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Patna High Court

Rishav Utilities Services Pvt. Ltd.versusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The blacklisting order dated 10.12.2025 is set aside as it was passed without granting the petitioner a fair hearing and without disclosing the material evidence.

Summary

Rishav Utilities Services Pvt. Ltd. participated in two tenders of the Bihar Rural Works Department and was initially declared technically successful. The department later alleged that the company had submitted a forged payment certificate and, without furnishing the alleged document or giving a hearing, issued a blacklisting order under Clause 11 of the Bihar Contractors Registration Rules, 2007 for two years. The petitioner challenged the order, arguing a violation of the audi alteram partem principle and natural justice. The High Court held that the petitioner was not provided the document forming the basis of the allegation nor an opportunity to be heard, citing Supreme Court precedents on fair hearing. Consequently, the court set aside the blacklisting order and remitted the matter to the competent authority to decide after affording a proper hearing. The writ petition was disposed.

Issues considered

  • Whether the blacklisting order passed under the Bihar Contractors Registration Rules, 2007 is valid when the petitioner was not furnished the alleged forged document and denied a hearing.
  • Whether the denial of a fair hearing violates the audi alteram partem rule and renders the order void.

Subjects

  • blacklisting
  • natural justice
  • audi alteram partem
  • fair hearing
  • administrative law
  • Bihar Contractors Registration Rules
  • tender fraud
  • writ petition
  • quashing order

Judgment

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                      Civil Writ Jurisdiction Case No.571 of 2026
     ======================================================
     Rishav Utilities Services Pvt. Ltd. having its Registered Office at Lane No. 1,
     behind Vijay Petrol Pump, Maharana Pratap Nagar, Bhikhanpura, Ram
     Dayalu, P.S. Sadar, Muzaffarpur, 842001 through its Managing Director,
     Neeraj Kumar, aged about 42 years, Male, son of Sri Sunil Sanjeev, resident
     of Lane No. 1, behind Vijay Petrol Pump, Maharana Pratap Nagar,
     Bhikhanpura, Ram Dayalu, P.S. Sadar, Dist- Muzaffarpur, 842001.

                                                                   ... ... Petitioner/s
                                         Versus

1.   The State of Bihar through the Additional Chief Secretary, Rural Works
     Department, Government of Bihar, Patna.
2.   The Engineer in Chief, Rural Works Department, Government of Bihar,
     Patna.
3.   The Engineer in Chief cum Additional Commissioner cum Special Secretary,
     Rural Works Department, Government of Bihar, Patna.
4.   Jai Kishore Thakur, Son of Not Known to the petitioner, at present posted as
     Engineer In-Chief, Rural Works Department, Government of Bihar, Patna.

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s   :       Mr. Prabhat Ranjan, Advocate
     For the Respondent/s   :       Mr. P.K. Shahi, AG
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                            and
             HONOURABLE MR. JUSTICE SHAILENDRA SINGH
                     ORAL JUDGMENT
     (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

      Date : 24-03-2026

                  Heard learned counsel for the parties.

                  2. The present writ application has been filed for the

      following reliefs:-

                                   “(i) Quashing of the Order bearing
                        Memo No. 12396 dated 10.12.2025 (Annexure-
                        P/22) by which, the Engineer In-Chief, without
                        considering the Reply/Objection filed by the
                        petitioner and without furnishing the relied upon
                        documents has proceeded to Blacklist the
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                            petitioner for a period of 2-years under Clause
                            11 of the Bihar Contractors Registration Rule,
                            2007; and
                                       (ii) Restraining the Respondents from
                            giving effect to the ex parte Order of Blacklisting
                            as contained in Memo No. 12396 dated
                            10.12.2025 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

         had participated in the tenders floated by the respondent-

         department. The said tenders were – Notice Inviting Tender

         bearing NIT No. RRSMP-01/2025-26 dated 11.06.2025 and NIT

         No. RRSMP-04/2025-26 dated 27.05.2025. The petitioner was

         initially declared technically successful, and was awarded work

         order in NIT No. RRSMP-04/2025-26, and was declared L-1 in

         NIT No. RRSMP-01/2025-26. However, upon receiving an

         objection, the respondent-department scrutinized the bids of the

         petitioner, and found that the petitioner had submitted

         forged/fake payment certificate in the said tenders.

                      4. Learned counsel for the petitioner submits that the

         impugned order, dated 10.12.2025 has been passed without

         supplying the relied upon document and without affording an

         effective opportunity of hearing, thereby violating the principles

         of natural justice. Reliance has also been placed upon the

         judgment of the Hon’ble Supreme Court in State Bank of India
Patna High Court CWJC No.571 of 2026 dt.24-03-2026
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         and Others v. Rajesh Agarwal and Others, reported in (2023) 6

         SCC 1. Paragraph 80 of the said decision, being relevant for the

         present purpose, is reproduced hereinbelow for reference:-

                                        80. Audi alteram partem has several
                            facets, including the service of a notice to any
                            person against whom a prejudicial order may be
                            passed and providing an opportunity to explain
                            the evidence collected. In Tulsiram Patel, this
                            Court explained the wide amplitude of audi
                            alteram partem :
                                               “96. The rule of natural justice
                                  with which we are concerned in these
                                  appeals and writ petitions, namely, the audi
                                  alteram partem rule, in its fullest amplitude
                                  means that a person against whom an order
                                  to his prejudice may be passed should be
                                  informed of the allegations and charges
                                  against him, be given an opportunity of
                                  submitting his explanation thereto, have the
                                  right to know the evidence, both oral or
                                  documentary, by which the matter is
                                  proposed to be decided against him, and to
                                  inspect the documents which are relied upon
                                  for the purpose of being used against him, to
                                  have the witnesses who are to give evidence
                                  against him examined in his presence and
                                  have the right to cross-examine them, and to
                                  lead his own evidence, both oral and
                                  documentary, in his defence. The process of
                                  a fair hearing need not, however, conform to
                                  the judicial process in a court of law, because
                                  judicial adjudication of causes involves a
                                  number of technical rules of procedure and
                                  evidence which are unnecessary and not
                                  required for the purpose of a fair hearing
                                  within the meaning of audi alteram partem
                                  rule in a quasi-judicial or administrative
                                  inquiry.” (emphasis supplied)


                      5. Learned counsel for the State submits that the
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         during execution of Tender Id No. 141673 and 142021

         corresponding to Notice Inviting Tender bearing NIT No.

         RRSMP-01/2025-26 dated 11.06.2025 and NIT No. RRSMP-

         04/2025-26 dated 27.05.2025 under Work Division, Majhaul

         Bakhari,      the    petitioner     submitted   forged/fake   payment

         certificate in the said tenders. Learned counsel further submits

         that based on such submission the impugned action of

         blacklisting was done under the relevant provisions of the Bihar

         Contractor Registration Rules, 2007 published vide Notification

         No. 8123 dated 19.12.2007. It is further submitted that the

         forged document has been brought on record by way of counter

         affidavit filed on behalf of the State, which is marked as

         Annexure-R1/A.

                      6. Per contra, learned counsel for the petitioner

         submits that the allegedly forged payment certificate, which has

         been brought on record, does not bear the petitioner’s signature

         or that of his authorized agent, which is evident from perusal of

         the said document.

                      7. Upon perusal of the materials on record, it

         transpires that the petitioner has challenged Memo No. 12396

         dated 10.12.2025 (Annexure-P/22), whereby the Engineer-in-

         Chief, Rural Works Department, Government of Bihar, Patna
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         has blacklisted the petitioner for a period of two years on the

         allegation that a forged/fake payment certificate was uploaded

         along with the tender document.

                      8. It further appears that prior to passing of the

         impugned order, a show cause notice was issued to the

         petitioner proposing blacklisting on the aforesaid ground. The

         said show cause notice was earlier challenged in CWJC No.

         20144 of 2025, which came to be disposed of as infructuous in

         view of the subsequent passing of the order dated 10.12.2025.

                      9. In response to the show cause notice, the petitioner

         submitted a reply dated 01.12.2025 (Annexure-P/21), denying

         the allegations and specifically asked for a copy of the said

         forged document, and any proof of submission of such

         document.

                      10. The document in question has been brought on

         record by way of counter affidavit filed on behalf of the State,

         which is marked as Annexure-R1/A. Upon perusal thereof, it

         prima facie appears that the said document does not bear the

         signature of the petitioner or his authorised agent. Further, the

         respondents have been unable to show before this Court that the

         said copy was supplied to the petitioner before passing of the

         impugned order dated 10.12.2025.
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                      11. Having considered the submissions advanced and

         materials available on record, this Court finds that the petitioner

         was not furnished with the document forming the very basis of

         the allegation prior to passing of the impugned order. The

         requirement of a fair hearing necessarily includes disclosure of

         the material sought to be relied upon against a person.

                      12. At this juncture, it is pertinent to take note of the

         judgment rendered by the Hon’ble Supreme Court in Kulja

         Industries Ltd. v. Western Telecom Project BSNL reported in

         (2014) 14 SCC 731, relevant portion of which is reproduced as

         under:-

                                        “17. …. A fair hearing to the party
                            being blacklisted thus becomes an essential
                            precondition for a proper exercise of the power
                            and a valid order of blacklisting made pursuant
                            thereto….”


                      13. Further in Krishna Mohan Medical College and

         Hospital v. Union of India reported in (2017) 15 SCC 719, the

         Hon’ble Supreme Court explained the significance of fair

         hearing in administrative proceedings. The relevant paragraph is

         reproduced as under:-

                                        “20. ….Reasonable opportunity of
                            hearing which is synonymous to “fair hearing”,
                            it is no longer res integra, is an important
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                            ingredient of audi alteram partem rule and
                            embraces almost every facet of fair procedure.
                            The rule of “fair hearing” requires that the
                            affected party should be given an opportunity to
                            meet the case against him effectively and the
                            right to fair hearing takes within its fold a just
                            decision supplemented by reasons and rationale.
                            Reasonable opportunity of hearing or right to
                            “fair hearing” casts a steadfast and sacrosanct
                            obligation on the adjudicator to ensure fairness
                            in procedure and action, so much so that any
                            remiss or dereliction in connection therewith
                            would be at the pain of invalidation of the
                            decision eventually taken. Every executive
                            authority empowered to take an administrative
                            action having the potential of visiting any person
                            with civil consequences must take care to ensure
                            that justice is not only done but also manifestly
                            appears to have been done.”


                      14. In view of the fact that fair opportunity of hearing

         has not been granted to the petitioner, the documents which

         formed basis of the impugned order of blacklisting were never

         supplied to him, and taking note of decisions of Hon’ble Apex

         Court mentioned above, the impugned order of blacklisting

         dated 10.12.2025 as contained in Memo No. 12396 is hereby set

         aside.

                      15. The matter is remitted back to the competent

         authority, who shall pass an appropriate order in accordance
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                      with law after affording due opportunity of hearing to all the

                      stakeholders, and if necessary, granting personal hearing.

                                   16. With the aforesaid observations and direction, the

                      present writ application stands disposed of.

                                   17. Pending application(s), if any, shall stand disposed

                      of.


                                                       (Sudhir Singh, J)


                                                    (Shailendra Singh, J)
Anushka/-
AFR/NAFR                AFR
CAV DATE                N/A
Uploading Date          30.03.2026
Transmission Date


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