPY OF THE LETTER DATED 08-10-2021 ISSUED BY THE RESPONDENT NO.6 TO RESPONDENT NO.5 THAT THE PETITIONER HAS RECTIFIED THE DEFECTS
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