Municipal Authority Can Rely On Previous Blacklisting Resolution Which Is Set Aside By Court, Must Justify It In Final Order: Gujarat High Court

The Gujarat High Court has permitted the Vadodara Municipal Corporation to rely on a previous blacklisting order passed by it against a Road Contractor, which was set aside by the High Court for being non-compliant with principles of natural justice, while issuing a fresh notice to the contractor in relation to three work orders.

However, the Bench comprising Chief Justice Justice Aravind Kumar and Justice Ashutosh J. Shastri made it clear that the Corporation shall have to justify the same while passing the final order in the matter.

"Merely because said resolution dated 31.12.2019 has been set aside would not by itself empower the petitioner to contend that respondent could not rely upon the same inasmuch as the Coordinate Bench while setting aside order dated 31.12.2018 has remanded the matter back to the Corporation for adjudication afresh. If the authorities deem it proper to rely upon their own earlier order, it is for them to justify it while passing final order. In that view of the matter, we do not see any infirmity to interfere at this juncture."

The Petitioner was initially blacklisted by the Corporation vide resolution dated December 31, 2018 on the ground of petitioner having indulged into irregularities and causing loss to the Corporation and by the very same order, payments due to the petitioner were withheld.

This order came to be set aside by a Coordinate bench of the High Court on the short ground that it was passed in violation of principles of natural justice, without even issuing show cause notice to petitioner and without hearing the petitioner. The bench had remanded the matter back to the Corporation and granted liberty to pass fresh orders after granting an opportunity to the petitioner.

Thereafter, a notice dated April 22, 2019 was issued to the petitioner, which came to be challenged herein on the ground that resolution dated December 31, 2018 has been set aside and therefore, Corporation while issuing impugned notice could not have relied upon the said resolution.

The High Court observed that the Petitioner could not have any grievance to contend that such notice could not have been issued or in the said notice, resolution dated December 31, 2018 could not have been relied upon by Corporation.

"It is open for the authorities to decide, adjudicate and resolve the said notice which is issued for blacklisting the petitioner by considering the reply submitted by the petitioner, which is already on record, vide Annexure-H dated 30.4.2019. Merely because said resolution dated 31.12.2019 has been set aside would not by itself empower the petitioner to contend that respondent could not rely upon the same inasmuch as the Coordinate Bench while setting aside order dated 31.12.2018 has remanded the matter back to the Corporation for adjudication afresh."