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


Summary of Judgement

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.

  1. Introduction

    • Hearing of counsel for the parties, Rule made returnable forthwith with consent.
  2. Petition Details

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

    • Unusual case of license termination due to alleged conduct of barging into a meeting, not due to work-related issues.
  4. Petitioner’s Background and Submission

    • Contractor’s license details, completion of various projects, no complaints regarding work.
  5. 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.
  6. Petitioner’s Defense

    • No intent to disrupt meeting, mob upset over awarding contracts to unregistered contractors, disproportionate termination.
  7. Respondent’s Defense

    • Reliance on executive instruction for termination, Petitioner’s conduct deemed inappropriate.
  8. Court’s Analysis

    • Examination of facts and material, difficulty in sustaining Corporation’s action, no unsatisfactory work alleged.
  9. Application of Legal Principles

    • Reference to Wednesbury principle of reasonableness, action deemed disproportionate.
  10. Ignoring Relevant Considerations

    • Consistent satisfactory performance ignored, irrelevant considerations as basis for termination.
  11. Application of Irrationality Facets

    • Review of decision-maker’s evaluation, decision found unreasonable and unequal.
  12. Proportionality Principle

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

    • Disruption of meeting insufficient ground for license cancellation, termination disproportionate.
  14. Court’s Order

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

    • Petition disposed of with no orders as to costs.

Case Title: Himalay Manohar Patil versus The State of Maharashtra Ors.

Citation: 2024 LawText (BOM) (7) 31

Case Number: WRIT PETITION NO. 6622 OF 2024

Advocate(s): 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.

Date of Decision: 2024-07-03