Prior hearing required before changing service conditions; a later hearing cannot cure breach of natural justice.

An administrative circular that prejudicially altered employees' existing service conditions was held to require prior notice and hearing as a condition of fairness under natural justice. The court treated the term "duly" in section 11(2) as excluding arbitrary action and requiring any change in service conditions to be made in accordance with law and fairness. Because the employees were not heard before the circular was issued, the action involved civil consequences and could not be justified by a later hearing. A post-decisional hearing was held insufficient, as it could not cure the breach of natural justice or the arbitrariness under Article 14.

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Issues: Whether the impugned circular altering employees' terms and conditions of service could be sustained without affording a prior opportunity of hearing, and whether a post-decisional hearing cured the defect.

Analysis: The circular had the effect of prejudicially altering existing service conditions and therefore attracted the requirement of fairness under the principles of natural justice. The expression "duly" in section 11(2) was treated as excluding arbitrary action and requiring alteration of service conditions in accordance with law and fairness. Since the employees were not heard before the circular was issued, the action involved civil consequences and could not be upheld merely because a hearing was offered later. A post-decisional hearing was held insufficient because the authority would already have proceeded with a closed mind, making the representation ineffective as a safeguard against arbitrariness under Article 14.

Conclusion: The impugned circular was invalid for breach of natural justice and arbitrariness, and the challenge failed against the employees.

Final Conclusion: The appeals challenging quashing of the circular were without merit and were dismissed, leaving the employees' relief undisturbed.

Ratio Decidendi: Where an administrative order prejudicially alters existing service conditions, prior notice and hearing are required as a condition precedent, and a later hearing does not cure the breach of natural justice or arbitrariness.

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