Immediate suspension of Custom House Agent licence requires prima facie material and minimum natural justice before action can stand.

Immediate suspension of a Custom House Agent licence under Regulation 21(2) is justified only where there is a prima facie basis, supported by sufficient material, showing that urgent action is necessary because continuation of the licence holder would be undesirable. The power cannot be used mechanically or without minimum fairness. In the absence of a show cause notice or hearing, and without adequate material to support urgent suspension, the action was held unsustainable and set aside. The stated principle is that even summary suspension under the regulation remains subject to natural justice requirements and must be based on concrete, immediate grounds.

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Issues: Whether the suspension of the Custom House Agent licence under Regulation 21(2) of the Custom House Agents Licensing Regulation, 1984 was sustainable in the absence of sufficient material and fair hearing.

Analysis: Regulation 21(2) permits immediate suspension only where the conduct complained of is of such seriousness that urgent action is justified. The power cannot be exercised mechanically or without a prima facie basis showing that continuation of the licence holder would be undesirable. The decision also emphasised that, even in such cases, minimal fairness requires an opportunity of hearing, and the absence of a show cause notice or hearing, coupled with the lack of adequate material supporting immediate suspension, rendered the action unsustainable.

Conclusion: The suspension was not sustainable and was set aside in favour of the appellant.

Final Conclusion: The order of immediate suspension could not stand because the statutory power was invoked without adequate basis and without observance of fair hearing requirements.

Ratio Decidendi: Exercise of the power of immediate suspension under Regulation 21(2) of the Custom House Agents Licensing Regulation, 1984 requires a prima facie justification supported by sufficient material and compliance with the minimum requirements of natural justice.

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