01Facts
The petitioner entered into an MoU with Bihar Rural Livelihoods Promotion Society (BRLPS) on 30 December 2017 to train and place 550 candidates under DDU-GKY.
¶ 2–3BRLPS released the first instalment of ₹78,81,884, but alleged repeated defaults, including failures concerning training, compliance, and submission of project-closure documents.
¶ 2–3On 26 May 2025, BRLPS notified the petitioner that blacklisting was among the actions that could be taken; the petitioner appeared before the CEO on 6 June 2025.
¶ 4–6By order dated 31 December 2025, BRLPS terminated the project and blacklisted the petitioner for three years.
¶ 1, 7, 10The petitioner sought to quash the order, arguing that it had not received an adequate show-cause notice and that the blacklisting was disproportionate.
¶ 1, 7, 1002Issues
i.1. Whether BRLPS gave the petitioner adequate notice of the proposed blacklisting and an opportunity to respond
¶ 4–9ii.2. Whether blacklisting the petitioner for three years was disproportionate and warranted interference under Article 226 of the Constitution
¶ 10–1103Law Applied
The Court considered the principles of natural justice, the proportionality of blacklisting, and the scope of judicial review under Article 226.
¶ 8–11It also referred to the MoU and the applicable DDU-GKY guidelines, SOPs, and notifications as the framework governing the petitioner’s obligations and the respondents’ action.
¶ 8–11The judgment did not cite a specific statutory provision or precedent establishing a separate test for blacklisting.
¶ 8–1104Reasoning
The Court held that the letter dated 26 May 2025 was not merely an invitation to attend a hearing: it expressly warned that blacklisting could be initiated under the MoU and applicable DDU-GKY instruments.
¶ 4–9The petitioner appeared before the CEO, and the Court also noted the history of communications and notices concerning alleged defaults dating back to 2018.
¶ 4–9It therefore rejected the contention that no show-cause notice had been issued.
¶ 4–9Given the recorded history of non-performance and non-submission of closure documents, the Court found that a three-year blacklisting did not shock its conscience and declined to interfere under Article 226.
¶ 10–1105Holding
The Court rejected the challenges based on inadequate notice and disproportionality, held that the petition lacked merit, and dismissed it.
¶ 12–13The termination and three-year blacklisting therefore remained undisturbed; any pending applications were also disposed of.
¶ 12–13Original Court PDF
M/s Sat Chikitsa Prasarak MandalvsThe State of Bihar
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