Natural justice governs refusal of eligibility certificates where civil consequences arise and hearing must precede any adverse order.

Refusal of an eligibility certificate under a statutory exemption scheme has civil consequences and must comply with natural justice. The affected party must receive notice of the case to be met and a reasonable opportunity of hearing before any adverse order is made; an order passed without that opportunity is vitiated. The requirement of fairness is also supported by Article 14's prohibition on arbitrariness, so a denial of hearing renders the refusal order liable to be quashed.

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Issues: Whether the impugned order rejecting the petitioner's claim for eligibility certificate was liable to be quashed for want of opportunity of hearing and violation of natural justice.

Analysis: The grant or refusal of an eligibility certificate under the statutory exemption scheme involved civil consequences and, therefore, had to comply with the principles of natural justice. The essential requirement was that the affected party must be put on notice of the case it had to meet and be afforded a reasonable opportunity of hearing before any adverse decision was taken. An order passed without such opportunity is vitiated, and the requirement of fairness is reinforced by the constitutional mandate against arbitrariness under Article 14 of the Constitution of India.

Conclusion: The impugned order was liable to be quashed for breach of natural justice and denial of hearing.

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