ivil Appeal No 4031 of 1988
From the Judgment and Order dated 1441988 of the Patna High PG NO 867 PG NO 868 Court in CWJC No 1923 of 1988
RK Jain RPSingh and YDChandrachud for the Appellant
US Prasad for the Respondents
The Judgment of the Court was delivered by SABYASACHI MUKHARJI J
Special leave granted
The order dated 25th March 1988 of the Collector is under challenge in this appeal
The same reads as follows Shri Raghu Nath Thakur So Late Gorakh Thakur Village Repura PS Puksha District Samastipur had bid for Rs11900 Rupees eleven thousands only per month Dak in an auction of Beni Country liquor shop held on 27388 and he as given the shop of Beni Country liquor but after signing in Bandobasti Register he did not deposit dak amount
The name of Shri Raghu Nath Thakur So Late Gorakh Nath Village Repura PS Pusa Distt
Samastipur is therefore placed in the black list for future under the orders passed by the Collector Samastipur
 This order was passed pursuant to the order of the Collector
The letter dated 25th March 1988 states as follows The Collector of the district after perusal of the said office note passed order on 25388 which is produced in verbatim below Ist bidder chunki defaulter hai atah security prapt kar len tatha bhavishya ke liae Black list karen
 Indisputably no notice had been given to the appellant of the proposal of black listing the appellant
It was contended on behalf of the State Government that there was no requirement in the rule of giving any prior notice before black listing any person
In so far as the contention that there is no requirement specifically of giving any notice is concerned the respondent is right
But it is an implied principle of the rule of law that any order having civil consequence should be passed only after following the PG NO 869 principles of natural justice
It has to be realised that black listing any person in respect of business ventures has civil consequence for the future business of the person concerned in any event
Even if the rules do not express so it is an elementary principle of natural justice that parties affected by any order should have right of being heard and making representations against the order
In that view of the matter the last portion of the order in so far as it directs black listing of the appellant in respect of future contracts cannot be sustained in law
In the premises that portion of the order directing that the appellant be placed in the black list in respect of future contracts under the Collector is set aside
So far as the cancellation of the bid of the appellant is concerned that is not affected
This order will however not prevent the State Government or the appropriate authorities from taking any future steps for blacklisting the appellant if the Government is so entitled to do so in accordance with law ie giving the appellant due notice and an opportunity of making representation
After hearing the appellant the State Government will be at liberty to pass any order in accordance with law indicating the reasons therefor
We however make it quite clear that we are not expressing any opinion on the correctness or otherwise of the allegations made against the appellant
The appeal is thus disposed of
Appeal disposed of


Summary:
The appellant has bid in an auction of Beni Country Liquor Shop in the District of Samastipur and was given the shop being the highest bidder but he failed to deposit the bid money in time
The Collector Samastipur by an order cancelled the bid and black listed the appellant
He then moved the High Court against the order of the Collector
The High Court upheld the order of the Collector
The appellant appealed to this Court by special leave
Disposing of the appeal the Court HELD 1
It is an implied principle of the rule of law that any order having civil consequences should be passed only after following the principles of natural justice
Black listing any person in respect of business ventures has civil consequences for the future business of the person concerned in any event
868H 869A 2
Even if the rules do not express so it is an elementary principle of natural justice that parties affected by any order should have right of being heard and making representations against the order
869B In the instant case that portion of the order directing that the appellant be placed in the black list in respect of future contracts under the Collector is set aside
So far as the cancellation of the bid of the appellant is concerned that is not affected
869B C