(Judgment of the Court was delivered by D.MURUGESAN,J) This writ appeal is directed against the order, dated 06.01.2009, dismissing the writ petition in W.P.(MD)No.22 of 2009.
2.The appellant was a registered contractor on the file of the 2nd respondent, the Superintending Engineer, Tamil Nadu Water Supply and Drainage Board, Sivagangai and Ramanathapuram Circle. He was awarded with a contract by the respondents in respect of certain works and a contractual agreement was also entered into. After the completion of the work, when the appellant made his claim, he was served with an order of the 2nd respondent, dated 13.11.2008, which reads as under:
"As per the directions received from the Chief Engineer, TWAD Board, Southern Region, Madurai in the reference 3rd cited, your registration done in this office vide Regn.No.6/2006-07 in Class II as Circle Level is hereby Temporarily Suspended until further orders."
Questioning the said order, the appellant filed the writ petition, which was dismissed on the ground that the 2nd respondent has the power to order such temporary suspension. Hence the present appeal.
3.We have heard the learned counsel appearing for the appellant and the learned counsel appearing for the Respondents Board.
4.As per the Standardised Code for Works Contractors (in short "the Code), maintained by the Respondents Board, registration of contractors and maintaining a list of the approved contractors is provided under Clause 2.1 and 2.2 of the code. Provisions for suspension of business is provided under Clause 4.1 and 4.4, which are relevant for the purpose of disposal of this writ appeal are extracted hereunder:
"4.Suspension of Business:
4.1.Suspension of business may be ordered for an indefinite period where, pending full enquiry into the allegation the competent authority is of the view that it is not desirable that business with the contractor should continue. Such an order may be passed if the competent authority is prima facie of the view that the contractor is guilty of an offence involving moral turpitude in relation to business dealings which if established would result in banning business dealings with the contractor.
....
4.4.The fact of and the reasons for suspension of business shall not be communicated to the contractor concerned but in every case, the competent authority shall record the reasons for suspension of business and also furnish the Head of the department concerned, through the next higher authorities with report indicating the reasons for the suspension of business."
5.According to Mr.Ajmal Khan, learned counsel appearing for the respondents Board, the power conferred on the respondents under Clause 4 of the Code would also be available to the respondents to suspend the registration temporarily and, therefore, the order of the 2nd respondent, dated 13.11.2008, need not be interfered and the learned Single Judge has very rightly dismissed the writ petition.
6.We have considered the above submission. In our opinion, the submission made on behalf of the respondents cannot be accepted for two reasons. Firstly, the order of the Superintending Engineer, impugned in the writ petition, only refers to a direction received from the Chief Engineer of TWAD Board for temporarily suspending the registration of the appellant. That order of the Chief Engineer was not communicated to the appellant. Of course, in terms of Clause 4.4 of the Code, while an order suspending the business of a contractor is made, the reasons for such suspension of business need not be communicated. Even though the reasons need not be communicated, the directions contained in the communication of the Chief Engineer ought to have been communicated to the appellant so that he could have worked out his remedy by questioning the said order.
7.The second and the important reason is whether Clause 4.1 or Clause 4.4 of the Code could be pressed into service for temporarily suspending the registration of a contractor. Clause 2 of the Code, which we have indicated above, relates to registration of contractors. Clause 5 of the Code deals with removal of names of contractors from the approved list by the Registering Authority. Clause 5.2 relates to the power of removal from registration/suspension of business, if the decision for removal from the approved list is taken out, after issuance of a show cause notice. While Clause 5 relates to removal of the names of the approved contractors from the list, after enquiry, which is a final order, Clause 4 relates to suspension of business.
8.In the above background, the next question to be considered is whether the word "business" employed in Clause 4 would also include "registration". In our opinion, both the power for removal from registration and suspension of business are entirely different, as could be seen from Clause 5(2) of the Code. The words "suspension of business" employed in Clause 4, in our opinion, apply only to the works entrusted to the Contractor and not beyond that. As the registration encompasses itself for entering the name of the contractor in the approved list, such entry from the approved list can be removed only after an enquiry and it cannot be by way of any interim arrangement, pending enquiry. From the entire consideration of the above Code, we find no clause providing for a temporary suspension of registration or removal of name of the contractor from the approved list and such power is conferred only in suspension of business. In that view of the matter, the order impugned in the writ petition cannot be sustained.
9.Accordingly, the writ appeal is allowed and the order of the learned Single Judge is set aside and consequently, the order impugned in the writ petition is also set aside and the writ petition is allowed. However, we make it clear that the enquiry, which has been already initiated and has reached almost the final stage, can be finalised by the respondents in terms of the provisions contained in the Code. No order as to costs. Connected M.P.(MD)No.2 of 2009 is closed.
gb To:
1.The Chief Engineer, Southern Region, Tamil Nadu Water Supply and Drainage Board, Madurai.
2.The Superintending Engineer, Sivagangai-Ramanathapuram Circle, Tamil Nadu Water Supply and Drainage Board, Sivagangai.
3.The Executive Engineer, Rural Water Sceme Division, Tamil Nadu Water Supply and Drainage Board, Ramanathapuram.