Blacklisting and natural justice: notice, reply, and recorded reasons were held sufficient without supplying every supporting document.

Blacklisting of an approved drug-supplying contractor was upheld where the contractual relationship was not governed by any statutory rule requiring disclosure of all underlying material with the show-cause notice. The governing standard was observance of audi alteram partem, and that requirement was satisfied because notice was issued, the reply was submitted, and it was considered by the State Government. Natural justice did not require supply of every supporting document. The order was also not invalid for want of reasons, since the record showed elaborate reasons recorded by the State Government and the High Court found that the order summary reflected them.

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Issues: Whether the blacklisting of an approved contractor supplying drugs to the State was liable to be set aside for want of supply of the material relied upon in the show-cause notice, and whether the order was invalid for absence of reasons.

Analysis: The contractual relationship was not governed by any statutory rule requiring supply of all underlying material before blacklisting. In the absence of such a rule, the governing requirement was observance of audi alteram partem. The notice to show cause was issued, the reply was submitted, and it was considered by the State Government. The requirement of natural justice did not extend to furnishing every supporting material along with the notice. On the question of reasons, the record showed that elaborate reasons had been recorded by the State Government, and the High Court found that the summary in the order reflected those reasons.

Conclusion: The blacklisting order was not vitiated by breach of natural justice or by absence of reasons.

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