CASE BRIEF:

In this case, an “impugned banning order” was passed on 08.08.2022 by Respondent no. 4,
that was premised on a show cause notice. The Writ petition filed in this case was due to this
arbitrary and unreasoned banning order, as it is in violation of article 14 and 19 (1) (g) of the
constitution of India. Respondent No.3 had also sent a show cause notice to the petitioner on
12.08.2020, seeking to rely on Clause 16 of the Contract executed. Here the clause 16
mentioned in the contract did not provide for banning Petitioner No.1 from future business
dealings with Respondent No.1.
The show cause notice that was sent to the petitioner was silent on the fact of an earlier
Complaint and FIR filed by Respondent No.2 against Petitioner No.1. evidently on account of
Respondent No.3 being aware of the abortive nature of such criminal proceedings. Another
important thing is that Respondent No.4 having never corresponded with the Petitioners,
passed the Impugned Banning Order, while making no reference to inter-alia the Closure
Report, while continuing to rely on the alleged misrepresentation, fraud & forgery committed
by Petitioner No.1. Banning Petitioner No.1 from future business dealings with Respondent
No.1, was beyond the pale of the Contract executed between the parties.