M/s. B. Gupta & Co. Chartered Accounts, a partnership Firm, having its office at v. 1. The State of Jharkhand 2. Secretary, Department of School Education & Literacy Developmen
Case Details
IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C) No. 7059 of 2023 ----- M/s. B. Gupta & Co. Chartered Accounts, a partnership Firm, having its office at 504, Park Plaza, Tagore Hill Road, Morabadi, P.O.-Ranchi University, P.S. Bariatu, District- Ranchi (Jharkhand) through its Authorized Signatory Sri Surendra Vishwakarma aged about 48 years, S/o Late Doman Vishwakarma, residing at Road No. 7, Kusum VIhar, Morabadi, P.O. Ranchi University, P.S. Bariatu, District-Ranchi (Jharkhand). ….. Petitioner Versus 1. The State of Jharkhand 2. Secretary, Department of School Education & Literacy Development, Government of Jharkhand, M.D.I Building, P.O.-Dhurwa, P.S. Jagannathpur, District-Ranchi. 3. Director, Jharkhand State Mid-day Meal Authority, Department of School Education & Literacy Development, Government of Jharkhand, M.D.I. Building, P.O.-Dhurwa, P.S. Jagannathpur, District-Ranchi. ….. Respondents ------- CORAM: HON’BLE THE CHIEF JUSTICE HON’BLE MR. JUSTICE DEEPAK ROSHAN For the Petitioner For the Respondents ------- :Mr. Amit Kumar Das, Advocate Mr. Vineet Sinha, Advocate : Mr. Jai Prakash, AAG-1A ------ Reserved on 01.10.2024 Pronounced on 21.10. 2024 Mrs. Chaitali C. Sinha, A.C to AAG-1A Per: Deepak Roshan, J. 1. The instant writ application has been preferred by
Legal Reasoning
the petitioner-firm assailing the order dated 08.05.2023 as contained in Memo No.252 issued by the Director, Jharkhand State Mid-day Meal Authority, Department of School Education & Literacy Development, Government of Jharkhand, Ranchi; whereby the concerned respondent has Page 1 of 8 not only terminated the contract of the petitioner but has also blacklisted the petitioner-firm for a period of five years. 2. The brief facts of the case is that the petitioner happens to be a Chartered Accountant Firm registered with C & AG which was established in the year 1953 and claims to have carried out audits in various departments of the State Government, State and Central Government Organizations including Central Government Public Sector Undertakings and various Nationalized Banks. Vide letter No.11/2022/722 dated 29th December, 2022, the petitioner-firm was selected for conducting the audits for the Financial Years 2018-19 to 2020-21 for the district of Godda with respect to the Mid-day Meal Project. On being so selected, the petitioner-firm gave its consent on 06.01.2023 and thereafter sent team of auditors along with support staffs to Godda for conducting the said statutory audit. The process of audit started on 01.02.2023. 3.
Legal Reasoning
Mr. Amit Kumar Das, learned counsel for the petitioner submits that their team was staying at a Dharmshala, namely, Agrasen Bhawan, and as there was no food facility in the said Dharamshala; during their stay on 02.02.2023, one of the audit team (team leader) gave Rs.2000/- note to one of the employees of the petitioner- Page 2 of 8 firm, namely, Ankesh Kumar, for bringing food who after purchasing the food, returned Rs.1500/- to the said team leader. However, during that period, someone mischievously made a video recording and displayed a clip in social media including an online news channel, namely, “Express News Channel” alleging that the audit team had been negotiating and accepting money from the school teachers. Pursuant thereto; an enquiry was initiated and it appears that the Government had appointed the Sub- Divisional Officer, Godda to conduct the enquiry, who after conducting enquiry had submitted a detailed report on 23rd February, 2023 (Annexure 3); and finally the Director, Jharkhand State Mid-day Meal Project it is alleged by petitioner, in a most illegal manner and without any application of mind and without even discussing the show- caused submitted by the petitioner, by an order dated 08.05.2023 proceeded to cancel the work awarded to the petitioner-firm and further blacklisted the petitioner-firm for a period of five years. 4. The State Government has filed a counter affidavit wherein they have enclosed the same documents and could not even show a single material which has come against the petitioner during enquiry. Page 3 of 8 5. From the bare perusal of the enquiry report, it is evident that the Enquiry Officer recorded the statement of Ashutosh Anand, the person who claims himself to be a reporter of Express News Channel and who had made the said video clipping viral. The said person in his statement has stated that on 05.02.2023 he had gone to Agrasen Bhawan for some personal work where he saw some persons in the room and from their talks it appeared that they have come for conducting audit of Mid-day Meal Project. He saw two persons sitting on the bed and perusing the register. In the meantime, someone taking name of some school talked about the audit in their school. However, in the meantime, some teachers took out money and gave 1000/1500 rupees which he claimed to have recorded. However, he admitted that he does not know the said teachers. The Enquiry Officer recorded the statements of 07 teachers, namely, Sri Surendra Kumar, Teacher, Primary School, Makhni, Godda; Md. Sajjad Ansari, Teacher, Madarsa Islamia, Asanbani, Godda; Sri Sanjay Kumar Singh, Teacher, Primary School, Nonamati, Godda; Smt. Rupa Kumari, Teacher, Middle School, RautaraBarhauna, Godda; Sri Manik Kumar Dutta, Teacher, Primary School, Ghatbanka, Godda; Sri Om Page 4 of 8 Prakash Mandal, Teacher, State (Rajkiya) Middle School, Motia, Godda, and; Sri Jitan Pandit, CRP, Godda Block. None of the teachers or the CRP either stated anything adverse against the petitioner-firm nor have they alleged any demand of money. These witnesses also did not confirm as to whether any teacher from any school had given any money to the audit team of the petitioner-firm. 6. During enquiry, statement of one of the audit team member, namely, Aman Nayak, was taken who confirmed that Ankesh Kumar was sent to bring food who after purchasing food of Rs.500/- returned Rs.1500/- to Sheo Shankar. Ankesh Kumar-Auditor, was also examined and he has confirmed that it is he who has been shown in the video to be giving the money, but as a matter of fact, he was asked by the team leader to bring food for which he was given Rs.2000/- and after spending Rs.500/- towards food, he returned Rs.1500/- to the team leader. Apparently, neither any teacher was identified to have given money nor it could be found that on behalf of which school, the audit team of the petitioner-firm demanded and accepted money. Despite thereof, barely on the basis of presumptions and surmises and only by mentioning that in the viral video the person giving money appears to be someone else, the Enquiry Officer held the Page 5 of 8 charges to be proved by referring to the statement of Ankesh Kumar-Auditor, Ravi Gupta-Auditor and others. Surprisingly, entire finding is without any application of mind and contrary to the records of the case. Not a single witness put support nor any teacher could be identified to have given money to any member of the audit team of the petitioner-firm. 7. After the enquiry report was submitted, a detailed representation was made by the petitioner on 15.04.2023. However, as stated hereinabove, the Director, Jharkhand State Mid-day Meal Project, in a most illegal manner and without any application of mind and without even discussing the show-caused submitted by the petitioner, by an order dated 08.05.2023 proceeded to cancel the work awarded to the petitioner-firm and further blacklisted the petitioner-firm for a period of five years. 8. Law regarding blacklisting is well settled. Blacklisting of an entity has serious consequences, inasmuch as it not only disables such entity to secure contracts, but is also a serious stigma upon it. Such order of blacklisting cannot be permitted to be passed in such a perfunctory manner. 9. In the instant case, as has been discussed hereinabove, there has been absolutely no application of Page 6 of 8 mind. Not a single witness confirmed regarding demand of acceptance of bribe by the member of the audit team. So much so, the respondents could not even identify the teachers from whom bribe was allegedly accepted. It appears that the Enquiry Officer as well as the respondents-authorities was swayed by a news clipping which was published in the social media and became viral, and despite the fact that correctness of the said newspaper clipping was never confirmed by any teacher or other independent witnesses, proceeded to terminate the contract and blacklisted the petitioner-firm. Such order on the part of the respondents is absolutely not sustainable in the eyes of law and as such, the same is liable to be quashed along with exemplary cost. 10. Accordingly, the order dated 08.05.2023 as contained in Memo No.252 issued by the Director, Jharkhand State Mid-day Meal Authority, Department of School Education & Literacy Development, Government of Jharkhand, Ranchi whereby the concerned respondent has not only terminated the contract of the petitioner but has also blacklisted the petitioner-firm for a period of five years, is hereby, quashed and set-aside with cost. The Respondent-authorities are directed to pay cost of Rs. 2,00,000/- (Two Lakhs only) to the petitioner-firm as Page 7 of 8 exemplary cost within a period of eight weeks from the date of receipt/production of copy of this order. 11. As a result, the instant writ application stands allowed. Pending I.A., if any, stands closed. (M.S. Ramachandra Rao, C.J.) (Deepak Roshan, J.) Amardeep/A.F.R Page 8 of 8