Mandatory prior notice before penalty: director's penalty failed where the notice was issued only to the company.

Prior written notice to the person proposed to be penalised was treated as a mandatory condition precedent under Section 4L of the Imports and Exports (Control) Act, 1947. A penalty could not be sustained where the notice was addressed only to the company, did not specifically name the director, and did not attribute any specific acts or omissions to him. The defect was held to be a substantive breach of natural justice, and the later appellate hearing could not cure the absence of direct notice and opportunity to respond. The penalty on the petitioner was therefore quashed, with no further relief granted.

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Issues: Whether a penalty could be imposed on a director when no separate show cause notice was issued to him and the notice was addressed only to the company.

Analysis: Section 4L of the Imports and Exports (Control) Act, 1947 required a written notice to the owner or other person concerned before any adjudication imposing penalty. The notice issued here was only to the company, did not specifically address the petitioner, and did not set out specific acts of omission or commission attributed to him. The requirement of notice was treated as mandatory and substantive, not a mere procedural formality. Since the petitioner was never directly put on notice or afforded an opportunity to meet the proposed penalty, the adjudication suffered from a breach of natural justice and the later appellate hearing could not cure the defect.

Conclusion: The penalty imposed on the petitioner could not be sustained and the impugned orders were liable to be set aside to that extent.

Final Conclusion: The writ petition succeeded in part, with the penalty on the petitioner quashed while no other relief was granted.

Ratio Decidendi: Where the statute makes prior written notice to the person concerned a condition precedent to penalty, failure to issue such notice renders the penalty order unsustainable for violation of mandatory natural justice requirements.

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