'Blacklisting Without Supplying Relied-Upon Documents Violates Natural Justice': Patna HC Sets Aside 2-Year Debarment Of Contractor

The Patna High Court has held that blacklisting a contractor without furnishing the documents forming the basis of allegations violates principles of natural justice, setting aside a two-year debarment imposed by the State authorities.

A Division Bench of Justice Sudhir Singh and Justice Shailendra Singh was hearing a writ petition challenging the order dated 10.12.2025 issued by the Engineer-in-Chief, Rural Works Department, whereby the petitioner was blacklisted for a period of two years under Clause 11 of the Bihar Contractors Registration Rules, 2007.

The petitioner had participated in tenders floated under NIT No. RRSMP-01/2025-26 and NIT No. RRSMP-04/2025-26, and was initially declared technically successful. It was awarded work in one tender and declared L-1 in another. However, upon receipt of objections, the department scrutinised the bids and alleged that the petitioner had submitted forged payment certificates.

Challenging the blacklisting order, the petitioner contended that the impugned action was taken without supplying the alleged forged document and without affording an effective opportunity of hearing, thereby violating principles of natural justice.

The State submitted that the petitioner had indeed uploaded forged/fake payment certificates during the tender process, and the blacklisting was imposed in accordance with the Bihar Contractors Registration Rules, 2007.

The Court noted that a show cause notice had been issued prior to blacklisting, and in response, the petitioner had specifically sought copies of the allegedly forged documents and supporting material. However, such documents were never furnished before passing of the impugned order.

Upon examining the record, the Court observed that the document relied upon by the State (produced during the proceedings) did not prima facie bear the signature of the petitioner or its authorised agent. It further noted that the respondents failed to demonstrate that the said document had been supplied to the petitioner at any stage prior to the order of blacklisting. Emphasising the requirement of fair hearing, the Court held:

In view of the fact that fair opportunity of hearing has not been granted to the petitioner, the documents which formed basis of the impugned order of blacklisting were never supplied to him, and taking note of decisions of Hon'ble Apex Court mentioned above, the impugned order of blacklisting dated 10.12.2025 as contained in Memo No. 12396 is hereby set aside.

Holding that the petitioner was denied a meaningful opportunity to respond to the allegations, the Court concluded that the impugned order was vitiated on account of violation of principles of natural justice.

Accordingly, the Court set aside the blacklisting order dated 10.12.2025 and remitted the matter to the competent authority for fresh consideration after affording due opportunity of hearing, including, if necessary, personal hearing.

Case Title: Rishav Utilities Services Pvt. Ltd. v. State of Bihar and Ors.

Case No.: Civil Writ Jurisdiction Case No. 571 of 2026.

Appearance: Mr. Prabhat Ranjan appeared for the Petitioner. Advocate General Mr. P.K. Shahi appeared for the Respondent.