Natural justice requires prior notice before serious adverse findings; unilateral order against the official liquidator was set aside.

An order recording a serious adverse finding against an official liquidator, with civil and reputational consequences, could not be sustained because it was made without prior notice or an opportunity to be heard. The court treated prior hearing as a settled requirement of natural justice flowing from Article 14, and held that neither the circumstances nor a post-decisional hearing justified departure from that rule. The adverse finding and the impugned order were set aside for breach of natural justice, while the direction requiring an affidavit from the Regional Director was left undisturbed.

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Issues: Whether an adverse finding that the official liquidator misused his office, recorded without notice or hearing, could be sustained in view of the principles of natural justice.

Analysis: The impugned order contained a serious adverse remark affecting the appellant's civil rights and reputation. It was made without notice to the appellant and without affording any opportunity to explain his conduct. The circumstances did not justify dispensing with prior hearing, nor was this a case where post-decisional hearing could cure the defect. The obligation to appraise the affected person before taking adverse action was treated as a settled requirement flowing from Article 14.

Conclusion: The adverse finding and the impugned order could not be sustained and were set aside for breach of natural justice.

Final Conclusion: The appeal succeeded and the challenged order was annulled, while the direction calling for an affidavit from the Regional Director was left undisturbed.

Ratio Decidendi: An order that casts serious adverse civil consequences cannot be made against a person without prior notice and opportunity of hearing, except in exceptional cases justifying departure from that rule.

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