Natural justice in import licence cancellation failed where no specific ground was disclosed and no effective hearing was given.

Cancellation of import licences under clause 10 of the Imports (Control) Order, 1955 was set aside because the notice failed to disclose the specific ground under clause 9 on which action was proposed. Later correspondence did not cure that defect, as it mainly concerned possible suspension of future licences under clause 8 and did not give an effective opportunity to meet the cancellation case. The importer had also sought the relevant report and documents before showing cause. The requirement of reasonable opportunity, reflecting natural justice, was not satisfied, so the cancellation orders were bad in law and quashed.

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Issues: Whether the cancellation of the import licences was invalid for want of a reasonable opportunity of being heard under clause 10 of the Imports (Control) Order, 1955.

Analysis: The notice proposing cancellation did not disclose the specific ground under clause 9 on which action was intended, and the later correspondence did not cure that defect. The later letter relied upon by the authorities primarily related to proposed suspension of future licences under clause 8, while the petitioner had in any event asked for the relevant report and documents before showing cause. No effective opportunity was afforded before the cancellation orders were passed, and the requirement of clause 10, embodying the principles of natural justice, was not satisfied.

Conclusion: The cancellation of the licences was bad in law and was liable to be quashed, in favour of the petitioner.

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