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2024 (12) TMI 1102 - HC - CustomsSeeking to challenge an Order-in-Original on the grounds that it violates the principles of natural justice - HELD THAT - There has been a violation of principles of natural justice since there is no justifiable reason for respondent No. 2 not considering the request for adjournment made by the petitioner s advocate on 29 October 2024, requesting for the matter to be kept after 11 November 2024 since the advocate was out of town on account of Diwali vacation. There is no reason given by respondent No. 2 why the said adjournment request could not have been acceded to. This rejection was also not communicated to the petitioner. The resultant action is disproportionate. Another opportunity should have been granted - the interests of justice would be met if such an opportunity is given by requiring the petitioner to pay costs. There has been a violation of the principles of natural justice, and consequently, the impugned order dated 4 November 2024 is required to be quashed and set aside, and the matter is remanded back to the file of respondent No. 2 for giving an opportunity of hearing to the petitioner and after hearing the same pass a reasoned and speaking order - Petition disposed off by way of remand.
Issues: Violation of principles of natural justice in passing an Order-in-Original without considering adjournment request.
In this case, the petitioner, engaged in ship management services, challenged an Order-in-Original issued on 4 November 2024, alleging a misdescription of an imported vessel. The petitioner had filed written submissions and appeared before the adjudicating authority. An e-mail was sent on 29 October 2024, fixing a personal hearing on 30 October 2024. However, the petitioner's advocates requested an adjournment due to Diwali vacations, which was not considered. The respondent passed the impugned order on 4 November 2024, leading to the present petition. The petitioner argued that the failure to consider the adjournment request violated principles of natural justice. The High Court found the rejection of the adjournment request without justification to be a violation of natural justice, and ordered the impugned order to be quashed and remanded the matter back to the adjudicating authority for a fresh hearing. The court also imposed a cost of Rs. 50,000 on the petitioner, to be paid to Tata Memorial Hospital within two weeks, with the remand being subject to the payment of the cost. The High Court held that the failure to consider the adjournment request, made due to valid reasons of the petitioner's advocate being out of town during Diwali vacations, amounted to a violation of natural justice. The court emphasized that the rejection of the adjournment request without providing any reason and not communicating the same to the petitioner was unjustified. The court deemed the action disproportionate and ordered that another opportunity should have been granted to the petitioner to ensure the principles of natural justice were upheld. The court concluded that in the peculiar circumstances of the case, there was a clear violation of the principles of natural justice. As a remedy, the impugned order dated 4 November 2024 was set aside, and the matter was remanded back to the adjudicating authority for a fresh hearing. The respondent was directed to complete the adjudication proceeding by 31 March 2025. Additionally, the court imposed a cost of Rs. 50,000 on the petitioner, to be paid to Tata Memorial Hospital within two weeks. The court made the remand subject to the petitioner paying the imposed cost, ensuring compliance with the order.
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