ORDER AKIL KURESHI, J.:— Petitioner has challenged communication dated 02.07.2015 as at Annexure-N to the petition under which the Executive Engineer, Ahmedabad Road and Building Division refused to renew the registration of the petitioner as Class-AA contractor. Petitioner - Maruti Trading Pvt. Ltd. is a Private Limited company and has been registered with the Government as a contractor for executing public works. Since the term of the registration was to expire, the petitioner applied for renewal thereof. 2. It appears that one of the directors of the petitioner company one Shri Paresh Sheth had entered into a partnership for creating a partnership firm-Yash Enterprise by name. On account of alleged misdeeds of Yash Enterprise in obtaining registration, as a sister concern of the petitioner company, show cause notice dated 31.07.2014 was issued to the petitioner company. The petitioner company thereupon replied to such show cause notice under communication dated 28.08.2014 and denied the allegations. As far as the petitioner is concerned, there was no further communication from the Department. However, when the petitioner applied for renewal, such request came to be rejected by the impugned order, in which a reference is made to an internal proposal dated 11.12.2014 under which penal action is proposed against the petitioner for the alleged irregularities and illegalities committed by Yash Enterprise in obtaining the registration. The proposal was never conveyed to the petitioner. However, a copy thereof is produced by the respondents at Annexure-R2. 3. Learned AGP submitted that the said proposal dated 11.12.2014 is forwarded to the Government for its final decision. He, however, agreed that so far no final decision has been taken. We are of the opinion that the authorities cannot refuse renewal of registration on the premise that proposal for penal action has been made against the petitioner, that too in background of the facts of the present case, when such proposal was made as far as back as on 11.12.2014 without any final decision being taken by the Government. The proposal is yet to be accepted and final order is yet to be passed. If, in the meantime, such proposal is utilized to deny extension of registration to a party, the same would amount to handing down punishment without finality of the issues. A proposal is merely a recommendation. The same has to be processed and final decision would be that of a competent authority, viz. the Government. If, in the meantime, such proposal is utilized to deny extension of registration to a party, the same would amount to handing down punishment without finality of the issues. A proposal is merely a recommendation. The same has to be processed and final decision would be that of a competent authority, viz. the Government. If, ultimately, the same is adverse and penal consequences follow, the petitioner would have a right to question the same in accordance with law. Without completing such gamut, if mere proposal is utilized for denial of extension of registration, the same would act rather harshly. We would have directed consideration of the application of the petitioner for renewal of registration. However, the impugned communication has been made in July 2015. Instead, we direct the Government to take the final decision on the proposal dated 11.12.2014 within a stipulated time and thereafter regulate the petitioner's request for renewal on the basis of such final decision. 4. Under the circumstances, petition is disposed of with following directions:- I. The Government shall take final decision on the communication dated 11.12.2014 as at Annexure-R2 latest by 31.03.2016 II. Once such decision is taken and if it is adverse to the petitioner, it would be open for the petitioner to challenge the same in accordance with law. III. Petitioner's application for renewal shall be considered by the competent authority after the Government takes final decision. For such purpose, the impugned communication dated 02.07.2015 is set aside. It is clarified that this would, however, not mean that the petitioner's registration is automatically renewed pending consideration of the petitioner's application. 5. Direct service is permitted.