Deprives Right To Carry On Business: Allahabad HC Deprecates Practice Of Authorities Using Blacklisting For Extraneous Reasons
The Allahabad High Court while deprecating the practice of authorities using the tool of blacklisting as a mechanism for extraneous reasons has reiterated that the punishment of blacklisting is required to be imposed upon a person only in rare cases.
The Court was considering two Writ-Petitions filed against the blacklisting order passed by Superintending Engineer (Material Management-I), Vidhyut Vitran Nigam Limited, Urja, Victoria Park, Meerut.
The Division-Bench of Justice Shekhar B. Saraf and Justice Vipin Chandra Dixit observed, "A note of caution is also required to be provided herein. The judgements of the Supreme Court and this Court have laid down the law that the punishment of blacklisting is required to be imposed upon a person only in rare cases, as the same is extremely harsh and stringent that deprives a person of his right to carry on business. Many a time, it appears that the authorities are using the tool of blacklisting as a mechanism for extraneous reasons. Such practices are deprecated by this Court. It is to be further noted that the period of blacklisting has to be proportionate to the fault committed by the person upon whom the blacklisting is being done."
Facts of the Case
A three member committee, after granting an opportunity of hearing to the petitioner, gave a recommendation to the authority concerned that passed the impugned order. However, the authority concerned without providing a copy of report of the three member committee passed the final order of blacklisting and other penalties including the termination of the contract.
Reasoning By Court
The Court at the outset was of the view that the report of the three member committee should have been provided to the petitioner and another opportunity of hearing should have been granted to the petitioner after being confronted with the three member committee report.
It therefore quashed the impugned order for being violative of principles of natural justice without going into its merit and directed the authority concerned to grant an opportunity of hearing to the petitioner, and thereafter, pass a reasoned order.
The Court further issued a 'note of caution' with respect to such cases. The Court added that its comments should act as guiding principles to the authorities before passing the order of blacklisting.
The Petitions were accordingly allowed.
Cause Title: V Marc India Limited vs. State Of Uttar Pradesh & Others (2025:AHC:12685-DB)
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