Natural justice and pre-decisional hearing claim failed where admitted misconduct made further hearing a useless formality.

A claim for ad interim injunction based on alleged breach of natural justice failed where the plaintiff had, in its own representation, admitted that an employee made unauthorised access to the Exchange's surveillance terminal and had been suspended. The Court treated that conduct as misconduct affecting trading integrity and fairness, and held that the repeated representations already gave the plaintiff an effective chance to explain its position. A further pre-decisional personal hearing was therefore a useless formality. The Court also noted that proportionality of punishment could not be examined at the interlocutory stage, and found no prima facie case for interim relief.

---

---

Issues: Whether the plaintiff was entitled to ad interim injunction on the ground that the suspension of membership was passed in breach of natural justice, particularly for want of a pre-decisional hearing.

Analysis: The plaintiff had admitted, in its own representation, that one of its employees had made unauthorised access to the Exchange's surveillance terminal and had been suspended by the plaintiff. The impugned conduct was treated as misconduct affecting the integrity and fairness of trading. Although the bye-laws did not expressly prescribe a hearing procedure, the requirement of audi alteram partem was examined in the light of the admitted facts and the repeated representations made by the plaintiff, which did not dispute the core accusation. On those facts, the Court held that the plaintiff had already been afforded an effective opportunity to explain its stand and that a further personal hearing would have been a useless formality. The Court also observed that proportionality of punishment could not be examined in the interlocutory proceeding and that the plaintiff had not established a prima facie case for interim relief.

Conclusion: The plea of violation of natural justice failed and the application for ad interim injunction was rejected.

---