As per case facts, petitioner-Mills were found with excess paddy during a surprise check, leading to the cancellation of their paddy allotment and blacklisting for three years. An initial blacklisting ... Order was set aside by the High Court for lack of due process. After fresh show cause notices and replies, the mills were again blacklisted for three years, a decision upheld by two appellate authorities. The petitioner-Mills then approached the High Court challenging the blacklisting, specifically the three-year period. The question arose whether the three-year blacklisting was a proportionate penalty for violating the Custom Milling Policy, especially when show cause notices didn't explicitly mention the proposed penalty. Finally, the High Court upheld the finding of violation and the blacklisting but, considering proportionality and the period already suffered, reduced the blacklisting term from three years to 2.5 years from the date of the original blacklisting Order.