Natural justice in property recovery proceedings: auction notice quashed for failure to give the affected owner a prior hearing.

A recovery notice proposing attachment and auction of immovable properties for sales tax dues could not stand because the affected owner was not given prior notice or an opportunity of hearing. The High Court held that proceeding against property without affording a hearing breached the principles of natural justice, and it declined to examine the underlying merits of whether the properties could ultimately be used for recovery. The notification was therefore quashed and set aside, while the department was given liberty to initiate fresh proceedings in accordance with law after giving full opportunity of hearing.

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Issues: Whether the notification issued under section 165 of the Bombay Land Revenue Code, 1879, could be quashed for auctioning the petitioner's properties towards sales tax dues without affording him an opportunity of hearing.

Analysis: The petition challenged the attachment and proposed auction of immovable properties standing in the petitioner's name for recovery of sales tax dues of another entity. The decisive circumstance was that the properties were sought to be proceeded against without prior notice or hearing to the petitioner, who claimed ownership over them. The absence of an opportunity to be heard amounted to a breach of the principles of natural justice, and the Court declined to examine the merits of whether the properties could ultimately be proceeded against for the dues in question.

Conclusion: The notification was quashed and set aside for breach of natural justice, with liberty to the department to proceed afresh in accordance with law after giving the petitioner full opportunity of hearing.

Final Conclusion: The impugned recovery action could not stand because it was taken without observing fair hearing requirements, though the department was left free to initiate fresh proceedings lawfully.

Ratio Decidendi: Where immovable property is proposed to be attached or auctioned for recovery, the affected person must be given a prior opportunity of hearing; failure to do so renders the action invalid for breach of natural justice.

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