Full Judgment
Pasayat, J.
1. Grievance of the petitioner which has brought him before this Court is that he applied for renewal of licence granted to him under the P.W.D. Contractors' Registration Rules, 1967 (in short, the 'Rules') which has not been disposed of.
2. A brief reference to the factual aspects as portrayed by petitioner would suffice:
Petitioner was granted a certificate of registration in terms of Rule 6 of the Rules in the year 1977. The same was being renewed from time to time. He applied for renewal of his certificate of registration to act as a 'B' class contractor on 25-2-1995 for the period 1995-96 to 1997-98. The certificate was not renewed, and on the other hand he was asked torefund certain amounts allegedly due from him. Over this controversy correspondence was exchanged. Petitioner disputed his liability to pay anything as demanded by the authorities. Since he was not able to execute any contract work in the absence of a licence, he has moved this Court for a direction to the concerned authorities, more particularly, Chief Engineer (Roads), Orissa and Executive Engineer, Cuttack (R & B) Division, opp. parties 2 and 3 respectively to effect renewal. It is submitted that renewal is the rule, and there can be exception for good and sufficient reasons, which do not exist.
3. In the counter-affidavit filed by the opposite parties reference has been made to Rule 11 of the Rules to contend that on account of serious contraventions and non-execution of works, renewal was not effected. It is pointed out that certain works entrusted to the petitioner were not completed in time leading to rescission thereof.
4. In order to appreciate rival submissions, it is necessary to take note of a few provisions which throw light on it. Rule 6 deals with grant of certificate of registration, and Rule 8 deals with period of validity of a licence. Rule 9 which is pivotal provision around which petitioner's case revolves reads as follows:
'9. Every registered contractor who wishes to renew his certificate of registration shall apply to the registering authority not less than one month before the expiry date of the certificate in Form 'C' accompanied with the Treasury Challan showing deposit of the following fees:--
(i) Special Class Rs. 100.00.(ii) 'A' Class Rs. 50.00.(iii) 'B' Class Rs. 25.00.(iv) 'C' Class Rs. 15.00.(v) 'D' Class Rs. 5.00. Renewals may be granted by endorsement on the certificate of registration as a matter of course unless any information has been received necessitating an enquiry in which case the Registering Authority may after such enquiry refuse renewal for reasons to be recorded in writing.
The Registering Authority shall not renew the certificate of registration of 'A' and Special Class contractors if they have not employed technical staff as prescribed in Rule 7-A.'
As a matter of fact Rule 11, has nothing to do with the renewal of certificate of registration. A bare reading of Rule 9 leaves no manner of doubt that renewals are to be granted by endorsement on the certificate of registration, as a matter of course unless any information has been received necessitating an enquiry, in which registering authority may, after enquiry refuse renewal for reasons to be recorded in writing. Accepted position is that no enquiry in the manner required under Rule 9 was conducted and the reasons for non-renewal were not recorded.
5. According to learned counsel for State in view of serious remisses noticed by the authorities, non-renewal is in order. If there are any remisses, they can be dealt with appropriately. They may even have some role while an enquiry is conducted as contemplated under Rule 9. In the present case, no enquiry was conducted, as indicated above, keeping Rule 9 in view. For refusing renewal, two conditions are necessary; (a) an enquiry on the basis of information received, necessitating it and (b) recording of reasons in writing. The latter requirement is in line with principles of natural justice. Reasons provide foundation for a conclusion. Without reasons it is not possible to know whether there was application of mind. Reason is the soul of law (Cessate Rationelegis Cessat Ipsalex). The principle of natural justice has assumed a wider horizon these days. The right to reason is therefore an indispensable part of sound judicial review. Reason pre-supposes logic. Reasons are the links between the materials on which certain conclusions are based and the actual conclusion. The giving of reasons is one of the fundamental of good administration. [Per Lord Denning in Breen v. Amalgamated Engg. Union, (1971) 1 All ER 1148]. Recording of reason is the only visible safeguard against possible injustice and arbitrariness. Reasons if given substitute objectivity for subjectivity. Reasons if recorded indicateif the adjudicatory or administrative authority has acted bona fide or otherwise.
6. In the circumstances, we direct the opposite parties 2 and 3 to deal with petitioner's application for renewal. If according to them any enquiry in terms of Rule 9 is warranted, the same has to be done expeditiously, preferably within two months from today after due notice and opportunity to the petitioner.
The writ application is allowed to the extent indicated above. No costs.
A. Deb. J.
7. I agree.