Natural justice breach in adjudication led to setting aside the order and remand for fresh hearing.

An adjudication order passed without considering a filed reply and on the mistaken assumption that no hearing was attended is vitiated by breach of natural justice. Where the defence is not examined and a reasonable opportunity of personal hearing is not afforded, the proper course is to set aside the order and remand the matter for fresh adjudication. The jurisdictional Commissioner must then decide the case anew after considering the reply and granting a reasonable opportunity of hearing.

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Issues: Whether the impugned order was liable to be set aside for violation of the principles of natural justice, and whether the matter required remand for fresh adjudication after considering the reply and granting hearing.

Analysis: The appellants had filed a reply to the show cause notice and had also sought adjournment of the personal hearing. The order was passed on the erroneous assumption that no reply had been filed and that nobody appeared for hearing. In these circumstances, the adjudication was found to have proceeded in breach of natural justice, since the defence had not been duly considered and a reasonable opportunity of hearing had not been granted.

Conclusion: The impugned order was set aside and the matter was remanded to the jurisdictional Commissioner for fresh decision after considering the reply and granting a reasonable opportunity of hearing.

Final Conclusion: The appeal succeeded on the procedural ground and was disposed of by remand for de novo adjudication.

Ratio Decidendi: An adjudication order passed without considering a filed reply and without affording a reasonable opportunity of hearing is vitiated by breach of natural justice and must be set aside for fresh decision.

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