1992 (1) TMI 343 - HC - Indian Laws

Summary

Issues Involved:
1. Validity of the ban on business dealings.
2. Alleged violation of principles of natural justice.
3. Alleged malafide action by the respondents.
4. Adequacy of evidence and material relied upon.

Summary:

1. Validity of the Ban on Business Dealings:
The petitioners sought a writ of mandamus against the respondents to desist from enforcing a decision communicated via letter dated 17 July 1991, which banned business dealings of the petitioners and their allied/sister concerns with Indian Railways for three years. The firm, engaged in the supply of engine parts, had its quotations accepted for the supply of valves, which were to be either of Eaton or TRW make. However, discrepancies arose regarding the genuineness of the work test certificates provided by the firm, leading to the ban.

2. Alleged Violation of Principles of Natural Justice:
The petitioners contended that the ban was violative of principles of natural justice as they were not shown the original documents or provided authenticated copies. The Court noted that the firm had been given ample opportunity to inspect the documents and had received a fair hearing. The Court held that the principles of natural justice had been met, as the firm was aware of the evidence against it and had been given a fair opportunity to explain.

3. Alleged Malafide Action by the Respondents:
The petitioners alleged that the action was malafide and based on material placed by business rivals in collusion with the General Manager of DLW. The Court found no merit in this contention, noting that the firm had attempted to pass off valves not manufactured by TRW, supported by forged documents. The Court held that the impugned action did not suffer from arbitrariness or violation of natural justice.

4. Adequacy of Evidence and Material Relied Upon:
The Court examined the inspection reports and other documents, concluding that there was sufficient material to support the respondents' action. The Court noted that both inspection reports referred to TRW's work test certificate, indicating that the firm attempted to supply valves not manufactured by TRW. The Court dismissed the petition, finding no violation of principles of natural justice and no need for further inspection of documents or cross-examination of the inspector.

Conclusion:
The writ petition was dismissed with costs, and the rule was discharged. The Court found that the ban on business dealings was justified, the principles of natural justice were observed, and the action was not malafide. The firm was given a fair opportunity to present its case, and the evidence supported the respondents' decision.