Court Overturns Contractor's License Termination by Zilla Parishad Palghar. Unjust and Disproportionate Action Based on Isolated Incident Deemed Unreasonable by Applying Wednesbury Principles

Sub Category: Bombay High Court
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Case Note & Summary

Petition challenging the termination of a contractor's license by the Zilla Parishad Palghar without a proper hearing. The court finds the termination unjust and disproportionate, primarily because it was based on an isolated incident unrelated to the contractor's professional duties. The court applies the Wednesbury principle of reasonableness and the proportionality test to conclude that the termination was unwarranted and sets aside the impugned order.

Introduction

Hearing of counsel for the parties, Rule made returnable forthwith with consent.

Petition Details

Impugned order passed by Zilla Parishad Palghar on 26 February 2024 terminating Petitioner’s Contractor license without a hearing.

Case Background

Unusual case of license termination due to alleged conduct of barging into a meeting, not due to work-related issues.

Petitioner’s Background and Submission

Contractor’s license details, completion of various projects, no complaints regarding work.

Show Cause Notice and Petitioner’s Reply

Allegation of unauthorizedly barging into a meeting, Petitioner’s explanation of the incident involving threats and self-defense.

Petitioner’s Defense

No intent to disrupt meeting, mob upset over awarding contracts to unregistered contractors, disproportionate termination.

Respondent’s Defense

Reliance on executive instruction for termination, Petitioner’s conduct deemed inappropriate.

Court’s Analysis

Examination of facts and material, difficulty in sustaining Corporation’s action, no unsatisfactory work alleged.

Application of Legal Principles

Reference to Wednesbury principle of reasonableness, action deemed disproportionate.

Ignoring Relevant Considerations

Consistent satisfactory performance ignored, irrelevant considerations as basis for termination.

Application of Irrationality Facets

Review of decision-maker’s evaluation, decision found unreasonable and unequal.

Proportionality Principle

Action beyond necessary measures, courts closer to reviewing decision merits.

Conclusion

Disruption of meeting insufficient ground for license cancellation, termination disproportionate.

Court’s Order

Rule made absolute, impugned order quashed and set aside, no orders as to costs.

Disposition

Petition disposed of with no orders as to costs.

Issue of Consideration: Himalay Manohar Patil versus The State of Maharashtra Ors.

2024 LawText (BOM) (7) 31

WRIT PETITION NO. 6622 OF 2024

2024-07-03

M.S.Sonak & Kamal Khata, JJ.

for the petitioner Mr RD Suryawanshi, with Rohan Hule. for respondent no. 2 Mr Nikhilesh Pote, with Manan Talati. for the RespondentState Ms Rupali Shinde, AGP.

Himalay Manohar Patil versus

The State of Maharashtra Ors.

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