M/S Agastya Engineers Pvt. Ltd vs The State Of Bihar
2023 Latest Caselaw 2803 Patna

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                     Civil Writ Jurisdiction Case No.4252 of 2020
     ======================================================

M/s Agastya Engineers Pvt. Ltd. through its Managing Director, Manish Singh, aged about 46 years (Male), Son of Late Ajit Kumar Singh, having its office at L-40, Road No. 20, Sri Krishna Nagar, P.s.- Buddha Colony, District- Patna

... ... Petitioner/s Versus

1. The State of Bihar through the Secretary, Rural Works Department, Vishweshwaraiya Bhawan, Patna

2. The Secretary, Rural Works Department, Vishweshwaraiya Bhawan, Patna

3. The Engineer-in-Chief Rural Works Department, Vishweshwaraiya Bhawan, Patna

4. The Empowered Standing Committee through its Nodal Officer, PMGSY Project, BRRDA, Rural Works Department, Vishweshwaraiya Bhawan, Patna

5. The Chief Engineer-3 Rural Works Department, Hazipur, Headquarter at Vishweshwaraiya Bhawan, Patna

6. The Superintending Engineer cum Nodal Officer, PMGSY Project, BRRDA, Rural Works Department, Vishweshwaraiya Bhawan, Patna

7. The Superintending Engineer, Rural Works Department, Work Circle Darbhanga

8. The Executive Engineer, Rural Works Department, Works Division, Biroul

... ... Respondent/s ====================================================== Appearance :

For the Petitioner/s : Mr. Vikas Kumar For the Respondent/s : Ms. Archana Meenakshee (Gp6) ====================================================== CORAM: HONOURABLE MR. JUSTICE P. B. BAJANTHRI and HONOURABLE MR. JUSTICE JITENDRA KUMAR ORAL JUDGMENT (Per: HONOURABLE MR. JUSTICE P. B. BAJANTHRI)

Date : 05-07-2023 Patna High Court CWJC No.4252 of 2020 dt.05-07-2023

Instant petition has been filed for following reliefs:

a. For quashing of office order contained in Memo No. 1034, dated 20.12.2016 issued by Executive Engineer, Rural Works Department, Work Division, Biroul whereby and whereunder agreement PMGSY-08/2009-10 dated 01.07.2009 under Package No. BR-10R- 005 under Pradhan Mantri Gram Sarak Yojna (PMGSY) for construction of road from Bhadhar to Nadiami, has been illegally rescinded as per clause 52 of SBD.

b. For setting aside order contained in Memo No. 124, dated 31.07.2019 issued by Engineer-In-Chief, Rural Works Department, Government of Bihar, Patna whereby and whereunder after rescinding the aforesaid agreement petitioner's name has been put in departmental blacklist for ten years.

c. For setting aside order dated 04.11.2019 passed by Standing Empower Committee, Rural Works Department whereby and whereunder the order of termination dated 20.12.2016 has been affirmed.

d. For direction to respondent authorities to make payment of @ 20% of balance work of Rs. 222.73 lacs amounting to Rs. 44.546 lacs (Rupees forty-four lacs fifty-four thousand and six hundred only) with interest thereon at the rate of 18 % per annum from Patna High Court CWJC No.4252 of 2020 dt.05-07-2023

22.12.2016 till the date of actual receipt of payment by the petitioner.

e. For direction to the respondent authorities to pay the security deposits amounting to Rs. 16,63,710.00 (Rupees sixteen lacs sixty-three thousand, seven hundred and one only) deducted from the bill of the petitioner with interest thereon at the rate of 18% per annum from 22.12.2016 till the date of actual receipt of payment by the applicant.

                                    f.   For        direction      to   respondent
                       authorities       to     release      the   NSC     of   Rs.

10,00,000.00 (Rupes Ten lacs only) and fixed deposit furnished, by the petitioner at the time of tendering as Earnest money for the work and / or forfeited amount along with interest 18 % per annum from the date of forfeiture, in case the same has been forfeited.

g. For any other relief / reliefs for which petitioner may found entitled too."

2. Learned counsel for the petitioner on instruction

restricted the present petition in so far as challenge to the

order of termination and black-listing dated 20.12.2016 and

31.07.2019, respectively.

3. The overall submission on behalf of the

petitioner is that in so far as the show-cause notice for

termination of contract was issued on 08.12.2016, however Patna High Court CWJC No.4252 of 2020 dt.05-07-2023

the same was received by the petitioner on 22.12.2016 as is

evident from postal receipt. In the meanwhile on 22nd of

December, 2016, contract was terminated.

4. In so far as black-listing is concerned, show-

cause notice was issued on 27.03.2018, the petitioner

submitted his reply on 04.04.2018 and he has been

blacklisted for 10 years on 31.07.2019.

5. It is submitted that show-cause notice for

termination, sufficient time has not been granted to submit

his explanation as is evident from the date of show-cause

notice received by the petitioner and order of termination of

contract. It is also submitted that black-listing show-cause

notice is not with a specific proposed notice for black-listing

the petitioner for 10 years. Further, petitioner's reply dated

04.04.2018 has not been considered while black-listing him

for 10 years.

6. These factual aspects have not been disputed by

the learned counsel for the respondents.

7. In the light of these facts and circumstances for

want of sufficient time to furnish petitioner's explanation to

the show-cause notice for termination of contract, the

petitioner has made out a case so as to interfere with the Patna High Court CWJC No.4252 of 2020 dt.05-07-2023

termination of contract order dated 20th of December, 2016

and it is set aside and the matter is remanded to the

competent authority to permit the petitioner to submit his

detailed explanation to the show-cause notice of termination

of contract. Such explanation shall be furnished by the

petitioner within a period of eight weeks from the date of

receipt of a copy of this order. On receipt of petitioner's

explanation to the show-cause notice for termination of

contract, the competent authority is hereby directed to take

note of material information read with each of the

contentions to be raised by the petitioner in his explanation

to the show-cause notice dated 08.12.2016 and proceed to

pass order within a period of three months from the date of

receipt of this order.

8. Perusal of black-listing records like show-cause

notice dated 27.03.2018, it does not reveal specific material

information that there was a proposal to black-list the

petitioner for a period of 10 years. In other words, proposal

is required to be given for number of years of black-listing a

firm or a person in the light of judicial pronouncements.

Further, petitioner's reply/explanation to the show-cause

notice dated 04.04.2018 has not been analyzed and discussed Patna High Court CWJC No.4252 of 2020 dt.05-07-2023

in the black-listing order dated 31.07.2019. On these two

counts, the petitioner has made out a case so as to interfere

with the black-listing order dated 31.07.2019 and the same is

set aside and the matter is remanded to the competent

authority to pass a fresh speaking order after due

consideration of petitioner's reply/explanation. The speaking

order must analyze each of the contention stated in the reply

of the petitioner dated 04.04.2018 and proceed to pass

speaking order within a period of three months from the date

of receipt of a copy of this order.

9. Accordingly, the petitioner has made out a case.

Impugned order of termination of contract dated 20.12.2016

and black-listing order dated 31.07.2019 are set aside.

10. Writ petition is allowed in part.

(P. B. Bajanthri, J)

( Jitendra Kumar, J) skm/-

AFR/NAFR                NAFR
CAV DATE
Uploading Date          12.07.2023
Transmission Date