M/S Jeevan Associates Thr. vs The State Of Madhya Pradesh
2022 Latest Caselaw 5337 MP

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                HIGH COURT OF MADHYA PRADESH
                              W.P.No.7140/2021
 (M/s Jeevan Associates Kailaras Vs. M.P. State Civil Supplies Corporation & Ors.)
Gwalior Bench:Dated -12.04.2022
       Shri Sanjay Bahirani, learned counsel for the petitioner.

       Shri Vilas Tikhe, learned counsel for respondents No.1 to 4.

Heard on admission.

The present petition preferred by the petitioner seeking

following reliefs:-

(i) That, in the fact and circumstances of the case, the impugned order at annexure P/1 may kindly be quash and petitioner may kindly be permitted to do the work in the interest of justice.

(ii) That, any other suitable relief which this Hon'ble Court deem fit in the fact of circumstances of the case. The cost of the present petition also may kindly be awarded.

2. Precisely stated facts of the case are that vide the order dated

12.03.2021 petitioner has been blacklisted for the period of 10

years for working of transportation of food articles and declared

disqualified to participate in further tender process for the period

of 10 years. According to petitioner, same is illegal, arbitrary

and against the Clause-40.1 of Contract. Prior to passing of the

impugned order, no opportunity of hearing has been provided to

the petitioner. Earlier show cause notice dated 18.08.2020 was

issued by the General Manager but after six months impugned

order has been passed by Managing Director.

3. Learned counsel for the petitioner submitted that petitioner is the

proprietor of M/s Jeevan Associates. State Government issued

the scheme namely "Door to Door Transportation Work" for

distribution of the food article under the Public Distribution

System under which the transporter lift the PDS items for civil

supply corporation and supply to the fair price shop keepers.

Tender for transportation work was issued by Civil Supply

Corporation from 2019 to 2021 in which petitioner was highest

bidder and was appointed to do the said work. While

discharging his duties, no complaint was made against the

petitioner but on 13.08.2020 Collector Morena issued a letter

apprising the corporation for not transporting the food stuff to

the fair price shop keeper within time and because of this, PDS

was effected.

4. Learned counsel for the petitioner, relied upon the judgment of

the Apex Court in the case of Erusian Equipment &

Chemicals Ltd. Vs. State of West Bengal & Anr. reported in

AIR 1975 SC 266, Kulja Industries Limited Vs. Chief

General Manager, Western Telecom Project Bharat Sanchar

Nigam Limited and others reported in (2014) 14 SCC 731 and

Gorkha Security Services Vs. Govt. Of Net Of Delhi & Ors.,

reported in (2014) SCC 105.

5. Learned counsel for the respondent opposed the prayer and

submitted that petition is not maintainable and as per Clause-

48.1, petitioner is having the efficacious alternative remedy of

arbitration by filing appropriate application before the Arbitrator

i.e. Commissioner Food of M.P. Bhopal. He relied upon the

decision of Division Bench of this Court in the case of Govind

Singh Sisodiya Vs. State of M.P. And Ors. passed in

W.P.No.2032/2017 vide order dated 31.03.2017 and prayed for

dismissal of this petition.

6. Heard the learned counsel for the parties and perused the

documents appended thereto.

7. The case in hand in respect of blacklisting of petitioner on the

ground as referred in the impugned order dated 12.03.2021

(Annexure P-1). Admittedly show cause notice dated 18.08.2020

(Annexure P-4) indicates that proposed action was under

Clause-40.2 of Contract and as per the said clause only

blacklisting can be done by the respondents, therefore, it attract

a civil consequence and civil consequence cannot be visited

unless principles of natural justice is being followed and/or

appropriate opportunity which has been afforded to the

petitioner to showcase his case.

8. Reliance placed over the said judgments of Apex Court in case

of Erusian Equipment (supra), Kulja Industries (supra) and

Gorkha Security (supra) are worth consideration in this regard.

Recently Division Bench of this Court in W.P.No.20822/2020

(Eco Pro Environmental Services Vs. Municipal

Corporation and Anr.) whether vide order dated 07.04.2021

has held that without giving opportunity of hearing no order can

be passed.

9. Here, in the present case, initially a show cause notice were

issued by General Manager (Transportation) of M.P. State Civil

Supplies Corporation, Bhopal but without conducting any

inquiry, impugned order has been passed by the Managing

Director of M.P. Civil Supplies Corporation, therefore, on this

count also when show cause notice was issued by one authority

and impugned order has been passed by another authority, case

of petitioner gains ground. So far as allegations that dispute

resolution can be through arbitration as per Clause-48.1 of

Contract is concerned, here in the present case as per judgment

of Division Bench of this Court, is the matter of Eco Pro

Environmental Services (supra) all other disputes can be

referred to arbitration except matters of blacklisting.

10.In the considered opinion of this Court, case of the petitioner

succeeds and is hereby allowed. Impugned order dated

12.03.2021 so far as blacklisting is concerned, is hereby

quashed. Respondents may proceed against the petitioner

regarding blacklisting after following due process of law.

Petitioner is also at liberty to proceed as per law/agreement

regarding redressal of other grievances, if any exist.

11.Petition stands disposed of with aforesaid directions.

(Anand Pathak) Judge Ashish* ASHISH Digitally signed by ASHISH CHAURASIA DN: c=IN, o=HIGH COURT OF MADHYA PRADESH BENCH GWALIOR, ou=HIGH COURT OF MADHYA

CHAUR PRADESH BENCH GWALIOR, postalCode=474001, st=Madhya Pradesh, 2.5.4.20=bf81a9adb1da24e4bc7b5195154c3d4de08c 6bb9303e52e2e7e728d9bac85bd3, pseudonym=CA2EA6EDDF504F8F9C2790FA9A0FD20 1D0242B64, serialNumber=A926F3CBF979ECA6A4C477577EEDBA

ASIA 3AB4F94593A930B98DAE1B0AD16F90B5FD, cn=ASHISH CHAURASIA Date: 2022.04.19 11:08:52 -07'00'