2026:JHHC:19051-DB 1 IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C) No.3277 of 2023 ----- M/s. Nayansi Construction a partnership firm through its partner, Prem Prakash Jaiswal, son of Satyadeo Prasad Jaiswal, resident of Karkat, P.O. & P.S. Latehar, District-Latehar, Jharkhand. .......... Petitioner. -Versus- 1. The State of Jharkhand. 2. The Engineer-in-Chief, Road Construction Department, Government of Jharkhand, Dhurwa, Ranchi. 3. The Chief Engineer, Road Construction Department, Government of Jharkhand, Engineers’ Hostel, Dhurwa, Ranchi. 4. Chief Engineer, Kendriya Nirupan Sangathan, Road Construction Department, Nirupan Bhawan, Doranda, Ranchi. 5. The Superintending Engineer, Road Circle Ranchi, Road Construction Department, Government of Jharkhand, Line Tank Road, Kotwali, Ranchi. 6. Executive Engineer, Road Construction Department, Road Division Khunti, Jharkhand. .......... Respondents. ----- CORAM : HON’BLE THE CHIEF JUSTICE HON’BLE MR. JUSTICE RAJESH SHANKAR ----- For the Petitioner : Mr. Indrajit Sinha, Advocate Mr. Ranjan Kumar, Advocate Mr. Ankit Vishal, Advocate For the Respondents: Mr. Yogesh Modi, A.C. to A.A.G.-IA ----- Order No.06 Date: 30.06.2026 1. Heard learned counsel for the parties. 2. Rule. Rule is made returnable immediately at the request and with the consent of the learned counsel for the parties. 3. The petitioner has challenged communication dated 2nd June, 2023 (signed on 31st May, 2023), Annexure-19, by which the petitioner has been debarred from participating in the tender of 2026:JHHC:19051-DB 2 the Road Construction Department, Government of Jharkhand, till further orders. 4. The petitioner has also sought appropriate writs to approve the revised estimate for the construction of the H.L. Bridge over Bartoli Nala at the rate prevalent as on date for all items involved in the construction, and for payment of pending bills submitted by the petitioner in relation to the said construction. The petitioner has also prayed for the return of the fixed deposits furnished by it as security and additional security. 5. Insofar as the reliefs other than those concerning the debarment of the petitioner until further orders vide memo dated 2nd June, 2023 are concerned, upon perusing the averments in the petition, the documents accompanying the petition, the counter-affidavit filed on behalf of the State and the documents accompanying the counter-affidavit, we are satisfied that the grant or refusal of such reliefs would involve adjudication of seriously disputed questions of fact which cannot be appropriately undertaken by us in the exercise of our extraordinary and summary jurisdiction under Article 226 of the Constitution of India. 6. To determine the above issues, we will have to adjudicate upon the extent and quality of construction undertaken by the petitioner. We will also have to decide whether the revised estimate, based on the alleged rates prevalent as on date, is consistent with the contractual terms between the parties. 7. There are also disputes about pending bills and the return of the security and additional security deposits. The respondents 2026:JHHC:19051-DB 3 contend that all amounts due to the petitioner have been paid, and further that it is the petitioner who has defaulted in the completion of the works, thereby committing a breach of contract. These contentions are no doubt disputed by the petitioner. 8. Therefore, we are satisfied that all the disputes raised in this petition except those concerning the petitioner’s debarment for an indefinite term vide memo dated 2nd June, 2023 cannot be effectively adjudicated in exercise of our extraordinary and summary jurisdiction under Article 226 of the Constitution of the India. 9. Accordingly, we leave open all the contentions of all the parties on such issues. Further, we grant the petitioner liberty to take out appropriate proceedings before the appropriate forum for agitating such issues. 10. If the petitioner brings appropriate proceedings before the appropriate forum for adjudication on the above issues, that forum should decide them in accordance with law and on their own merits, without being influenced by the fact that this Court has not addressed them in this petition. Therefore, we reiterate that all contentions of all parties on such issues remain open. 11. Insofar as the memo dated 2nd June, 2023 debarring the petitioner is concerned, we note that this memo does not provide for any period of debarment. In a sense therefore, the petitioner has been debarred for some indeterminate period. This is clearly impermissible given the law laid down by the Hon’ble Supreme 2026:JHHC:19051-DB 4 Court in the case of Kulja Industries Limited vs. Chief General Manager Western Telecom Project Bharat Sanchar Nigam Limited and Others, (2014) 14 SCC 731. 12. The decision of the Hon’ble Supreme Court in the case of Kulja Industries Limited (Supra) was reiterated by the Hon’ble Supreme Court in the case of Vetindia Pharmaceuticals Limited vs. State of Uttar Pradesh and Another, (2021) 1 SCC 804. 13. On the above short ground, we quash and set aside the memo dated 2nd June, 2023 to the extent it blacklists the petitioner for some indefinite or indeterminate period. The debarring/ blacklisting of the petitioner shall no longer be operative. 14. Mr. Sinha, the learned counsel for the petitioner has also raised the contention about the impugned memo dated 2nd June, 2023 being issued in breach of the principles of natural justice. He contended that the show-cause notice was issued by the Executive Engineer, who apparently recommended blacklisting the petitioner. He submitted that the Engineer-in-Chief, who has issued the impugned memo dated 2nd June, 2023 blacklisting the petitioner, neither heard the petitioner nor was he given the copy of the Executive Engineer’s recommendation even though the Engineer-in-Chief has completely relied upon such recommendation. 15. Since we are satisfied that the impugned memo dated 2nd June, 2023 deserves to be quashed because it purports to blacklist the petitioner indefinitely or for an indeterminate term, we do not 2026:JHHC:19051-DB 5 deem it necessary to go into the issue of violation of principles of natural justice. 16. In the peculiar facts of this case, we believe that no useful purpose would be served in remitting the matter to the Respondents to determine the appropriate term of blacklisting. This is more so because we have not gone into the issue of failure of natural justice, though, prima facie, something could be said in favour of this contention. The blacklisting has continued for three years already. 17. For all the above reasons, we make the rule in this petition partly absolute. As regards the issue of blacklisting, we quash and set aside the impugned memo dated 2nd June, 2023. However, with regard to all other issues, we give the petitioner liberty to take out appropriate proceedings before the appropriate forum. We also leave open all contentions of all parties regarding such other issues, since we have not adjudicated them for the reasons indicated above. 18. By interim order dated 2nd November, 2023, this Court had restrained the respondents from forfeiting the security deposit furnished by the petitioner. Since we have partly allowed this petitioner and granted the petitioner liberty to take out appropriate proceedings before the appropriate forum, we direct that the respondents will not precipitate the matter by forfeiting the security deposits for a period of four weeks from today. 19. If, within this period, the petitioner succeeds in obtaining interim/ad-interim relief from a competent Court of law, the 2026:JHHC:19051-DB 6 respondents will obviously have to abide by such interim relief. However, the petitioner does not secure any interim/ad-interim relief within this period of four weeks, then, the respondents will have the liberty to forfeit this security deposit without prejudice to the rights and contentions of the petitioner to challenge such forfeiture. 20. This writ petition is party allowed in the above terms without any order for costs. (M. S. Sonak, C.J.) (Rajesh Shankar, J.) 30th June, 2026 Sanjay/Rohit Uploaded on 02.07.2026