9911796707
TMI Blog2017 (7) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... pose-which is for revocation of licence. Revocation of licence is contemplated under subsection (8)(b) if the licencee body contravenes provision of sub-section (8)(a) namely that it alters the provisions of its Memorandum with respect to its objects without prior permission of the Central Government. This being so, when sub-section (8)(b) also empowers the Central Government to revoke the licence, the requirement of notice and opportunity of being heard as per the Proviso to sub-section (7) has to also apply for an action under Section 25(8)(b) of the Act. Viewed from any standpoint in the context of requirement of complying with the natural justice and principles of audi alteram partem, the impugned order is unsustainable in law. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility without addition of word limited/private limited, subject to the conditions stated in the order. Thereafter the petitioner was given certificate of incorporation on 14th June, 2006. 3.1 It is the say of the petitioner that after grant of licence on 05th April, 2006, it did not undertake any activity. The petitioner came to be awarded works relating to supply of water to the members of the society in the GIDC Industrial Estate in May, 2007. It is the case of the petitioner that notice dated 28th June, 2007 referred to about some complaints against the company, but copies of any such alleged complaints were not provided. On 06th July, 2007, the petitioner sent a reply to the notice pointing out inter alia that it had not started an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oved to the satisfaction of the Central Government that an association satisfies the conditions in subsections (1) to (3), the Central Government, may by licence, authorised the company by resolution to change its name including or consisting of omission of word 'Limited' or words 'Private Limited'. Sub-section (4) provides that a firm may be a member of any association or company licenced under this Section, but on the dissolution of the firm its membership of association or company shall cease. Sub-section (5) says that a licence may be granted by the Central Government on such condition and subject to such Regulations as it thinks fit. It further provides that those conditions and regulations will be binding to the licenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the alteration proposed in the provisions of the memorandum of a body under this sub-section is with respect to the objects of the body so far as may be required to enable it to do any of the things specified in clauses (a) to (g) of sub-section (1) of section 17, the provisions of this sub-section shall be in addition to, and not in derogation of, the provisions of that section. 5.2 Sub-section (7) provides for power of the Central Government to revoke licence at any time, is appended with a Proviso which, in express terms, provide that before a licence could be revoked, the Central Government shall give notice of its intention to revoke the licence in writing to the body and thereafter shall afford an opportunity of being heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Central Government to revoke the licence, the requirement of notice and opportunity of being heard as per the Proviso to sub-section (7) has to also apply for an action under Section 25(8)(b) of the Act. 5.4 It is trite principle that when any action or decision entails civil consequences against a person, the need in law for compliance of natural justice and offering right to be heard arises. The connotation 'civil consequence' is not confined to adverse pecuniary effect or monetary loss. A loss or detriment to proprietary right or any right even having socio-economic content is also comprehended within the concept of 'civil consequences'. Right which is realm of commercial activity by a person is also to be encapsul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for an opportunity of being heard, principles of natural justice must be read into it. The instances where the Supreme Court read into the provision, the natural justice, are several. The basic postulate being entailment of adverse or civil consequence by the action. In Sahara India (Firm), Lucknow v Commissioner of Income Tax, Central-I [(2008) 14 SCC 151] the Supreme Court with reference to Section 142(2-A) of the Income-tax Act highlighted the well settled principles that an order entailing civil consequences would require observance of predecisional hearing eventhough the said provision did not provide for observance of natural justice and the Apex Court read into the provision. 6.2 Similarly, in S.L. Kapoor v Jagmohan [(1980) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
