SURANA DRILLERS Vs. STATE OF M P

JUDGEMENT

(1.) BY this petition, under Article 226 of the Constitution of India, the petitioners are seeking quashment of Annexures P/1 and P/2, orders passed by the Chief Engineer, Public Health Engineering Department by which, he cancelled the registration of the petitioners on the ground that in the event of acceptance of their tender, they could not execute the agreement for drilling of tube-wells. Therefore, their amount of earnest money is forfeited and their registration is also cancelled.

(2.) THE petitioners have filed this petition for challenging the action of the Respondents regarding forfeiture of earnest money as well as cancellation of registration on the ground of violation of natural justice, as no opportunity of hearing was provided before cancelling the registration. In reply, the Respondents justified their action regarding forfeiture of earnest money and cancellation of the registration of the petitioners with the Department as the contractors on the basis of provisions of Works Manual.

(3.) AT the time of the argument, the learned counsel for the petitioners made a concession that he is not pressing the relief relating to forfeiture of earnest money but his only submission is that his registration with the Department cannot be cancelled without providing an opportunity of hearing and following the principles of natural justice as the same would amount to blacklisting the contractor for ever.