Natural justice and statutory penalty limits required quashing of a revisional order and remand for fresh consideration.

A revisional order was vitiated because the petitioner was not given a fair and reasonable opportunity of hearing; the matter was adjourned to an earlier date than sought and the order was passed ex parte despite the representative's appearance. The penalty was also unsustainable because it exceeded the maximum prescribed under the Act, making the imposition contrary to the statutory limit. On these grounds, the impugned revisional order was quashed and the matter remanded for reconsideration after affording the petitioner a proper opportunity to place relevant material on record.

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Issues: (i) Whether the revisional order was vitiated for breach of the principles of natural justice and denial of a fair opportunity of hearing; (ii) whether the penalty imposed was sustainable in law.

Issue (i): Whether the revisional order was vitiated for breach of the principles of natural justice and denial of a fair opportunity of hearing.

Analysis: The petitioner had sought an adjournment to the first week of April, but the matter was adjourned only to 29 March 2001. The record also showed that the petitioner's representative had gone to the authority's office, but the order was passed ex parte. In these circumstances, the opportunity granted was found to be neither fair nor reasonable.

Conclusion: The revisional order was held to be vitiated by breach of natural justice.

Issue (ii): Whether the penalty imposed was sustainable in law.

Analysis: The order reflected a penalty of Rs. 6 lakhs, and the respondents themselves admitted that the penalty exceeded the maximum prescribed under the Act. The imposition of such penalty was therefore found to be unwarranted by the circumstances and contrary to the statutory limit.

Conclusion: The penalty was held to be unsustainable in law.

Final Conclusion: The impugned revisional order could not be sustained and was quashed, with the matter sent back for reconsideration after affording the petitioner a proper opportunity to place the relevant material on record.

Ratio Decidendi: An order passed without granting a fair and reasonable opportunity of hearing, and imposing a penalty beyond the statutory limit, cannot be sustained and is liable to be quashed with remand for fresh decision.

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