TMI Blog1974 (11) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... where the petitioner has challenged the adjudication proceedings under the Foreign Exchange Regulations Act. Any decision of the authorities on the blacklisting will have no effect on the correctness of any of the facts involved in those proceedings. - Writ Petitions Nos. 34 of 1974 and 959 of 1973 and Civil Appeal No. 318 of 1974 - - - Dated:- 11-11-1974 - RAY, A.N., MATHEW, KUTTYIL KURIEN AND UNTWALIA, N.L., JJ. For the Petitioner: D. C. Singhania, C. N. Murthy, Madan Bhatia, Shiv Khorana, and M. K. Garg, L. N. Sinha, Solicitor General of India, P. P. Rao and M. N. Shroff For the Respondent: B. Sen, D. N. Mukherjee, Sukumar Basu, G. S. Chatterjee, Haroon S. Kably and S. Markandeya JUDGMENT RAY, C.J.- The two Writ Pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Sales Committee of the State learnt from a secret letter from the Collector of Customs, Calcutta that the firm of the petitioners was involved in malpractices, and their case was under investigation. The Sales Committee at a meeting on 21 January, 1971 resolved not to deal with the firm of the petitioners till the firm was cleared of charges of malpractices. It is because of this resolution that the tender of the petitioners was not accepted. The petitioners according to the respondent came to know this resolution at the meeting of the Sales Committee on 4 December, 1973. The State could not however produce the original resolution in this Court. It may be mentioned here that the petitioners have challenged the charges and cases under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who had been dismissed by the State also applied to the High Court for setting aside their dismissal. The High Court accepted the prayer of the employees by an order dated 3 August, 1972. In Writ Petitions counsel for the State submitted that the petitioner was not entitled to any order of mandamus inasmuch as the sales were contractual. It was said that the petitioner was not entitled as of right to acceptance of tender. It was also said that the attitude of the State was not discriminatory against the petitioner but that the State wanted that the pending proceedings against the petitioner for alleged violation of Foreign Exchange Regulation Act should be adjudicated first and thereafter the State would deal with the petitioner. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply to matters of public contracts. The State has the right to trade. The State has there the duty to observe equality. An ordinary individual can choose not to deal with any person. The Government cannot choose to exclude persons by discrimination. The order of blacklisting, has the effect of depriving a person of equality of opportunity in the matter of public contract. A person who is on the approved list is unable to enter into advantageous relations with the Government because of the order of blacklisting. A person who has been dealing with the Government in the matter of sale and purchase of materials has a legitimate interest or expectation. When the State acts to the prejudice of a person it has to be supported by legality. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication for believing that the proprietor or employee of the firm, has been guilty of malpractices such as bribery, corruption , fraud. or if the firm continuously refuses to return Government dues or if the firm employs a Government servant, dismissed or removed on account of corruption in a position where he could corrupt Government servant. The petitioner was blacklisted on the ground of justification for believing that the firm has been guilty of malpractices such as bribery, corruption, fraud. The petitioners were blacklisted on the ground that there were proceedings pending against the petitioners for alleged violation of provisions under the Foreign Exchange Regulations Act. The Government is a government of laws and not of men. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two important factors are that an individual is entitled to trade with the Government and an individual is entitled to a fair and equal treatment with others. A duty to act fairly can be interpreted as meaning a duty to observe certain aspects of rules of natural justice. A body may be under a duty to give fair consideration to the facts and to consider the representations but not to disclose to those persons details of information in its possession. Sometimes duty to act fairly can also be sustained without providing opportunity for an oral hearing. It win depend upon the nature of the interest to be affected, the circumstances in which a power is exercised the nature of sanctions involved therein. Blacklisting has the effect of prevent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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