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Patna High Court

Rai Raj Construction Pvt. Ltd.versusThe State of Bihar

Decided
Disposal
DISMISSED

Holding

The show‑cause notice issued by the Engineer‑in‑Chief under the Bihar Contractors Registration Rules, 2007 is within jurisdiction and not void for vagueness, bias or pre‑determination, so the writ petition cannot be entertained at this stage.

Summary

The petitioner, Rai Raj Construction Pvt. Ltd., challenged a show‑cause notice issued by the Engineer‑in‑Chief of the Bihar Road Construction Department that proposed blacklisting the company for ten years under Clause 11(d)(vii) of the Bihar Contractors Registration Rules, 2007. The petition sought quashing of the notice, a declaration that the underlying Office Order was not enforceable, and a restraining order against any coercive action. The court examined whether the notice suffered from jurisdictional defect, vagueness, bias or pre‑determination. It held that the Engineer‑in‑Chief is the competent authority under the Rules and that issuing a show‑cause notice is a statutory prerequisite, not a jurisdictional error. The notice was found to disclose the nature of the allegation sufficiently and did not amount to a final determination, bias, or abuse of process. Consequently, the writ petition was dismissed as premature, with the court directing the petitioner to file a reply to the notice.

Issues considered

  • Did the Engineer‑in‑Chief have jurisdiction to issue the show‑cause notice and initiate blacklisting under the Bihar Contractors Registration Rules, 2007?
  • Is the show‑cause notice void for vagueness, lack of material particulars, bias, or pre‑determination?
  • Can a writ court under Article 226 of the Constitution interfere with a show‑cause notice at the pre‑decisional stage?

Legislation cited

Subjects

  • show cause notice
  • blacklisting
  • Bihar Contractors Registration Rules
  • jurisdiction
  • natural justice
  • pre‑decisional stage
  • Article 226
  • writ petition
  • procedural fairness

Judgment

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No. 4759 of 2026
     ======================================================
     Rai Raj Construction Pvt. Ltd. having its Corporate Office at 601, 6th floor,
     Lav Kush Tower, Exhibition Road, P.S. Gandhi Maidan, District Patna
     through its Director Baidya Nath Rai, aged about 53 years, Male, son of
     Mahendra Rai, Resident of Flat No. 410, Ashiyana Plaza, Budha Marg, P S
     Kotwali, District Patna, Bihar.

                                                                  ... ... Petitioner
                                        Versus

1.   The State of Bihar through the Additional Chief Secretary, Road
     Construction Department, Government of Bihar, Patna.
2.   The Engineer in Chief-Cum- Additional Commissioner cum Special
     Secretary, (Works Management), Road Construction Department,
     Government of Bihar, Patna.
3.   The Chief Engineer (North), Road Construction Department, Government of
     Bihar, Patna.
4.   The Executive Engineer, Road Construction Department, Road Division,
     Rosera, District Samastipur, Bihar.

                                               ... ... Respondents
     ======================================================
     Appearance :
     For the Petitioner    :       Mr. Prabhat Ranjan, Advocate
     For the Respondents   :       Mr. Amish Kumar, AC to AG
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                                and
             HONOURABLE MR. JUSTICE SHAILENDRA SINGH
                           CAV JUDGMENT
            (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

      Date : 21-04-2026


                Heard learned counsel for the parties.

                2. The present writ application has been filed seeking the

     following reliefs:

                    (i) For quashing the Notice to Show Cause as contained
                    in Letter No. 1908 dated 17.03.2026 (Annexure P/5),
                    whereby       the       Engineer-in-Chief-cum-Registering
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                        Authority has called upon the petitioner to submit its
                        reply within 15 days as to why, for the alleged furnishing
                        of incorrect information in the tender process, the
                        petitioner be not blacklisted for a period of ten years in
                        terms of Clause 11(d)(vii) of the Bihar Contractors
                        Registration Rules, 2007 read with Clause 8(4) of Office
                        Order No. 154 contained in Memo No. 5403 dated
                        18.06.2015;
                        (ii) For declaration that Office Order No. 154 contained
                        in Memo No. 5403 dated 18.06.2015 (Annexure P/6) does
                        not create any enforceable rights or liabilities, as the
                        same is neither a decision of the State Government nor
                        part of the bidding documents, and has not been
                        published in the Official Gazette;
                        (iii) For restraining the respondents from taking any
                        coercive action pursuant to the impugned show cause
                        notice during the pendency of the present writ
                        application.



                    3. The brief facts of the case are that a Notice Inviting

       Tender No. RCD/Rosera/051/2025-26 dated 23.08.2025 was

       issued for widening and strengthening of Ilmas Nagar–Balipur

       Dumra Road. Pursuant thereto, only two bidders participated. The

       Technical       Bid    Evaluation       Committee     initially   found   the

       petitioner’s bid to be responsive and recommended opening of its

       financial bid, while rejecting the other bidder. The petitioner was

       thereafter declared the lowest bidder (L-1).
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                     4. However, subsequently, upon direction for re-

       evaluation, the Technical Bid Evaluation Committee reviewed its

       earlier decision and found that the petitioner had furnished

       incorrect      information regarding its existing commitments.

       Consequently, the petitioner’s bid was declared non-responsive,

       and the Departmental Tender Committee directed re-tendering

       along with initiation of proceedings against the petitioner.

                     5. During pendency of the challenge to the said decision

       in CWJC No. 4769 of 2026, the impugned show cause notice

       dated 17.03.2026 came to be issued proposing blacklisting of the

       petitioner.

                     6. Learned counsel for the petitioner submits that the

       impugned show-cause Notice is arbitrary, without jurisdiction, and

       vitiated by serious legal infirmities. It is submitted that the notice

       is vague, bereft of material particulars, and unsupported by any

       substantive material. It is further submitted that the impugned

       Show Cause Notice is vitiated by bias and pre-determination,

       inasmuch as the Engineer-in-Chief, who has issued the notice, had

       already participated in the decision dated 26.02.2026 declaring the

       petitioner’s bid non-responsive and recommending action. It is

       submitted that the authority has thus already formed a conclusive

       opinion, rendering the opportunity of hearing illusory.
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                    7. It is further submitted that the impugned Show Cause

       Notice amounts to a post-decisional hearing and that the indication

       of proposed punishment of blacklisting for ten years demonstrates

       pre-judgment. Reliance has been placed on Oryx Fisheries Pvt.

       Ltd. vs. Union of India & Ors.(2010) 13 SCC 427, Union of

       India & Ors. vs. Sanjay Jethi (2013) 16 SCC 116, M/s. Godrej

       Sara Lee vs. The Excise & Taxation Officer-cum-Assessing

       Authority & Ors, and J. Sri Nisha vs. The Special Director,

       Adjudicating Authority, Directorate of Enforcement & Anr.

                    8. Per contra, learned counsel for the respondents

       submits that the impugned Show Cause Notice has been issued by

       the competent authority under the Bihar Contractors Registration

       Rules, 2007(hereinafter referred to as 2007 Rules). It is submitted

       that the notice clearly discloses the nature of allegations and

       affords an opportunity of reply, which the petitioner has chosen not

       to avail.

                    9. It is further submitted that the plea of bias is

       misconceived, as the recommendation is a collective decision of a

       multi-member committee, and the Engineer-in-Chief has acted in

       his statutory capacity. Reliance has been placed on Union of India

       vs. Coastal Containers Transporters Association and Executive

       Engineer, Bihar State Housing Board vs. Ramesh Kumar Singh.
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                    10. The limited issue which arises for consideration is

       whether the impugned Show Cause Notice dated 17.03.2026

       suffers from such jurisdictional error, vagueness, absence of

       material, or pre-determination so as to warrant interference at the

       pre-decisional stage under Article 226 of the Constitution of India?

                    11. Upon hearing learned counsel for the parties and

       perusal of the materials on record, this Court finds that the writ

       petition has been filed at a premature stage, without the petitioner

       having availed the opportunity of submitting a reply to the show

       cause notice.

                    12. The plea of lack of jurisdiction raised on behalf of

       the petitioner is found to be wholly misconceived. It is not in

       dispute that under the Bihar Contractors Registration Rules, 2007,

       the Engineer-in-Chief is the designated Registering Authority and

       is vested with the power to pass an order of blacklisting against a

       contractor. The Rules further mandate that before any such adverse

       action is taken, the contractor must be afforded an opportunity to

       show cause. In this backdrop, it necessarily follows that the

       authority which is competent to pass an order of blacklisting is

       equally competent to initiate the process leading thereto. The

       issuance of a show cause notice is not an independent or detached

       exercise of power, but rather an inseparable and preliminary step
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       in the decision-making process culminating in blacklisting. Thus,

       when the statute vests the power of blacklisting in the Engineer-in-

       Chief and requires a prior opportunity of hearing, the issuance of

       the show cause notice by the said authority is not only within

       jurisdiction but is a statutorily mandated procedural step. The

       contention of the petitioner that the authority lacks jurisdiction to

       issue the show cause notice, therefore, overlooks the settled

       principle that the power to decide necessarily carries with it the

       power to initiate proceedings. The impugned notice, being issued

       by the competent authority in furtherance of such statutory duty,

       cannot be said to suffer from any jurisdictional infirmity. The

       Hon’ble Supreme Court in Union of India v. Kunisetty

       Satyanarayana reported in (2006) 12 SCC 28 and Union of India

       v. Vicco Laboratories reported in (2007) 13 SCC 270 has

       consistently held that ordinarily no writ lies against a show cause

       notice unless it is ex facie without jurisdiction. The relevant part of

       Kunisetty Satyanarayana(supra) reads as follows:

                        “15. Writ jurisdiction is discretionary jurisdiction and
                        hence such discretion under Article 226 should not
                        ordinarily be exercised by quashing a show-cause notice
                        or charge-sheet.
                        16. No doubt, in some very rare and exceptional cases
                        the High Court can quash a charge-sheet or show-cause
                        notice if it is found to be wholly without jurisdiction or
                        for some other reason if it is wholly illegal. However,
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                        ordinarily the High Court should not interfere in such a
                        matter.”


                    13.        Further,       the      relevant    part   of       Vicco

       Laboratories(supra) reads as follows:

                        “31. Normally, the writ court should not interfere at the
                        stage of issuance of show-cause notice by the authorities.
                        In such a case, the parties get ample opportunity to put
                        forth their contentions before the authorities concerned
                        and to satisfy the authorities concerned about the
                        absence of case for proceeding against the person
                        against whom the show-cause notices have been issued.
                        Abstinence from interference at the stage of issuance of
                        show-cause notice in order to relegate the parties to the
                        proceedings before the authorities concerned is the
                        normal rule. However, the said rule is not without
                        exceptions. Where a show-cause notice is issued either
                        without jurisdiction or in an abuse of process of law,
                        certainly in that case, the writ court would not hesitate to
                        interfere even at the stage of issuance of show-cause
                        notice. The interference at the show-cause notice stage
                        should be rare and not in a routine manner. Mere
                        assertion by the writ petitioner that notice was without
                        jurisdiction and/or abuse of process of law would not
                        suffice. It should be prima facie established to be so.
                        Where      factual     adjudication       would   be   necessary,
                        interference is ruled out.”



                    14. The submission that the impugned Show Cause

       Notice is vague or devoid of material particulars also does not
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       merit acceptance. The notice clearly indicates that the allegation

       pertains to furnishing incorrect information regarding existing

       commitments in the bidding process. At this stage, a detailed

       adjudication is neither required nor expected. The notice

       sufficiently apprises the petitioner of the nature of allegations. As

       held in Special Director v. Mohd. Ghulam Ghouse reported in

       (2004) 3 SCC 440, the Court should be slow to interfere at the

       stage of show cause notice. The relevant part of the said order

       reads as follows:

                        “5 [Ed. : Para 5 corrected vide Corrigendum No.
                        F.3/Ed.B.J./40/2004 dated 2-4-2004] . This Court in a
                        large number of cases has deprecated the practice of the
                        High Courts entertaining writ petitions questioning
                        legality of the show-cause notices stalling enquiries as
                        proposed and retarding investigative process to find
                        actual facts with the participation and in the presence of
                        the parties. Unless the High Court is satisfied that the
                        show-cause notice was totally non est in the eye of the
                        law for absolute want of jurisdiction of the authority to
                        even investigate into facts, writ petitions should not be
                        entertained for the mere asking and as a matter of
                        routine, and the writ petitioner should invariably be
                        directed to respond to the show-cause notice and take all
                        stands highlighted in the writ petition. Whether the show-
                        cause notice was founded on any legal premises, is a
                        jurisdictional issue which can even be urged by the
                        recipient of the notice and such issues also can be
                        adjudicated by the authority issuing the very notice
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                        initially, before the aggrieved could approach the court.
                        Further, when the court passes an interim order it should
                        be careful to see that the statutory functionaries specially
                        and specifically constituted for the purpose are not
                        denuded of powers and authority to initially decide the
                        matter and ensure that ultimate relief which may or may
                        not be finally granted in the writ petition is not accorded
                        to the writ petitioner even at the threshold by the interim
                        protection granted.”



                    15. The contention that the notice is based on no

       material is equally premature. The impugned Show Cause Notice

       has been issued on the basis of findings recorded by the Technical

       Bid Evaluation Committee and the Departmental Tender

       Committee. The sufficiency or correctness of such material cannot

       be gone into at this stage, as the show cause notice is only a step in

       the decision-making process.

                    16. The principal contention of bias and pre-

       determination also does not merit acceptance. While the petitioner

       has relied upon Oryx Fisheries(supra) and Sanjay Jethi(supra),

       the facts of the present case are clearly distinguishable. In those

       cases, the show cause notices reflected conclusive findings and a

       closed mind. In the present case, the impugned notice merely calls

       upon the petitioner to explain the discrepancies noticed in its bid
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       and does not record any final determination. The formation of a

       prima facie opinion cannot be equated with pre-judgment.

                    17. The plea of bias is also without substance. The

       recommendation for action is a collective decision of a multi-

       member committee, and the Engineer-in-Chief has acted in his

       statutory capacity. Mere participation in the earlier process does

       not establish real likelihood of bias.

                    18. The contention that the impugned Show Cause

       Notice amounts to a post-decisional hearing is also untenable. The

       notice is only an initiation of proceedings and not the culmination

       thereof. The petitioner has been afforded an opportunity to submit

       its reply before any adverse action is taken.

                    19. The contention that the impugned notice reflects pre-

       determination on account of indication of proposed punishment

       also does not merit acceptance. The notice merely indicates the

       nature of allegation and calls upon the petitioner to explain as to

       why action, including blacklisting for a period of ten years, be not

       taken in terms of the applicable Rules. Such indication is only for

       the purpose of putting the petitioner to notice of the possible

       consequence and cannot be construed as a final determination of

       guilt or punishment.
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                    20. The decision in J. Sri Nisha(supra) assumes

       significance, wherein it has been held that although a show cause

       notice can be challenged in writ jurisdiction, such interference is

       permissible only in exceptional cases, namely where the notice is

       without jurisdiction, reflects a pre-determined mind, or violates

       principles of natural justice. In the present case, none of these

       contingencies are attracted. The relevant part of the said order

       reads as follows:

                        “32. .. This Court has consistently held that although
                        ordinarily a writ petition against an SCN may not be
                        entertained, however, the said proposition is not an
                        inviolable rule. Interference at the stage of SCN is
                        permissible in exceptional circumstances, such as where
                        the notice suffers from patent lack of jurisdiction, reflects
                        non-application of mind, is issued with a pre-determined
                        or premeditated approach, amounts to an abuse of the
                        process of law, or results in a violation of the principles
                        of natural justice.”



                    21. In Union of India vs. Coastal Containers

       Transporters Association & Ors. (AIR Online 2019 SC 520), it

       has been held that courts should ordinarily refrain from interfering

       at the stage of show cause notice when the authority is competent

       and the proceedings are at a nascent stage. The relevant part of the

       said order reads as follows:
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                        “19. On the other hand, we find force in the contention of
                        the    learned     senior      Counsel,   Sri   Radhakrishnan,
                        appearing for the Appellants that the High Court has
                        committed error in entertaining the writ petition Under
                        Article 226 of Constitution of India at the stage of show
                        cause notices. Though there is no bar as such for
                        entertaining the writ petitions at the stage of show cause
                        notice, but it is settled by number of decisions of this
                        Court, where writ petitions can be entertained at the
                        show cause notice stage. Neither it is a case of lack of
                        jurisdiction nor any violation of principles of natural
                        justice is alleged so as to entertain the writ petition at the
                        stage of notice. High Court ought not to have entertained
                        the writ petition, more so, when against the final orders
                        appeal lies to this Court...”



                    22. Similarly, in The Executive Engineer, Bihar State

       Housing Board vs. Ramesh Kumar Singh & Ors. reported in

       AIR 1996 SC 691, it has been held that writ jurisdiction should not

       be invoked to stall statutory proceedings at the threshold. The

       relevant part of the said order reads as follows:

                        “10. We are concerned in this case, with the
                        entertainment of the writ petition against a show-cause
                        notice issued by a competent statutory authority. It
                        should be borne in mind that there is no attack against
                        the vires of the statutory provisions governing the matter.
                        No question of infringement of any fundamental right
                        guaranteed by the Constitution is alleged or proved. It
                        cannot be said that Ext. P-4 notice is ex facie a ‘nullity’
                        or totally “without jurisdiction” in the traditional sense
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                        of that expression — that is to say, that even the
                        commencement or initiation of the proceedings, on the
                        face of it and without anything more, is totally
                        unauthorised. In such a case, for entertaining a writ
                        petition under Article 226 of the Constitution of India
                        against a show-cause notice, at that stage, it should be
                        shown that the authority has no power or jurisdiction, to
                        enter upon the enquiry in question. In all other cases, it is
                        only appropriate that the party should avail of the
                        alternate remedy and show cause against the same before
                        the authority concerned and take up the objection
                        regarding jurisdiction also, then. In the event of an
                        adverse decision, it will certainly be open to him to assail
                        the same either in appeal or revision, as the case may be,
                        or in appropriate cases, by invoking the jurisdiction
                        under Article 226 of the Constitution of India.”



                    23. In view of the aforesaid discussion, this Court is of

       the considered opinion that the impugned show cause notice does

       not suffer from any infirmity warranting interference under Article

       226 of the Constitution of India at this stage.

                    24. Accordingly, we find no merit in the present writ

       petition, and the same is dismissed.

                    25. However, it is made clear that the petitioner is at

       liberty to submit its reply to the show cause notice, and the

       competent authority shall consider the same in accordance with

       law, without being prejudiced by any observations made herein.
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                                 26. Pending application(s), if any, shall also stand

                    disposed of.

                                                                     (Sudhir Singh, J.)


                               I agree.
                        (Shailendra Singh, J.)

                                                                    (Shailendra Singh, J.)
Gaurav Kumar/-

AFR/NAFR                A.F.R.
CAV DATE                03.04.2026
Uploading Date          21.04.2026
Transmission Date       N.A.


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