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Patna High Court

Vijay Raj Mewar Construction Co. (P) Ltd.versusThe State of Bihar

Decided
Disposal
ALLOWED

Holding

The debarment order was passed without a valid show‑cause notice and therefore violated the principles of natural justice.

Summary

Vijay Raj Mewar Construction Co. was awarded a tender by the Bihar Building Construction Department and began work after a provisional work order on 19 February 2025, with a contract signed on 26 May 2025. The department issued a debarment order on 27 June 2025, alleging insufficient progress, and barred the company from future tenders without giving a show‑cause notice, prompting the company to file a writ petition. The petitioner argued that the debarment violated the principles of natural justice, particularly the audi alteram partem rule, because no valid notice was served before the adverse order. The respondents contended that a show‑cause notice dated 20 May 2025 had been issued, but the court found that the notice was rendered ineffective by the subsequent agreement and the premature debarment. The court held that the debarment order was passed in gross violation of natural justice and set it aside, directing that any future action must follow due process. Consequently, the writ petition was allowed and the debarment order was vacated.

Issues considered

  • Whether a valid show‑cause notice was issued to the petitioner before the debarment order dated 27‑06‑2025.

Subjects

  • debarment
  • natural justice
  • show cause notice
  • civil writ
  • construction contract
  • tender
  • audi alteram partem
  • Bihar

Judgment

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.19748 of 2025
     ======================================================
     Vijay Raj Mewar Construction Co. (P) Ltd. having its Registered Office at
     Ranglalhi, District West Champaran, Bihar through its Director Arvind Kumar
     Rai, Male, aged about 52 years, Son of Prem Shankar Rai, Resident of
     Madhua, P.S. Dhanaha, District West Champaran, Bihar.

                                                                   ... ... Petitioner
                                     Versus
1.   The State of Bihar through Principal Secretary, Building Construction
     Department, Government of Bihar, Patna.
2.   The Engineer-In-Chief, Building Construction Department, Government of
     Bihar, Patna.
3.   The Chief Engineer (South),           Building     Construction   Department,
     Government of Bihar, Patna.
4.   The Executive Engineer, Building Division- Munger, District Munger, Bihar.

                                                ... ... Respondent
     ======================================================
     Appearance :
     For the Petitioner    :        Mr. Prabhat Ranjan, Advocate
     For the Respondents   :        Mr. Rakesh Kumar Ranjan, A.C. to G.A.-5
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
             and
             HONOURABLE MR. JUSTICE RANJAN KUMAR JHA
     ORAL JUDGMENT
     (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

      Date : 24-06-2026

                   Heard learned counsel for the petitioner and learned

      counsel for the respondents.

                  2. The following reliefs have been sought by the

      petitioner in the present writ application.

                               “1 (i) Quashing of the ex parte order as
                               contained   in    Letter     No.    769        dated
                               27.06.2025 (Annexure P/7) by which, the
                               Respondent No. 4, without issuing any Show
                               Cause   Notice     and     absolutely     without
Patna High Court CWJC No.19748 of 2025 dt.24-06-2026
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                                 jurisdiction has debarred the petitioner from
                                 participating in any further tender till the
                                 time desired progress in the work/project is
                                 not achieved;
                                 (ii) Restraining the Respondent from taking
                                 any coercive and giving effect to the order of
                                 debarment as contained in Letter No. 769
                                 dated 27.06.2025 (Annexure P/7) during the
                                 pendency of the present writ application
                                 and/or the without the leave of this Hon’ble
                                 Court.”
                     3. The brief facts of the case are that the petitioner

         participated in a tender floated by the respondent authorities,

         and was declared successful. Pursuant thereto, a Letter of

         Acceptance was issued in favour of the petitioner dated

         05.02.2025, and a provisional work order was issued dated

         19.02.2025. The work/construction was to be started from

         19.02.2025 itself, and was to be completed by 18.02.2026.

         Thereafter, an agreement was also executed between the parties

         dated 26.05.2025. Subsequently, on 27.06.2025 the authorities

         issued a debarment order against the petitioner on the ground

         that desired progress in the work has not been achieved. It was

         further alleged by the authorities that the petitioner has not

         shown any interest in completion of the said work and therefore,

         the order of debarment is being passed which will be effective
Patna High Court CWJC No.19748 of 2025 dt.24-06-2026
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         till the desired progress in work is not achieved. By way of

         filing the present writ application, the petitioner has challenged

         the debarment order dated 27.06.2025.

                     4. Learned counsel for the petitioner submits that no

         show cause notice was issued to the petitioner before the

         impugned action of debarment was taken against him. It is

         submitted that the action of debarment being in nature of serious

         civil consequence requires an issuance of show cause notice,

         and therefore, the impugned order passed by authorities is in

         grave violation of principles of natural justice. It is further

         submitted that even after the issuance of work order, there was

         an encroachment existing on the site of construction. It is

         submitted that after the concerned circle officer submitted the

         measurement/demarcation of the construction site dated

         05.05.2025, the petitioner and respondent authorities entered

         into an agreement dated 26.05.2025 whereafter, the petitioner

         commenced the work.

                     5. Learned counsel for the respondent-state submits

         that a work order was issued to the petitioner on 19.02.2025,

         and the petitioner was supposed to start the work from

         19.02.2025 itself. It is further submitted that the site for the

         work was also made available to the petitioner on 18.02.2025. It
Patna High Court CWJC No.19748 of 2025 dt.24-06-2026
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         is submitted that despite several reminders given to the

         petitioner to start and complete the said work, the petitioner

         failed to do so, and the desired progress in the work was not

         achieved. It is further submitted that the petitioner had already

         been issued a show cause notice dated 20.05.2025 (Annexure –

         R/C to the counter-affidavit), contemplating the action of the

         debarment against the petitioner. It is thus submitted that the

         impugned order passed by the authorities does not suffer from

         any violation of principles of natural justice.

                     6. The limited issue that arises for consideration is

         that whether before passing of the impugned order dated

         27.06.2025, any valid show cause notice was issued upon the

         petitioner contemplating the action of debarment against him by

         the competent authority.

                     7. Upon, perusal of materials on record it is evident

         that a provisional work order was issued to the petitioner on

         19.02.2025. It is further clear that no significant progress was

         achieved in the construction/work, and the agreement was

         entered into between the parties only on 26.05.2025. It is also

         evident that several communications were made to the petitioner

         regarding progress of the said work, and even the petitioner had

         put forward his concerns before the authorities.
Patna High Court CWJC No.19748 of 2025 dt.24-06-2026
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                     8. However, one month after the date of agreement the

         impugned order of debarment dated 27.06.2025 was passed,

         which is well before the date of completion of work, i.e.,

         18.02.2026. As such, we fail to understand the need of passing

         such an order at this early stage without giving a reasonable

         opportunity to the petitioner to show significant progress in

         work/construction.

                     9. Further, debarment is a serious civil consequence

         which results in restrictions on future commercial participation.

         Thus, an order of debarment must be passed in accordance with

         law, and following the principles of natural justice. The rule of

         audi alteram partem (hear the other side) is a fundamental tenet

         of the principles of natural justice. A show-cause notice provides

         the petitioner with a meaningful opportunity to file a

         comprehensive reply, thereby ensuring their right to a fair

         hearing before any adverse decision is made.

                     10. A counter affidavit has been filed on behalf of

         respondent nos. 1 to 4. As per the counter affidavit, it has been

         submitted that the show cause notice was issued upon the

         petitioner on 20.05.2025, which is Annexure-R/C to the said

         counter affidavit. Interestingly, after the issuance of the said

         show cause, the authorities decided to enter into an agreement
Patna High Court CWJC No.19748 of 2025 dt.24-06-2026
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         dated 26.05.2025, i.e., within a span of six days from the date of

         the said show cause notice.

                     11. Further, the authorities, proceeded to issue the

         order dated 27.06.2025 imposing debarment against the

         petitioner. If the authorities had concerns against the petitioner,

         appropriate actions could have been taken against the petitioner

         before entering into the agreement. Prima facie it appears that

         the authorities concerned without any application of mind have

         proceeded to issue the impugned order. As such, the issued show

         cause notice dated 20.05.2025, cannot be said to be a valid show

         cause notice for action taken on 27.06.2025, particularly when

         the authorities themselves entered into an agreement dated

         26.05.2025.

                     12. Considering the aforesaid, we are of the view that

         the impugned order dated 27.06.2025 is passed in gross

         violations of principles of natural justice, without issuance of

         any valid show cause notice.

                     13.     Accordingly,        the   order   dated   27.06.2025

         (Annexure P – 7 to the Writ Petition) is set aside. However, it is

         made clear that the respondent authorities would be at liberty to

         take necessary action in accordance with law after following the

         principles of natural justice.
             Patna High Court CWJC No.19748 of 2025 dt.24-06-2026
                                                        7/7




                                  14. With the aforesaid observations and direction, the

                      present writ application stands allowed.

                                  15. Pending application(s), if any, shall also stand

                      disposed of.




                                                           (Sudhir Singh, J)


                                                       (Ranjan Kumar Jha, J)


U.K./-
AFR/NAFR                AFR
CAV DATE                N/A
Uploading Date          29.06.2026
Transmission Date       N/A


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