BRITE ARICON Vs. AIRPORT AUTHORITY OF INDIA

JUDGEMENT

(1.) A Consortium named M/s Brite Aricon(Consortium) consisting of two companies M/s B.R. Arora and Associates Private Limited and M/s Aricon Developers Private Limited entered into a contract with the respondent Airports Authority of India for the work of expansion of apron, construction of additional taxi way, extension of runway and allied works at Varanasi Airport. The work was required to be completed by 11th March, 2009 and according to the petitioner, the said work was completed to the satisfaction of the respondents on 20th August, 2010 and a certificate dated 11th December, 2010 in this regard was issued. Vide order dated 1st July, 2013 passed by AGM Engg(C), the respondent Airports Authority of India decided that henceforth Airports Authority of India shall not award any contract to the said Consortium or to any firm or company having business link in the form of joint venture agreement or the like with. It appears from a perusal of the said order that some recommendation was made by CBI for blacklisting the contractor who was awarded the work of expansion of apron, construction of additional taxi way, extension of runway and allied works at Varanasi Airport. The impugned order was passed pursuant to the recommendations received from CBI and after producing the relevant record in this regard.

(2.) The grievance of the petitioners is that no show cause notice or opportunity of hearing was given to them by the respondent Airports Authority of India before blacklisting of the above referred entities. It is by now a settled proposition of the law that since an order blacklisting an individual or a firm or a company, visits the blacklisted person with serious civil consequences, no such order can be passed without following the basic principles of natural justice which comprise issuing a show cause notice against the proposed blacklisting, followed by an opportunity of hearing to the noticee. Admittedly, no show cause notice or opportunity of hearing was given to the aforesaid entities before the order was passed.

(3.) In Raghunath Thakur vs. State of Bihar and Ors., 1989 1 SCC 229, where Supreme Court, inter alia, held as under:-