Patna High Court
Indraprastha Security Services Pvt. ... vs The State Of Bihar And Ors on 5 May, 2025
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.2928 of 2017
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Indraprastha Security Services Pvt. Ltd.
... ... Petitioner/s
Versus
1. The State Of Bihar
2. Department of Health, Government of Bihar - through its Principal Secretary
3. Superintendent, Patna Medical College and Hospital, Patna
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. Dhananjay Kashyap, Adv.
Mr. Rasika, Adv.
For the Respondent/s : Mr. Nagendra Pd.Yadav-SC-23
For the State : Ms. Vijya Laxmi Srivastava, AC to Sc-23
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CORAM: HONOURABLE JUSTICE SMT. G. ANUPAMA CHAKRAVARTHY
ORAL JUDGMENT
Date : 05-05-2025
1. The Writ petition is filed for the following
reliefs:-
(i) To quash and cancel the decision
as contained in Memo No. 11968
dated 15.09.2016 issued under
signature of the Superintendent,
Patna Medical College & Hospital
Patna (respondent No. 3) whereby
and whereunder the respondent No.
3 imposed a penalty of 20% from the
monthly bill of the petitioner for the
services rendered under the
agreement dated 21.07.2012
Patna High Court CWJC No.2928 of 2017 dt.05-05-2025
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between the respondent No. 3 and
the petitioner.
(ii) To quash and cancel the Memo
No. 607 dated 18.01.2017 issued
under signature of respondent no. 3
whereby and whereunder he has
directed for deduction @ 10% from
the monthly bill of January, 2017.
(iii) To quash and cancel the Memo
No. 1335 dated 08.02.2017 issued
under signature of the respondent
No. 3 directing deduction of @ 10%
from the monthly bill of February,
2017.
(iv) To direct respondent No. 3 to
make payment of the entire
deducted amount from the monthly
bills of the petitioner together with
interest @ 18% per annum.
(v) To pass such other order/orders,
direction/directions may deem fit
and proper in the facts and
circumstances of the case.
2. The brief facts culled out from the Writ
petition are that the petitioner is a Private Limited
Company incorporated under the Companies Act.
Patna Medical College and Hospital (PMCH)/ the 3 rd
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respondent invited tenders for selection of a cleaning
agency for the upkeep work of cleaning and
maintenance of the toilets, urinals, baths, wash
basins, floor area and campus of Patna Medical
College & Hospital (PMCH). The petitioner was one of
the bidders and was selected. Pursuant to this, the
Superintendent of PMCH and the petitioner entered
into an agreement dated 21.01.2012. As per the
terms of the agreement, the work was initially
assigned to the petitioner for a period of one year,
but a provision was made for its continuation if the
performance was satisfactory.
3. The 3rd respondent issued work order vide
Letter No. 1270 dated 24.01.2012 addressed to all
agencies, in which the work allotted to the petitioner
was also included. The petitioner company rendered
services in accordance with the terms of the
agreement to the satisfaction of PMCH authorities.
However, the 3rd respondent issued a Letter vide
Memo No. 2381 dated 16.02.2016, which reveals
that based on a news paper report dated
15.02.2016
, a spot inspection was conducted by the
Patna High Court CWJC No.2928 of 2017 dt.05-05-2025
respondent No. 3.. Further, the respondent No. 3
called upon the petitioner to show cause as to why
20% of the monthly bill for February, 2016 shall not
be deducted (Annexure-3). In response, the
petitioner submitted a detailed reply vide its Letter
reference No. 1545 of 2016 dated 19.02.2016,
denying all allegations and also submitted that bio-
medical waste was left at certain places by public
and nurses of the hospital and that they do not take
trouble to put the bio-medical wastes in the dustbins
provided at the prescribed places.
4. Further, the petitioner received an Office
Order contained in Memo No. 11968 dated
15.09.2016, where there was a specific direction to
deduct 20% from the monthly bill of February 2016
by way of penalty.
5. It is specific contention of the Learned
counsel for the petitioner that the deduction of 20%
of the amount is illegal and the respondent cannot
go beyond the terms of agreement executed
between them. As per agreement (Annexure-2) and
the work order, the maximum amount that can be
Patna High Court CWJC No.2928 of 2017 dt.05-05-2025
deducted in case sanitation system is not maintained
properly would be a fine of Rs. 5,000/- to Rs. 10,000/-
only and no specific percentage of deduction was
mentioned in agreement.
6. It is also contended by the Learned
counsel for the petitioner that principles of natural
justice were violated in the case, as the impugned
orders of deduction were passed by the respondent
without issuing any notice. Therefore, prayed to
allow the Writ petition by quashing the impugned
orders.
7. A detailed counter affidavit was filed by
the 3rd respondent admitting about the agreement
which was executed between 3 rd respondent and the
petitioner.
8. The counter affidavit further disclose that
there is absolutely no illegality in the impugned
order dated 15.09.2016, as it was passed after
issuing several notices to the petitioner regarding
unsatisfactory work of the petitioner agency.
9. It is further contended by the Learned
counsel for the respondent that several complaints
Patna High Court CWJC No.2928 of 2017 dt.05-05-2025
were received against the petitioner, against poor
services. Subsequently, a spot inspection was
conducted by the Superintendent of Patna Medical
College Hospital (PMCH), Patna and during the
inspection, many deficiencies were detected. It is
also submitted that daily newspaper "DB Star" dated
16.02.2016 was published an article which clearly
displayed that bio-waste was found scattered in the
office area of Superintendent, PMCH, Patna and also
in front of emergency ward as well as near Hathua
ward.
10. Upon spot inspection, the Superintendent
of PMCH, Patna found this to be true and, thereafter
issued Memo No. 2381 dated 16.02.2016, directing
the service provider to submit an explanation within
24 hours and in default why the allotted work should
not be cancelled.
11. The counter affidavit further disclose that
dated 18.01.2017, Memo No. 1335 dated 08.03.2017
(Annexure 6 & 7) respectively sought an explanation
twice from the petitioner agency, for non-compliance
Patna High Court CWJC No.2928 of 2017 dt.05-05-2025
with the terms and conditions of the agreement,
pursuant to it, the impugned order was passed.
12. It is also contention of the Learned
counsel for the respondent that in the agreement it
is specifically mentioned that "in the case of the
work executed is not to the satisfaction of PMCH,
Deputy Superintendent PMCH, shall issue a show
cause notice to the 2nd party to comply conditions as
mentioned in the agreement, in case of non-
compliance, the 1st party may terminate the
agreement and also can forfeit any amount to 2 nd
party."
13. Heard the Learned counsel for the
petitioner as well as the Learned counsel for the
respondents. Perused the record.
14. On perusal of the record, i.e. Annexure-2,
it is evident that there is a specific clause which
reads as follows: "In case the sanitation system is
not maintained properly, a fine of Rs. 5,000/- to Rs/-
10,000/- can be imposed by the undersigned".
15. On perusal of the entire agreement, it is
evident that the maximum fine amount which can be
Patna High Court CWJC No.2928 of 2017 dt.05-05-2025
imposed against the petitioner is Rs. 5,000/- to
10,000/-. Admittedly, without issuing any notices, the
deductions were made as per the impugned order.
Therefore, this Court is of the considerable view that
the principles of natural justice were violated and the
respondent high-handedly deducted 10% and 20% of
the amount from the petitioner which is illegal and
arbitrary. In view of the above discussion, the
impugned order dated 15.09.2016 is hereby
quashed.
16. In result, the Writ petition is allowed.
(G. Anupama Chakravarthy, J)
Manish/-
AFR/NAFR NAFR
CAV DATE N/A
Uploading Date 09.05.2025
Transmission Date 09.05.2025
