2015 (10) TMI 1723 - HC - Customs

Issuance of writ of certiorari calling for records relating to impugned order passed by respondent and quash the same - Petitioner contends that impugned order is in violation of principles of natural justice and without issuing any SCN and without holding any enquiry - Held that - Administrative orders which affects the rights of a party can be passed only by following the principles of natural justice - Liberty granted to Respondent to pass fresh order giving an opportunity to petitioner of being heard - Impugned order set aside - Decision made in case of A.M.Ahamed and Co .vs. Commissioner of Customs, Tuticorin 2013 (6) TMI 91 - MADRAS HIGH COURT followed - Decided in favour of petitioner

Summary

Issues:
Violation of principles of natural justice in passing the impugned order without a show-cause notice and enquiry.

Analysis:
The Writ Petition was filed under Article 226 of the Constitution of India seeking a Writ of Certiorari to challenge the order passed by the third respondent. The petitioner contended that the impugned order was in violation of principles of natural justice as no show-cause notice was issued and no enquiry was conducted. The court noted that in similar circumstances, previous judgments had set aside impugned orders. Reference was made to the case law of A.M.Ahamed and Co. vs. Commissioner of Customs, Tuticorin to establish the relevance of natural justice principles. The court found that the impugned order was final and passed without proper jurisdiction under Regulation 22.

The court emphasized that administrative orders affecting parties' rights must adhere to natural justice principles. It was observed that the impugned order under Regulation 21 was arbitrary and unsustainable in law due to the violation of natural justice principles. The court referred to the case of Shipping and Clearing (Agents) Private Limited vs. Union of India to reinforce the importance of natural justice in fair adjudication. The judgment highlighted that the party must be informed of allegations before any penal order is made to prevent miscarriage of justice.

Consequently, the court allowed the Writ Petition, setting aside the impugned order. However, the respondent was granted liberty to pass a fresh order in accordance with the law after providing an opportunity for the petitioner to be heard. The court stressed the need for fair adjudication rooted in natural justice principles to ensure justice and prevent arbitrary actions. The matter was remanded back to the respondents for reconsideration following the principles laid down in relevant judgments, with a specific directive to issue a show-cause notice and afford an opportunity of hearing to the concerned parties.