High Court of Gujarat
PRAVIN KARSHAN KOLIversusTHE STATE OF GUJARAT
- Decided
- Disposal
- 53-ALLOWED / GRANTED @ ADM.STAGE
- Bench
- NIRZAR S DESAI
Holding
A blacklisting order affecting a vehicle must be preceded by a valid show‑cause notice and an opportunity to be heard; failure to do so violates natural justice and renders the order void.
Summary
The petitioner, owner of a Hyundai i20 (GJ‑12‑DG‑9758), challenged the RTO's action of marking the vehicle as blacklisted on the Vahan portal without any prior hearing. The petitioner argued that the lack of a show‑cause notice violated the principles of natural justice. The respondents did not contest this submission. The court referred to several Supreme Court and High Court decisions emphasizing that administrative actions with civil consequences, such as blacklisting, must be preceded by a valid notice and an opportunity to be heard. Applying this ratio, the court held that the RTO’s blacklisting order was void for violating natural justice. Consequently, the blacklisting was quashed and the petitioner was directed to have the endorsement removed, with liberty reserved for the authority to re‑initiate proceedings after due process.
Issues considered
- Whether the RTO’s blacklisting of the vehicle on the Vahan portal without a prior show‑cause notice violates the principles of natural justice.
- Whether a blacklisting order that lacks compliance with natural justice is void and can be set aside.
- Whether the petitioner is entitled to relief directing removal of the blacklisting and quashing of the order.
Subjects
- natural justice
- administrative law
- blacklisting
- Vahan portal
- show cause notice
- due process
- quashing order
Judgment
C/SCA/5414/2026 ORDER DATED: 17/07/2026
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 5414 of 2026
=====================================================
PRAVIN KARSHAN KOLI
Versus
THE STATE OF GUJARAT & ORS.
=====================================================
Appearance:
MR JAY N SHAH(10668) for the Petitioner(s) No. 1
MR HENIL SHAH ASSISTANT GOVERNMENT PLEADER for the
Respondent(s) No. 1,2,3,4,5
NOTICE SERVED BY DS for the Respondent(s) No. 2,3,4
REFUSED SERVED (N)(10) for the Respondent(s) No. 5
=====================================================
CORAM:HONOURABLE MR. JUSTICE NIRZAR S. DESAI
Date : 17/07/2026
ORDER
1. By way of the present petition, the petitioner
herein has prayed for the following reliefs:
“(a) This Hon’ble Court may be pleased to admit
and allow this petition;
(b) This Hon’ble Court may be pleased to issue
appropriate writ, order or direction, directing
the respondents to produce the records before
this Hon’ble Court leading them to take action
of blacklisting the vehicle on Vahan Portal
bearing Hyundai i20 car No. GJ-12-DG-9758;
(c) This Hon’ble Court may be pleased to issue
appropriate writ, order or direction to quash
and set aside the action of the respondent No.5
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– RTO of showing the status of vehicle bearing
Hyundai i20 car No. GJ-12-DG-9758 as blacklisted
from ‘Vahan Portal’, which is at Annexure- A;
(d) Pending admission final hearing and
disposal of this petition, direct the respondent
Nos.2 to 5 to remove the endorsement on Vahan
Portal as being blacklisted of vehicle bearing
Hyundai i20 car No. GJ-12-DG-9758 which is at
Annexure – A;
(e) Grant such other and further relief as
thought fit in the interest of justice.”
2. Heard Mr. Jay N. Shah, learned advocate
appearing for the petitioner and Mr. Henil Shah,
learned Assistant Government Pleader appearing for
the respondents.
3. The petitioner herein is aggrieved by the action
undertaken by the respondent No.5 – RTO of showing
the status of vehicle being Hyundai i20 car No. GJ-
12-DG-9758 blacklisted on the ‘Vahan Portal’, which
is owned by the petitioner.
4. Mr. Jay N. Shah, learned advocate appearing for
the petitioner, submitted that the petitioner is the
owner of the vehicle being Hyundai i20 car No. GJ-12-
DG-9758. Mr. Shah, learned advocate, submitted that
the action of the respondent authority of
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C/SCA/5414/2026 ORDER DATED: 17/07/2026
blacklisting the vehicle-in-question on ‘Vahan
Portal’ is without granting opportunity of hearing
and the same is against the cardinal principles of
natural justice.
4. Mr. Henil Shah, learned Assistant Government
Pleader appearing for the respondent-State, was not
in a position to controvert the aforesaid submissions
advanced by Mr. Shah, learned advocate appearing for
the petitioner.
5. At this stage it is apposite to refer to the
decision of the Hon’ble Supreme Court in the case of
Dharampal Satyapal Ltd. v/s. Deputy Commissioner of
Central Excise reported in (2015) 8 SCC 519, relevant
para-27 of the order reads thus:
“27. From the aforesaid discussion, it becomes
clear that the opportunity to provide hearing
before making any decision was considered to be
a basic requirement in the Court proceeding.
Later on, this principle was applied to other
quasi-judicial authorities and other tribunals
and ultimately it is now clearly laid down that
even in the administrative actions, where the
decision of the authority may result in civil
consequences, a hearing before taking a decision
is necessary. It was, thus, observed in A.K.
Kraipak's case (supra) that if the purpose of
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C/SCA/5414/2026 ORDER DATED: 17/07/2026
rules of natural justice is to prevent
miscarriage of justice, one fails to see how
these rules should not be made available to
administrative inquiries.”
5.1 In the case of UMC Technologies Private Limited
v/s. Food Corporation of India and Anr. reported in
AIR 2021 SC (CIVIL) 833, relevant Paras-13, 14, 16,
17, 18, 19 and 26 reads thus:
“13. At the outset, it must be noted that it is
the first principle of civilised jurisprudence
that a person against whom any action is sought
to be taken or whose right or interests are being
affected should be given a reasonable opportunity
to defend himself. The basic principle of natural
justice is that before adjudication starts, the
authority concerned should give to the affected
party a notice of the case against him so that he
can defend himself. Such notice should be
adequate and the grounds necessitating action and
the penalty/action proposed should be mentioned
specifically and unambiguously. An order
travelling beyond the bounds of notice is
impermissible and without jurisdiction to that
extent. This Court in Nasir Ahmad v. Assistant
Custodian General, Evacuee Property, Lucknow and
Anr. , 1 has held that it is essential for the
notice to specify the particular grounds on the
basis of which an action is proposed to be taken
so as to enable the notice to answer the case
against him. If these conditions are not
satisfied, the person cannot be said to have been
granted any reasonable opportunity of being
heard.
14. Specifically, in the context of blacklisting
of a person or an entity by the state or a state
corporation, the requirement of a valid,
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particularized and unambiguous show cause notice
is particularly crucial due to the severe
consequences of blacklisting and the
stigmatization that accrues to the person/entity
being blacklisted. Here, it may be gainful to
describe the concept of blacklisting and the
graveness of the consequences occasioned by it.
Blacklisting has the effect of denying a person
or an entity the privileged opportunity of
entering into government contracts. This
privilege arises because it is the State who is
the counterparty in government contracts and as
such, every eligible person is to be afforded an
equal opportunity to participate in such
contracts, without arbitrariness and
discrimination. Not only does blacklisting takes
away this privilege, it also tarnishes the
blacklisted person’s reputation and brings the
person’s character into question. Blacklisting
also has long-lasting civil consequences for the
future business prospects of the blacklisted
person.
16. The severity of the effects of blacklisting
and the resultant need for strict observance of
the principles of natural justice before passing
an order of blacklisting were highlighted by this
Court in Erusian Equipment & Chemicals Ltd. v.
State of West Bengal in the following terms:
“12. ... The order of blacklisting has the
effect of depriving a person of equality of
opportunity in the matter of public
contract. A person who is on the approved
list is unable to enter into advantageous
relations with the Government because of the
order of blacklisting. A person who has been
dealing with the Government in the matter of
sale and purchase of materials has a
legitimate interest or expectation. When the
State acts to the prejudice of a person it
has to be supported by legality.
XXX XXX
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15. ... The blacklisting order involves
civil consequences. It casts a slur. It
creates a barrier between the persons
blacklisted and the Government in the matter
of transactions. The black lists are
instruments of coercion.
XXX XXX
20. Blacklisting has the effect of
preventing a person from the privilege and
advantage of entering into lawful
relationship with the Government for
purposes of gains. The fact that a
disability is created by the order of
blacklisting indicates that the relevant
authority is to have an objective
satisfaction. Fundamentals of fair play
require that the person concerned should be
given an opportunity to represent his case
before he is put on the blacklist.”
17. Similarly, this Court in Raghunath Thakur
v. State of Bihar, struck down an order of
blacklisting for future contracts on the ground
of non-observance of the principles of natural
justice. The relevant extract of the judgment in
that case is as follows:
“4. ... [I]t is an implied principle of the
rule of law that any order having civil
consequences should be passed only after
following the principles of natural justice.
It has to be realised that blacklisting any
person in respect of business ventures has
civil consequence for the future business of
the person concerned in any event. Even if
the rules do not express so, it is an
elementary principle of natural justice that
parties affected by any order should have
right of being heard and making
representations against the order.”
18. This Court in Gorkha Security Services v.
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Government (NCT of Delhi) and Ors. has described
blacklisting as being equivalent to the civil
death of a person because blacklisting is
stigmatic in nature and debars a person from
participating in government tenders thereby
precluding him from the award of government
contracts. It has been held thus:
“16. It is a common case of the parties that
the blacklisting has to be preceded by a
show-cause notice. Law in this regard is
firmly grounded and does not even demand
much amplification. The necessity of
compliance with the principles of natural
justice by giving the opportunity to the
person against whom action of blacklisting
is sought to be taken has a valid and solid
rationale behind it. With blacklisting, many
civil and/or evil consequences follow. It is
described as “civil death” of a person who
is foisted with the order of blacklisting.
Such an order is stigmatic in nature and
debars such a person from participating in
government tenders which means precluding
him from the award of government contracts.”
19. In light of the above decisions, it is clear
that a prior show cause notice granting a
reasonable opportunity of being heard is an
essential element of all administrative decision-
making and particularly so in decisions
pertaining to blacklisting which entail grave
consequences for the entity being blacklisted. In
these cases, furnishing of a valid show cause
notice is critical and a failure to do so would
be fatal to any order of blacklisting pursuant
thereto.
26. In view of our conclusion that the
blacklisting order dated 09.01.2019 passed by the
Corporation is contrary to the principles of
natural justice, it is unnecessary for us to
consider the other contentions of the learned
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counsel for the appellant. Having regard to the
peculiar facts and circumstances of the present
case, we deem it appropriate not to remit the
matter to the Corporation for fresh
consideration.”
6. Considering the ratio laid down by the Hon’ble
Apex Court, as referred above, in the facts of the
present case, the action undertaken by the respondent
No.5 – RTO of blacklisting the vehicle of the
petitioner being Hyundai i20 car No. GJ-12-DG-9758 on
‘Vahan Portal’ is quashed and set aside. However,
liberty is reserved for the respondent authority to
initiate appropriate proceedings after issuance of
show cause notice and after following due process of
law.
9. With the aforesaid observations, the present
petition stands allowed to the aforesaid extent.
Direct service is permitted.
(NIRZAR S. DESAI,J)
Pallavi
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: PALLAVIBEN PRABHUDAS PANCHAL(HC01403), PRIVATE SECRETARY, at High Court of Gujarat on 17/07/2026 17:02:15
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