Quashing Show-Cause Notice Due to Unexplained Delay: Upholding Fair Adjudication 2024 (11) TMI 910 - BOMBAY HIGH COURT - HC

Deciphering Legal Judgments: A Comprehensive Analysis of Judgment of High Court on Inordinate Delay in Adjudication Proceedings Reported as: 2024 (11) TMI 910 - BOMBAY HIGH COURT Introduction This case deals with the challenge to a show-cause notice and adjudication order issued by the Respondent authorities on the grounds of inordinate and unexplained delay, violating the principles of natural justice. The core legal question presented is whether the delay in adjudication proceedings can be considered a violation of natural justice, warranting the quashing of the show-cause notice and adjudication order. Arguments Presented The Petitioner contended that the show-cause notice dated 28 March 2013 and the subsequent adjudication order should be quashed due to the inordinate and unexplained delay in the adjudication proceedings, which violated the principles of natural justice. The Respondents argued that the delay was not intentional and was caused by frequent changes in the adjudicating officers and the need to accommodate requests from the Petitioner's co-noticees. They claimed that the delay was due to their anxiety to avoid any charge of failure of natural justice. Court Discussions and Findings The Court examined the facts of the case, including the timeline of events and the affidavit filed by the Respondents. It noted that the Petitioner had filed an interim reply on 6 September 2013, and several personal hearings were scheduled between October 2014 and May 2023, which the Petitioner attended except for two occasions. The Court considered the Respondents' explanation for the delay, which cited frequent changes in the adjudicating officers and the need to accommodate requests from co-noticees. However, the Court found this explanation unsatisfactory and concluded that the delay was inordinate and unexplained, causing serious prejudice to the Petitioner. The Court relied on its previous decisions in similar cases, such as Coventry Estates Pvt. Ltd. vs. Joint Commissioner CGST and Central Excise Anr. [ 2023 (8) TMI 352 - Bombay High Court ], Paresh H. Mehta vs. The Union of India [ 2024 (10) TMI 1412 - Bombay High Court ], and M/s. Esjaypee Impex Pvt. Ltd. Anr. vs. The Union of India Ors. [ 2024 (11) TMI 622 - Bombay High Court ], where it had quashed show-cause notices and restrained the authorities from proceeding further with the adjudication due to inordinate delay. Analysis and Decision The Court concluded that the inordinate and unexplained delay in the adjudication proceedings violated the principles of natural justice and caused serious prejudice to the Petitioner. Adopting the reasoning from its previous decisions, the Court quashed and set aside the impugned show-cause notice dated 28 March 2013 and restrained the Respondents from taking further steps or proceedings in furtherance of it. Doctrinal Analysis This case reinforces the legal principle that inordinate and unexplained delay in adjudication proceedings can be considered a violation of the principles of natural justice, particularly the right to a fair and timely hearing. The Court emphasized that such delays can cause serious prejudice to the parties involved and undermine the integrity of the adjudication process. The Court's decision is in line with the evolution of the doctrine of natural justice, which recognizes that excessive and unjustified delays can undermine the fairness and reasonableness of administrative proceedings. By quashing the show-cause notice and restraining further proceedings, the Court upheld the Petitioner's right to a fair and timely adjudication process. This case also highlights the importance of providing adequate and reasonable explanations for delays in adjudication proceedings. The Court found the Respondents' explanations, such as frequent changes in adjudicating officers and accommodating requests from co-noticees, insufficient to justify the inordinate delay. Overall, this decision reinforces the principle that administrative authorities must conduct adjudication proceedings in a timely and efficient manner, adhering to the principles of natural justice, and providing reasonable explanations for any delays that may occur. Full Text : 2024 (11) TMI 910 - BOMBAY HIGH COURT