H S KOHLI Vs. UNION OF INDIA

JUDGEMENT

(1.) The subject-matter of challenge in this application is the order dated the 15th Feb., 1978. By the said order the petitioner was communicated as follows:-- "The representation made by you under your above letter has been considered and it has been decided to ban business dealings with you for a period of 5 (five) years with immediate effect." In order to appreciate the challenge to this order, it would be necessary to refer to certain facts. It appears that on or about the 6th June, 1977 the petitioner received a memorandum which was as follows :-- "It has come to notice that M/s. H. S. Kohli, handling contractors, Chittaranjan Locomotive Works, during the years 1969-70, indulged in the malpractice as detailed in the enclosed statement of charge. In the circumstances, the Government of India propose to ban business dealings for a period of five years by the Indian Railways and Production Units etc. with M/s. H. S. Kohli as also their allied/sister concerns, if any. M/s. H. S. Kohli are hereby given an opportunity to show cause against the action proposed to be taken. Any representation which M/s. H. S. Kohli may make in this regard will be considered. Such representations should be made in writing and submitted so as to reach the undersigned not later than fifteen days of the date of receipt of this memorandum. In case no such representation is received, it will be presumed that M/s. H. S. Kohli have no representation to make, and a final decision will then be taken on merits." The said memorandum contained certain statements of charges and the said statement of charges were as follows:-- "Shri H. S. Kohli is the proprietor of M/s. H. S. Kohli Handling Contractors, who were in charge of the handling contract of Chittaranjan Locomotive Works during the years 1969-70. He was very close to the D. C. O. S. Shri Sewa Singh. Arising out of this friendship, a conspiracy was hatched between the following persons during 1969-70 for the clandestine removal of steel materials from the Chittaranjan Locomotive Works; (a) Shri Sewa Singh, D. C. O. S. (b) Shri H. S. Kohli, proprietor of M/s. H. S. Kohli, (c) Shri Mulchand Agarwal, businessman, (d) Shri Sachindanand Singh. Ward Keeper, (e) Shri R.N. Dey Ward Keeper.

(2.) The conspiracy envisaged the removal of steel materials by M/s. H. S. Kohli, Handling Contractors and delivery of the same to Shri Mulchand Agarwal, businessman, making it appear that the removal of the material was genuine and authorised. To this end, Shri Avadesh Kumar Srivastava, an employee of M/s. H. S. Kohli arranged a number of wagons for the removal of the material and also prepared the bogus forwarding notes and R. Rs. in fictitious names of various parties. The acts mentioned above led to the removal of a number of wagons of steel valuing over Rs. 2 lakhs and a loss was thus caused to the Railway administration.

(3.) The above action of a reputed Handling contractor firm in associating itself with and abetting the illegal activities of unauthorised removal of steel materials is an action unbecoming of such a firm." 2. In respect of the said memorandum, the petitioner No. 1 showed cause and stated in the letter dated 13th June, 1977 his association with the Govt. agencies as a contractor and the petitioner No. 1 thereafter stated, inter alia, as follows: