Natural justice requires a hearing before discretionary waiver of penalty, unless the statute clearly excludes that safeguard.

Natural justice may be read into a discretionary statutory power unless expressly excluded, and where the decision can affect civil rights or liabilities, audi alteram partem requires a hearing. Applied to the third proviso to section 4M of the Imports and Exports (Control) Act, 1947, the opportunity to be heard was treated as an integral part of considering waiver of penalty. The earlier contrary view was distinguished on facts, and it was reiterated that a judgment is authority only for what it actually decides. A hearing is therefore required before deciding an application for waiver of penalty, unless the statute clearly excludes that safeguard.

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Issues: Whether the third proviso to section 4M of the Imports and Exports (Control) Act, 1947 requires that an opportunity of hearing be given before discretion is exercised to waive penalty.

Analysis: The reference was answered by applying the settled principle that natural justice is not confined to express statutory wording and may be read into a provision unless expressly excluded. The rule of audi alteram partem was treated as the core safeguard where an order may visit civil consequences, and the opportunity to be heard was held to be an integral part of fair procedure in the context of a discretionary decision affecting rights and liabilities. The earlier contrary view was distinguished on facts, and it was reiterated that a judgment is authority only for what it actually decides.

Conclusion: Yes. A hearing is required before deciding an application under the third proviso to section 4M to waive penalty, unless the statute clearly excludes that requirement.

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