Rai Raj Construction Pvt. Ltd vs The State Of Bihar on 21 April, 2026

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    Patna High Court

    Rai Raj Construction Pvt. Ltd vs The State Of Bihar on 21 April, 2026

    Author: Sudhir Singh

    Bench: Sudhir Singh, Shailendra Singh

             IN THE HIGH COURT OF JUDICATURE AT PATNA
                        Civil Writ Jurisdiction Case No. 4759 of 2026
         ======================================================
         Rai Raj Construction Pvt. Ltd. having its Corporate Office at 601, 6th floor,
         Lav Kush Tower, Exhibition Road, P.S. Gandhi Maidan, District Patna
         through its Director Baidya Nath Rai, aged about 53 years, Male, son of
         Mahendra Rai, Resident of Flat No. 410, Ashiyana Plaza, Budha Marg, P S
         Kotwali, District Patna, Bihar.
    
                                                                      ... ... Petitioner
                                            Versus
    
    1.   The State of Bihar through the Additional Chief Secretary, Road
         Construction Department, Government of Bihar, Patna.
    2.   The Engineer in Chief-Cum- Additional Commissioner cum Special
         Secretary, (Works Management), Road Construction Department,
         Government of Bihar, Patna.
    3.   The Chief Engineer (North), Road Construction Department, Government of
         Bihar, Patna.
    4.   The Executive Engineer, Road Construction Department, Road Division,
         Rosera, District Samastipur, Bihar.
    
                                                   ... ... Respondents
         ======================================================
         Appearance :
         For the Petitioner    :       Mr. Prabhat Ranjan, Advocate
         For the Respondents   :       Mr. Amish Kumar, AC to AG
         ======================================================
         CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                                    and
                 HONOURABLE MR. JUSTICE SHAILENDRA SINGH
                               CAV JUDGMENT
                (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)
    
          Date : 21-04-2026
    
    
                    Heard learned counsel for the parties.
    
                    2. The present writ application has been filed seeking the
    
         following reliefs:
    
                        (i) For quashing the Notice to Show Cause as contained
                        in Letter No. 1908 dated 17.03.2026 (Annexure P/5),
                        whereby       the       Engineer-in-Chief-cum-Registering
     Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
                                               2/14
    
    
    
    
                            Authority has called upon the petitioner to submit its
                            reply within 15 days as to why, for the alleged furnishing
                            of incorrect information in the tender process, the
                            petitioner be not blacklisted for a period of ten years in
                            terms of Clause 11(d)(vii) of the Bihar Contractors
                            Registration Rules, 2007 read with Clause 8(4) of Office
                            Order No. 154 contained in Memo No. 5403 dated
                            18.06.2015

    ;

    (ii) For declaration that Office Order No. 154 contained
    in Memo No. 5403 dated 18.06.2015 (Annexure P/6) does
    not create any enforceable rights or liabilities, as the
    same is neither a decision of the State Government nor
    part of the bidding documents, and has not been
    published in the Official Gazette;

    SPONSORED

    (iii) For restraining the respondents from taking any
    coercive action pursuant to the impugned show cause
    notice during the pendency of the present writ
    application.

    3. The brief facts of the case are that a Notice Inviting

    Tender No. RCD/Rosera/051/2025-26 dated 23.08.2025 was

    issued for widening and strengthening of Ilmas Nagar-Balipur

    Dumra Road. Pursuant thereto, only two bidders participated. The

    Technical Bid Evaluation Committee initially found the

    petitioner’s bid to be responsive and recommended opening of its

    financial bid, while rejecting the other bidder. The petitioner was

    thereafter declared the lowest bidder (L-1).
    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
    3/14

    4. However, subsequently, upon direction for re-

    evaluation, the Technical Bid Evaluation Committee reviewed its

    earlier decision and found that the petitioner had furnished

    incorrect information regarding its existing commitments.

    Consequently, the petitioner’s bid was declared non-responsive,

    and the Departmental Tender Committee directed re-tendering

    along with initiation of proceedings against the petitioner.

    5. During pendency of the challenge to the said decision

    in CWJC No. 4769 of 2026, the impugned show cause notice

    dated 17.03.2026 came to be issued proposing blacklisting of the

    petitioner.

    6. Learned counsel for the petitioner submits that the

    impugned show-cause Notice is arbitrary, without jurisdiction, and

    vitiated by serious legal infirmities. It is submitted that the notice

    is vague, bereft of material particulars, and unsupported by any

    substantive material. It is further submitted that the impugned

    Show Cause Notice is vitiated by bias and pre-determination,

    inasmuch as the Engineer-in-Chief, who has issued the notice, had

    already participated in the decision dated 26.02.2026 declaring the

    petitioner’s bid non-responsive and recommending action. It is

    submitted that the authority has thus already formed a conclusive

    opinion, rendering the opportunity of hearing illusory.
    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
    4/14

    7. It is further submitted that the impugned Show Cause

    Notice amounts to a post-decisional hearing and that the indication

    of proposed punishment of blacklisting for ten years demonstrates

    pre-judgment. Reliance has been placed on Oryx Fisheries Pvt.

    Ltd. vs. Union of India & Ors.(2010) 13 SCC 427, Union of

    India & Ors. vs. Sanjay Jethi (2013) 16 SCC 116, M/s. Godrej

    Sara Lee vs. The Excise & Taxation Officer-cum-Assessing

    Authority & Ors, and J. Sri Nisha vs. The Special Director,

    Adjudicating Authority, Directorate of Enforcement & Anr.

    8. Per contra, learned counsel for the respondents

    submits that the impugned Show Cause Notice has been issued by

    the competent authority under the Bihar Contractors Registration

    Rules, 2007(hereinafter referred to as 2007 Rules). It is submitted

    that the notice clearly discloses the nature of allegations and

    affords an opportunity of reply, which the petitioner has chosen not

    to avail.

    9. It is further submitted that the plea of bias is

    misconceived, as the recommendation is a collective decision of a

    multi-member committee, and the Engineer-in-Chief has acted in

    his statutory capacity. Reliance has been placed on Union of India

    vs. Coastal Containers Transporters Association and Executive

    Engineer, Bihar State Housing Board vs. Ramesh Kumar Singh.
    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
    5/14

    10. The limited issue which arises for consideration is

    whether the impugned Show Cause Notice dated 17.03.2026

    suffers from such jurisdictional error, vagueness, absence of

    material, or pre-determination so as to warrant interference at the

    pre-decisional stage under Article 226 of the Constitution of India?

    11. Upon hearing learned counsel for the parties and

    perusal of the materials on record, this Court finds that the writ

    petition has been filed at a premature stage, without the petitioner

    having availed the opportunity of submitting a reply to the show

    cause notice.

    12. The plea of lack of jurisdiction raised on behalf of

    the petitioner is found to be wholly misconceived. It is not in

    dispute that under the Bihar Contractors Registration Rules, 2007,

    the Engineer-in-Chief is the designated Registering Authority and

    is vested with the power to pass an order of blacklisting against a

    contractor. The Rules further mandate that before any such adverse

    action is taken, the contractor must be afforded an opportunity to

    show cause. In this backdrop, it necessarily follows that the

    authority which is competent to pass an order of blacklisting is

    equally competent to initiate the process leading thereto. The

    issuance of a show cause notice is not an independent or detached

    exercise of power, but rather an inseparable and preliminary step
    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
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    in the decision-making process culminating in blacklisting. Thus,

    when the statute vests the power of blacklisting in the Engineer-in-

    Chief and requires a prior opportunity of hearing, the issuance of

    the show cause notice by the said authority is not only within

    jurisdiction but is a statutorily mandated procedural step. The

    contention of the petitioner that the authority lacks jurisdiction to

    issue the show cause notice, therefore, overlooks the settled

    principle that the power to decide necessarily carries with it the

    power to initiate proceedings. The impugned notice, being issued

    by the competent authority in furtherance of such statutory duty,

    cannot be said to suffer from any jurisdictional infirmity. The

    Hon’ble Supreme Court in Union of India v. Kunisetty

    Satyanarayana reported in (2006) 12 SCC 28 and Union of India

    v. Vicco Laboratories reported in (2007) 13 SCC 270 has

    consistently held that ordinarily no writ lies against a show cause

    notice unless it is ex facie without jurisdiction. The relevant part of

    Kunisetty Satyanarayana(supra) reads as follows:

    “15. Writ jurisdiction is discretionary jurisdiction and
    hence such discretion under Article 226 should not
    ordinarily be exercised by quashing a show-cause notice
    or charge-sheet.

    16. No doubt, in some very rare and exceptional cases
    the High Court can quash a charge-sheet or show-cause
    notice if it is found to be wholly without jurisdiction or
    for some other reason if it is wholly illegal. However,
    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
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    ordinarily the High Court should not interfere in such a
    matter.”

    13. Further, the relevant part of Vicco

    Laboratories(supra) reads as follows:

    “31. Normally, the writ court should not interfere at the
    stage of issuance of show-cause notice by the authorities.
    In such a case, the parties get ample opportunity to put
    forth their contentions before the authorities concerned
    and to satisfy the authorities concerned about the
    absence of case for proceeding against the person
    against whom the show-cause notices have been issued.
    Abstinence from interference at the stage of issuance of
    show-cause notice in order to relegate the parties to the
    proceedings before the authorities concerned is the
    normal rule. However, the said rule is not without
    exceptions. Where a show-cause notice is issued either
    without jurisdiction or in an abuse of process of law,
    certainly in that case, the writ court would not hesitate to
    interfere even at the stage of issuance of show-cause
    notice. The interference at the show-cause notice stage
    should be rare and not in a routine manner. Mere
    assertion by the writ petitioner that notice was without
    jurisdiction and/or abuse of process of law would not
    suffice. It should be prima facie established to be so.
    Where factual adjudication would be necessary,
    interference is ruled out.”

    14. The submission that the impugned Show Cause

    Notice is vague or devoid of material particulars also does not
    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
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    merit acceptance. The notice clearly indicates that the allegation

    pertains to furnishing incorrect information regarding existing

    commitments in the bidding process. At this stage, a detailed

    adjudication is neither required nor expected. The notice

    sufficiently apprises the petitioner of the nature of allegations. As

    held in Special Director v. Mohd. Ghulam Ghouse reported in

    (2004) 3 SCC 440, the Court should be slow to interfere at the

    stage of show cause notice. The relevant part of the said order

    reads as follows:

    “5 [Ed. : Para 5 corrected vide Corrigendum No.
    F.3/Ed.B.J./40/2004 dated 2-4-2004] . This Court in a
    large number of cases has deprecated the practice of the
    High Courts entertaining writ petitions questioning
    legality of the show-cause notices stalling enquiries as
    proposed and retarding investigative process to find
    actual facts with the participation and in the presence of
    the parties. Unless the High Court is satisfied that the
    show-cause notice was totally non est in the eye of the
    law for absolute want of jurisdiction of the authority to
    even investigate into facts, writ petitions should not be
    entertained for the mere asking and as a matter of
    routine, and the writ petitioner should invariably be
    directed to respond to the show-cause notice and take all
    stands highlighted in the writ petition. Whether the show-
    cause notice was founded on any legal premises, is a
    jurisdictional issue which can even be urged by the
    recipient of the notice and such issues also can be
    adjudicated by the authority issuing the very notice
    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
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    initially, before the aggrieved could approach the court.
    Further, when the court passes an interim order it should
    be careful to see that the statutory functionaries specially
    and specifically constituted for the purpose are not
    denuded of powers and authority to initially decide the
    matter and ensure that ultimate relief which may or may
    not be finally granted in the writ petition is not accorded
    to the writ petitioner even at the threshold by the interim
    protection granted.”

    15. The contention that the notice is based on no

    material is equally premature. The impugned Show Cause Notice

    has been issued on the basis of findings recorded by the Technical

    Bid Evaluation Committee and the Departmental Tender

    Committee. The sufficiency or correctness of such material cannot

    be gone into at this stage, as the show cause notice is only a step in

    the decision-making process.

    16. The principal contention of bias and pre-

    determination also does not merit acceptance. While the petitioner

    has relied upon Oryx Fisheries(supra) and Sanjay Jethi(supra),

    the facts of the present case are clearly distinguishable. In those

    cases, the show cause notices reflected conclusive findings and a

    closed mind. In the present case, the impugned notice merely calls

    upon the petitioner to explain the discrepancies noticed in its bid
    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
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    and does not record any final determination. The formation of a

    prima facie opinion cannot be equated with pre-judgment.

    17. The plea of bias is also without substance. The

    recommendation for action is a collective decision of a multi-

    member committee, and the Engineer-in-Chief has acted in his

    statutory capacity. Mere participation in the earlier process does

    not establish real likelihood of bias.

    18. The contention that the impugned Show Cause

    Notice amounts to a post-decisional hearing is also untenable. The

    notice is only an initiation of proceedings and not the culmination

    thereof. The petitioner has been afforded an opportunity to submit

    its reply before any adverse action is taken.

    19. The contention that the impugned notice reflects pre-

    determination on account of indication of proposed punishment

    also does not merit acceptance. The notice merely indicates the

    nature of allegation and calls upon the petitioner to explain as to

    why action, including blacklisting for a period of ten years, be not

    taken in terms of the applicable Rules. Such indication is only for

    the purpose of putting the petitioner to notice of the possible

    consequence and cannot be construed as a final determination of

    guilt or punishment.

    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
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    20. The decision in J. Sri Nisha(supra) assumes

    significance, wherein it has been held that although a show cause

    notice can be challenged in writ jurisdiction, such interference is

    permissible only in exceptional cases, namely where the notice is

    without jurisdiction, reflects a pre-determined mind, or violates

    principles of natural justice. In the present case, none of these

    contingencies are attracted. The relevant part of the said order

    reads as follows:

    “32. .. This Court has consistently held that although
    ordinarily a writ petition against an SCN may not be
    entertained, however, the said proposition is not an
    inviolable rule. Interference at the stage of SCN is
    permissible in exceptional circumstances, such as where
    the notice suffers from patent lack of jurisdiction, reflects
    non-application of mind, is issued with a pre-determined
    or premeditated approach, amounts to an abuse of the
    process of law, or results in a violation of the principles
    of natural justice.”

    21. In Union of India vs. Coastal Containers

    Transporters Association & Ors. (AIR Online 2019 SC 520), it

    has been held that courts should ordinarily refrain from interfering

    at the stage of show cause notice when the authority is competent

    and the proceedings are at a nascent stage. The relevant part of the

    said order reads as follows:

    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
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    “19. On the other hand, we find force in the contention of
    the learned senior Counsel, Sri Radhakrishnan,
    appearing for the Appellants that the High Court has
    committed error in entertaining the writ petition Under
    Article 226 of Constitution of India at the stage of show
    cause notices. Though there is no bar as such for
    entertaining the writ petitions at the stage of show cause
    notice, but it is settled by number of decisions of this
    Court, where writ petitions can be entertained at the
    show cause notice stage. Neither it is a case of lack of
    jurisdiction nor any violation of principles of natural
    justice is alleged so as to entertain the writ petition at the
    stage of notice. High Court ought not to have entertained
    the writ petition, more so, when against the final orders
    appeal lies to this Court…”

    22. Similarly, in The Executive Engineer, Bihar State

    Housing Board vs. Ramesh Kumar Singh & Ors. reported in

    AIR 1996 SC 691, it has been held that writ jurisdiction should not

    be invoked to stall statutory proceedings at the threshold. The

    relevant part of the said order reads as follows:

    “10. We are concerned in this case, with the
    entertainment of the writ petition against a show-cause
    notice issued by a competent statutory authority. It
    should be borne in mind that there is no attack against
    the vires of the statutory provisions governing the matter.
    No question of infringement of any fundamental right
    guaranteed by the Constitution is alleged or proved. It
    cannot be said that Ext. P-4 notice is ex facie a ‘nullity’
    or totally “without jurisdiction” in the traditional sense
    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
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    of that expression — that is to say, that even the
    commencement or initiation of the proceedings, on the
    face of it and without anything more, is totally
    unauthorised. In such a case, for entertaining a writ
    petition under Article 226 of the Constitution of India
    against a show-cause notice, at that stage, it should be
    shown that the authority has no power or jurisdiction, to
    enter upon the enquiry in question. In all other cases, it is
    only appropriate that the party should avail of the
    alternate remedy and show cause against the same before
    the authority concerned and take up the objection
    regarding jurisdiction also, then. In the event of an
    adverse decision, it will certainly be open to him to assail
    the same either in appeal or revision, as the case may be,
    or in appropriate cases, by invoking the jurisdiction
    under Article 226 of the Constitution of India.”

    23. In view of the aforesaid discussion, this Court is of

    the considered opinion that the impugned show cause notice does

    not suffer from any infirmity warranting interference under Article

    226 of the Constitution of India at this stage.

    24. Accordingly, we find no merit in the present writ

    petition, and the same is dismissed.

    25. However, it is made clear that the petitioner is at

    liberty to submit its reply to the show cause notice, and the

    competent authority shall consider the same in accordance with

    law, without being prejudiced by any observations made herein.

    Patna High Court CWJC No. 4759 of 2026 dt.21-04-2026
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    26. Pending application(s), if any, shall also stand

    disposed of.

    (Sudhir Singh, J.)

    I agree.

    (Shailendra Singh, J.)

    (Shailendra Singh, J.)
    Gaurav Kumar/-

    AFR/NAFR                A.F.R.
    CAV DATE                03.04.2026
    Uploading Date          21.04.2026
    Transmission Date       N.A.
     

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