Adverse Order Cannot Be Inflicted Without a Chance To Be Heard - Synopsis
Parul Madaan 7 Jan 2020
Adverse Order Cannot Be Inflicted Without a Chance To Be Heard 
M/S Daffodills Pharmaceuticals vs The State Of Uttar Pradesh
Civil Appeal No. 9417 Of 2019


The appellant, a pharmaceutical supplier, is aggrieved by a decision of the Allahabad High Court, rejecting its challenge to an order issued by the Principal Secretary, Government of U.P. to its Medical and Health Department, directing it to stop local purchase from the appellant for its involvement in a criminal case.

Daffodills argued that the case was against one Mr Surender Chaudhary of a past director who has stopped having any relation from complaining of arbitrary action on various grounds. However, it was argued that the order not to procure amounted to blacklisting and was made without warning or pre-judgmental hearing and impugned decision incorrect because a major factor has not been taken into account by the High Court. Surender Chaudhary resigned as manager. His presence in the criminal case could therefore not have had adverse effects on the appellant. In fact, the High Court made an error in disregarding its binding rulings on the grounds that it had an unwarranted and arbitrarily action against the corporation because of the conduct and omissions of its former Director.

On behalf of the State, it was argued that the order made thereby directing health officials to avoid procurement was not a debarring order. Surender Chaudhary was advised to serve as Daffodills Manager, for whom the CBI charged him with various offenses. These included fictitious supply accounts to different people to receive procurement orders from the state. Clause 14 concerned clearly stated that the case against the company, board of directors or individual managers is a "criminal case."

The supreme Court observed that the State used unilateral action against Daffodills, the impugned judgment explicitly overlooks the flagrant violation of the standards of natural justice by inflicting an adverse order, without being afforded a minimum opportunity of hearing, and prior intimation of such a move. Thus, the impugned order of the High Court is hereby set aside.


C2RMTo Know More

Something Awesome Is In The Work









Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail