ALLAHABAD TRADERS Vs. STATE OF U P

JUDGEMENT

(1.) Counter affidavit filed today by learned A.G.A. be keptwith the record. Rejoinder affidavit filed by learned counsel; for the petitioner be also kept with the record.

(2.) The order impugned which has been passed blacklisting the petitioner appears to be on the basis of show cause and enquiry but appears to us that no opportunity was given to petitioner to give reply to show cause as to why the petitioner will be blacklisted. It is well known that blacklisting of a trader means he may loose his goodwill in the market, therefore, it will have a penal consequences.

(3.) Therefore, before passing such extreme order, a show cause required to be made to the petitioner to give his explanation and thereafter the governmental authority can take a decision to this extent. We are very much relying on paragraph 20 of the judgment reported in AIR 1975 SC 266 (Mr. Erusian Equipment and Chemicals Ltd. v. State of West Bengal and another). It has also been followed in various cases such as AIR 1978 SC 930 and AIR 1989 (1) SCC 220. Paragraph 20 of the judgment reported in AIR 1975 SC 266 is as follows: