Natural justice requires disclosure of all grounds in notice before cancelling dealer registration; fresh action must follow due process.

Cancellation of dealers' registration was held unsustainable where the final orders relied on a ground not stated in the show-cause notice and the petitioners were not given an effective opportunity to answer the case against them. The court emphasised that, where business rights are affected, all material grounds must be disclosed in advance and the affected party's explanation must be fairly considered before adverse action is taken. The existence of an alternative remedy did not prevent writ relief because the challenge was based on a threshold breach of natural justice. The cancellation orders were therefore liable to be set aside, with liberty to proceed afresh in accordance with law after due process.

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Issues: Whether the orders cancelling the dealers' registration were sustainable when the grounds in the show-cause notice and the grounds in the final orders differed and the petitioners were not given an effective opportunity to meet the case against them.

Analysis: The cancellation was founded on alleged tax evasion and revenue loss, but the impugned orders also relied on an additional ground relating to non-filing of extracts in respect of declaration forms, which had not been put to the petitioners in the notice. The petitioners' explanations were not properly considered before the adverse orders were passed. In matters affecting the right to carry on business, the person affected must be informed of the material grounds in advance so that an effective reply can be made. The availability of an alternative remedy did not bar relief because the challenge went to a breach of natural justice at the threshold.

Conclusion: The cancellation orders were vitiated for breach of the principles of natural justice and were liable to be set aside.

Final Conclusion: The writ petitions succeeded, and the authority was left free to proceed afresh in accordance with law after following due process.

Ratio Decidendi: An order affecting civil or business rights is invalid if it introduces grounds not disclosed in the show-cause notice and is passed without a fair opportunity of hearing; violation of natural justice can be corrected under writ jurisdiction despite the existence of an alternative remedy.

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